Disclaimer
© 2023 by 180 Degrees Consulting - Delhi Technological University
All Rights Reserved.
This casebook is licensed for personal use and is meant for educational purposes only.
No part of this publication may be reproduced or transmitted in any form or by any means electronic,
recording, photocopy, or any information storage and retrieval system or otherwise without the permission
of the team.
This casebook is not to be sold or used by any means for monetary gains.
First Edition: September 2020
Second Edition: December 2021
Third Edition: April 2023
© 180 Degrees Consulting - Delhi Technological University
Page 1
Index
Content
Level
Content
Page
Level
Page
Message from Hon’ble Vice Chancellor
5
06. All dressed up
Medium
32
Preface: From HOD, Training & Placement
6
07. Just Blinkit!
Medium
33
Foreword
7
08. Goa Surfers
Medium
34
Acknowledgements
8
09. Thriving Tech
Medium
35
The Team
8
10. Shopping Spree
Medium
36
About 180 DC DTU
9
11. Prints Charming
Medium
37
What’s New / How to Use the Casebook
10
12. Noodle King
Medium
38
About Consulting
11
13. Radio Wave Rodeo
Medium
39
About Case Interviews
12
14. Daily Bread
Medium
40
HR Questions
12
15. Gas, Set, Go!
Medium
41
Basic Concepts
14
16. The Fit And The Furious
Medium
43
Guesstimates
23
17. Crow-trastophe
Medium
44
Structure & Approach
24
18. Director’s Cut
Medium
45
01. Stay Cool
Easy
26
19. Mild As May
Medium
46
02. Game On
Easy
27
20. Paytm Karo
Hard
47
03. Atta-boy
Easy
28
21. Uber Rich
Hard
48
04. Fashionista
Easy
29
Medium
30
22. Ex-Static
Hard
50
05. Reel Life
© 180 Degrees Consulting - Delhi Technological University
Page 2
Index
Content
Sector
Level
Content
Page
51
Approach & Structure
52
Framework
Profitability
54
01. Watts Next?
Framework
55
02. Under The Weather
03. Stay On Trend
04. Adventure Awaits
05. Shocking Experience
06. Watch Out
F&B
Easy
57
Pharma
Medium
59
Textile
Medium
61
Services
Medium
62
Transport
Medium
63
Fashion
Hard
65
Market Entry
67
Framework
68
Level
Pricing
Cases and Frameworks
01. N(ice) Cream
Sector
Page
80
81
Energy
Easy
83
02. Need For Seed
Agriculture
Medium
85
03. Hyped-er Loop
Transport
Medium
87
04. Angry Birdies
Real Estate
Hard
89
Growth and Strategy
91
Framework
01. Beerly Buzzed
92
F&B
Easy
93
02. May The Fork Be With You
Hospitality
Easy
95
03. Ride The Bangalore Wave
Real Estate
Medium
97
Media
Medium
99
04. Stream Team
Private Equity
100
01. What’s In Store?
Logistics
Easy
71
Framework
02. No Dirt On Soil
Chemical
Easy
73
01. Steel The Deal
03. Future First
BFSI
Medium
75
04. Cancer Cure
Pharma
Medium
77
01. Don’t Bug Me
E-Commerce
Easy
106
FMCG
Hard
78
02. Paint The World
Technology
Medium
108
05. Love Your Locks!
101
Infra
Hard
Product Based
© 180 Degrees Consulting - Delhi Technological University
104
105
Page 4
Index
Content
Industry Reports
Page No.
Content
Page No.
110
11. Telecommunications
121
01. Edtech
111
12. E-Commerce
122
02. Aviation
112
13. FMCG
123
03. Automobile
113
14. Hospitality and Tourism
124
04. Food Delivery
114
15. IT
125
05. Pharmaceuticals
115
16. Banking
126
06. Oil and Gas
116
17. Transportation
127
07. Steel
117
18. Real Estate and Infrastructure
128
08. Healthcare
118
19. Alternate Energy
129
09. Fintech
119
Appendix
130
10. Cement
120
© 180 Degrees Consulting - Delhi Technological University
Page 3
From the Vice Chancellor’s Desk
“Since its inception 80 years ago, Delhi Technological University has maintained a
trajectory of excellence in education, producing highly skilled and proficient
professionals. Despite the challenges we face today, it is gratifying to witness
students persevering to maximize their potential in the new academic year.
The past academic year has been exemplary for our students, with commendable
performances in diverse fields, including exceptional achievements in national and
international competitions, securing positions in some of the world's finest
organizations, and outstanding results in various exams. As we continue on our path
towards becoming a world-class university through education, innovation, and
research for the service of humanity, we must strive for excellence.
In recent times, there has been a rising trend among students to pursue consulting
and analytics roles during on-campus recruitment drives. This casebook will prove to
be an invaluable resource for students seeking a career in consulting and business
analytics. I commend the team for their unrelenting efforts in creating the Third
Edition of their flagship casebook and for their support of social enterprises
worldwide, driving their impact forward. I wish the students all the best in their
endeavors and hope that they will take the university to even greater heights.”
Prof. JP Saini,
Vice Chancellor, Delhi Technological University
© 180 Degrees Consulting - Delhi Technological University
Page 5
Preface: Head, Training & Placement
“Delhi Technological University has been unwaveringly committed to providing superior
technical education with the objective of nurturing skilled technocrats capable of
excelling in their respective domains. The university has maintained an impressive track
record of placements, with numerous students securing coveted positions in prestigious
organizations. The Training & Placement Department, in collaboration with student
coordinators, has fostered strong partnerships with all recruiters, dedicating themselves
to ensuring a positive and fruitful recruiting experience for both students and
employers, while simultaneously assisting students in identifying opportunities that align
with their interests and competencies.
DTU students possess exceptional talent and often exceed the boundaries of their
academic curriculum to achieve excellence in diverse areas. With top companies and
multinational corporations recruiting both undergraduate and postgraduate students
for a multitude of positions, a centralized repository of resources would prove to be
extremely valuable for students aspiring for such opportunities.
With an overwhelmingly positive response to the previous editions of the Casebook, I
applaud the 180 Degrees Consulting DTU team for taking up the gauntlet and producing
an updated version of the Casebook. I extend my heartfelt wishes to the students for the
upcoming placement season and urge them to continue bringing honor to their alma
mater by achieving exceptional success in their chosen fields.”
Prof. Rajesh Rohilla,
Head, Department of Training & Placement, Delhi Technological University
© 180 Degrees Consulting - Delhi Technological University
Page 6
Foreword
Preparing for placements can be one of the most challenging phases of college life. With myriad emotions of stress, anxiety, excitement, and retrospection, the
placement season can be the biggest test of wits, determination, and perseverance. There is no fixed way to solve consulting cases and guesstimates. A single
case can have hundreds of different approaches. The more you practice, the better you will be at developing your mindset to structure the given problem. To
help you prepare for your placement interviews, we bring to you the third edition of 'Delhi Technological University Casebook' prepared by 180 Degrees
Consulting DTU and Training and Placement Cell, DTU. With the second edition of DTU Casebook, we reached 10000+ inquisitive minds from universities across
the globe as well as from corporates.
Casebook 3.0 offers an extensive variety of cases to prepare you for all sorts of interviews within the non-technical domain. We've added private equity cases
for finance enthusiasts and product-based cases to prepare for product related interviews. Along with this, there is also a section of HR interview questions for
your convenience. While there are abundant resources online, we realized there was a lack of a single consolidated document that outlines a basic overview of
all the major industries. Thus, we have prepared concise one-pager industry reports, incorporating 19 major industries from which cases are generally asked in
a case interview.
The entire team has put in immense amount of efforts over the past 10 months to come up with the DTU Casebook 3.0, and I'm incredibly proud of the
consistency with which every team member has worked. We hope this Casebook continues to serve as a one-stop solution for building your base and makes
you better prepared for the exhilarating world of management consulting. If you have any feedback regarding this edition, please feel free to reach out to us. All
the best for your journey ahead!
N.Krithika
President, 2022-23
© 180 Degrees Consulting - Delhi Technological University
Page 7
Acknowledgements
We’d like to express our heartfelt gratitude to Hon’ble Vice Chancellor Prof. Yogesh Singh, Prof. Rajesh Rohilla, Head, Department of Training &
Placement and Dr. Anil Parihar, Associate Head, Department of Training & Placement, for providing us an opportunity to build and release a
university casebook. We are also thankful to the faculty advisors of 180 Degrees Consulting DTU, Dr. Vikas Gupta & Dr. Sonal Thukral of Delhi School
of Management, for being constant pillars of support through our many endeavours.
We are grateful to all the people who have helped in the development of the casebook by sharing their interview insights and experiences that have
enabled us to put together a comprehensive preparation resource for future batches. We are grateful to the previous team for creating the
comprehensive 2021-22 edition, which served as the perfect stepping stone to build upon. We are also immensely grateful to various go-to resources
that served as an introduction to this field, such as the workshops by Victor Cheng, Case In Point by Marc Cosentino, several B-School casebooks
including those of IIM-A, IIM-B, IIM-C, IIM-Lucknow, FMS Delhi, SRCC and all the compilers before us for serving as inspirations to undertake this
initiative. We would like to thank DTU Studio and DTU Times for providing the photographs used throughout the book.
Any resemblance of a case here to any real-life problem elsewhere is purely coincidental. We have taken utmost care to ensure a book free of errors
and conceptual ambiguities. However, if there are any issues, please do reach out and let us know. We’d love to hear your feedback and review of
the casebook and how we can make it more reader-friendly for the next edition.
Team
Editors
Class of 2023
Class of 2024
Harsh Gupta
Agrima Kumari
Lakshay Sharma
Abhinav Sharma
Khyati Raghav
N.Krithika
Anoushka Das
Prathmesh Sharma
Aditya Singh Mann
Manvi
Chaitanya Sharma
Anukriti Jain
Shubhang Shukla
Ananya
Amardeep Singh
Sarvesh Shaw
Gunjan Arora
Parth Gupta
Ashutosh Kumar
Tanishk Verma
Harsh Mishra
Paulomi Vig
Tanmay Raichandani
© 180 Degrees Consulting - Delhi Technological University
Nimish Makharia
Rath
Rishi Maheshwari
NilayaRiya Singh
Samarth Bhatt
Samarth Jindal
Page 8
About: 180 DC DTU
180 Degrees Consulting is the world’s largest university-based consultancy providing affordable yet high-quality strategic & operational assistance to socially
conscious organizations across the world. It has over 10,000 carefully selected and trained volunteer consultants worldwide, who develop innovative, practical
and sustainable solutions to ensure that organizations can achieve their full potential.
Why are we called 180 Degrees?
Present with 150+ Branches
operating in 35 countries.
Over 3 Million hours of
consulting provided.
“It’s because we work to turn good
organizations into great organizations,
challenges into opportunities, ideas into
reality. We’re focussed on positive
transformation.
Transforming organizations, and – in turn
– transforming lives.”
40,000+ future leaders
trained to date.
3000+ Organisations
assisted to date.
The DTU Branch was established in April 2019 with the vision of filling the opportunity gap between untapped capabilities of top university students and the
unmet needs of social enterprises, while pushing the envelope of knowledge transfer at the undergraduate level.
Within two years of operations, we have successfully completed 14 client projects and our members have won 50+ podium positions at several prestigious case
competitions - at both undergraduate & postgraduate level - across the nation. We’re proud to be a part of an international community of go-getters and
changemakers committed to meaningful social impact.
© 180 Degrees Consulting - Delhi Technological University
Page 9
What’s New ?
The second edition of the Casebook by 180 DC DTU has incorporated the following additions:
●
●
●
●
●
●
Comprehensive explanation about the field of Consulting and the Case Interview process.
Basic concept section to equip the reader with few of the commonly used frameworks.
HR Fit questions typically asked in an interview.
Enhanced transcript layout for a better readability.
Addition of Product Based Cases asked in the Case interview process of Product based firms.
Industry Reports Section containing a detailed analysis of all the major industries relevant for consulting preparation.
How to use this Casebook ?
While reading the Case Book, we suggest the reader to employ the following steps in order to extract maximum learnings from this Case Book:
Step 1: Form a case preparation group with your peers with whom you can carry out your case preparation journey.
Step 2 : Use the interview transcripts to set up a case between 2 people (or groups), and after solving the case, the solution should be looked into to gain a
broader understanding of the approach and areas of improvement. Do not make the mistake of reading the cases in the book on your own. One person can
take on the role of the ‘interviewer’ and the other, the ‘interviewee’. Only the interviewer must go through the case to understand the problem. After this, the
‘interviewer’ gives the case to the ‘interviewee’ who makes an attempt to solve the case.
Step 3 : The reader should maintain a separate notebook/document to take a note of the learnings from each case. If used properly, it can act as a single stop
solution during the days leading to the interviews.
NOTE: It is suggested, not to memorize the frameworks. Frameworks used in specific type of cases are only the guidelines and tools enabling you to think in the right
direction. Do keep a note that they won’t be applicable in all types of cases. Also, the reader should leverage the recommendations, tips, and suggestions to apply
learnings from one case to another.
© 180 Degrees Consulting - Delhi Technological University
Page 10
About Consulting
Consulting means “engaged in the business of giving expert advice to people working in a specific field.” In other words, a consultant is somebody
who gives advice to a specific group of people. They work across a huge range of roles and industries and share their gift of analyzing information
and identifying the best path for each company to take.
Major Consulting Service Areas
Strategy
Consulting
Operations
Consulting
Technology
Consulting
Corporate strategy,
economic policy,
mergers and
acquisitions,
organizational and
functional strategy
form a part of this
area
It consists of
Organisational
Operations, Sales &
Marketing, Supply
Chain, Sourcing &
Procurement, Finance,
Business Process
Management, etc.
Methods
implemented by tech
consultants aim at
improving business
processes, minimizing
costs, and enhancing
technological
opportunities.
© 180 Degrees Consulting - Delhi Technological University
HR
Consulting
HR Technology, talent
management, benefits
and rewards, learning
and development and
organizational change
come under HR
Consulting.
Page 11
What is a Case Interview?
A case interview is a part of the process of recruitment carried out by the consulting firms. In a case interview, the candidate is
provided with a detailed situation, problem or challenge and asked to analyze it and come up with a solution. A case interview
question can be based on a creative business situation your interviewer has experienced in real life, or one fabricated to deduce your
abilities.
Through a case, the interviewer tries to check the candidate for the following qualities:
●
●
●
●
●
●
Communication Skills
Ability to draw essential insights from the given information
Ability to generate a structured solution
Analytical Ability
Quantitative Ability
Impact and Effectiveness
Case Interview Process
General Discussion
Case Statement by
Interviewer
Analysis by
Interviewee
Synthesis of the
Case
© 180 Degrees Consulting - Delhi Technological University
Wrap Up
Page 12
HR Questions you might come across in an Interview
There are a lot of questions which are asked by the consulting firms in addition to the guesstimates and cases in an interview to understand the
personality, fitness for the role, background, ability to work under pressure, leadership qualities etc in a candidate.
Some of the questions that might be asked by the firms are:
●
Introduce yourself/ Walk us through your resume.
●
Tell us about your strengths and cite an example from your life where you showcased these qualities.
●
Tell us about your weaknesses and what are you doing to overcome them?
●
Why are you interested in consulting?
●
Why this company?
●
What do you know about our company?
●
What experience do you have that would be relevant to this role?
●
Tell us in detail about a situation where you showed resourcefulness.
●
Tell us about a time when you showed leadership skills.
●
What is the biggest regret/failure that you have faced?
●
Mention 3 most important values that you ensure to follow. Why are these values important to you.
●
What do you consider to be your most significant professional/academic achievement. Why ?
●
Sometimes, we may find a group of people disagreeing with our beliefs/point of view. Give us an instance where you had to convince a
group of people on your point of view.
●
Three significant events that have shaped my personality.
© 180 Degrees Consulting - Delhi Technological University
Page 13
BASIC CONCEPTS
16
MECE Issue Tree
Mutually exclusive, collectively exhaustive (MECE) issues trees are used to break down complex problems into more manageable
sub-issues.
Example Issue Tree:
Reducing Energy Costs
Reduce energy
consumers
Cut
Consumption
How can the
company
reduce energy
costs by 20%
by the middle
of the next
year, without
compromising
production
quality?
Disconnect
installations
Reduce capacity
level
Increase efficiency
Improve use of
energy
Minimize loss of
energy
Use cheaper
energy
providers
Reduce
costs/unit
Optimize providers’
tariffs
Substitute energy
provider
Use control/time switch systems
Disconnect superfluous energy consumers
Optimize regulating systems
Reduce energy consumers/power
generators
Increase technical efficiency of system parts
Extend/renew technological basis
Intensify recovery (eg. heat exchangers)
Improve insulation
Capture advantages of bundled purchasing
Beat down prices to market level
Contract from regional providers
Contract from national providers
Optimize mix of
energy carriers
© 180 Degrees Consulting - Delhi Technological University
Page 15
16
29
Need For Frameworks
Frameworks are an essential part of case interviews and competitions, as they allow for simplified understanding of the
company or industry and provide a structured approach towards aspects of the problem.
Each case study is different, so it is essential that you choose a framework which is best suited for your problem.
These ease your workflow during the solution generation phase, and aid in the isolation of problem into smaller, more
easily workable parts, and give you a clearer image on the main points.
Detailed in this section are some of the most commonly used frameworks for your easy reference.
FRAMEWORK
WHEN TO USE
SWOT Analysis
Allows a clearer understanding of internal and external factors effect on any decision
PESTLE Analysis
Provides key macro-environmental trends which impact the client’s industry
Porter's 5 Forces
Lists the factors for gauging competitive intensity and industry attractiveness
7P Framework
Allows to review and define the issues that affect the marketing of products or services
McKinsey 7S Framework
Used to understand how various parts of an organization function with one another
BCG Matrix
Used to determine the profitability/returns of a business unit of a company
© 180 Degrees Consulting - Delhi Technological University
Page 16
16
SWOT Analysis
S
T
W
STRENGTHS
Areas where your
organization does
particularly well, or factors
that distinguish you from
your competitors.
Things that your
organization could improve
or work upon. It is extremely
important to be honest
during this exercise.
S
O
THREATS
Anything that can
negatively influence your
company such as shift in
market requirements,
supply chain problems etc.
WEAKNESSES
T
OPPORTUNITIES
Developments in external
conditions (market,
government policy, buying
habits etc) that could help
increase your company’s
competitiveness.
© 180 Degrees Consulting - Delhi Technological University
W
O
Page 17
16
PESTLE Analysis
S
SOCIAL
Widespread belief and attitudes of
the general population. Factors that
have an effect on consumer buying.
ECONOMIC
Economic growth, interest rates,
inflation, disposable income of
consumers, business etc.
POLITICAL
To what degree does the
government intervene/hold sway
regarding your recommendation
T
TECHNOLOGICAL
E
Weconomics
P
L
PESTLE
ANALYSIS
New ways of producing goods/services.
New ways of distributing goods/services.
New ways of communicating with target
markets.
LEGAL
LEGAL
E
Health and safety analysis of your
solution, as well as consumer rights in the
domain of recommendation.
ENVIRONMENTAL
Environmental sustainability of your
recommendation (positive or neutral
preferably)
© 180 Degrees Consulting - Delhi Technological University
Page 18
16
Porter’s 5 Forces
Ability to serve the market
and make a profit
Entrants
Competitive
Dynamics
Supplier
Power
Buyer
Power
Threat of
Substitutes
Legal Regulatory Barrier
Economies of Scale
Cost Advantage
Distribution Channels
Product Differentiation
Industry Growth Rate
Industry Fragmentation
Level of Switching Costs
Motivation to Lower
Prices
Level of Substitutes
Supplier Reputation
Switching costs
Forward Integration
possibility by supplier
Customer Concentration
Level of
Commoditization
Switching costs
Informed buyer
How easily the customer
can switch over to
competing products, or
services and at what
cost
Threat of New
© 180 Degrees Consulting - Delhi Technological University
Page 19
16
7 P Framework
Price
Price of your product vs competitors products.
Price is sometimes considered a proxy for
quality and vice-versa
Place
Where is your good/service
available? How convenient is it to
gain access to your product/service
Process
Processes that will be followed
to ensure quality standards are
met with. (eg. Process Mapping)
Product
“The thing” that fulfills the needs of
the consumer. Attributes of the
product, comparison with
competitor products
PRICE
PLACE
PROMOTION
Promotion
How will your promote your
product/service and make sure it
reaches the target audience?
7 P’s
MARKETING
PHYSICAL
Physical Environment
MIX
PROCESS
ENVIRONMENT
Physical environment can affect customer
satisfaction. (eg. one would prefer to eat at
a clean restaurant, over a dirty one)
PRODUCT
PEOPLE
People
Human connect between your
service/product and the consumer. (eg. the
food may be good, but a rude waitress may
affect return of the customer)
© 180 Degrees Consulting - Delhi Technological University
Page 20
16
McKinsey 7 S
STRATEGY
What is the plan to enhance
your company’s competitive
advantage in the industry?
STRATEGY
SKILLS
Who makes up the majority of
the employees in the company,
and their general capabilities?
SYSTEMS
SKILLS
What is the current procedure,
process, and routine of how a
specific job is done?
STYLE
STAFF
How is the company structured?
Who has the authority to make
the required decisions?
SYSTEMS
SHARED
VALUES
What are the organization’s
core competencies and
distinctive capabilities?
STAFF
STRUCTURE
STRUCTURE
STYLE
What is the typical behaviour
pattern currently exhibited by
groups within the organization?
© 180 Degrees Consulting - Delhi Technological University
Page 21
16
BCG Matrix
HIGH
CASH COWS
Have a high market share, but
the market in which they operate
is a slow-growing market. Cash
cows are the most profitable
brands & should be utilised to
generate huge sums of cash to
support growth of stars.
HIGH
STARS
QUESTION
MARKS
QUESTION MARKS
Low market share in a fast-growing
market. They require the consumption of
large amounts of cash and are susceptible
to incur losses but also have the potential
to become stars by gaining market share
if external factors work in favour of them.
DOGS
LOW
Star brands operate in rapidly
growing industries and maintain
a high market share. They are
cash generators, as well as cash
users, and are a very lucrative
option for a firm to invest in.
MARKET GROWTH
RATE
STARS
LOW
CASH
COWS
DOGS
Hold low market shares as compared to
competitors and operate in a gradual
growing or a declining market. They are
not worth investing in because they
generate low or negative cash returns.
RELATIVE MARKET
SHARE
© 180 Degrees Consulting - Delhi Technological University
Page 22
GUESSTIMATES
Guesstimates: Structure & Approach
‘Guesstimates’ are an interview staple not just for consulting firms, but across industries, to evaluate the candidate’s reasoning acumen. For analytics/consulting
domain companies, market sizing questions are a precursor to the business case problems later in the interview process, which is followed by an HR/fit interview
round in the end.
Any guesstimation problem should be thought of with an open mind. Initiate your approach by asking preliminary questions and stating your assumptions as a
primer and then lay out the structure of your solution. In guesstimates, the primary objective of the interviewer is to observe your logical reasoning process and
general awareness of your surroundings in life. The key is not necessarily to get the right answer, but to show your ability to tackle a problem logically,
approach assumptions sensibly and perform simple back-of-the-envelope calculations quickly.
A four step methodology should be followed to tackle guesstimates:
Ask preliminary questions (even if they
sound silly!), clear out any assumptions
and always let the interviewer know your
overall approach before delving into the
problem solving stage.
CLARIFY
Attempt to break down your approach
into smaller, workable demographic
segments like income, age, geography,
gender etc. This makes your overall
solution easy to explain and holistic.
ANALYSE
Always look at the problem from a
larger perspective. Use everyday
knowledge to make sense of the
information provided in the problem
statement and preliminary questions.
STRUCTURE
CONCLUDE
Try to make sense of your answer mentally
before saying it out loud . If the answer
seems too out-of-scope, re-check your
calculations. Always perform a general
sanity check after giving your final answer.
© 180 Degrees Consulting - Delhi Technological University
Page 24
Guesstimates: Structure & Approach
SOME FUNDAMENTAL CONCEPTS
PROTIPS
➔ The most important aspect of your approach are your assumptions,
which should be reasonable and realistic.
➔ Take well-rounded numbers that are easy to work with for further
calculations and should lie within your assumed range.
(1) The market size for a product is the # products sold in a year, i.e.
the growth in market size (additional demand for new products)
+ the no. required to replace old products.
Market size = Demand due to growth in market size + Replacement Demand
➔ It is always better to think out loud, even when you’re not sure if you’re
going in the right direction, they will help you with course correction if
necessary (but don’t rely on them to do all the heavy lifting).
= (# products in market) x (Growth rate) + (# products in market) / (avg. life
of the product)
➔ Talk through your steps, any assumptions you take into account and
calculations. Avoid awkward silences, and make it an engaging
dialogue.
(2) If the life cycle of a product is Y years on average, then in Y years’ time
each of these products would be replaced by newer ones. Thus the average
replacement demand for any particular year is
(Current # Products/Y).
➔ If you are not sure about a number, say the GDP of New Delhi, just ask
for it. Avoid generating data from thin air based on your hunch.
Avg. Replacement Demand = Current # Products / Avg. Life cycle of product
➔ It’s always good practice to ask your interviewer if they would like you
to perform a sanity check (based on general awareness and common
sense) after coming up with a final number.
(3) In absence of any other information, take the market growth rate as the
GDP growth rate or 10% for simplicity.
➔ Remember that guesstimates, like cases, also involve elements of
creativity and out of the box problem solving.
© 180 Degrees Consulting - Delhi Technological University
Page 25
Stay Cool
G#3
G#1
Calculate the number Of Desert Coolers Sold In Delhi
Clarifying Questions
Approach
Total Population
2 Cr
Should I consider commercial use (offices, events) or
just residential in which time frame
- Only for residential in summers
Should I include tank capacity on the distribution or
should I focus on just the pieces
- No just the pieces sold with standard capacity
# of people
BPL
20% ~ 0.4 Cr
Lower Middle Class
40% ~ 0.8 Cr
Upper Middle Class
30% ~ 0.6 Cr
Upper Class
10% ~ 0.2 Cr
# of households
10 Lakhs
20 Lakhs
15 Lakhs
5 Lakhs
Cooler penetration
0%
40%
20%
10%
Total coolers
0
8 lakh
3 lakh
0.5 lakhs
Assumptions
Assumptions
- Population of Delhi is 2Cr.
- Average Household size = 4 people
- Desert coolers hold 50% share among other
residential coolers; personal, wall mounts etc
- Since Delhi is not a humid state, it has relatively low
preference for coolers in the higher income group and
all of the sales are in summers
- A household replaces the cooler every 10 years
i.e replenishment - 10%
- Market growth ; 10%
Strategy
(1) Segmenting the demographics by income to assign an estimate of number of coolers held per
household
(2) Total desert coolers sold = number of coolers in use
x (growth of market + replenishment rate) x share of
desert coolers
Easy
Number of coolers sold = (Total coolers in use) x (growth rate of market +
replenishment) x (share of desert coolers)
= 11..5 lakh x (10% + 10%) x (50%) = 1,15,000 coolers
© 180 Degrees Consulting - Delhi Technological University
Page26
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Game On
G#3
G#2
Calculate the number Of Active PubG Users in India
Clarifying Questions
Approach
Total Population
135Cr
Should I consider DAU (Daily Active Users),
WAU(Weekly Active Users), MAU (Monthly Active
Users)?
- Consider Daily Active Users only
Internet
inaccessibility
(79Cr)
Should I consider the pre-ban or post-ban scenario?
- Consider pre-ban scenario
Assumptions
Assumptions
Income
segmentation
Upper
(10%)
= 5 cr
Middle
(30%)
= 17 cr
Lower middle
(40%)
= 23 cr
BPL
(20%)
= 11 cr
0-14 years
(30%)
= 13cr
15-24 years
(20%)
= 8 cr
25-34 years
(15%)
= 6 cr
x
Age Segmentation
# of gamers
(20%)
= 4 cr
(80%)
= 2 cr
(30%)
= 2 cr
- Internet Penetration = 40%
- Mobile only: Mobile+PC Gamers= 30:70
- PubG Market Share = 80%
- No. of active users= 70% of total users
Strategy
(1) Estimate no. of gamers, people belonging to
middle class and upper class in urban areas
belonging to the age groups of 0-34 years
(2) Split gamers into mobile only, mobile + PC, and
PC only
(3) Estimate number of PubG users by considering
gamers active on the platform
Easy
Internet
accessibility
(56cr)
Total number of gamers in India = (4+2+2) = 8 cr
Total number of mobile + PC and PC only gamer (70%) = (0.7 x 8 ) = ~6 cr
Total number of PubG users (80%) = 5 cr
Active user base of PubG in India (70%) = 4 cr
© 180 Degrees Consulting - Delhi Technological University
28271
Page
Page
Atta-Boy
G#3
Calculate the amount of Wheat Flour Consumed in India
Clarifying Questions
Should I consider the use of the wheat for direct
consumption or for food making purpose as well?
- Only for direct consumption
Should I keep the scope of the guesstimate be
residential or commercial?
- Keep it residential only
Assumptions
Assumptions
- Population of India is 135 Cr
- Making a roti requires 20 gm of wheat
- Above BPL households have 4 members and below
BPL households have 6 members
- Regions that prefer rice over wheat have wheat once
a day while regions that prefer wheat over rice have it
twice a day
Strategy
(1) Segmenting the demographics on geographical
and economical basis:
Regions where wheat is preferred over rice and
households below poverty line and above poverty line
(2) The total amount of wheat consumed in India in a
month:
Number of households x Quantity of wheat purchased
per month
Easy
Approach
Total Population
135 Cr
%age of population
that prefers either wheat
or rice
Prefer Wheat
(60%)
~80 Cr
Prefer Rice (40%)
~55 Cr
Population above
and below poverty
line
Above BPL (80%)
45 Cr
Below BPL (20%)
10 Cr
Above BPL (80%)
65 Cr
Below BPL (20%)
15 Cr
# of households
10 Cr
2 Cr
15 Cr
3 Cr
# of rotis made
per day
4x4 = 16
6x5 = 30
2x4x4 = 32
2x6x5 = 60
Kilograms of wheat
needed per month
10 Kilograms
18 Kilograms
20 Kilograms
36 Kilograms
Total amount of wheat flour consumed in India =
Number of households x quantity of wheat flour purchased per month
( 10cr x 10kg + 2cr x 18kg + 15cr x 20kg + 3cr x 36kg ) ~ 544 cr kilograms/month
© 180 Degrees Consulting - Delhi Technological University
Page28
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Fashionista
G#4
Calculate the number of people visiting the H&M Store in Connaught Place in a day
Clarifying Questions
Approach
Duration (12 Hours)
Occupancy (200 people)
Is it a weekday or a weekend?
- A weekend
Size of the outlet?
- Assuming large
Number of H&M stores in the nearby locality?
- This is the only outlet of H&M in CP
Assumptions
- Assuming outlet operates from 10 AM to 10 PM = 12
Hours
- Every customer stays at the store for a duration of
30 minutes
- The occupancy of the H&M store is 200 people.
- Peak Hours: 12 PM to 3 PM and 6 PM to 9 PM
Strategy
(1) We’re segmenting the demographic visiting the H&M
store by the division of hours into peak and non-peak
hours.
(2) Every person visiting the H&M store spends at least
30 minutes, at the store.
Easy
Peak Hours
Non-Peak Hours
12 PM - 3PM
6 PM - 9 PM
10 AM - 12 PM
3 PM - 6 PM
9 PM - 10 PM
80% - 160
90% - 180
20% - 40
40% - 80
30% - 60
6*(160) - 960
6*(180) - 1080
4*(40) - 160
6*(80) - 480
2*(60) - 120
Total Number of People visiting H&M store in a day at Connaught Place =
960 + 1080 + 160 + 480 + 120 = 2800
© 180 Degrees Consulting - Delhi Technological University
Page29
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Page
Reel Life
G#3
G#5
I
Calculate the number of reels posted in a day
Clarifying Questions
Approach
First, we’ll calculate the number of people with internet access:
Should I try to include organisational/meme accounts
- Yes
Should I calculate for a day, month or year?
- Go ahead with a day
Assumptions
Assumptions
- Population of the world is 8B 800 cr
- 2/3rd of smartphones have Instagram
- Ages 0-15 and 60+ do not post reels
- Typically 1/10th of posts of people are reels
- 70% of users with less than 1000 followers are people
who do not post at all, and 30% are those who actually
post photos and reels on Instagram
Strategy
(1) Segment world population by extent of
development
(2) Further segment based on internet penetration
(3) Tier instagram users on the basis of age and
percentage users in each age group
(4) Sum up number of active users
Medium
Type of
Country
Percentage of
World’s
Population
Number of
People
Internet
Penetration
Number of
People With
Internet Access
Developed
20%
160 Cr
80%
128 Cr
Developing
50%
400 Cr
40%
160 Cr
UnderDeveloped
30%
240 Cr
10%
24 Cr
This number comes out to be 312 Cr. Of this, roughly 2/3rd of the people have smartphones and Instagram
# of Instagram
Users
Age-wise
tiering
# of active users
200Cr
0-15 ~ 25%
Do Not Post
15-25 ~ 30%
Post Frequently
25-60 ~ 35%
Post Frequency
60+ ~ 10%
Do Not Post
130Cr
© 180 Degrees Consulting - Delhi Technological University
Page30
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I
Reel Life
G#3
G#5
Calculate the number of reels posted in a day
Strategy
130 Cr active users
(1) Segment active users based on number of followers
(2) Calculate number of accounts in each
follower-segment
(3) Calculate posting frequency of users based on number
of followers
(4) Sum up number of reels posted of each category
Follower-wise
tiering
<1K Followers
~ 50%
1K-10K Followers
~ 45%
10K-50K Followers
~4%
50K+ Followers
~1%
# of accounts
65 Cr
58.5 Cr
5.2 Cr
1.3 Cr
1 post in 2 weeks
1/10th of posts
are reels
1 post in 2 days
1/10th of posts
are reels
1 reel/day
5 posts in 1 day
1/20th of posts
are reels
15 Lakhs
292 Lakh
520 Lakh
32 Lakh
70% Do not post
Posting frequency
Number of reels
posted
30% Actually Post
~ 195 Mil
Total number of reels posted = 15 + 292 + 520 + 32 = 860 Lakh reels per day = 8.6 Cr reels per day
Medium
© 180 Degrees Consulting - Delhi Technological University
Page311
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All Dressed Up
G#3
G#6
Calculate the Total Cotton Dressing Gauze Used In India Per Year
Clarifying Questions
Approach
Total Population
135 Cr
Should I consider normal dressing or sterile packs?
- Sterile packs only
Assumptions
Assumptions
- Population of India is 135 Cr
- 70% of the indian population falls under rural and 30%
under urban.
- Each injury requires only one packet of gauze
dressing.
# of people
Rural
70% ~ 95 Cr
Urban
30% ~ 40 Cr
Availability of
healthcare
60% ~ 57 Cr
100% ~ 40 Cr
# of people with
access to
healthcare
# of people
<2 yrs
5% ~ 5 Cr
2-24 yrs
45% ~ 44 Cr
25-45 yrs
25% ~ 24 Cr
45+ yrs
25% ~ 24 Cr
# of people needing
gauze for injuries
10% ~ 0.5 Cr
75% ~ 33 Cr
50% ~ 12 Cr
15% ~ 4 Cr
Frequency of injury
1 per year
5 per year
4 per year
3 per year
Strategy
(1) Segment India’s population into rural and urban
and find the number of people with access to
healthcare
(2) Further segment this population into age groups:
<2yrs, 2-24yrs, 25-45yrs, 45+yrs
(3) Calculate the percentage of injuries needing cotton
gauze, and their frequency per year
(4) Total number of cotton gauze dressing packs used
in India in a year = # of people needing gauze for
injuries x frequency of injury
Medium
97 Cr
# of cotton gauze
used per year
0.5x1 + 33x5 + 12x4 + 4x3
~ 225 Cr
© 180 Degrees Consulting - Delhi Technological University
Page 32
Just Blinkit!
G#3
G#7
Calculate the Number Of Blinkit Deliveries In An Hour
Clarifying Questions
Should I consider weekday or weekend?
- Consider it a weekday
Approach
Number of Blinkit users in Delhi = Population x Grocery delivery app penetration x Blinkit market share
= 2 Cr x ( 10% ) x 20% = 4 Lakh users
Should I consider specific time range like morning,
evening or night?
- Give an average answer including all the hours of the
day
Blinkit Users
4 Lakh
Assumptions
Assumptions
- Population of Delhi is 2Cr
- Hyperlocal app penetration: 10%
- Blinkit market share: 20%
Strategy
(1) Using population calculate the number of grocery
delivery app users in Delhi. By taking the app
penetration and market share of blinkit
(2) Classify users on the basis of order frequency and
calculate avg number of orders per customer per
month.
(3) Calculate avg number of orders daily using avg
number of orders/customer/month. Dividing the
result by 24 will give the number of deliveries/hour
Medium
Order Frequency
Monthly
50% ~ Cr
Bi-Monthly
30% ~ Cr
Weekly
15% ~ Cr
Alternate Days
5% ~ Cr
# of users
10
2 Lakhs
Lakhs
1.2 Lakhs
0.6
5 Lakhs
Lakhs
0.2
5 Lakhs
Lakhs
# of orders/month
10
2 Lakhs
Lakhs
2.4 Lakhs
2.4
5 Lakhs
Lakhs
5
3 Lakhs
Number of deliveries in an hour = Average of number of orders per customer per month / (30 x 24)
= ( 2 + 2.4 + 2.4 + 3 ) Lakh / 720 orders
= 1250 orders per hour
© 180 Degrees Consulting - Delhi Technological University
Page33
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Goa Surfers
G#3
G#8
Calculate the Number Of times scooters are rented in Goa
Clarifying Questions
Approach
Total Number of
Tourists
Should I consider one day, month or year?
- Calculate the annual number
Should I consider all the two wheelers including bikes,
scooters, etc.
- Yes, take account for all two wheelers
Assumptions
Assumptions
- Total number of tourists on a peak month = 2 x
number of tourists in a normal month
- Peak Months: May, June, July, December, January
- Frequency of airplanes in a normal month = 20/day
including both national and international with an
average of 200 persons in a single flight
- Most of the foreigners don’t rent because of driving
license and they buy full packages including transport
- 10% is accounted for present tourists
- Many people also go on solo trips and some are in
groups of odd number, thus they will also rent two
wheelers in solo, therefore 60%
- Average stay of a tourist = 5 days
Strategy
(1) Segmentation of number of tourists into indian and
foreign nationals
(2) % of people renting scooty
(3) Number of scooters required for total people
(4) Adding the final number
Medium
Peak Month
Mode of
transportation
By Air
By Train
Normal Month
By Road
By Air
(60%)
By Train
(30%)
By Road
(10%)
Number of tourists coming by plane on a normal month of day = 200*20 = 4000 = 60% of Total number of tourists
Therefore, Number of tourists (train, road) = (2000, 650)
Total number of tourists on a normal day = 4000 + 2000 + 650 = 6650
Number of tourists on a peak day - 2 x 6650 = ~13000
Total Number of tourists in a year = 30 x (6650 x 7 + 13000 x 5) = 33 lakh + 10% of 33 lakh = 35 lakh
35 lakh
# of people from
India or outside
Domestic
30 lakh ~ 85%
Foreigners
5 Lakh ~ 15%
# of people renting
scooter
75% ~ 22.5 lakh
20% ~ 1 lakh
# of scooters
required for total
people
60% ~ 13.5 lakh
50% ~ 50,000
Total
~14 lakh
Number of times scooters are rented in Goa = 14 lakh/5 = 2.8 lakh
© 180 Degrees Consulting - Delhi Technological University
Page34
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Thriving Tech
G#3
G#9
Calculate the revenue of a Croma Store in Delhi
Clarifying Questions
Approach
Total Population
2 Cr (800k considered)
Should i consider a day or yearly revenue?
- Yearly
Should i consider a specific store location?
- Consider a busy place like shopping mall
Number of electronic stores nearby?
- Consider no stores in radius of 5km
Assumptions
Assumptions
- Population of Delhi is 2Cr.
- Average Household size = 4 people
- Weighted average price of electronics in store = 15,000
Rs (lower middle class), 35,000Rs (upper middle class),
55,000 (upper class)
- Avg purchase frequency of electronic goods = 7yrs
- Market share of croma store = 15%
- Population density - 10000 people per sq. km.
Below Poverty Line
20% ~ 160k
Lower Middle Class
40% ~ 320k
Upper Middle Class
30% ~ 240k
Upper Class
10% ~ 80k
# of
households
40k
80k
60k
20k
# of electronic
units/ household
0
2
6
10
Total units
0
160k
360k
200k
# of people
Strategy
(1) Segmenting the demographics by addressable
population, income, and calculating the number of
electronic units
(2) Getting an estimate of the number of units sold and
expenditure of a store in it’s running
Medium
Total number of units: 0 + 160k + 360k + 200k = 720k
Total number of units sold by croma = 15% of total units = 108K (0.24k, 54k, 30k)
Number of units sold in a particular year = Total units/Avg. Purchase frequency
= 108K/7 ~ 15,400 units (0, 3430, 7710, 4285)
Total Revenue = Number of units x Average price of goods = 0 + 5.14cr + 27cr +
23.55cr = 55.69Cr ~ 56Cr
© 180 Degrees Consulting - Delhi Technological University
Page35
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Shopping Spree
G#3
G#10
Calculate the Number Of Units returned On Myntra Per Day
Clarifying Questions
Approach
Total Population
140 Cr
Should I consider multiple units per order or a single
unit per order?
- Consider single unit per order
Should I consider only apparel or accessories as well?
- Only apparel
BPL
20% ~ 28 Cr
# of People
shopping online
Lower Class
40% ~ 56 Cr
Middle Class
30% ~ 42 Cr
50% ~ 21 Cr
Upper Class
10% ~ 14 Cr
65% ~ 9.1 Cr
Assumptions
Assumptions
- Population of India is 140 Cr.
- People above 55 do not use Myntra
- Market Share of Myntra is 10% in cloth sales/fashion
business
Strategy
(1) Segmenting the demographics by income Below poverty line, Lower class, Middle class and Upper
Class and then by Gender
(2) Further bifurcating into age groups: (15-30), (30-55)
and estimating frequency of online orders per year
(3) Number of Units returned on Myntra per day =
((No. of Online Orders/365) × (return percentage)) ×
(market share)
Medium
Gender
Segregation
Males
50% ~ 11.5 Cr
Females
50% ~ 11.5 Cr
Males
50% ~ 4.5 Cr
Females
50% ~ 4.5 Cr
Age Groups
15-30
30-55
15-30
30-55
15-30
30-55
15-30
30-55
Order
Frequency
(Per year)
4
2
6
3
6
3
8
5
20%
10%
30%
15%
25%
15%
40%
30%
Return Rate
Total Number of Units returned on Myntra per Day =
(3.45cr × 4 × 0.20 + 3cr × 2 × 0.10 + 3.45cr × 6 × 0.30 + 3cr × 3 × 0.15 + 1.3cr × 6 × 0.25 + 1.1cr × 3 × 0.15 +
1.3cr × 8 × 0.40 + 1.1cr × 5 × .30) × (1/365) × (10/100) = 50K units returned / Day
© 180 Degrees Consulting - Delhi Technological University
Page36
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Prints Charming
G#11
Calculate the Number Of Newspapers printed in Delhi in a Day
Clarifying Questions
Approach
Total Area
1500 sq km
Should I consider multiple units per order or a single
unit per order?
- Consider single unit per order
Should i consider newspapers bought in households or
offices too ?
- Consider both newspapers bought for personal and
commercial offices.
Others
15%
Residential
30%
Forest
Agriculture
10%
Roads Network
20%
Commercial
25%
% of area
of Delhi
Assumptions
Assumptions
- Total area of delhi is 1500 sq km
- All newspapers printed are sold
- Number of newspaper bought/ household :
Ultra rich and rich households ~ 2, Middle class and
lower class ~ 1 , Small scale offices and industries ~ 3
and Larged offices ~ 8
Strategy
(1) Segmenting the total area of delhi and further
identifying the areas in which newspapers are bought.
(2) Further bifurcating the residential area percentage
wise into ultra rich, rich, middle class and lower class
and commercial area into small and large scale.
(3) Number of households (or offices) = Total area /
Avg. area per household (office)
(4) Total number of newspapers = Number of
households X number of newspapers bought
Medium
Upper
5%
~ 22.5 sqKm
Avg. area of
household
820 sq. m
27.5 K
households
Upper Middle
10%
~ 52 sqKm
330 sq. m
1.36 L
households
Middle class
60%
~270 sqKm
Lower Class
25%
~112 sqKm
85 sq. m
165 sq. m
16.5 L
households
13.2 L
households
Small Scale
50%
~ 190 sqKM
Large Scale
50%
~190 sqKM
820 sq. m
2.2 L
offices
2500 sq. m
76,000
offices
Total number of newspapers printed = ( 27,500 X 2 + 1,36,000 X 2 + 16,50,000 X 1 + 13,20,000 X 1 +
2,20,000 X 3 + 76,000 X 8 )
= 55,000 + 2.72 lakhs + 16.5 lakhs + 13.2 lakhs + 6.6 lakhs + 6 lakhs
Total number of newspapers printed in a day in Delhi is 45.6 Lakhs
© 180 Degrees Consulting - Delhi Technological University
Page37
#
Page
Noodle King
G#3
G#12
Calculate the amount of cup noodles sold in Delhi every week
Clarifying Questions
Approach
Total Population
2 Cr
Should I consider units sold directly to consumer or to
other businesses as well - Only to consumer
Should I consider the population of Delhi or the people
from other regions working there as well?
- Only Delhi’s population
Below Poverty
Line
20% ~ 0.4 Cr
Middle Class
70% ~ 1.4 Cr
Upper Class
10% ~ 0.2 Cr
Assumptions
Assumptions
- Population of Delhi is 2Cr.
- Average Household size = 4 people
- Cup noodles are purchased only in rare circumstances
- Cup noodles are only preferred by travelers and
students because of convenience.
Strategy
60%
Packet
# of households
(1) Segmenting the demographics by income Below poverty line, Middle class, Upper class to
segregate the units of noodles consumed.
(2) Dividing the form of instant noodles in packet and
cup form
Medium
# frequency of
buying cups every
month
30% Don’t
consume
10% Cup
~ 14 lacs
40%
Packet
50% Don’t
consume
10% Cup
~ 2 lacs
3.5
Lakhs
0.5
Lakhs
3 Cups
2 Cups
Total amount of cup noodles sold in Delhi every week for direct consumption =
Number of households x Cups bought each week = ( 3.5L x 3 + 0.5L x 2)/4 = 2.875
Lakhs cups / week
© 180 Degrees Consulting - Delhi Technological University
Page38
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Radio Wave Rodeo
G#3
G#13
Calculate the Number Of 4G towers in Delhi
Clarifying Questions
Approach
Total Population ~ 2 Cr
Should I consider every provider having different
towers or shared infrastructure?
- Presence of shared Infrastructure can be assumed
Should I consider the population of Delhi or the people
from other regions working there as well?
- Only Delhi’s population
Assumptions
Assumptions
- Population of Delhi is 2Cr.
- For the population density ranges of 0-10, 10-20, 20-30
and >30 thousands/km2 the required numbers of 4G
towers per km2 are 10, 15, 20 , 25 respectively.
- 10% excess capacity exists
- 100% 4G adoption in the national capital
Strategy
(1) Segmenting the demographics by districts, district
population and population density into ranges of
population density
(2) The total number of 4G towers = Σ (( Sum areas of
districts in population density ranges) * (No. of towers
required for the particular range ))
Medium
Districts
North
West
Delhi
South
West
Delhi
New
Delhi
North
Delhi
South
Delhi
West
Delhi
Central
Delhi
North
East
East
Delhi
Population
(In Lakhs )
43.5
27.3
1.6
32.5
10.5
30.2
20.3
7
26.7
Area
(In Km2 )
445
420
35
245
60
130
65
20
60
Population Density
(Thousands/Km2 )
10
6.5
5
13
17.5
23.5
32.5
33
43
Population Density
Range
(Thousands/Km2 )
0-10
10-20
20-30
>30
No. of 4G Towers
Required per Km2
10
15
20
25
Total Area of the Population density range (thousands/sq.km) of 0-10 = 900 Km2 , 0-20 = 305 Km2
, 20-30 = 130 Km2, >30 = 145 Km2
Total no. of 4G towers = [ (900*10) + (305*15) + (130*20) + (145*25) ]*1.1(excess capacity) ~ 21800
© 180 Degrees Consulting - Delhi Technological University
Page39
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Daily Bread
G#3
G#14
I
for college
Calculate the total revenue generated from MechC
Clarifying Questions
Approach
Total Population
18K
Should I try to distinguish day scholars and hostellers?
- Yes
Should i try to consider absentees, irregular peak
hours and preference to go to places other than
MechC for considering the footfall for students?
- Yes
# of people
Students
85% ~ 15K
Teaching Staff
5% ~ 1K
Working Staff
10% ~ 2K
MechC footfall
30% ~ 4.5K
2% ~ 20
5% ~ 100
Assumptions
Assumptions
- Population of the DTU is 18K.
- 60% of Students are Day Scholars and thus bring
meals with them and 10% are not interested in MechC.
- Preferences of one person might be in more than one
categories which explains the sum of percentages not
adding up to 100.
- Average Amount spent on:
➔ Packed Food - 20Rs.
➔ Snacks - 20 Rs.
➔ Meals - 30 Rs.
# of people going
to MechC
4.62K
Preference
Packed Food
50% ~ 2.31K
Snacks
40% ~ 1.84K
Meals
15% ~ 0.69K
Revenue Generated
by Frequency
Twice
4.62K ~ 92.4K
Twice
3.68K ~ 73.6K
Once
0.92K ~ 20.7K
Strategy
(1) Segment DTU population by demography
(2) Footfall in MechC
(3) Preference of type of food item
(4) Frequency of the respective food item
Medium
Total Revenue
Generated
© 180 Degrees Consulting - Delhi Technological University
1.86 lakhs
Page40
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Gas, Set, Go!
G#3
G#15
Calculate the Total Number Of CNG stations in Delhi
Clarifying Questions
Approach
Area of Delhi
(1600 sq km)
Should I include Household and Industrial uses of CNG
as well ?
- No you may proceed with only CNG for automobiles
Should i consider petrol pumps with CNG booths as
well or CNG only pumps ?
- You may consider CNG only pumps
Medium Traffic
Zone
High Traffic Zone
Low Traffic Zone
Assumptions
Assumptions
(1) High Traffic Zone - 30%, Medium Traffic Zone - 40%,
Low Traffic Zone - 30%.
(2) Area serviced by CNG pump:
- High Traffic Zone = 1.5x1.5 sq-m
- Medium Traffic Zone = 2.5x2.5 sq-m
- Low Traffic Zone = 3x3 = 9 sq-m
(3) Every CNG station has 4 CNG pumps.
Area
# of pumps
Area
# of pumps
Area
0.30 x 1600
= 480 sq km
480/4
= 120
0.40 x 1600
= 640 sq km
640/9
= 71
0.30 x 1600
= 480 sq km
# of pumps
480/16
= 30
Strategy
(1) We will use the demand side approach.
(2) Demand of CNG = No of pumps x CNG supplied per
pump (in Kg)
(3) No of pumps will be estimated by segmenting Area
of Delhi into traffic zones and Area serviced by a pump
(4) The CNG supplied per pump = Supplying capacity x
weighted ratio of Usage Rates.
Medium
In High Traffic Zone, one pump services 2.25 sq km of area hence no of pumps = 480/2.25 = 213
In Medium Traffic Zone, one pump services 6.25 sq km of area hence no of pumps = 640/6.25 = 102
In Low Traffic Zone, one pump services 16 sq Km of area hence no of pumps = 480/16 = 30
Total Number of CNG stations in Delhi are 213 + 102 + 30 = 335
© 180 Degrees Consulting - Delhi Technological University
Page411
Page
Gas, Set, Go!
G#3
G#15
Calculate the Total Number Of CNG stations in Delhi
Clarifying Questions
Approach
CNG Supplied/ Pump
Should I include Household and Industrial uses of CNG
as well ?
- No you may proceed with only CNG for automobiles
Should i consider petrol pumps with CNG booths as
well or CNG only pumps
- You may consider CNG only pumps
Usage Ratio
CNG Pump Capacity
Assumptions
Assumptions
(1) A CNG pump experiences Peak hour rush for 4 hours
And Non peak hour rush for 10 hours
(2) The Average capacity of a CNG tank is 10 Kg and it
takes approximately 3 minutes to fill the tank.
(3) Average number of booths per CNG station is 4
Peak Time
Non Peak
Time
Avg time to
fill Tank
Avg no of
booths
4 hours
100 %
10 hours
50 %
10 Kg
3 min
4
Strategy
(1) We will use the demand side approach.
(2) Demand of CNG = No of pumps x CNG supplied per
pump (in Kg)
(3) No of pumps will be estimated by segmenting Area
of Delhi into traffic zones and Area serviced by a pump
(4) The CNG supplied per pump = Supplying capacity x
weighted ratio of Usage Rates.
Medium
Average Usage Ratio = (1x4+0.5x10)/14 = 0.64
Capacity = 10x(60/3)x4 = 8000
CNG supplied per pump = 0.64 x 8000 = 5120
Hence Total CNG consumed = 335 x 5120 = 1715200 Kg
© 180 Degrees Consulting - Delhi Technological University
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The Fit And The Furious
G#3
G#16
Calculate the Total Number Of Gyms In Delhi
Clarifying Questions
Approach
Should I consider the population of Delhi or the people
from other regions working there as well?
- Only Delhi’s population
Total Population
2 Cr
Assumptions
Assumptions
-
All gyms are identical in terms of capacity
Gyms are spread out evenly throughout Delhi
Peak capacity of gym is 20 people at any given time
80% of the customers visiting during the 2 peak
hours in a day, (Early Morning + After Work = 40)
Therefore total 50 visitors in day.
Assuming %age of active members to be 67%
Total Number of Memberships/month = 60
Below Poverty Line
20% ~ 400k
Lower Middle Class
40% ~ 800k
Upper Middle Class
30% ~ 600k
Upper Class
10% ~ 200k
% age with gym
membership
5%
15%
25%
33%
Number of
memberships
20k
120k
150k
66k
# of people
Strategy
1.
2.
3.
4.
Split Delhi’s population of the basis of income
Assign differents rates of participation to
different segments of society on the basis of
demographic.
Calculate total number of gym goers in Delhi
aka calculating demand
DIvide the total demand by average capacity
assumed per gym.
Medium
Total number of gyms in Delhi = (356k)/60 = 5933
© 180 Degrees Consulting - Delhi Technological University
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Crow-trastophe
G#3
G#17
Calculate the Total Number Of Crows in Delhi
Clarifying Questions
Can I consider that the number of crows entering
the city is equal to the no of crows leaving the city?
- Yes
Can I assume that all the crows rest on trees and
not on buildings and residential complexes at
night?
- Yes
Assumptions
Assumptions
- Area of Delhi = 1500 sq km
- Estimated forest cover and subsequently, the trees
in Delhi
Number of crows in Delhi can be given by =
Area of forest cover x (Trees/Area) x (Nests / Tree) x
(Crows / Nest)
Area
Type
Low
Forest
Area
Medium
Forest
Area
High
Forest
Area
Here, all the numerator values can be approximated
based on the type of forest cover area they belong to.
Therefore, higher forest cover has a positive
correlation with the number of
Area
1050 Sq
Km
300 Sq
Km
150 Sq
Km
Trees/
(Sq Km)
200
500
1000
0.15
0.20
- number of trees.
- nests per tree
- crows per tree.
- overall crows.
Calculations
Strategy
(1) The number of crows in Delhi at any particular
time are equal to the number of crows resting in
the trees at night and no crows are flying at night.
(2) The number of crows can be calculated by
estimating the number of trees by taking into
account the overall forest cover and other factors
like number of trees, nests and number of crows
per nest
Medium
Nests/
Tree
0.10
Crows/
nest
4
No of
crows
84000
Area of Delhi
1500 Sq Km
High Forest
Cover (10%)
150 Sq Km
Medium Forest
Cover (20%)
300 Sq Km
Low Forest
Cover (70%)
1050 Sq Km
4
90000
4
120000
Number of crows in Delhi = Sum of number of
crows in low, medium and high forest areas
= 84000 + 90000 + 120000
=2,94,000 Crows
© 180 Degrees Consulting - Delhi Technological University
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Director’s Cut
G#3
G#18
Calculate the Total Revenue Generated from the Screening of Avatar in India
Clarifying Questions
Approach
Total Population
135 Cr
Should i consider a day or total revenue?
- Total
Rural
70% ~ 95 Cr
Should i consider to be a Pan-India release?
- Yes
Assumptions
Assumptions
- Population of india - 135 cr.
- Only people among (15-55) age bracket will go watch
the movie
- Released in 2D and 3D.
- Avg. price of ticket - 270 (English 2D), 350 (English 3D),
230 (Hindi 2D), 280 (Hindi 3D)
Strategy
(1) Split the population in urban and rural.
(2) Segmenting the urban demographics by income BPL, Lower- Middle class, Middle class, Upper class.
(3) % of people in (15-55) age bracket who will go watch
the movie will depend upon how affluent is that
income-segment.
Medium
Below Poverty Line
20% ~ 8 Cr
Urban
30% ~ 40 Cr
Lower-Middle Class
40% ~ 16 Cr
Middle Class
30% ~ 12 Cr
Upper Class
10% ~ 4 Cr
people in 15-55 age
bracket
10 Crore
8 Crore
2 Crore
% of people buying
tickets
2%
7%
10%
Tickets Sold
0.2 Cr
0.5 Cr
0.2 Cr
# of people
Total No of tickets sold = 0.2 Cr + 0.5 Cr + 0.3 Cr = 0.9 Cr
Average Price of Ticket = 250
Revenue Generated = 250 × 0.9 Cr = 225 Crore
© 180 Degrees Consulting - Delhi Technological University
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X
Mild As May
G#3
G#19
Calculate the Total Number Of Marlboro Reds sold each day
Clarifying Questions
Should I consider the population of Delhi or the people
from other regions working there as well?
- Only Delhi’s population
Should I consider only packs or loose cigarettes as
well?
- Consider both
Assumptions
Assumptions
- Population of Delhi is 2Cr.
- 75% of population can legally smoke (18+) = 1.5 crore
- Financially, only 60% people can afford it since it's a
premium brand = 1.5 crore x 0.6 = 90 lakh
- Sex ratio 1:1
Approach
90 Lakhs
# number of people
who smoke
Female 50%
45 lakh
Male 50%
45 lakh
# Gender
Smoke 40%
18 lakhs
# Market Share
Do not smoke
80%
Smoke 20%
9 lakh
Do not smoke
60%
TAM: 27 lakh
Market Share
Gold Flake
35%
# Sub Brands
Red 25%
1.35 lakh
Marlboro 20%
5.4 lakh
Classic 25%
Others 20%
Strategy
(1) Estimating the number of smokers in Delhi
(2) Segmenting the companies on the basis of market
share
Total no. of Marlboro Reds sold in New Delhi in a Day =
No. of Smokers in New Delhi x Market Share of
Marlboro Red
Medium
Gold Original
20%
Gold
Advance 35%
Others
20%
Chainsmokers (20%) = 1-2 Packs a day = 1.35 lakh x 0.2 x 30 = 8.1 lakh cigs
Regular Smokers (60%) = 0.5 Packs a day = 1.35 lakh x 0.6 x 10 = 8.1 lakh cigs
Occasional Smokers (20%) = 2 Cigs a day = 1.35 lakh x 0.2 x 2 = 54,000 cigs
No. of Marlboro Reds sold each day = (8.1 + 8.1 + 0.54) lakh = 19.4 lakh ≃ 17 lakh cigarettes
© 180 Degrees Consulting - Delhi Technological University
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Paytm Karo
G#3
G#20
Calculate the Total amount of money transacted through PayTM in a day
Clarifying Questions
Approach
Internet Penetration
135 Cr * 0.4 = 54 Cr
Should I consider B2B or B2C transactions or both?
- Only for B2C transactions
Should I consider both wallet and UPI transactions?
- Consider both
Which day of the week should I consider?
- Any usual working weekday.
Assumptions
Assumptions
- Internet penetration in India is 40%
- BPL population has not been taken into consideration
- Population of India is 135 cr
- Market share of PayTM is 20%
Strategy
(1) Segmenting the demographics with access to
internet by income:
Lower middle class, Middle class, Upper class, and
further by age groups: 15-24, 25-44, 45-64
(2) Assuming the number of transactions per day along
with the average amount of transaction
(3) Total amount of money = number of people using
e-wallets x avg number of daily transactions x avg
amount of transaction x market share
Hard
# of people
Lower Middle Class
40% ~ 22 Cr
Middle Class
30% ~ 16 Cr
Upper Class
10% ~ 5 Cr
# of people using
E-wallets
30% ~ 7 Cr
60% ~ 10 Cr
60% ~ 3 Cr
Age Groups
15-24
25-44
45+
15-24
25-44
45+
15-24
25-44
45+
Avg money per
transactions
Rs.50
Rs.100
Rs.75
Rs.75
Rs.150
Rs.200
Rs.100
Rs.200
Rs.300
# of transactions
per week
2
4
3
4
5
7
7
10
7
Total amount of money transacted through PayTM in a day =
avg number of daily transactions x avg amount of transaction x number of people using
e-wallets x market share
((1.4Cr×50×2 + 1.75Cr×100×4 + 1.4Cr×75×3) + (2Cr×75×4 + 2.5Cr×150×5 + 2Cr×200×7) +
(0.6Cr×100×7 + 0.75Cr×200×10 + 0.6Cr×300×7)) × (1/7) × 0.2 ~ 275Cr/day
© 180 Degrees Consulting - Delhi Technological University
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Uber Rich
G#3
G#21
Calculate the daily global revenue of Uber
Clarifying Questions
Should we take only cab services of Uber into
account?
- No, consider Uber’s other profitable businesses as
well
Do you mean global revenue for any day?
-Yes. Calculate global revenue of Uber for today.
Approach
Density of rides booked can be segmented as Peak (100%), Medium (50%), Low (25%)
Peak time bookings are usually in the morning and evening when people are going to or coming back from
work. Density is medium around lunch time and is low for the rest of the day.
During Peak time, there would be maximum efficiency: 3 rides/ hour
Medium Time: 2 rides/ hour
Low Time: 1 ride/ hour
Assumptions
Assumptions
Since Uber is a US-based, we consider that it generates
50% of its global revenue from its home country.
- a driver works from 7 am to 12 am
- Average earning of a driver = $20 per hour
Strategy
Revenue Generated in USA =
Average revenue of an Uber x # Uber cabs in USA
Global Revenue of Uber = 2 x Revenue generated in
USA
Hard
© 180 Degrees Consulting - Delhi Technological University
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Uber Rich
G#21
G#3
Calculate the daily global revenue of Uber
There are 3 profitable businesses of Uber : Uber rides, Uber eats & Uber freight. We
will consider the total revenue comes from these 3
Total Uber Rides booked in one day
3 x 4 + 2 x 3 + 1 x 11 = 28 rides/day
Considering 5% of the trips get cancelled = ~ 26 rides/day
Uber
Revenue Generated from one cab = 26 x 20 = $520 per day
#Number of cabs in USA:
Population of USA = 330 M = 33 crores
Assuming each location caters to 10000 people
Uber Rides
Uber Eats
Uber Freight
Total number of cabs in USA = 33 crores/ 10000 = 33000 cabs
Uber being more popular than Lyft and other cab services, let us
assume that 70% of the cabs belong to Uber. Therefore
#Total number of Uber cabs = .70 x 33000= 23100 Uber Cabs
#US Revenue of Uber rides =
Total Number of Cabs x Average Cab Revenue =
23100 x $520 = $12.12 M
Considering revenue generated from Uber Eats is 40% of Uber rides
#Revenue by Uber Eats = 0.40 x $12.12 M = $5M
Considering revenue generated from Uber Freight is 20% of Uber rides
#Revenue by Uber Eats = 0.20 x $12.12 M = $2.5M
Total revenue of Uber in US = $12.12 M + $5 M + $2.5 M = $19.7 ~ $20 M
Global Revenue of Uber = 2 x $20 M = $40 M
Considering 20% of this revenue comes from UberX & Uber Inter City
Revenue = $12.12 M + 0.20 x 12.12 = $14.8 M ~ $15 M
Hard
© 180 Degrees Consulting - Delhi Technological University
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Ex-Static
G#22
Calculate the total number of EV Charging Station required in India
Clarifying Questions
Approach
I
Total Urban land area
200K sq km
Should I consider only 4 wheeler charging stations or 2
wheeler also?
- Consider only 4 wheeler charging stations
Considering the penetration and affordability of EV ,
should I consider the urban areas only ?
- Yes, consider the urban land area only
Assumptions
- Area of India is 10000K sq km
- Urban land area : Rural land area=20:80
- Highways = 30% , Main/Ring roads= 40% and
Local/Small roads =30%
- 60% area is considered in main roads because of
infrastructure not being fully developed in Tier-2,3 cities.
- 1 lane road approx length = 4m.
- Public charging station every 80 kms, Fast charging
stations every 100 km.
Strategy
Residential
30% ~ 60K sq km
Highways
30% ~ 18K sq km
National
(8- Lane) 60%
~10.8K sq km
32 m
3,37,500 km
(1) Segmenting the area into
residential,commercial,forest and road networks.
(2) Further segmenting road network into
highways,main roads and interconnecting local roads.
(3) Length of the road= Area of road / Width of road
(4) Number of charging stations = Length/Avg.
distance per charging station
Hard
Commercial
25% ~ 50K sq km
Road
30% ~ 60K sq km
Local/Small Roads
30%~ 18K sq km
Ring/Main roads
40%~ 24K sq km
6-lane
50%
~12K sqkm
State
(6- Lane) 40%
~ 7.2K sq km
24 m
Forest/Agriculture
15% ~ 30K sq km
Width of road
3,00,000 km
24 m
5,00,000 km
4-lane
50%
~12K sqkm
16 m
7,50,000 km
Total road length = 3,37,500 + 3,00,000 +7,50,000 km = 13,87,500 km
Considering, a charging station every 80 km and a fast charging station at every 100 km.
On an average there will be a charging station every 90 km.
Total number of EV charging stations = 13,87,500/90 = ~15,400 stations
© 180 Degrees Consulting - Delhi Technological University
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Page
CASES & FRAMEWORKS
Cases: Structure & Approach
The case interview round is an integral part of the interview process for most consulting/analytics firms. It is often a part of the ‘fit’ interview as
well where the candidate is usually judged upon analytical thinking, business acumen, problem solving skills and creativity.
A case can simply be thought of as a business problem that has to be solved by you. You would need to analyse the situation, isolate the problem
and then move on to suggest your solutions. You must remember that solving a case in front of a stranger, while talking them through it, is
completely different from reading through case interview transcripts at your comfort or even attempt it by yourself while taking the help of the
interviewer’s text. So always make it a point to practice case-solving with another person.
The key here is to understand the situation on multiple levels and identify the pain points using a mutually exclusive & collectively exhaustive
breakdown, while simultaneously engaging the interviewer and explaining your approach.
Discussing your numbers, thoughts, questions will help the interviewer understand your thought process and will also allow him/her to guide you
through it. Listen to their feedback, they usually drop hints and help you navigate through the intricacies of the problem, provided you are asking
the right questions!
Summarise your understanding of the case and
company in question and clear out any doubts
regarding the problem statement. Get the basic
understanding of the situation before proceeding
to drill down into the other factors.
CLARIFY
It is always better to customise the structure for
your case using the essential frameworks and
not saying that you’re using them directly. Once
you have finalised an overview, take your
interviewer through it. Always, fall back upon this
while going back and forth on segmentation.
EXTRACT
STRUCTURE
The devil is in segmentation. Make sure while you
are trying to isolate the problem that you properly
segment each branch and ask relevant questions.
Use the 80:20 rule to prioritise the branch you want
to drill through. After the problem has been
isolated, suggest innovative solutions to it.
SEGMENT
© 180 Degrees Consulting - Delhi Technological University
SUGGEST
Page 52
Cases: Structure & Approach
PROTIPS
➔
While navigating through the case, first try to have a clear picture of the structure in your mind, and then try to elucidate that with the same clarity.
➔
It’s okay to stumble onto a wrong path and try to retrace your steps back to a point. Don’t let this derail your train of thought, maintain composure.
➔
The best way to go around the case preparation phase is to practice with a friend, or a case buddy. Pair up with your friends who have the same
level of preparation as you and take turns of attempting cases being in the roles of interviewer & candidate. In this scenario, the interviewer must
have read the case beforehand, understood the problem analysis and the kind of answers that should be given to the questions.
➔
Do not miss out of the creative aspect of any business problem and compel yourself to think innovatively as well. It’s always recommended to
apply your insights from the current industry trends and real-life examples to earn brownie points.
➔
Regularly read the business news, keep up with the market trends and familiarise yourself with the different factors unique to each industry. Refer
to: Business Insider, CNBC, Mint, Finshots, r/consulting
➔
Practicing vocal delivery of your analysis > Practicing analysis itself.
➔
While reading the casebook, you should try to apply the learnings and insights from one case to another and try to form your personalised analysis
structure that best suits your way of thinking and naturally comes to you while approaching problems.
➔
Do follow the frameworks shown in the earlier section as a generic layout of how to approach any given case, inculcate them but do not memorise.
➔
Lastly, do not overdo the preparation. Just practice a diverse set of cases enough to equip you to walk through your thinking aloud and explain
your analysis in succinct sentences.
© 180 Degrees Consulting - Delhi Technological University
Page 53
CASES
PROFITABILITY
Framework: Profitability
Key Parameters
Profitability cases are the most common type of cases and their
importance stems from the fact that profit-making is the ultimate goal of
every business problem.
These deal with revenue issues, cost issues or both. One needs to identify
the key revenue and cost parameters, deconstruct the problem into
components and isolate the cause for a poor bottom line.
Solution Structure
Scoping the
Problem
Magnitude of Loss/Profit
Trend History
Affected: Profits or Profitability
Operating Margin
Industry-wide or Company-specific
Product Mix & Revenue Streams
To be solved effectively, a profitability problem requires proper scoping
and isolation using the drill-down approach.
Profits
Industry Analysis
Cost
Revenue
Price
per unit
#Units
Market
Size
Market
Share
Cost per
unit
#Units
Fixed
Costs
Variable
Costs
Resolution
© 180 Degrees Consulting - Delhi Technological University
Market Disruption
Customer Priority Shift
Change in Regulatory Policies
Price War
Target Profit & Timeline
Raw Material Substitution
Agile Manufacturing
Opportunistic Sourcing
Backward Integration
Machine Utilization vs Downtime
Outsourcing Decision
Page 55
Framework: Value Chain
This type of case is usually implemented in a cost reduction case where a company is aiming to reduce their
bottom line. The best way to reduce cost is to follow the journey of a product/service through its lifetime.
The fundamental idea behind the value chain analysis is to understand different steps that add value to the
product and identify the abnormalities/inefficiencies arising in any of them.
One is expected to identify various cost components and validate them, identify major cost drivers and then
recommend how the company can change its ways to become more cost efficient.
R&D
Sourcing
Warehousing
Storage
Manufacturing
Transportation
After identifying a problem within
the profitability framework
(Cost/Revenue/Both), it is
generally effective to delve into
the value chain and to drill down
for RCA (Root Cause Analysis) of
the stated problem.
Distribution
After Sales
Service
Equipment
Raw Materials
Plant Rent
Inventory
Technology
Mode
Sales Channel
Accessibility
Human Capital
Procurement
Machinery
Labour
Overhead Cost
Negotiation
Sales Force
Service Time &
Cost
Finance Cost
EOQ
SKU Visibility
Capacity
Utilization
Automation
Network
Optimization
Training
Repairs &
Returns
Process
Efficiency
Turnaround
Time
Penetration
Customer
Satisfaction
Retailer
Rationalisation
Shelf Space
Make/Buy
© 180 Degrees Consulting - Delhi Technological University
Page 56
N(ice) Cream
G#3
C#1
Profitability | Profits Decline
The client is an owner of an Ice Cream Chain that has witnessed a decline in profits recently. You have to find out the root cause for the same, and suggest how to
improve profits.
So just to clarify the question - I have to identify the reason behind the decline in
profits of the Ice Cream Chain and suggest ways to improve profits, correct?
Okay, Let me draw the value chain first. So there are 3 segments in value chain production, distribution and customers. Are there any changes in these
parameters?
Correct. Please go ahead.
Assume, there are no changes in production and distribution. It has remained the
same. You can move on to other parameter.
How long have they been experiencing a decline in profits?
Profits have been declining since the past 5 months.
Okay, and is there a specific region in which the chain is facing a decline in profits?
No, this issue persists in all regions of India.
Okay. What kind of ice creams do they manufacture, and in what forms are they
sold?
They manufacture cow-milk based ice creams in common flavours like chocolate,
strawberry, vanilla etc. They sell these in the form of ice cream bricks and bars.
And what about companies that manufacture similar ice cream products? Have they
been facing losses as well?
Yes, their competitors are also incurring losses. It seems to be an industry wide
issue.
Okay. Have their product changed with respect to their competitors in terms of
physical appearance, size or taste?
No, there are no changes in their products.
Easy
Where do they lie in the value chain?
They send the icecream to the distributor who sends them to large retail stores and
medium retail stores. They further sell the icecreams to the end customers who buy
them.
Okay, so we should analyse the cost segment as well. Is there any change in our
fixed costs or variable costs?
Variable costs have decreased, but fixed costs remain more or less the same.
I understand. Since production and distribution are the same, and costs have
decreased, the number of units being sold must have decreased. The problem could
be because of:
1.
Distribution Push Issue
2.
Customer Pull Issue
This means that:
1.
The shopkeeper is not selling (pushing) the icecream to his customers, or
2.
The customers are buying someone else’s products
First, let’s focus on the distributor push issue.
So, the main source of profits of retail shopkeepers are trade margins. Does the
decrease in variable costs also include a decrease in these margins?
© 180 Degrees Consulting - Delhi Technological University
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N(ice) Cream
G#3
C#1
Profitability | Profits Decline
The client is an owner of an Ice Cream Chain that has witnessed a decline in profits recently. You have to find out the root cause for the same, and suggest how to
improve profits.
Yes. The company has cut costs by reducing trade margins.
That explains why distributors are not pushing their products. Coming to the
customer pull issue, the introduction of brands that offer healthier alternatives - like
sugar free, jaggery based, high protein, low carbohydrate could be the reason. This
aligns with the timeline, as they started gaining popularity about 6 months back.
These brands also offer unconventional flavours, which most ice cream chains do not
offer. Moreover, the fact that they offer greater trade margins could be the reason
shopkeepers are pushing these products more than our client’s.
Profits
Costs
Revenue
No change in fixed costs,
decrease in variable costs.
That is a good deduction. How do you think the client can improve?
1.
2.
3.
4.
Introducing similar healthy alternatives will expand the consumer base of
the ice cream chain.
Changing their product mix: adding icecream cakes, flavored ice etc
Offering certain perks to traders if they sell the client’s icecream beyond a
certain threshold
Launch a campaign where consumers send in funky flavours that they
would like to try in an ice cream shop, and the best ones are launched
Alright. Good job!
Observations
➔ Client cutting down trade margins
decreases the incentive for
shopkeepers to sell their ice creams
Easy
Recommendations
➔ Introduce similar healthy alternatives
➔ Different product mix
➔ Trader perks
Price/ unit
# Units
Decrease in demand of
the product.
Distributor
push issue
Consumer
pull issue
Shopkeeper not pushing
products to customers.
Customers buying
another brand’s
products.
Decrease in trade
margins of
shopkeepers
Healthier alternatives
with greater variety
© 180 Degrees Consulting - Delhi Technological University
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Under The Weather
G#3
C#2
Profitability | Revenue Decline
The client is a global Pharma company that have a well established business in two products- paracetamol and allergic medicines. It has recently seen a decline
in profits and got you onboard as a consultant to diagnose and recommend solutions
I would like to begin with a few clarifying questions on our client. As per my
understanding our client manufactures two drugs that are commonly used. Is that
correct? Is there any other business that our client is engaged in?
None. Manufacturing only these two products are manufactured. Please go ahead.
Are the operations of the client global or in any specific geography and has there
been a decline in the volume and is it affecting across the industry or just or
company?
The client operates globally but focus on India here, with primary revenue coming
in from urban markets, and the market share has significantly dropped. Further,
the fall in the volumes and the problem is specific to our firm only.
Since the client specialises in drugs that are used in frequent illnesses like fever or
cold, I would assume they are not prescription drugs (over the counter). Is that fair?
All these drugs aren’t sold over the counter across the world, consider the case to
be India centric.
Of each of the drug, what is the percentage share in manufacturing and have both of
them seen a decline in profits?
Both have seen a decline in profits. Their share in manufacturing wouldn’t be of
relevance here since it is in proportional magnitudes
Okay, does the client operate across the value chain or manufacturing in only a
particular part of it
The client operates across the value chain
Medium
So, the profits can be broken down into revenue and cost. I would like to know if the
declining profits is due to declining revenues or increasing costs?
Think from a cost point of view but also consider a component of revenue
There are two products with individual revenue streams.
Revenue of the Product = Price x Ticket Size x Frequency of demand.
To understand the problem better. I will analyse these components individually
Good, that is the right approach. Now think on lines of cost as well
I would like to know if there is a problem in the variable or fixed aspect of cost.
There is problem in the production, in terms of efficiency, hence variable costs
Is the output constant throughout the year or is it dependent on the demand?
The output remains constant throughout the year
The constant output could be a reason behind inefficiency in production. It is to be
considered that demand for these drugs vary and especially peaks in winter hence
production should be adjusted accordingly
Yes, you are thinking along the correct lines
On the other hand, the fall in the demand can be because of various factors- new
entrants, branding, sales and marketing and competitors performances. Which
segment should I focus on?
© 180 Degrees Consulting - Delhi Technological University
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Under The Weather
G#3
C#2
Profitability | Revenue Decline
The client is a global Pharma company that have a well established business in two products- paracetamol and allergic medicines. It has recently seen a decline
in profits and got you onboard as a consultant to diagnose and recommend solutions
Profits
Focus on sales and marketing
Since these are over the top drugs, we should focus on marketing efforts through
advertisements. Most people are used to using a particular brand for common
illnesses so it is imperative that we do a brand overhaul through increased marketing
efforts
Yes, it has been found that the client hasn’t been focusing on marketing and with
new entrants in the market who have run excellent marketing campaigns, the shift
to the new products by the consumers is visible
From revenue perspective, the client would need innovative marketing strategies1.
Targeted marketing campaigns to focus on the safety of the drug
2.
Making the number of tablets available in the leaf of the medicine vary so
as to be purchased by people for one time or short period of time use
3.
Exploring new geographies. Rural Markets specific campaigns
Great! Now moving to the cost aspect?
From variable cost perspective, I would recommend the following changes1.
Studying demand trends and tweaking production accordingly
2.
With the current production line in place, production should be decreased
during summer months to save costs while producing enough during winter
months to meet the demands
Revenue
Paracetamol
Price
Frequency
Costs
Allergy
Medicines
Ticket
Size
Labour
Observations
➔ The client hasn’t focused on marketing
through advertisements
➔ The client’s production isn’t in line with
the demand
© 180 Degrees Consulting - Delhi Technological University
Production
Fixed
Raw
Material
Reduced efficiency due to
uniform production without
taking demand into account
Decrease in the number of
medicines sold due to lack
of focus on marketing
Good Job! Thank You!
Medium
Variable
Recommendations
➔
➔
➔
➔
Targeted Marketing Campaigns
Variety in leaf sizes available
Exploring new geographies
Production according to demand with
higher production in winter months
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Stay On Trend
G#3
C#3
Profitability | Profits Decline
The client, a leading fast fashion corporation based out of Sweden has a sizable market and over the the past 5 years profits have been slowly declining while
the revenue is constant. You have been hired to find out the pain points and recommend solutions for the same.
I would like to begin with a few clarifying questions on our client. Is this a company
specific problem or others brands are facing it too?
Profits
It’s an industry wide problem but we’re the worst hit out of all competitors.
Revenue
Costs
Understood! Profits consists of revenue and costs. What should I focus on here?
You can work on both given that both have taken a hit lately.
To understand the firm better, what sort of articles does the brand manufacture?
It has been noticed that variable costs like raw material and labor have significantly
increased due to instability in Bangladesh where our factories are located.
Noted! Considering that revenue has only fallen recently, can this be attributed to a
specific event which might have caused a decline in volume of products sold?
R&D
Manufacturing
Observations
➔ Variable costs have shot up
➔ Revenue has gone down recently
➔ Industry wide problem
Yes! In fact recently there has been an upsurge in people protesting against fast
fashion because of its unsustainable nature and high environmental degradation.
Consumer behaviour has changed in past 2 years.
Medium
Worker expectations
rising in labor market,
emergence of unions.
Packaging ,&
Transportation
Raw
Material
© 180 Degrees Consulting - Delhi Technological University
Fixed
Variable
Possible revenue loss due to
trend of sustainable fashion
Our product catalogue is extremely diversified in terms of both - types of products
and designs available. We regularly update our outlets with latest trends.
Great! Let’s look at the breakdown of costs since revenue has only fallen recently.
Should I drill on fixed costs or variable costs?
Price/ unit
# Units
Sales
Distribution
Customer
Service
Recommendations
➔ Shift towards sustainability
➔ Sourcing/raw material acquisition
strategy improvement
➔ Incentivizing work by giving non
monetary benefits to labor
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G#3
C#4
Adventure Awaits
Our client is an online travel aggregator (OTA) with operations in multiple countries. Management has observed a steep decline in profit after the first financial
quarter of 2020 even though the revenue has shot up. You have been asked to figure out the reasons behind the decline and initiate action to resolve underlying
problems.
What is the objective of the client here? What is the timeline for the same? By
tourism do you mean the local tour and travel at the tourist spots or the travel
and accommodation as well?
(iv) Adding “not so popular” destinations to the list. People might not want to
travel to places which are infamous for being massively crowded. So some tourist
destinations that attract fewer crowd can also be a point to sell.
We want a framework to understand the situation, and recommendations to improve the
situation. Tourism for us covers Travel and accommodation only because we don't
generate much revenue from local tour and travel.
Great. Let’s move on to accommodation now. How you’ll analyze that?
Sure. I would start by dividing the problem into three components - Travel,
accommodation.
Sounds good. Let’s start with travel.
Travel can further be divided into three means - Railways, Roadways, and
Airways - Airways can be further divided into National and International travel.
Since International travel is restricted due to COVID, I’d focus on domestic
travel only. Revenue share of Railways in travel would be minimal because it is
not directly operated by the client so we will mainly focus on domestic airways
and roadways. For travel, three things come to my mind - (i) The client can
have special group packages to promote tourism. This could include
everything from travel to accommodation. (ii) Heavily advertising and
assuring the customers that all the places would be cleaned and sanitised
before visit. Bringing health and wellness to the forefront by adopting more
contactless technologies. (iii) The client can further partner up with insurance
companies, to offer medical coverage at low premium. Because of the COVID
scare, people would be interested in this.
Medium
From my experience, there are three major accommodation options at tourist
places - Hotels, Homestays, and Youth Hostels (Bagpacker hostels). Hotels can
further be classified into low, mid and high-end ones. I would like to focus on hotels
as that is the most significant category.
Sure. Let’s consider mid and low hotels to be the same. What would you suggest the hotel
owners, so they can improve their profits ?
Sure. Profits depend on revenues and costs. For the low-end category, increasing
revenues is not an option as the number of tourists are falling, and they can’t
increase prices as low prices is their value proposition. They should focus on
reducing costs by eliminating complementary services like free breakfast (will
also help improve the contactless experience). They can also launch plans for
long-term room rentals for activities like work form mountains etc. High-end
hotels have the advantage of serving the premium customers who’d be willing to
pay more. They can charge additional sanitization fees and sell complementary
services like hotel stay insurance.
Great. That will be all. Thank you!
© 180 Degrees Consulting - Delhi Technological University
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Shocking Experience
G#3
C#5
Profitability | Profits Decline
The client is XYZ electric that has witnessed a decline in profits. You have to find out the root cause for the same, and suggest how to improve profits.
So just to clarify the question - I have to identify the reason behind the decline in
profits of XYZ electric and suggest ways to improve profits, correct?
The client is facing a problem with customer pull. The customers are more inclined
towards the competition’s product.
Correct. Please go ahead.
Is it an industry wide problem or a company specific problem? Since when is the
profit declining?
It is company specific problem and the profits have been declining since the past one
year.
Can I know the kind of products that the client manufactures? Are there any
competitors?
The client manufactures only 1 type of product - EV scooters. We have 3 competitors
and they sell same type of products.
I will start by breaking profits into revenues and costs. Since profits are declining,
it can be due to decrease in revenue or an increase in costs or a combination of
both. Can I know which one of these is the problem?
The revenues are decreasing.
Okay, revenues can further be broken down into the number of units sold and
average price per unit. Which one of these is facing a decline?
The number of units sold have declined.
Medium
Now, I would like to look at the value chain to isolate the problem. The value chain
consists of mainly three segments i.e production, distribution push and customer
pull. Can I know which one of these has changed?
Is it due to an issue with advertising and marketing of the product?
No, there is no issue with the marketing strategy since most people are aware about
the client’s product.
Do the competitors offer any lucrative schemes or discounts that our client does not
provide?
No, the client offers the same schemes as their competitors.
Since the problem is not with advertising and discounts, I would like to know more
about the brand perception of our client in the market.
Okay, so recently there have been news reports that the client’s scooters are prone
to fires and there have been several incidents highlighting this issue.
So, since there have been news reports about scooters catching fire, people are
concerned about their safety and are not buying the product anymore.
Now that you have identified the cause for the problem, you can move to the
recommendations for the client’s problem.
© 180 Degrees Consulting - Delhi Technological University
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Shocking Experience
G#3
C#5
Profitability | Profits Decline
The client is XYZ electric that has witnessed a decline in profits. You have to find out the root cause for the same, and suggest how to improve profits.
I will divide my recommendations into scooters that have already been produced
and new scooters. For existing scooters, the client could explore the possibility of
providing replacements free of cost or they can upgrade the existing scooters so
as to minimize the possibility of them catching fire. For the scooters that are yet
to be produced, the client can invest more in R&D to mitigate the problem.
Profits
Revenue
Costs
That sounds good. Thanks.
Observations
➔ Problems in the demand side
➔ Issues with brand image due to
negative news reports
Medium
Recommendations
➔ Existing scooters:
a. Provide replacements free of cost
b. Upgrade them to minimize the
possibility of catching fire
➔ New scooters:
a. Invest more in R&D to mitigate the
problem
# Units
Price/Unit
Variable
Customers are hesitant to buy
the product due to safety
concerns
Decreased number of units
due to the decrease in demand
of the product.
Production
Fixed
Distribution Push
© 180 Degrees Consulting - Delhi Technological University
Customer Pull
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G#3
C#6
Watch Out
Profitability | Profits Decline
The client ABC Watch, is a watch manufacturing company whose profits have been declining in the past 6 months and has slipped to number 2 in terms of market
share. You have been approached to identify the core issue behind this and suggest a few recommendations.
Could you please help me understand 1. What are the geographies that we
operate in 2. What are the type of watches that we manufacture i.e., casual wear,
business wear, smartwatch 3. Who are our primary customers and 4. What is the
competitive landscape?
Yes, it seems a fair assumption. Let's start with the revenues and then the costs.
The client has presence across the country, assume that the client manufacturers all
types of watches for all types, age groups, gender etc. And the competition is intense
amongst top 5 watch players while rest of the market is fragmented.
That’s a fair split of revenues. What can you think of product mix specific to this?
Since there has been a sharp decline return of shareholder’s equity, has the client
seen a decline in profits?
The client has been witnessing sudden and significant decline in profits.
Since when has the client been seeing decline in profits ? And is it only specific to
our client which has seen the decline or the other watch manufacturers in the
industry have also seen a decline?
The client has been seeing the decline in profits from the past 6 months. Also the
client has been significantly impacted due to which the other competitor has become
the market leader pushing our client to number 2 in terms of market share.
So, either the revenues could be declining, or the cost could be going up or both
relative to the competitor. Considering our client is losing market share, will it be
fair to hypothesize that the revenues are declining first and then maybe later, we
can have a look at the cost side of the client.
Hard
Revenues can be split into volume, value and variety. So, either the volumes might
be going down, or the price or there could be a problem with the product mix.
One of the potential reasons relating to product mix could be change in customer
preferences towards casual watches over business/formal watches especially
during the covid times. As most of the working population has been working from
home recently, and while working from home one would prefer casual watches.
there would be lesser demand for business/formal watches.
Yes, there has been sudden spike in the demand for casual watch. While the
competitors have been readjusting their product to match the demand, our client has
been missing out on that readjustment. Can we also look at the other component of
revenue that we mentioned earlier i.e. volumes.
Sure, the decline in volumes can be either due to fall in demand or a supply side
constraint i.e. either the client is not getting enough demand for its products, or
the client is not able to match the demand with its supply.
It is a supply side issue. How would you look at a supply constraint problem?
I would like to lay down the value chain for a watch manufacturer to assess if
there is a problem in any of the individual components. For a watch manufacturer,
the value chain would begin with sourcing of raw materials, in-bound logistics,
manufacturing, packaging, warehousing, distribution, sales & after-sales support.
© 180 Degrees Consulting - Delhi Technological University
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G#3
C#6
Watch Out
Profitability | Profits Decline
The client ABC Watch, is a watch manufacturing company whose profits have been declining in the past 6 months and has slipped to number 2 in terms of market
share. You have been approached to identify the core issue behind this and suggest a few recommendations.
Alright, let’s look at distribution.
Profits
So, the distribution channels could be either physical or online or an omni-channel
distribution. Under physical it could be either through own stores, or a franchise or
both. And under online it could either be directly through own website or through
an online aggregator. Which of these model does the client follow.
Revenue
And to benchmark it with the competitor’s distribution channel, does the client also
operate only through its own physical stores?
Supply
No change in
fixed costs.
Product Mix
Volume
The client sells its products through its own physical stores.
Costs
Demand
No, the competitors have been using an omni-channel distribution strategy.
Manufacturing
Due to the pandemic restrictions, the customers have resorted to online shopping.
Since the competitors had an omni-channel strategy, they were able to capitalize
on the online demand, while our client couldn’t re-adjust rapidly. This might also
explain relative increase in costs, as the client owns its physical store, there would
have been fixed cost being incurred in the form of space, people and overhead
costs relating to the stores irrespective of the quantum of revenues.
That’s correct. Interesting that you could relate it with the cost aspect as well.
Hard
Raw Material
Sales
Warehousing
Packaging &
Transportation
Distribution
Customer
Service
Omni-channel
Observations
➔ Client was not operating on the
omni-channel strategy while the
competitors did.
➔ Client incurred fixed costs because
physical stores.
© 180 Degrees Consulting - Delhi Technological University
Recommendations
➔ Rebalance its product portfolio to
match the market demand.
➔ Use customer analytics to predict in the
long term.
➔ Adopt an omni-channel strategy
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CASES
MARKET ENTRY
Framework: Market Entry
In market entry cases- be it a new product launch, entering a new geography or both- there are two basic considerations –
a) Is it a good idea?
b) How to enter?
The first step is to understand and explore the opportunity by thoroughly analysing the following 4 parameters:
Industry, Customer, Product and Company. This is followed by metric evaluation and finally a mode of entry is chosen.
New Market Entry
Objective - Exploring the opportunity
Industry
Customer
Product
Company
Entry Strategy
Demand
Supply Gap
Needs
Competition
Product
Offerings
Scratch
Entry/Exit
Barrier
Growth
Consumer
Expectation
Capital &
Resources
Acquisition
USP
Market Share
Market Size
Segmentation
© 180 Degrees Consulting - Delhi Technological University
Joint Venture
Page 68
Framework: Market Entry
● Whenever you are required to make a decision - develop a
choice rule or a mathematical metric of evaluation - as the
choice cannot be made entirely based on qualitative analysis
and quantitative metrics need to be developed in order to
exercise the choice.
● This evaluation is a function of 4 parameters:
Motivation, Profitability Targets, Investment Constraints
and Competitive Positioning.
Evaluation Metrics
Evaluation Parameters
Motivation
Profitability Target
● This approach helps one answer the two fundamental
questions associated with market entry:
a) Where to invest: Geographically and in value chain
b) How to Invest: Mode of entry
● Protip 1: Not every aspect of the framework mentioned will be
applicable to all cases, but try to cover as much as you can,
so that you get a good idea of the industry and the client
current status.
● Protip 2: It is very important to identify where the client would
stand in the industry compared to the existing competitors
and the measures to be taken to mitigate competitive edge of
incumbent.
To enter a new industry
Reason of choice of chosen industry
Strategic Intentions
Economic Intentions
Cost-Benefit Analysis
Cost of Capital and R&D involved
Target Rate of Return
Target Market Share
Target Revenues and Profits
Target Payback Period
Investment Constraints
Levels of investment (Upfront/Residual)
Geographical Feasibility
Opportunity Cost of Investment
Synergy with existing product lines
Competitive Positioning
Brand Equity
Economies of Scale
Supply chain/Distribution Synergies
Patent/Proprietary Technologies
Organization Design/structure
© 180 Degrees Consulting - Delhi Technological University
Page 69
Framework: New Product Entry
A subset of Market Entry case, here, the company aims to introduce a
completely new product, expand its existing product line or extend reach in
a new geography.
One has to analyse the viability of success and feasibility of entry, followed
by identification of the correct price point and target segment and finally
recommend levers that can drive product success in the market.
Evaluation Parameters
Product Analysis
Value Proposition
Target Customer Segment
Substitutes
Cannibalization
Product Segment
Industry Analysis
Growth Opportunities
Size
Competition
Entry/Exit Barrier
Distribution
New Product
Initial
Investment
Self Financed
Debt Financed
Value Chain
Challenges
Production
Distribution
Equity Financed
Break-even
Point
#Units Sold
Economical Analysis
Price/unit
Fixed Cost
Marketing
Evaluation Metrics
Strategic Fit
Variable
Cost/Unit
© 180 Degrees Consulting - Delhi Technological University
Financial feasibility of market entry
Production cost
Launching cost
Pricing (Refer to Pricing Framework)
Break-even volume/ period
Existing product line
Company resources/capabilities
Technology disruption risks
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What’s In Store?
G#3
C#1
Market Entry | Market Sizing
Your client visits Germany and is amazed by their third party storage units system. Evaluate if replicating the same business model in India would be feasible or
not and if it is, suggest ways to approach the same.
I would like to understand the case a bit more. What type of storage units are we
talking about here, are these self storage spaces or warehouses or godown facility?
Sure, here we're talking about self storage spaces. We plan to keep four sizes for
the storage space (5X10, 10X10, 10X20, 20X20).
Also, will it be a rent based model or subscription based model?
It will be a rent-based business model.
Okay, to get a better understanding, if you could clarify the objective behind
replicating this business model and what’s the current competitive scenario in India.
There are few small companies that provide self storage services in India. Most of
our competitors offer it as a side business within their existing logistics warehouse
or facilities used for other purposes, whereas we wish to cater to only the
self-storage space user segment. Another reason for us to choose this model is
the positive impact of urbanisation on this market.
Okay. And, if you could tell, what would be the market share of these companies?
These small competitors are fragmented and individually have around 5% market
share each.
Easy
Okay. And if you could tell how will you price your service in the market ?
The rent would vary from Rs. 2000 to Rs. 3500/month. It will depend on additional
facilities demanded by the customer as well.
Also, since we will be building these storage spaces from the scratch, will the
construction be insourced or outsourced.
The construction work will be insourced.
Alright. I have good information to proceed with my analysis. Since it's a new industry,
I will begin with analysing the market attractiveness and then move to analyse the
operation aspect as in setting up of the value chain and potential barriers, if any.
That sounds right. let's start with market sizing and market segment. I want to see
your approach. Focus on numbers.
Sure, I will begin with population approach. Apply filters of urban and rural, you
proceed with urban and apply filter of income segment(lBPL, lower-middle, middle
and upper). Ignore the BPL segment and the lower-middle class segment, the upper
class(10%) and middle class(30%) population would add up to 16 crore people.Divide
this number by four to get the number of families, i.e 40 lakh families. Assuming that
around 40% of the households would require the service, the market size would be
approximately 16 lakh households.
That’s about right, what segment do you suggest we should target ?
© 180 Degrees Consulting - Delhi Technological University
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What’s In Store?
G#3
C#1
The upper class and middle class segment should be the target. The reason being
the rising rates of property and reducing size of accommodations due to rapid
urbanisation and rise in population. They will be in need of the storage spaces and
will be capable to rent them out as well.
Profits
What do you think would be our market share?
Since these small fragmented businesses hold a market share of 5%, ours would be
at least 5% as well, leading to 80,000 households.
Revenue
And do you think there will be any risk involved ?
●
●
●
●
Huge amount of capital requirement for land
Cost of customer acquisition
Entrance of new competitors, since a new rising industry
Theft/Safety concerns
That is a good observation. Now let's focus on setting up the value chain. How do
you suggest we go about it.
Understood. The first requirement would be land procurement, probably near
residential areas like colonies or apartments. Second would be to setup a packers
and movers service, and ensure transportation services for goods as well, For
marketing, we can use billboard advertising in the residential areas, as well as radio
and TV ads. Another requirement would be for skilled service staff which would
handle the facility and provide customer support and address their grievances. Staff
training would be needed.
Costs
Price/Unit
# Units
Variable
Decreased number of units
due to the decrease in demand
of the product.
Production
Distribution Push
Fixed
Land Cost, Equipment Cost
Customer Pull
Sure. Good Job! Thank You!
Easy
© 180 Degrees Consulting - Delhi Technological University
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G#3
C#2
No Dirt On Soil
Market Entry
The client is a fertilizer and pesticide manufacturer, they have developed a new soil treatment powder. Evaluate if they should enter the marker or not? If yes,
then suggest ways for the same.
Do you know if the company has already decided to enter the market or if they
are still considering it? And why is the client trying to get into the soil treatment
business?
Client hasn't made a decision yet. They intend to enhance their market share and
diversify their portfolio.
Would you please tell me about the market for soil treatment powder? Size,
industry competition, etc. Does the client intend to expand geographically, as
well?
The total market size for P. biofertilizers in India is valued at $ 99.59 million and is in
its infancy. The market although relativity small, is moderately consolidated with
presence of multiple dominant players. We initially want to focus on entering India.
I will analyse the possibility using four criteria: our product, customers, capabilities,
and regulations. I would consider the execution phase if we decide to enter.
The strategy seems sound to me.
What is the USP of our product, starting with the product itself? How do our
offerings and quality compare to those of other products on the market?
The product is getting increasingly price competitive with traditional options and its
non-hazardous nature. Our product has the advantage of being formalized in-situ,
leading to a very high shelf life. Our product passes all export standards for cereals.
Our product appears to be quite appealing. Are clients restricted to larger farms,
especially in a country like India, which has a high number of small scale and
subsistence farming setups?
Bio fertilizers are still to gain price competitiveness with traditional NPK fertilizers,
making them an option limited to large and medium scale farmers.
Easy
Due to India's enormous population, even that section has a sizable population. But
do we have the financial and operational resources to introduce products in India?
How is our brand recognition for other items in India as well?
The client is a well-known fertilizer company in the western hemisphere. The brand
has been operating in India. We have a productive distribution network and the
ability to manufacture all main products. Moreover, the existing business has solid
finances.
The majority of these elements seem favourable, but what about India's laws and
regulations? any restrictions, such as labour laws,, etc.?
All non-urea products are free from government price regulation, making the market
largely open and free.
For operational choices, we can utilize the current distribution system. If necessary,
more workers and specialists need to be hired. We can use the current
manufacturing facilities, and if the current production capacity proves insufficient in
the future due to their excellent financial position, expanding their production
capacity won't be a problem.
It seems like a good idea.
We are now absent from soil treatment (Bio-fertilizer) Industry. Therefore, we must
market our product. Although we can advertise the product using our
already-established brand name, we would also need to undertake a distinctive
marketing effort to underline our USP in this fiercely competitive sector.
The product marketing strategy appears to be sound.
Do you want me to look into any other facets of the case?
The case can be concluded here, Have a great day!
© 180 Degrees Consulting - Delhi Technological University
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G#3
C#2
No Dirt On Soil
Market Entry
The client is a fertilizer and pesticide manufacturer, they have developed a new Soil treatment powder. Evaluate if they should enter the marker or not? If yes,
then suggest ways for the same.
Observations
●
Expansion
Rationale
USPs
●
●
●
●
●
Customers
Capabilities
●
●
●
Regulatory
Environment
Easy
●
●
●
Recommendations
Portfolio
Expansion,
establish
organization as an early mover.
Government support
Future growth driver
the
Non toxic to humans.
Increased sustainable use possible when
compared to traditional chemical based
products.
Large and medium scale farmers, with
special focus on export conglomerates
such as ITC
Already an established player
Existing manufacturing and supply chain
capabilities
Good financials
Suitable regulatory environment
No price controls present
Regulator working on expanding the
market for the product
Can launch the product under the existing brand, or a
JV/Consortium. Use of existing brand and manufacturing
facilities is the most optimal option provided the necessary
capacity exists.
Entry Options
Use the existing facilities and logistics infrastructure to facilitate
initial expansion. Capital expenditure required for upgrading
existing facilities.
Operating
Decisions
Use of the existing brand name is suitable ( established player
advantage). However, a new marketing campaign to rope in the
interest of potential customers is advised ( eg. Ground level
campaigns and advertisements) eg. Farm seminars/ Local
Mandi exhibitions, Free Samples, Word of Mouth Spread
Marketing
Decisions
A competitive launch (price) is required to carve out a
sustainable market share since consolidated competition
already exists. New geographical expansions can follow.
Growth Plans
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Future First
G#3
C#3
Market Entry | Market Sizing
The client runs a large mutual fund and has recently established an employee benefit fund. You have been hired to find out how big the opportunity is and the
various challenges the client would face.
Can you please throw some light on the size as well as the working of the mutual
funds industry.
Definitely. These companies call for investments either from individuals or from
different funds of various firms, like employee benefit. These are reinvested in
creation and management of portfolios in lieu of management fees. The investors
benefit from this as well, since the risk in these mutual funds are minimised.
I shall segment the population of 135 crore into rural and urban with a ratio of 7:3. I
shall also assume rural employment sector is not the organised section. So, the
number of people in the urban sector is around 40.5 crore. Since, the working
population comprises 60% of the total, with 70% of which employed in the organised
sector, for urban. We get the labour force to be 150 million. Assuming a 10%
unemployment rate, the required population turns out to be 135 million.
How big is this industry? And do we have other players as well.
Alright. Please proceed further.
There are an extremely large number of players in the market and the worth of
this could be running into trillions.
Do we have any idea about the approximate amount of money entering the industry
each year.
Shall I take divisions in the INR 5k-20k bracket, or shall I assume an average.
In accordance with our analysis, in the previous year, the addition of new assets to
the mutual fund industry was around INR 5 trillion.
Shall we consider that employee benefit fund is primarily meant for the organised
sector and not for the unorganised one.
Yes, the employee benefit fund shall be valid solely for employee of the organised
sector.
I shall now be estimating the number of people working in the sector as they shall be
paying for the premium amount for this policy. Is it safe to assume that individuals
between the ages 18 and 60 are eligible to be employed. And shall I proceed further
assuming the life expectancy to be 70 years in India.
Yes, you can proceed further with your assumptions.
You may proceed further with the average of the contributions to be INR 12k.
So, as per my calculations the increase in the assets would be INR 1.62 trillion. This is
quite substantial in comparison to the total worth being INR 5 trillion.
Great, this definitely seems like a good opportunity considering the substantial
addition in assets. Kindly proceed further, exploring whether this is profitable as
well.
Since, you mentioned our client charges a management fees, do we have any
information on the fees charged and the expenses incurred by the client.
The client charges 1% management fee on the assets which are there under
management. You may take up the administrative expenses to be INR 90 annually,
while other operating expenses add up to around 10 bp.
So on every 12k invested, we make 120 in revenues while our expenses shoot up to
100 per customer. The profit is coming out to be 20 for every investment.
Medium
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Future First
G#3
C#3
Market Entry | Market Sizing
The client runs a large mutual fund and has recently established an employee benefit fund. You have been hired to find out how big the opportunity is and the
various challenges the client would face.
Would you think this to be a substantial opportunity?
Market Entry
Yes, I think of it as a good opportunity. According to our calculations, the total profit
comes out to be around 270 cr which is a very good number. Also the profit margins
for the customers is not very high currently, so if we look at the growth rate and
future earnings of the employees then it will be a profitable business.
Market
Attractiveness
Operations
Market Size
Administrative
Expenses
Risk Analysis
Can you provide some recommendations for improving profits in the long run?
I believe this could turn out to be a profitable business. We can also provide
additional services in order to increase customer convenience, loyalty and retention.
Apart from that the costs involved in switching could be increased leading to an
increase in customer retention.
Observations
➔ The Employee Benefit Fund is a great
idea which will both help the client in
increasing their profits and welfare for
their employees.
Medium
Recommendations
➔ Focus on increasing customer
convenience and retention
➔ Look for a client with lower
administrative fees
Low Profit
Margins
Total Population
(135 cr)
Can you highlight possible risks that we might face when executing these ideas?
The first risk could arise is from the regulations that the government might introduce
in order to decrease the post-Covid impact on the working population. Secondly, a
low profit margins for the customers might result in them transitioning over to better
alternatives.
Government
Regulations
Rural (70%)
= 94.5 cr
Urban (30%)
= 40.5 cr
X
Age Segmentation of
Working Population
18-24 (15%)
= 6 cr
25-34 (15%)
= 6 cr
35-60 (30%)
= 12 cr
Employable
Population
50% = 3 cr
60% = 3.6 cr
70% = 8.4 cr
Total employable population in India = 15 cr
Required Population = 15 * 0.9 = 13.5 cr
© 180 Degrees Consulting - Delhi Technological University
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G#3
C#4
Cancer Cure
Market Entry | Pharma
Your client is an British drug manufacturer who wants to bring their newly approved rectal cancer medication to India. You need to evaluate whether they should
do so or not.
To begin, I would like to understand the client's business and background. Further, I
would want to know more about the cancer drug since this is breaking news and is
a unique product.
The client is a science based healthcare company with 3 business verticals that
research, develop and manufacture innovative pharmaceutical medicines, vaccines
and consumer healthcare products. The cancer drug has gotten approval by FDA.
Great! Since this is a breakthrough drug, is it safe to assume that there are no
competitors in the market?
Yes, you’re right. We have first movers advantage. Other treatments for cancer do
exist but none of them promise 100% efficacy unlike our drug.
As for administration, specially trained staff is required because of the newness of
the procedure.
Makes sense! Given that India is a price sensitive market, customers might prefer
already existing treatments in comparison to a new and expensive product.
Further, the cold chain logistics and trained staff are lacking in India, it seems that
the company should wait and try for markets with more suitable conditions and
easier drug regulation laws in order to get the new product up and going.
Interesting! Thanks for your valuable inputs. We can wrap up the case now.
Market Entry
Fantastic! Does the company already have an established network in India?
We have a well established supply chain and customer base in India for our other
product segments.
Regulatory
Expenses
Competitor
Analysis
Logistics
Nice! After CDSCO license approval, what would be the cost of the drug?
The cost per dose of drug is roughly 8.5 Lakh Rupees INR in trial stage. The
treatment requires 4 dosage administrations at the gap of 3 weeks each.
Licensing
Cost
Drug trial
costs
Cold Chain
Staff Training
Transportation
Understood! Are there any special logistics/technology required for
storage/transportation of the drug?
The drug is highly temperature sensitive and requires to be maintained at 2-8
degrees celsius at all times.
Medium
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Love Your Locks
C#5
G#3
Market Entry
The client, a hair care manufacturer wants to enter the organic products market. Evaluate and suggest ways if they should enter this market or not?
The firm had already made the decision to enter the market or they are still
evaluating it? And why is client looking to enter organic product market?
The Client is yet to decide. They want to expand their portfolio and increase their
market share in Hair care segment.
I would like to know about organic products market? Competitive landscape, Size
etc. Also is the client looking to expand into any particular geography?
Globally organic hair product market is anticipated to grow at more than 7% CAGR
during the forecast period of 2022-31 and right now competition in the market is less
intense.
I will analyse the opportunity on four factors: our product, customers, capabilities,
and regulations. If we conclude to enter, then i would look at the execution part.
That approach looks good to me
Starting with the product? What is the USP of our product? How is our quality and
offerings as compared to other products in the market?
Our product is made up of natural ingredients which contains antioxidants that
contain vitamin E, which provides nourishment to all kind of scalps, including dry
scalps. Also, our products will be available in smaller SKUs, thus more affordable and
easy to carry. The shelf life of our product is higher than average.
Looking at our product, i believe our product is quite attractive to customers.
coming to customer segments especially in country like India, Customer will be
limited to urban areas?
Our organic product offering will be a premium product for Indian consumers. So yes,
we will target only tier 1 customers.
Hard
Most of these factors look favourable, what about rules and regulations in India. Are
there any barriers such as taxes, Labour norms, stringent rules for foreign players
etc.?
Fortunately India is an open market with no constraint and favourable tax regimes.
We will have cost advantage too due to both production and distribution within India.
As per 3C1P approach, all the factors are favourable for the client to enter the
Indian market. If the R&D and manufacturing cost are as per industry average, the
client should go ahead. Would you like to explore the execution side of it?
Yes, now that we have decided to enter, let's discuss execution of it.
Since we are an established player with good brand recall with existing
manufacturing and distribution network, we should launch the product under our
own brand name and leverage the existing manufacturing facilities and distribution
network & in future if current production facility is not sufficient in meeting the new
demand, we can easily do an brownfield expansion.
Appears to be good plan.
Leveraging our existing rand name in launching marketing campaigns that highlight
our product's USP to tier 1 consumers and by keeping the price competitive, take a
considerably greater portion of the market, which is right now is at nascent stage
and less competitive..
We can surely keep the price competitive as our R&D cost is not significant and client
aims to corner the market share as soon as possible.
Would you like me to explore the any other aspects of the case?
We can close the case here. Thank you.
© 180 Degrees Consulting - Delhi Technological University
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Love Your Locks
C#5
G#3
Market Entry
The client, a hair care manufacturer wants to enter the organic products market. Evaluate and suggest ways if they should enter this market or not?
Why Expand
●
●
●
Customers
Product
No regulatory constraints
as such, since company is
already well established in
India.
Well known market, easy
tax compliance.
Increase market share
through portfolio expansion
and growth. Gain a first
mover advantage as well.
●
●
Product differentiation:
made from natural
ingredients and contains
vitamin E-rich
antioxidants..
Products are available in
smaller SKUs and have a
higher shelf life than
average.
●
●
Target will be tier 1
customers.
Currently, the market for
this product is at a nascent
stage, but rising consumer
inclination towards hair
grooming products coupled
with increasing awareness
of healthy hair and scalp
will drive the market
growth.
Company
●
●
●
Established player in Hair
Care sector with good
brand recall.
Has a well established
distribution network and
market Presence.
One of the leading
players in the hair care
sector with robust
in-house R & D
capabilities.
Based on aforementioned inputs we decide to enter the organic products market
Market Entry
Operations Strategy
Marketing Strategy
Growth Plan
Can launch under its
own brand, without
any JV provided we
have the R&D facilities
to manufacture.
Leverage the existing distribution
network. Only hire additional labour
and experts if necessary; in the
meantime, make use of the existing
manufacturing facility.
As we are an established player, we can
use our existing brand name to market the
product. We are also launching an ad
campaign which highlights the key USP of
our new product.
We can launch the product at a
competitive price and try to corner this
market. Furthermore, once we have
established ourselves, we can move to
different geographies and segments.
Hard
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CASES
PRICING
Framework: Pricing
The objective, in these cases, is to develop a method for pricing any product.
One has to identify the kind of pricing problem in the case, consider the objective of the company, understand the product features and
market environment. Finally, one should conduct market sizing analysis where required and apply a relevant method to price the product.
The crucial part is to justify the pricing recommendation not just with numbers but also with industry awareness.
Cost-Based Pricing
Competitive Pricing
● Considers all activities
involved in the production
process:
• Research & Development
• Manufacturing Costs
• Distribution/Logistics Costs
• Service Costs
● Occurs when a similar
product exists in the market.
● Identify the customers’
willingness to pay.
● Requires information about
the industry structure
(Consolidated/Concentrated).
● Select and focus on the
target customer segment.
● Determine the break-even
point and payback period.
● Add the margin on the top of
total costs.
● Supply/Demand trade-off
analysis.
● If a competitor product is
unavailable, price the product
according to the NPV of a
substitute.
Value-Based Pricing
● Factor in the opportunity
cost of no product.
● Supply/Demand trade-off
analysis.
● Define the upper/maximum
limit of pricing.
Revised Pricing
● Used in rare cases where
an old product needs to be
priced.
● Consider the utility of
existing product w.r.t a new
product
● Factor in the depreciation
or salvage value need
● Estimate the additional
revenue considering the
supply/demand trade-off.
● Define the lower/minimum
limit of pricing.
© 180 Degrees Consulting - Delhi Technological University
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Framework: Pricing
Approach
PROTIPS
Evaluation Factors
Identify the Problem(s)
Bidding
Auction
Straightforward Pricing
Understand the Product
Singular Product or Product Line
Commodity or Differentiated Product
Luxury or Necessity
Patent and Technological Expertise
Imitability & Substitutability
1. Many pricing cases are coupled with market size
estimation problems. Ensure to clarify the need to
calculate the market size before pricing the product.
2. NEVER give a single price point – Always offer a price
range. Mentioning the price sensitivity metrics in
calculations would fetch brownie points.
3. Visualise the competitive reaction in the market and
incorporate it for a comprehensive solution.
4. Formulate your price range as lower than Value Based
Pricing and above Cost Based Pricing calculations due to
customer switching costs, market fluctuations etc.
Understand the Company
5. Innovative solutions like product bundling and discount
schemes will fetch bonus points as well.
Structure the Solution
New Entrant or Existing Player
Growth Objective - Market Share or Top Line
Willingness to play Price Wars
Consider policies & regulations
Calculate lower & upper limits of pricing
Choose a feasible range
Offer a rational explanation
© 180 Degrees Consulting - Delhi Technological University
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Watts Next?
G#3
C#1
Pricing | Radical Innovation
XYZ Batteries has developed a portable battery backup for EV vehicles. You must determine the appropriate price for a single unit.
Alright, before we figure out the appropriate price for this product, I would like to ask
a few questions about the company, the product, the competitors and the customers.
Okay, now I would like to analyze the costs for the product. How much was spent on
R&D, and what are the manufacturing costs?
Sure, go ahead.
It cost us 100 Cr to develop the technology and factories. Additionally, for every 1000
batteries we produce, it costs us Rs 90,00,000 for raw material acquisition & refining;
Rs 10,00,000 for battery packaging; Rs 25,00,000 to pay for workers’ salaries and Rs
25,00,000 for transportation to small & medium sized shops.
What is the objective of the company regarding this product?
To gain as much profit as possible.
Okay, now I’d like to know more about the product. Is this a new product, or has the
company developed something like this in the past?
This is a completely new product.
In that case, is the product patented? Does it have any competitors?
Yes, we have a patent that is valid for 5 years. We have no competitors.
I would like to know the advantages of the product. Is the product ready for the
market?
Due to a high power to weight ratio, our batteries are lightweight and hence
suitable for EVs. Conventional batteries take 2 hours to charge, while our batteries
take 20 minutes to charge and provide an additional 50 km range. They are ready
for the market.
Does XYZ Batteries have any other products, apart from these batteries?
Yes, we develop batteries for ICE vehicles’ air-con & lighting systems and
generators.
Easy
Okay. First, let's estimate a lower limit for the price, using cost-based pricing. Since we
have a valid patent for 5 years, it would make sense to at least recover these costs.
Assume close to 20k wheeler EVs vehicles were sold in India in FY’22. Assuming, this
increases at a modest 50% per year (EV Sales quadrupled from ‘21 to ‘22).
This means that the total number of EVs that we can sell to in 3 years is
20,000*(1+1.5+2.25+3.375+5.0625) = 2,63,750 ~ 2,65,000
In India, due to lack of charging ports in India, early-adopters may feel the need to use
the EV battery backup. Moreover, since we have considered 4 wheeler EVs only, it is safe
to assume that these people belong to a section of society that can afford an additional
cost of a backup battery. Hence, we can consider an adoption rate of 20%. Thus, the
total number of battery backups that we need to produce at the very least is 20% of
2,65,000 = 53,000.
Hence, applying cost based pricing, we get a break-even cost as: (100,00,00,000 +
15,000 * 53,000) / 53,000 = 179,50,00,000/53,000 = 33,867 ~ 34,000
Adjusting a 20% profit on each battery as a margin, we get: 34,000 * 1.2 = 40,800 ~
40,000
Thus, a cost-based pricing with a 20% profit would be 40,000 rupees.
© 180 Degrees Consulting - Delhi Technological University
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Watts Next?
G#3
C#1
Pricing | Radical Innovation
XYZ Batteries has developed a portable battery backup for EV vehicles. You must determine the appropriate price for a single unit.
Fair enough.
Factory
Set-up
R&D
The cheapest electric vehicle at this moment is 11 lakh rupees, and people typically
pay close to 50k to 1 lakh rupees for a better version/model of their car. This cost
further increases when you go for a more expensive vehicle.
Moreover, as was mentioned before, there are a lot of logistics-related issues, such
as lack of charging ports, and early-adopters have a very realistic fear of running
out of charge, so most customers would perceive this as a useful add-on, and would
be willing to pay at least 50k for the Portable battery backup.
Hence, the battery should be priced between 40k to 50k.
Rs 100 Cr
Production
Raw materials
Transport
Sales,
Distribution &
Services
Transport to SMEs
Pricing
Cost
Value
Alright. Any other suggestions?
Yes, since we make batteries for car air conditioners & lighting systems, we can go
ahead with product-bundling, and provide end-to-end solutions for vehicle
electrification systems.
Additionally, we can go ahead with tie-ups with electric vehicle manufacturers, to
explore the B2B side of the business in addition to the already explored B2C side.
Apart from Electric Vehicles, we can also explore the commercial transport category,
such as electric rickshaws, as they lose out on valuable time (and hence revenue), by
developing a smaller, cheaper version of the battery backup.
That’s all, thank you!
Easy
R&D
Production
Transport
Observations
➔ Cost is broken down into R&D, factory
set-up, production & transport.
➔ Market is expanding very quickly.
➔ Patent validity of 5 years means that
the player must overcome costs in this
duration itself
© 180 Degrees Consulting - Delhi Technological University
Vehicle version differentiation
drives perceived value
Recommendations
➔ Product must be priced between Rs 40k
to 50k
➔ The client should collaborate with EV
manufacturers to explore B2B side.
➔ Product bundling can be looked into.
➔ Smaller version for commercial EVs can
be developed
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Need For Seed
G#3
C#2
Pricing | Radical Innovation
The client is in the Agribusiness and wants to enter the Indian market. They have developed a new variety of seeds and want to know how to price it optimally in
the Gujarat Market.
So just to clarify the question - our client runs agribusiness internationally and has
developed a new variety of seed for the Gujarat Market. I have to identify the optimal
price for the same.
Correct. Please go ahead.
I would like to focus on the value chain of the seed which would comprise of
production, storage & distribution, sales & marketing. Are we manufacturing the
seeds in India? One of the major cost would be last mile connectivity issue.
Yes, we will manufacture it in India with 10% profit margin.
Can I get some details about the client? Whether it is their first product or do they
have other products in the Indian market?
Assuming loose seeds are available in the market at Rs. 100/kg and the retailer would
keep a margin of ~ 30%. The cost of production of seeds/kg would be approximately
Rs. 70/kg. With a profit margin of 10%, minimum price of our seeds should be Rs. 80.
The client is based in US and it is their first product in the Indian market.
Sounds fair. Our competitors sell it for Rs. 72/kg
Okay. What variety of seeds have they developed and why do they wish to launch it
in the Gujarat market first?
Interesting. To justify our price we have to consider the value based approach. Are
there any USPs of the seeds we are selling?
The seeds are of Cotton and Groundnut. Since these are cash crops and are
primarily grown in Gujarat, it is a lucrative market.
We have spent a significant amount on R&D and experiments have shown that our
seeds yield more uniformity, quality growth & increased resistance to insects &
weeds. Our seeds also have a 100% conversion rate.
Understood. so there can be three approaches to price the seeds. One can be a cost
based approach to allow us to cover all the basic costs, a competitor based
approach and a value based approach based on the USP of our product.
Sounds good. Go ahead with these 3 approaches.
Great! That is something we can work upon. I would like to clarify a few things. Does
this experiment would show the same results in the Gujarat fields as well? SInce there
is a variance in climatic conditions & quality of soil.
Assume that our seeds would have a 90% conversion rate in the Indian soil.
Sure! First the cost based approach. Since the project must have involved significant
R&D do we have any costs which we need to cover or any timeframe in which cost
has to be recovered?
Interesting. Assuming the average conversion rate of cotton and groundnut seeds in
India is 50%. We are providing our customers 75% more value than our competitors.
Thus, we can price our seeds between Rs. 80 - Rs. 140/kg. (80x1.75)
That is a fair assumption. For this case focus only on the variable cost.
Thankyou. We can close the case now.
Medium
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Need For Seed
G#3
C#2
Pricing | Radical Innovation
The client is in the Agribusiness and wants to enter the Indian market. He has developed a new variety of seeds and wants to know how to price it optimally in the
Gujarat Market.
Storage &
Transportation
Production
R&D
Significant
but not
considered
here
Sales &
Distribution
Customer
Service
Pricing
Transport to
customers
(Last mile
connectivity)
R&D
Raw
Material
Packaging ,&
Transportation
Manufacturing
R&D
Medium
Sales
Distribution
Competitor
Cost
Connectivity
Small
Players
Observations
Customer
Service
➔ Production of the seeds is similar to any
standard packaged product
➔ The conversion rate is important in this
case since they would decide the value of
the crop.
➔ The case could also be extended to the
insecticide resistance (value based
pricing) if the interviewer would have
asked
© 180 Degrees Consulting - Delhi Technological University
Major
Players
Value
Conversion
Rate
Crop
health
Recommendations
➔ Price the seed bag/kg between Rs. 80 160 to gain profits.
➔ The client should collaborate with FPOs
and FFFs to gain brand awareness.
➔ The client should invest heavily in
marketing its product targeting the
major USPs to enhance brand image.
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Hyped-er Loop
G#3
C#3
Pricing | Hard
Your client is a new age tech company which has developed a Boosted Shuttle Service. Boosted shuttles are hyperloop technology in which aerodynamic pods
travel through specialized tunnels with a max speed of 500 kmph. Determine what price they should charge per ticket in the Indian market..
Thank you, I would like to begin by asking some clarifying questions first
Sure go ahead !
I would like to know more about the company and its product. Which geography is
the client targeting?
It is an Indian startup which is looking to revolutionize transport by bringing in
speed and sustainability. They plan to launch the first phase between Chennai and
Bengaluru.
That's interesting, what timeframe is our client expecting to break even or turn
profitable ? Are there any other objectives I should be aware of ?
The pod can carry 48 passengers at a time and the service will be operational for
12 hours a day to start with. The time between two pods leaving either station is
going to be 6 minutes.
Alright the distance between Chennai and Bengaluru is approximately 400 kms,
taking the average speed our pod to be 400 kmph the time taken for an entire round
trip will be around 2 hrs. This means we need at least 20 vehicles to maintain
operational efficiency.
That is correct
They expect to turn profitable in 4 years.
Thank you sir, do we have any information regarding any existing competition and
customer segments the client is planning to target ?
Our competitors are the existing transport services - airlines, trains and cabs. The
target customers are passengers only and no freight transport.
Alright, do we have a patent on this technology ?
Yes we have a patent which should safeguard us for around 5 years.
Medium
That's great, so how many people can the vehicle carry at one time and how many
times a day are we planning to run the pod? What is the distance between Chennai
and Bengaluru ?
Okay so based on all the information, we can look at the cost based pricing first. I will
then compare it with our competitors prices. Since this is a novel and luxurious
technology I will account for value added as well. Does this seem like a suitable
approach ?
Sounds good, what all costs do you think are involved here ?
Alright, I think the costs would be of R&D, Manufacturing costs of the Pod and Tube,
Fixed costs like salaries of Employees, Land acquisition costs and SG&A costs. The
recurring costs would be the cost of Electricity and Maintenance/Repair.
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Hyped-er Loop
G#3
C#3
Pricing | Hard
Your client is a new age tech company which has developed a Boosted Shuttle Service. Boosted shuttles are hyperloop technology in which aerodynamic pods
travel through specialized tunnels with a max speed of 500 kmph. Determine what price they should charge per ticket in the Indian market..
Correct, so we have some data regarding this. The R&D costs are Rs 700 Cr. The
cost of Tubes is 250 Cr and cost of each pod is 10 Cr, the land has been provided at
a subsidized rate by the government and can be ignored. The electricity
consumption is around 500 MWh/day and the monthly maintenance costs are Rs 5
lakh. Consider cost of electricity to be Rs 6 per Kwh
That's interesting, what timeframe is our client expecting to break even or turn
profitable ? Are there any other objectives I should be aware of ?
To break even we need to price the ticket at a starting price of Rs 1,380. However
given that the boosted shuttles are offering faster and safer method of travel we can
price it 20% higher than the break even. So the new price would be Rs 1700
That is correct
Costs Involved
Amount in Cr (Rupees)
For 4 years (Cr)
Research and Development
600
600
Specialized Tubes
250
250
Pods (20)
10x20=200
200
Electricity Costs
500 MWh/day x 6 x 10^6
876
Maintenance Costs
5 x 10^5/month
Pricing
R&D
Administration
Expenses
Manufacturing
Maintenance
Costs
2.4
Total Costs
Target
Audience
Cost
928 Cr
Real Estate
No of Travellers (80% occupancy)
Medium
48x120x365x0.80 = 16.81 L
67.27 Lakh
© 180 Degrees Consulting - Delhi Technological University
Customer
Segment
Profitability
Competition
Break even
Timeline
Patents
Cost of
Novelty
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Angry Birdies
G#3
C#4
Pricing | Break Even
The client is a company in real estate development. They are planning to set up a golf course in the South Campus area of New Delhi. They would like your help in
deciding the monthly subscription rate in order to break even in 5 years after setting up the golf course.
The client is a company in construction. They are planning to set up a golf course
in the South Campus area of New Delhi. They would like your help in deciding the
monthly subscription rate.
So just to clarify the question - our client is a company in sports which is planning to
set up a golf course. I have to help them decide the monthly subscription rate,
correct?
Correct. Please go ahead.
Before making a framework, I would want to know is this the first golf course the
company is setting up or do they own any elsewhere too?
This is their first golf course. They plan on targeting the retired individuals or posh
business gentry of the South campus of New Delhi.
The company is looking to know how long would it take for them to break even..
Got it. I would like to divide my approach into:
1. Cost based approach - Here, we estimate the cost of running the golf course
and calculate how much the subscription should be in order to break even. This
will give us the minimum level at which we can set our monthly subscription.
2. Value based approach - Under this, we will look at the value we are adding to
our customer’s life. We will estimate how much customers will be willing to shell
out for the service. This will give us the maximum level, at which we can set our
monthly subscription.
3. Demand-supply approach - If we have data available as to the demand and
supply at different price points, this approach will be useful.
We cannot take into consideration, competition-based approach, since we do not
have any competitors in the proposed area.
Okay, I would like to know a little more about the golf course now. How big is it going
to be? What are the services it will offer? How many times a week will it be open?
We do not have information on the demand and supply at different price points. You
can proceed with the remaining 2. Why don’t you take up the cost based approach/
What information will you need?
The golf course is going to be the most posh and at the same time, the most
relaxing place where people would come to rejuvenate and enjoy the beauty of
nature as well. It will be an 18-hole golf course with personal and group training
options for beginners. There will also be a cafe where golfers and spectators will
be served beverages, meals and snacks. The golf course will be open from 6AM to
6PM for 6 days a week excluding Monday.
Sure. We need to know the cost which cost will be incurring in setting up the golf
course and running it. The various costs will include equipment cost, financing costs,
monthly rent, training and other staffing costs, electricity and water etc. Also, what
will be the cost of setting the golf course up from scratch and the average cost of
maintenance?
Sounds good. Lastly, what is our objective when it comes to deciding our monthly
subscription? Is it to make profits? Capture market share or break even?
Hard
Okay, you can note down the following information.
© 180 Degrees Consulting - Delhi Technological University
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Angry Birdies
G#3
C#4
Pricing | Break Even
The client is a company in sports. They are planning to set up a golf course in the South Campus area of New Delhi. They would like your help in deciding the
monthly subscription rate in order to break even in 5 years after setting up the golf course.
Item/Point of expense
Absolute cost
Monthly cost
Type of cost
Setting up the golf course
39,60,00,000
1,10,00,000
One-time
Maintenance
2,00,00,000
16,66,666
Recurring
Equipment (Golf Carts,
Clubs, Flags)
4,00,000+1,20,000+
10,000 = 5,21,000
43,416
One-time
Canteen Inventory and
Construction
15,00,000
1,25,000
One-time
Trainers and Caddies
2,00,000
16,666
Recurring
Washing Facilities /
Changing rooms
5,00,000
41,666
One-time
Excellent. Now, we calculate the amount of monthly subscription per individual for
our client to break even in 5 years.
Great!
After some calculations, I have arrived at the following table which gives us the
monthly cost we will be incurring. Approximately, how many individuals are
interested in taking up the membership for the golf course?
We conducted a survey. The results indicated that we can get around 500 individuals
to take up the membership.
Hard
In order for our client to break even in 5 years, we need to divide the costs into
recurring or one-time costs. The total amount spent by the client by the end of 3
years of construction and setting up of the golf course adds up to 39.852 crores.
The monthly recurring costs after that period adds up to 16.83 lakhs. The cost
which the client has to recover per month for 5 years, taking into consideration
the recurring and one-time costs is 83.43 lakhs. Since there are 500 individuals
interested for a monthly membership of the golf course, the client must levy a
monthly membership fee of approximately Rs. 16.7K (Monthly cost/Number of
individuals)
This makes perfect sense. We seemed to have covered our cost required. Thank you
so much for your help.
The monthly membership fee = Rs. 16,686
© 180 Degrees Consulting - Delhi Technological University
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CASES
GROWTH & STRATEGY
103
Framework: Growth Strategy
In this subset of Profitability Cases, the company aims for XX% YoY
growth in Z years, and you are expected to brainstorm ideas that
align with the growth target and then validate them by identifying
pillars to support it.
A company can grow either in its existing business (provided there is
scope), or explore new business opportunities.
Protips
Always clarify the objective(s), especially growth % and
time period.
There is a significant creativity component attached to
the brainstorming, so keep options open while checking
operational feasibility.
Key Questions
● Expected growth of the industry?
Are we targeting growth more/less/at par with that?
● Existing capacity in the plants/services to meet the
increased volume or investments required?
● Price elasticity in the market?
Growth Strategy
Explore the Existing
Business
Increase
Volume
Increase Price
Or Reduce Cost
Explore a New
Business
Extend Product
Line
New Geography
Increase
Customers
Increase Purchase
Frequency
Increase Product
Size/Quantity
● Effect of substitutes and complements?
© 180 Degrees Consulting - Delhi Technological University
New Market
Segment
Merger or
Acquisition
Diversify
Portfolio
Page 92
Beerly Buzzed
G#3
C#1
Growth | GTM Strategy
The client is an Alcohol manufacture
manufacturer.who
It has
after
recently
R&D have
developed
recently
a fruit
developed
beer line.
a fruit
Helpbeer
them
line.
take
Assist
the them
product
take
to the
the product
market .to the market .
Could i know more about the client? Since when are they operating and what area do
they serve, their key products and the competition they are expected to face
The client has been operating in India since 25 years. It is most known for its
whiskey and rum offering to popular brands. The fruit beer is ready for launch and
it will be the only product in the market with no competition.
Alright so for an FMCG beverage, Are their any key objectives or constraints that i
should be aware of? Also how is the client proceed; setting up a Direct to consumer
channel or selling it to an existing brand’s product line
The client wants to sell directly as a new brand. There are no constraints as such.
So our key challenge would be to move from B2B networks to D2C. I wish to
understand our product a little better, can you tell me about the composition, taste,
USP and SKUs
The Fruit beer is a non alcoholic beverage with a beer-like punch. It is packaged in
a 250 ml glass bottle, Currently we can offer 4 flavours - apple, mojito, cranberry
and pineapple. It has the shelf life of 24 months. It also contains caffeine.
So our product is a fast moving beverage as a standalone offering to people and
also as a substitute of beer (alcoholic). So, we can target teetotallers in bars and
pubs, offering easier accessibility of our product to students and placing our product
aggressively in retail stores. Our idea customers would be in tier 1 cities willing to buy
savory fruit drinks
That's a fair hypothesis. The client needs a price range for this product. Please
proceed with that.
Easy
Sure, there are 3 ways to price a product - competitive benchmarking, value based
pricing and cost driven price. Since there are no constraints of margins on cost,
and it being a unique new product with no competition ; value based pricing will be
the better suitable method.
Sure, please move forward with that.
So i am aware that a standard corona beer costs rupees 150 for 250 ml.
And the closest substitute our product with students will be a fruit punch which costs
around rupees 80 for 250 ml, but our product having an aspirational value above the
standard punch, so a 12% roundup ie 90 rupees can be set as the lower price limit
Since our product is non-alcoholic, i'll assume a 20% cut to the price of beer. Thus, 120
can be considered as the upper limit to the fruit beer. My final recommendation
would be RS 90 -120 for retail. However while selling directly in pubs we can offer a
higher premium ab
Great, that price range seems reasonable. What else do we need to think of?
Before entering the market, some macro factors we need to look at are the
regulatory fssai approval for beverages and there may be some non compete
contracts with our existing clientele of selling into some channels
The contracts and licensing has been taken care of before hand .
The next bracket to look at is awareness and promotion, we can onboard social
media influencers and strategically sponsoring events and parties so as to market
our product while also leveraging our legacy of manufacturing
© 180 Degrees Consulting - Delhi Technological University
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Beerly Buzzed
G#3
C#1
Growth | GTM Strategy
The client is an Alcohol manufacture who after R&D have recently developed a fruit beer line. Assist them take the product to the market .
That seems reasonable as we need to setup awareness around our
brand. What else?
Further, we can look into distribution channels. As i previously
mentioned, retail stores and supermarkets will be ideal for people
to easily access it as a fast moving beverage. College/office
canteens can be a great way forward to get popular attention to
our product as they have a faster selling cycle. Retail stores and
pubs will have different selling cycles so our supply frequency must
factor that in.
Once we successfully pilot the market, our key focus shall be on
customer engagement and optimising retention
Go-to-market
Customers
Regulatory and
other risks
Marketing
Customer
profiles
Pricing
Placement
FSSAI
approval
D2C Channels
Target
audience
Product
Promotion
Non-competes
Supply cycles
Alright, these ideas are good to go forward and we can close the
case here.
Selling rate
Thankyou!
Observations
➔ The non-alcoholic fruit beer addresses a
major chunk of market appealing to all ages
and can be priced by setting 250 ml beer and
fruit punch as upper and lower benchmarks
➔ Key focus to setup D2C channel and Capture
market to make use of first mover
advantage
Easy
Sales and
distribution
Recommendations
➔ Product placement in pubs & parties with
strong presence in retail segment will make the
product accessible to target audience
➔ Existing distribution channels can be
leveraged to do so
➔ Price range; 90-120/bottle
➔ A thematic marketing campaign around brand
awareness
© 180 Degrees Consulting - Delhi Technological University
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May The Fork Be With You
G#3
C#2
Growth | Operational Obsolescence
There’s a restaurant in your locality whose business is facing a threat from a new restaurant chain with more attractive and diverse offerings. How can
you help this business survive and grow?
I'll start by asking some background questions. What are the client restaurant's main
specialties and how long has it been operating in the area? What are the main menu
items offered by the restaurants and the average price per meal for two people?
The average cost of a meal for two at the client restaurant, which primarily
serves Indian food, is ₹700. They have been in business in that area for more than
5 years. The new restaurant, which has a bakery and serves both fast food and
Indian cuisine, serves at ₹900.
Okay, so I can infer from this that both restaurants mostly serve the middle-class
segment. Do they also offer deliveries?
The client now offers takeout but has a very weak internet presence, and dine-in is
the major source of revenue. In contrast, the new business provides robust meal
delivery services both online and over the phone.
Noted. Is there a specific issue that needs to be addressed in this aspect and how
long has it been that the client is facing that issue?
Although the client is able to retain some of the long-term customers, there has
been no rise in the number of new customers, which has stunted revenue increase,
especially since the new restaurant has been established.
The demand-supply restrictions can be examined. Is the client able to service every
customer during peak times, or do they have to turn some away owing to
overcrowding or a shortage of necessary supplies?
Naturally, the shrinking market and operational obsolescence are the main causes of
the decline in sales and the drop in the number of new customers. Since work and
school schedules have resumed following the pandemic, it is safe to expect that
weekdays will see relatively little demand for dine-in or takeaway services. Should I
go into more detail about how to approach it?
Yes, proceed and explain what the client may do immediately to resolve this issue.
So, there are three segments of potential customers the client has to target, based
on their tendency to eat out.
The ideal course of action for the first segment would be to focus on home deliveries
and collaborate with platforms like Zomato and Swiggy. The restaurant must use its
brand reputation and loyal customer base to gain a foothold in the competitive
mid-price range market. It must also offer discounts and coupons to boost its
ranking in these platforms' listing algorithms along with positive online reviews. It
might start out as a losing endeavour, but it will eventually produce yields.
Number of Customers
Existing Channels
Dine-in
The client has all the necessary supplies. Although there is a large client turnout on
weekends and holidays, there is not enough room due to the overwhelming
reservations.
Easy
© 180 Degrees Consulting - Delhi Technological University
New Channels
Dine-in
Deliveries
Packages meals
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May The Fork Be With You
G#3
C#2
Growth | Operational Obsolescence
There’s a restaurant in your locality whose business is facing a threat from a new restaurant chain with more attractive and diverse offerings. How can
you help this business survive and grow?
Customer
Segmentation
Take only deliveries
Take both deliveries and
takeaways
Willing to dine-in
occasionally
For the second segment, they would need to introduce packaged ready meals for
those who can not dine-in but are willing to pick up their meal on the way to their
workplaces or accommodations.
For the third segment, the client should add a provision to "order ahead" while
reserving a table to ensure a high table turnover rate during the busiest hours. Offer
a "happy hours" promotion to draw consumers during non-traditional meal hours,
which typically last from 2 pm to 7 pm.
Good suggestions. Do you want to add more recommendations?
Elderly, students and
working professionals,
who avoid outdoors
completely due to time
crunch
People who prefer
tiffin-like services or
officer workers who
eat at odd eating
hours
Some privileged
working populace who
can afford private
vehicles
Course of Action
Home deliveries
Home deliveries
Discounts
Tiffin services
Online presence
Online Presence
Easy
1.
2.
Adopt subtle upselling techniques like menu specials, especially during
holidays and happy hours promotions.
Pay attention to the dishes that can be ordered in large quantities for parties
and business reunions at competitive prices. These sales will help the product
become known and make additional sales.
Sounds good. We may close the case here.
‘Order Ahead’
facility
High table turnover
rate
‘Happy Hours’
Promotion
Observations
➔ Prevailing operational obsolescence has
been detrimental to the client
➔ Positioning of items within the menu
card can bring positive changes
➔ Loyal customer base can be leveraged
to experiment new services
© 180 Degrees Consulting - Delhi Technological University
Recommendations
➔ Overhaul the operation process.
➔ Robustly revamp the online presence.
➔ Reward regular customers through
customer loyalty incentives.
➔ Increase footfall at non-traditional
eating hours.
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Ride The Bangalore Wave
G#3
C#3
Growth | Expansion
Your client is Bangalore Metro. They have hired you to suggest the best ways to utilise and monetise the 10 acres of land at one of their station on a
recently added route.
Thank you, I would like to begin by asking a few questions to get to know the case
statement in detail.
Sure, please go ahead.
What is the client's objective? Is there a target and timeline that client has in mind?
Does the client have any other land holding? How has the client developed/used it?
The client only wants to maximise returns from the land. There is no target
/timeline. You can assume this is the first time client has acquired an additional
landholding.
Okay. Could you describe the area where the land is located? It is it a commercial
area or residential? What is the typical traffic or footfall in the area?
It is a developing area in the city with some level of commercialisation and
residential buildings. The land is located immediately next to metro station and is
on route to highly commercial areas of the city.
I would like to know what are the commercial buildings already in the nearby region.
Please go ahead.
The various options can be bucketed under four categories- 1. Using for current
business such as client's office building, employee quarters, training centre etc. 2.
Commercial buildings such as metro malls for shopping/movie/entertainment,
gaming zones, parking facility etc. 3- Residential complex. 4- Lease out or sell the
land. Is there any specific option to proceed with?
Assume that there is no requirement for any office related expansion. List what all
factors are to be considered for the two options of mall and residential complex
I would look at Financial and Operational factors. Financial factors such as budget
outlay for both options, expected return based, payback period and synergy
benefits. In case of Mall, the daily crowd inflow to malls can provide revenue to
metro line. Operational factors such as license to operate, project duration,
competition, promotion of venture etc are to be considered. Further, in case of
residential complex additional factors such as nature of residence
(luxury/economical), can be taken into account. In case of Mall, the kind of outlets to
include, growth prospects of footfall in the area, model of operation etc. are to be
considered.
Alright. Can you list different revenue sources for a mall?
There are a few restaurants and multiple retail shops.
Okay. I would structure the problem by first coming up with various options for
monetizing the landholding, evaluate the financial and operational feasibility of each
option and finally evaluate any risks. Shall I proceed with this structure?
Medium
Revenue can be divided into core and non-core. Core sources shall include Rentals
from outlets in mall, Charges for facilities such as parking. Non core revenues such as
advertisements and revenue from any events held at malls
© 180 Degrees Consulting - Delhi Technological University
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Ride The Bangalore Wave
G#3
C#3
Growth | Expansion
Your client is Bangalore Metro. They have hired you to suggest the best ways to utilise and monetise the 10 acres of land at one of their station on a
recently added route.
Landholding commercialisation
Options
Financial Feasibility
Office expansion, quarters,
training center
Commercial building-Mall,
parking facility
Residential complex
Operational Feasibility
Mode of entry
Budget
Setup time
Joint Venture
Buyback Period
License
Ownership
Returns and synergy
benefits
Construction
Build-Operate-Transfer
Others
Lease out
It has been evaluated that Mall is a better option. The client has limited capital to
invest. Can you suggest different ways to set up & operate the mall?
The client can invest in setting up the mail entirely on its own. This may not be feasible
considering financial constraints. Other options to consider would be through Joint
Venture with a mall chain such as GVK or models such as Build-Operate - Transfer.
Observations
➔ Included residential houses and
commercialisation under semi
developed areas
➔ Observation of restaurants and
retail shops nearby
Recommendations
➔ Explore each option
comprehensively
➔ Take buy in from interviewer on
which option to consider for
further evaluation
Alright. That was good. We can close the case here.
Medium
© 180 Degrees Consulting - Delhi Technological University
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Stream Team
G#3
C#4
Growth | Expansion
Your client is a multi-language OTT content seller that specializes in children’s content. However, it is a new platform that is aiming to increase its audience
engagement and market size by 30% by the end of this year.
I would like to begin by asking a few questions to get to know the case statement in
detail.
Sure, please go ahead.
I’d like to understand the client’s business a little more. Is there any existing competition
in the industry?
It is a one-of-a-kind OTT platform since there are currently no direct market
competitors in business niche of children content. Indirect competition exists in
the form websites, television cartoon channels, social media
I’d like to understand the reasons why the market size has not increased, what are the
problems that you are facing?
We are currently experiencing high customer churn rate along with an
unsatisfactory penetration rate in terms of the target audience.
Okay! I’d like to break the problem into 4 key segments of the OTT platform:
1.
What are the marketing channels for the content?
2.
What are the subscription plans available for the platform?
3.
What is the target audience for the content?
4.
What is the type of content- is it educational, entertainment, interactive?
We show advertisements online on parenting websites and YouTube. There is only
one subscription plan of Rs 300 per month. The content is primarily educational and
is meant for 2-7 year olds.
Medium
Thank you. There are three possible ways to tackle this:
1.
By increasing customer base
2.
By better monetizing the existing platform.
3.
By diversifying the platform.
I shall now be exploring each of these possible ways one by one.
Sure, please go ahead.
Since the target base is 2-7 year olds, who do not make purchases themselves, one
has to target young parents to increase the customer base. This may involve tie-ing
up with popular YouTubers in the parenting space, having endorsements from
child-development experts etc. A lot of streaming applications are also pre-installed
on mobile devices/smart-TVs and the OTT platform can partner with electronics
companies to bring the platform directly to the target audience.
Great suggestions, please continue.
To better monetize the platform, we can introduce 2 pricing models- a regular
low-priced subscription-based model that comes with advertisements and a ‘premium’
model that comes add-free with other features such as parental controls. Another way
to monetize the platform would be to tie-up with toy-brands such as Fisher-Price to
release a product-line based on the TV shows showcased on the platform.
The platform can better diversified by including TV shows for entertainment,
educational games etc. Since a majority of the population also streams on
mobile-phones some investment can be made into better-streamlining the mobile
application.
Alright. Thank you for your suggestions. We can close the case here.
© 180 Degrees Consulting - Delhi Technological University
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CASES
PRIVATE EQUITY
Framework: Mergers & Acquisition
The ultimate objective of a target and market
assessment is to determine the value of the target.
In order to understand value, we need to understand
the three primary value components..
Market
Value
($M)
Value Components
Will volumes/prices
increase or decrease?
Will costs rise faster or
slower than sales?
Revenue
Standalone Upside
Synergies
Value of existing
earning stream with:
Value of possible
improvements from:
-No Growth
-No Changes in
margins
-Market Growth
-Share Gain
-Margin Improvement
Value of benefits
from relationships
between target
company and
acquirer.
How secure is the
business?
What upsides exist for
the standalone
business?
Baseline Value
Cost
Margins
Future
Cash Flow
What investments in plant
Investment
and working capital are
Requirement
required going forward?
Value
Definition
Issues
© 180 Degrees Consulting - Delhi Technological University
What added value
does the acquisition
bring?
Page 101
Framework: Mergers & Acquisition
Value Drivers
The value components can be further
broken up into specific “Value Drivers”.
Revenues
Market Size
Market Share
Sales Mix
Operating
Margin
Retail Prices
Wage Rates
Staffing Levels
Risk Analysis
Cash
Profit
• Cultural Fit
Cultures of the merging
entities should be coherent
and complementary.
• Strategic Fit
The long-term strategies
should be in sync for both
entities.
• Organizational Fit
Degree of similarity in org
structures. Matrix, functional,
divisional etc.
Management overlap and
talent
Taxes
Business
Unit Value
Cash Flow
from
Operations
Investment
Required to
Support
Operation
Discount
Rate
Working
Capital
Capital
Expenditure
Cost of
Capital
© 180 Degrees Consulting - Delhi Technological University
Effective Tax Structure
Debtors
Creditors
Contract Terms
Plant Life
Maintenance
Scale of Operations
Cost of Equity
Cost of Debt
Gearing
Page 102
Framework: Private Equity Investment
These cases discuss investment into a business for financial gain .Whenever asked to evaluate an investment it is essential
to understand the objective first.
●
Why? – Objective of investment: direct return from investment, incentives in the current business, synergies, etc.
●
What? – What is the target rate of return from investment
●
When? – Timeline of investment
Once the expectation setting is done, the rationale to make an investment can be evaluated by these factors:
Only if the industry is attractive, target has high potential and expected return from the investment (from all sources)
exceeds target ROI, investment is justified.
PE Firm Characteristics
Industry Attractiveness
Target Specifics
Sources of Returns
Fund Size
Market Size/Growth
Business Model
Operational Efficiency
Fund Style
Profitability
Valuation
Unlock Potential
Portfolio
Barriers to Entry
Management Capability
Use Leverage
IRR
Competition
Product Services
Exit Period
Customers
Willingness to Sell
Costs & Risks
Market Share & Growth
Suppliers
Suppliers
© 180 Degrees Consulting - Delhi Technological University
Page 103
Steel The Deal
G#3
C#1
M&A | Private Equity
A steel manufacturer is planning to carve out 10 factories. Determine the attractiveness of the proposition and provide a recommendation on whether a PE firm
should consider acquiring these assets.
A steel manufacturer is planning to carve out 10 factories. Determine the
attractiveness of the proposition and provide a recommendation on whether
a PE firm should consider acquiring these assets.
Do we know why the manufacturer carved out 10 of it’s factories?
So just to clarify the question - our client is a private equity firm looking to invest into
a steel manufacturer who is looking to divest 10 of it’s manufacturing plants, am i
right ?
What are the factors that might change industry factors in the long term?
Correct. Please go ahead.
Can you give me a brief background of the firm and its objective for evaluating this
acquisition ?
The firm has a background in investing majorly in profitable sectors and
businesses and wants to maximize the profits via this investment in short term
Okay, can you give a brief background about the manufacturer and their
operations?
So our manufacturer is based out of India and majorly works in manufacturing
and processing steel from iron ores with downstream operations too
Got it. What’s the current industry scenario and manufacturer’s market share ?
The current industry demand keeps on rising, the competitors have been thriving
well and client’s market share has been stable throughout
Okay, can you tell me about the profitability scenario in this sector?
The upstream activities require sourcing of raw materials and technological
innovation to reduce power and fuel cost
Hard
Yes, the manufacturer had to pay huge cost of borrowed capital and our suppliers
also have been charging significant portions of profits
Though the government has lowered corporate taxes but it has increased the export
duty to 30% thus hampering our overseas operations
Got it. What are the other factors that determine profitability of this industry?
Demand here plays a significant role. What according to you are the risks associated
in this industry ?
Well the risks are like prices of commodities keep on fluctuating according to
demand , industry is very conventional ie. any changes required takes in time to be
implemented , most importantly steel industry is very energy-intensive thus leading
to higher carbon footprint impacting the immediate environment..
Also complex value chains ie. varied client base, changing quality requirements and
services further complicated the distribution channels
Makes sense. So what are your final recommendations about the acquisition?
The client is already dealing with cost inefficiencies, further on they are struggling
with satisfying all their stakeholders and the steel industry though having scope of
digital expansion doesn’t seem to align with our objective of gaining profits in short
term.
© 180 Degrees Consulting - Delhi Technological University
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CASES
PRODUCT BASED
Don’t Bug Me
G#3
C#1
Product | Customer Decline
The client, Amazon is an AI, cloud based E-Commerce platform with its presence around the globe. They are facing a decline of 15% in cart additions over
the past 1 month. You are asked to diagnose the problem.
Thank you, I would like to begin by asking a few questions to get to know the case
statement in detail.
Coming to macro-economic front, has there been any recent news which might
cause change in user behaviour or any kind of seasonal impact?
No, there seems nothing of such to be the cause.
Sure, please go ahead.
What do you mean by cart addition? Our client has a web version as well as
android/ios app version do we have to take both into account?
Cart addition is when a user clicks on an item and it appears in their shopping cart.
Just consider the android mobile app.
Moving to internal factors has the company launched any recent posts/ ads which
might have shifted users away from the app? Or has there been any major updates
in the UI of the app?
No nothing related to advertisements, but yes there has been changes in the UI of
the application.
Can you elaborate more on the changes made to the user interface?
Okay. I would like to consider four major factors: competitors. demographics.
macroeconomic factors, and internal changes. After that I'd like to map the user
journey on the amazon app to Identify bugs/glitch, if any.
The checkout and payment gateway has become more seamless. You can direct
jump to payment if you are aware of what you have added to the card without
verifying. This has been done to save user’s time.
Is there any entry of a new market competitor or any major sale being carried our
by our competitors?
Alright! Any bugs or complaints related to the new step added?
No. Nothing we know about.
Now considering demographics, is there any age wise or gender wise or any other
demographic delcine?
No, there’s a uniform demographic wise decline. There has not been any location or
gender based decline or any other segment wise decline.
Easy
Yes there are minute bugs, sometimes the application take a little more time to reach
the payment gateway due to direct jump of one step.
Okay! So I think there can be 2 problems to this. Firstly the glitch which needs to be
taken care of by the tech team as soon as possible. Secondly in some cases people
are not sure whether they want to buy the product of not, they just added so that
they can review later or in some cases a customer might be confused between 2
products or brands of the same product so they add both so that they can review it
later.
© 180 Degrees Consulting - Delhi Technological University
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Don’t Bug Me
G#3
C#1
Product | Customer Decline
Mapping journey of a customer on an e-commerce platform.
Customer Journey Approach
Home Page
Aesthetics
Ease of Use
After Sales
Features
Installation
Results
Features
Returns and
Replacement
Delivery
Placements
Products
Time
Quality
Reach
Search
Suggestions
Payment
History
Credit
Product Page
Suggestions
Easy
Repairs
Reviews
Price
Non-Credit
Product
© 180 Degrees Consulting - Delhi Technological University
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Paint The World
G#3
C#2
Product | New Feature
You have been hired to improve the user engagement of MS Paint by introducing new features or improving existing features.
Just to reiterate - I have to introduce new features or upgrade existing features of MS
Paint to boost its user engagement.
For designers, lack of advanced image processing features and wireframing
capabilities along with support for online sharing are pain points.
Correct. Please go ahead.
Before I begin, I would like to know more about MS Paint and its existing features for
a better understanding of the product.
Okay, sure. MS Paint gives users the ability to draw simple shapes from scratch
and it can also function as a simple image manipulation tool. It offers basic
functionalities for drawing and image processing.
Thanks for the information.I will start with user segmentation - Primary school
students, quick sketchers and absolute beginners in design. Am I missing anything?
No, that is all. Go ahead.
Now, I will move on to the identification of customer needs of these segments.
Primary school students have MS Paint as a part of their curriculum and they also
use it for recreational purposes. Quick sketchers use it to create rough drafts on the
go. Finally, absolute beginners in graphic design also use it as a learning tool due to
lack of accessibility of advanced products.
Okay. I want you to focus on quick sketchers and design beginners.
One of the pain points for quick sketchers is that due to unavailability of a feature for
online sharing, they have difficulty in sharing their work with other people.
Medium
That’s right. Continue with designers.
Okay, now that you have identified the needs of every user segment, you can start
with the recommendations now.
Sure. I will list out some solutions to solve the aforementioned issues and boost the
overall user engagement.
1. Wireframe Templates - Since MS Paint has limited capabilities for wireframing, we
could look at introducing pre-built templates and components that can be reused
by designers to create their own wireframes.
2. Adding a feature for multiple layers - MS Paint has no support for multiple layers
currently, all images have one layer only. The artist creates the graphic image
from scratch in multiple layers, so that they can recover the original work by
simply switching back to the bottom layer.
3. Support for online collaboration - Introducing a feature for online collaboration
would eliminate the difficulty associated with sharing their work with other people
and allow for real-time collaboration.
Can you elaborate more on this?
To decide on which feature to prioritize for development, I will now compare them
against two attributes:
●
How important is the user’s pain point the feature solves,
●
How much effort will it take to build,
●
How risky it is to build the feature
© 180 Degrees Consulting - Delhi Technological University
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Paint The World
G#3
C#2
Product | New Feature
You have been hired to improve the user engagement of MS Paint by introducing new features or improving existing features.
To numerically prioritize the features, I will use a scoring system, from 1 to 5, to rate a
feature across 3 attributes. I will add the positive attributes and subtract the negative
ones. The positive attribute is: “importance of pain point” and the negative attributes
are: “effort” and “risk” to build the feature.
User Segment
Primary school
students
That sounds good, can you elaborate about the attributes you’ve chosen?
Sure, so the “Support for online collaboration” feature addresses a key pain point
towards achieving the goal of helping users collaborate in real time and share their
work online easily. For Effort, I think the “Adding a feature for multiple layers” feature
takes more effort than the other features. For risk, I think the “Wireframe Templates”
feature is the riskiest to develop because people might choose different software
which has even more advanced features for this.
Curriculum
Quick
skechers
Absolute
beginners
Rough
drafts
Learning
tool
Recreational
Activities
Unavailability of
a feature for
online sharing
That sounds pretty elaborated. Thank you.
Feature
Importance of
Pain Point
(+)(50%)
Effort
(-)(25%)
Risk
(-)(25%)
Total
Wireframe Templates
3
3
5
-0.5
Observations
Adding a feature for
multiple layers
4
5
4
-0.25
Support for online
collaboration
5
4
3
0.75
Medium
➔ Importance of understanding the user
segment in a structured manner
➔ Identifying the needs of consumers
and product pain points
© 180 Degrees Consulting - Delhi Technological University
Lacks advanced
image processing and
online sharing feature
Recommendations
➔ Introducing pre-built wireframe
templates and components
➔ Adding a feature for multiple layers
➔ Introducing a feature for online
collaboration
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INDUSTRY REPORTS
Edtech
R#1
G#3
Quick Facts
● India has the second-highest number of
edtech companies
● Market segments;: K-12, test
preparation, online certification, skill
development, and enterprise solution
● The K-12 segment led the market in 2021,
accounting for over 40% share of the
global revenue
● India’s edtech sector is poised to grow
to $225 billion by FY25.
● The market leader Byju’s with market
share of 45% is India’s most valued
private firm at $23bn as of July’22
Value Chain
R&D
Structure , Curriculum and testing
Business development and
Marketing
Sales, partnerships and promotions
Post-Sale service
Technical support, Discussion forums,
Course updates and upselling
● Content is available for free and users pay a
monthly fee to get certifications. Key focus is
on course catalogue and accessibility
Udemy (Marketplace)
● Users can access and contribute to the
learning catalogue. Key focus is UX
Schoolzilla (Institutional)
● Dashboarding, MOOC and ERP solutions to
existing educational institutions. Key focus is
on scalability
● Market shift to popular brand value from earlier
commoditized market
● Increasing CAC and severe competition brought down
margins. Supernormal funding during covid boom is failing
to sustain
●Future Outlook
● Firms are trying to improve on student-teacher connection
and overall learning experience by hybrid methods and
collaboration techniques
● Market maturity and skewing of learner base to top key
players is likely until infrastructural disruption
Cost Drivers
Business Models
Coursera ( Freemium & Subscription )
Current Trends
KPIs
● DAU’s and RPU’s (Conversion)
● Net promoter score
● Lifetime Value (LTV) = avg customer
sale value x avg customer lifespan
● Engaged time per user
● User satisfaction on learning objectives
Primary : R&D, Technical IP & Content costs
Secondary ; Sales, CAC and Marketing
Revenue Drivers
●
●
●
●
Subscription fee and value added services to learners .
Advertising and marketplace promotions.
Learning kits and merchandise to K12
Institutional partnerships
© 180 Degrees Consulting - Delhi Technological University
Page 111
Aviation
R#2
G#3
Quick Facts
Value Chain
● India is the 3rd largest market in terms
of aircraft passengers
● 487 Airports and airstrips in India of
which 137 are controlled by AAI.
● Industry Size: $72 Billion
● Jobs Produced: 87.7 Million (Direct &
Indirect)
● Passenger traffic in FY 2022: 188.89
Million a 58.5% YoY increase, as
compared to FY 2020-21
● Between FY 16-22, freight traffic
increased at a CAGR of 2.52% from 2.70
MMT to 3.14 MMT.
● Focus on customer experience and luxury
with market share of 8.2%
● Covid recovery in air passenger volume
● The government plans to privatise 25 airports between 2022
to 2025 under the National Monetization Pipeline
● Modernisation of non-metro projects by AAI.
Operations
Tickets, gate counters, luggage
handling
●Future Outlook
Marketing
Coupons and discounts, advertising,
special programs for travel agents
● Air connectivity boost in Tier-2,3 cities under UDAN & AERA
scheme (Target development of 100 airports by 2024)
● Boosting air connectivity to smaller cities and northeastern
states - new airport projects.
● Expected to cater to 520 mn passengers by 2037
Cost Drivers
Major drivers are : Fuel cost, employee cost, aircraft depreciation
and facility infrastructure (leasing, maintenance).
KPIs
Indigo Airlines( Low Cost Carrier Model)
Vistara Airlines( Full Service Carrier Model)
Inbound Logistics
Aircraft lease, aviation fuel, route
selection, planning of facilities
Outbound Logistics
Baggage, Crago and Flight connection,
hotel bookings
Business Models
● Focus on cost effectiveness & accessibility
with market share of 58.9%
Current Trends
●
●
●
●
Operating Time
Seat Load Factor
Available Seat Miles (ASM)
On Time Performance (OTP)
Revenue Drivers
● Passenger services and inflight sales.
● Freight services.
● Tours and packages.
© 180 Degrees Consulting - Delhi Technological University
Page 112
Automobile
R#3
G#3
Quick Facts
Value Chain
Inbound Logistics
Raw Material Procurement
Warehouse Handling
● India surpassed Japan in auto sales in
FY22 and became third largest auto
market in the world.
● Retail sales of EVs clocked 4,29,217 units
in FY22
● Industry Size: 7.1% of GDP
● India accounts for 40% of global R&D
spend on automobile
● 100% FDI allowed under automatic route
● In the Union Budget 2023, the
government has increased the budget
allocation of FAME II by 78 %.
Manufacturing
Machining, Assembling, Quality Check
Outbound Logistics
Warehousing, Distribution, Dealerships
Sales and Marketing
Advertising, Pricing, Promotion
After Service
Repair and Maintenance
Business Models
KPIs
Maruti Suzuki (Passenger Segment Leader)
● High localisation of parts in India.
● Largest distribution and service network.
Tata Motors (Commercial Segment Leader)
● Strategically located manufacturing unit
● Efficient spare parts and service network.
●
●
●
●
●
Downtime
Utilization Rate
Units Manufactured
Inventory Turnover Ratio
Safety Incidents / Employee
Current Trends
● FAME II: Outlay of Rs 10,000 crore for promotion of EV
adoption by price reduction and infrastructure development.
● Fuel prices slowly shifting consumer preference to public
transport and shared mobility.
●Future Outlook
● OEMs and banks partnering to take India’s EV finance
industry to $50 bn by 2030.
● Subscription-based ownership model prominent, OEMs
partnering with companies like Revv to suit Indian needs.
● Target 3.5-4x growth of Rs 16,16,000 crore by 2026.
Cost Drivers
● Primary cost drivers are R&D as well as Raw Materials.
● Cost increase expected for logistics and direct labour
● Advertising is also among the major cost drivers
Revenue Drivers
● Automobile Sales
2 W, 3 W, Passenger Vehicles, Commercial Vehicles
● After Service Sales
Installation and Repairs
● Financing services
● Spare Part Sales
© 180 Degrees Consulting - Delhi Technological University
Page 113
Food Delivery
R#4
G#3
Quick Facts
Value Chain
Inbound Logistics
Gig employees, restaurant ops, B2B
Sourcing and fleet
● Online Food Delivery segment valued at
$ 7.4 billion in 2022
● The India online food delivery market is
expected to exhibit a CAGR of 28.9%
during 2022-2027
● Top leading Indian online food delivery
companies are Zomato, Swiggy,
Foodpanda, Bundl Technologies,,
Domino's, etc.
● Two delivery types i.e. Aggregator &
Cloud Kitchen.
Operations
Fleet management, cloud kitchen ops,
tech infrastructure
Outbound Logistics
Delivery, Customer satisfaction/time
management, food credit and
memberships
Marketing
Coupons and discounts, advertising,
special programs and loyalty
programmes.
Business Models
Zomato/Swiggy (Restaurant commissions
& delivery charges)
Zomato/Swiggy earn through restaurants who
pay a commission for each delivery, which is then
split among the delivery partner and the
company.
Commissions from restaurants vary based on the
order fulfiller.
KPIs
●
●
●
●
●
Average delivery time
Meal rating (customer satisfaction)
AOV (Average order value)
ARPU (Average revenue per user)
CAC (Customer Acquisition Cost)
Current Trends
● ̌Due to COVID-19,key players are introducing contactless
delivery services
● Increased emphasis on online grocery delivery by
established players
● Incr. in integrated payment solutions (Eat Now, Pay Later)
●Future Outlook
● India Online Food Delivery Industry expected to grow at a
CAGR of 28.5% during 2023-2028.
● Growth of cloud Kitchens & transition to delivery-only
business model expected to accelerate
● Increased penetration into tier-2 cities
Cost Drivers
Major drivers are : Rising fuel costs, employee costs, commodity
super cycle, Marketing (B2B), Technology Investment for
efficiency, customer satisfaction
Revenue Drivers
●
●
●
●
Increasing internet & smartphone penetration
Growing working population
Inflating income levels
ENPL (Eat now pay later)
© 180 Degrees Consulting - Delhi Technological University
Page 114
Pharmaceuticals
R#5
G#3
Quick Facts
Value Chain
● The Indian pharmaceutical sector is
worth US$ 42 billion worldwide.
● India has the 3rd largest
pharmaceuticals industry in the world
● India is the world's largest supplier of
generic medications, accounting for
20% of the worldwide supply by volume
and supplying about 60% of the global
vaccination demand.
● India is the 12th largest exporter of
medical goods in the world, exporting to
over 200 countries.
R&D and Innovation
Manufacturing
Marketing Registration
Selection, Pricing and Reimbursement
Procurement and Supply
Current Trends
Indian pharma exports witnessed a growth of 103% since
2013-14, from INR 90, 415 Crores in 2013-14 to INR 1,83,422 Crores
in 2021-22. Exports achieved in 2021-22 is the Pharma Sector’s
best export performance ever. It is a remarkable growth with
exports growing by almost $10 bn in 8 years.
●Future Outlook
● India's domestic pharmaceutical market is likely to grow to
USD 65 billion by 2024 and is further expected to reach USD
130 billion by 2030.
Prescribing
Dispensing
Cost Drivers
Use
Major drivers are : R&D cost, clinical trial cost
Business Models
Sun Pharma
● Largest pharma company in India by revenue
and market capital
Aurobindo Pharma
● Exports to over 150 countries across the
globe with more than 90% of its revenues
derived from international operations
KPIs
●
●
●
●
●
Operating Cash Flow
Interprofessional Patient Care
Average Prescriptions Filled per Day
Drug Therapy Problems
Medication Reconciliation on Admission
and Discharge
Revenue Drivers
●
●
●
●
●
●
Rising incomes
Enhanced medical infrastructure
Rise in the prevalence and treatment of chronic diseases
Greater health insurance coverage
Launches of patented products
New market creation in existing white spaces
© 180 Degrees Consulting - Delhi Technological University
Page 115
Oil and Gas
R#6
G#3
Quick Facts
● World’s third-largest energy consumer
globally. Second-largest refiner in Asia
● India is the 4th largest importer of
liquefied natural gas (LNG)
● India's current refining capacity stands
at 249 MMTPA, comprising of 23
refineries—18 under public sector, 3
under private sector and 2 in a joint
venture.
● India’s crude oil production in FY22
stood at 29.7 MMT
● The consumption of petroleum products
stood at 204 MMT in 2022 vs 201 MMT in
2021, i.e. a 1.5% YoY growth
Business Models
Oil And Natural Gas (Only Public Company)
● Biggest name in crude oil & natural gas
● Supplies 75% of the domestic demand
India Oil (Commercial Segment Leader)
● Largest share in revenue production
● Extensive refining, distribution, R&D and
marketing infrastructure
Value Chain
Upstream
Exploration
Development
Production
Midstream
Transportation
Storage
Downstream
Refining
Marketing
Distribution
KPIs
● Reserve Life and Reserve replacement
ratio
● Gathering and Transportation Expenses
● Taxation and Production cost
● Natural Gas Equivalent (Cfe)
● Cash Flow
Current Trends
● Recoverable shale gas resources of nearly 96 tn cubic feet
● 35% of product movement over pipelines
● Refining hub with 23 refineries with expansions planned in
export-oriented infra
●Future Outlook
● Target of achieving 20% ethanol blending in petrol by 2025
● Becoming a gas based economy by increasing the share of
natural gas in India’s energy mix from 6.3 % to 15% by 2030.
● All states are targeted to be connected by a trunk national
pipeline network by 2027.
Cost Drivers
● Investment has been the main driving force
● Rapid expansion and exponential rise in demand
Revenue Drivers
●
●
●
●
Capital Management and Productivity
Public and Private Contracts
Government policies and regulations
Expansion and Maintenance Cost.
© 180 Degrees Consulting - Delhi Technological University
Page 116
Steel
R#7
G#3
Quick Facts
● World’s third-largest steel consumer
globally.
● India is the 2th largest producer of
steel.
● India's current producing capacity
stands at 111.245 Million tonnes (MT)
(provisional) crude steel with growth
rate 1.8% over the corresponding period
last year (CPLY).
● The Union Budget 2023-24 has a 37.4%
YoY increase in allocation for capex at
10 lakh crore for steel and other
minerals.
Business Models
JSW Steel (Jindal Steels)
● Largest producer of steel in India
● The current installed capacity of the
company stands at 18 MTPA.
Tata Steel (Quality Leader)
● Second largest steel producer in the country
● Produces the best quality of steel in the
country and asian markets
Value Chain
Upstream
Exploration
Development
Production
Midstream
Transportation
Storage
Downstream
Refining
Marketing
Distribution
KPIs
● Reserve Life and Reserve replacement
ratio
● Gathering and Transportation Expenses
● Taxation and Production cost
● Cash Flow
Current Trends
● Steel demand has grown by 7.2% in 2019-20 and 2020-21.
● The growth in the Indian steel sector has been driven by the
domestic availability of raw materials such as iron ore and
cost-effective labour.
●Future Outlook
● Target of becoming largest steel producer.
● Rise in consumption due to increased infrastructure and
thriving automobile sector.
● Industry capital utilization will be around 80% in FY 2023
Cost Drivers
● Investment has been the main driving force
● Rapid expansion and exponential rise in demand
Revenue Drivers
●
●
●
●
Capital Management and Productivity
Public and Private Contracts
Government policies and regulations
Expansion and Maintenance Cost.
© 180 Degrees Consulting - Delhi Technological University
Page 117
Healthcare
R#8
G#3
Quick Facts
Value Chain
Payers
Government, Employers (or Corporate)
or Individuals
● Industry Size: $349.1 Billion (CAGR- 22%
from 2016-22)
● People Employed: 4.7 Million
● India currently holds the 4th position in
attracting VC funding to the health-tech
sector.
● Has a 29.5% share in the total gross
written premiums earned in the country.
● India’s public expenditure on healthcare
stood at 2.1% of GDP.
● Bharat Biotech's Covaxin and
Oxford-AstraZeneca’s Covishield
manufactured by SII helped in medically
safeguarding against COVID-19
Fiscal Intermediaries
Insurers, Third Party Administrators or
Health Maintenance Organizations
Providers
Hospitals, Clinics, Physicians, Diagnostic
Centres, and Pharmacies
Purchasers
Wholesalers, Suppliers, Group Purchasing
Organizations of the equipment/drugs
Producers
Drug, Equipment or Device
Manufacturers
Business Models
Apollo Healthcare
● Largest private sector healthcare services
provider in India.
● Operates in hospitals, pharmaceuticals,
primary care and diagnostic centers.
Max Healthcare
● Public company which is the second largest
healthcare company by revenue.
KPIs
●
●
●
●
●
●
Ratio of staff to patients
Average duration of patient stay
Patient bed or room turnover rate
Appointment Cancellation rate
Use of key medical equipment
Patient cost per visit
Current Trends
● Increased use of wearable health devices and focus on
personalised healthcare
● Integration of AI in early diagnosis and drug development.
● At home consultation through telehealth.
●Future Outlook
● Various healthcare reforms launched before and during the
pandemic such as, National Health Digital Mission (NDHM).
● By 2030, end the epidemics of AIDS, TB, Malaria and combat
hepatitis.
Cost Drivers
Major drivers are : Changes in technology,Increased cost to
attract manpower, quality of infrastructure, increases in service
utilization and health-sector inflation
Revenue Drivers
●
●
●
●
●
Population Aging
Population Growth
Demand for latest technology
Vaccination drives
Increase in diagnostic services
© 180 Degrees Consulting - Delhi Technological University
Page 118
Fintech
R#9
G#3
Quick Facts
Value Chain
Payers
Government, Employers (or Corporate)
or Individuals
● Industry Size: $349.1 Billion (CAGR- 22%
from 2016-22)
● People Employed: 4.7 Million
● India currently holds the 4th position in
attracting VC funding to the health-tech
sector.
● Has a 29.5% share in the total gross
written premiums earned in the country.
● India’s public expenditure on healthcare
stood at 2.1% of GDP.
● Bharat Biotech's Covaxin and
Oxford-AstraZeneca’s Covishield
manufactured by SII helped in medically
safeguarding against COVID-19
Fiscal Intermediaries
Insurers, Third Party Administrators or
Health Maintenance Organizations
Providers
Hospitals, Clinics, Physicians, Diagnostic
Centres, and Pharmacies
Purchasers
Wholesalers, Suppliers, Group Purchasing
Organizations of the equipment/drugs
Producers
Drug, Equipment or Device
Manufacturers
Business Models
Apollo Healthcare
● Largest private sector healthcare services
provider in India.
● Operates in hospitals, pharmaceuticals,
primary care and diagnostic centers.
Max Healthcare
● Public company which is the second largest
healthcare company by revenue.
KPIs
●
●
●
●
●
●
Ratio of staff to patients
Average duration of patient stay
Patient bed or room turnover rate
Appointment Cancellation rate
Use of key medical equipment
Patient cost per visit
Current Trends
● Focus on COVID-19 vaccination drives to ensure mass
coverage.
● Integration of AI in early diagnosis and drug development.
● At home consultation through telehealth.
●Future Outlook
● Various healthcare reforms launched before and during the
pandemic such as, National Health Digital Mission (NDHM).
● By 2030, end the epidemics of AIDS, TB, Malaria and combat
hepatitis.
Cost Drivers
Major drivers are : Changes in technology,Increased cost to
attract manpower, quality of infrastructure, increases in service
utilization and health-sector inflation
Revenue Drivers
●
●
●
●
●
Population Aging
Population Growth
Demand for latest technology
Vaccination drives
Increase in diagnostic services
© 180 Degrees Consulting - Delhi Technological University
Page 119
Cement
R#10
G#3
Quick Facts
Value Chain
Inbound Logistics
New Products
Improvements in existing products
● India, ranked 2nd in cement production
and consumption globally.
● FDI inflows in the industry related to
manufacturing of cement and gypsum
products reached US$ 5.48 billion
between Apri 2000-March 2022.
● As per the Union Budget 2022-23, the
government approved an outlay of
$26.74 billion for the Ministry of Road
Transport, Highways, which is expected
to boost the demand for cement.
● At present, the Installed capacity of
cement in India is 500 MTPA with
production of 298 MTPA.
Operations
Raw material sourcing and Storage
Outbound Logistics
Production & Packaging
Quality assurance
Sales & Marketing
Distribution channel- Distributor,
Retailer, E-commerce
Distribution centres & Warehouses
Service
Advertising & Promotions
Customer feedback
Business Models
Ultra Tech Cement
● Wide range of construction products under
one roof with different names.
● First company in India to issue dollar-based
sustainability linked bonds.
● Ultratech Building Solution - one stop shop
solution for building homes.
KPIs
●
●
●
●
●
●
Capacity Utilization
Heat Value
Cement Factor
Clinker Factor
EBITDA/ton
EV/ton
Current Trends
Cement demand expected to grow at CAGR of 5.68%
between FY16 and FY22.
● The top 20 companies account for around 70% of the total
cement production in India.
●
●Future Outlook
● In the next 10 years, India could become the main exporter
of clinker and gray cement to the Middle East, Africa, and
other developing nations of the world.
● India’s cement production capacity is expected to reach 550
MT by 2025.
Cost Drivers
● Freight Cost
● Power and Fuel
● Raw Materials
Revenue Drivers
● Affordable housing schemes such as PM Awas Yojana by the
Indian Government
● Sale of cement and revenue generated through interest
● Govt. Infrastructural CapEx and Pvt. Industrial CapEx
© 180 Degrees Consulting - Delhi Technological University
Page 120
Telecommunication
R#11
G#3
Quick Facts
Value Chain
Telecom Infrastructure
Network equipments, towers, regulatory
● Telecom sector in India is 2nd largest in
the world with subscriber base of 1.17 bn.
● People Employed: 4 Million
● Govt launched PLI scheme to build a
strong ecosystem of design-led
manufacturing of telecom products.
● 10 mn+ Active 5G devices in India.
● Telecom sector is the 3rd largest in
terms of FDI inflows, Contributing 7% of
the total FDI inflow.
● Average wireless data usage per
subscriber : 17 GB per month in FY22
Network Service Provider
Provides network services to users
Content Provider
Content provider to users
Marketing
B2B, B2C Marketing
Current Trends
●
●
●
●
Rural market expansion
Mobile and internet banking
Tariffs reduction
Investment in optical fibres technology
●Future Outlook
● Cashless transactions and digitalisation
● The 5G and Internet of things impact
● Enabling Medtech companies to collect and analyze
information wirelessly.
Cost Drivers
Capital Expenditure- cost of spectrum, govt license fee, etc
Operational and Maintenance costs- Rentals, Salaries,
Marketing, Advertisements, etc.
Business Models
Jio Telecom (Vertical Integration)
● India’s Largest telecom operator with market
share of 36.60% with focus on vertical
integration (Broadband/IOT).
Airtel (Enterprise Solutions)
● 2nd largest provider of mobile/broadband
services focusing on leased line and
enterprise.
KPIs
●
●
●
●
●
Average revenue per user
Subscription acquisition cost
Network operating cost
Minutes of usage
Average revenue per minute
Revenue Drivers
● B2B Industries
Manufacturing, Financial, Retail and other industries
● Rise in mobile phone penetration
● Internet user base
© 180 Degrees Consulting - Delhi Technological University
Page 121
E-commerce Industry
R#12
G#3
Quick Facts
Value Chain
Sourcing
B2B, Co-Sourcing, Modular production,
Mass customisation
● After China and the US, India had the
third-largest online shopper base of
190 million in FY21 and is expected to be
350 million by FY26.
● India's consumer digital economy is
expected to become a US$ 1 trillion
market by 2030
● In 2022, the Indian e-commerce market
reached US$50 billion to potentially
surpass US in 1-2 years.
● Major contributors to the growth of the
industry is internet and smartphone
penetration in the country.
Midstream
Demand planning, Storage,
Warehousing, Inventory management
Marketing
Targeted marketing,Dynamic content,
End-to-end ROI
Sales
Customer retention, Payment
methodology, Unified experience
Delivery
Logistical planning, Omnichannel
fulfillment
Business Models
Myntra Ecommerce Platform In India
● world’s first “App Only” e-commerce
company
Nykaa
● D2C consumer products eCommerce
brand, relies on an inventory-based
business model.
KPIs
●
●
●
●
●
●
Conversion rate (CS)
Customer Acquisition Cost
Average Order Value
Customer Lifetime Value
Add to cart rate
Average revenue per customer
Current Trends
Use of AR and VR technology
Incr. in integrated payment solutions (Buy Now, Pay Later)
Investment into supply chain visibility
Product discoverability & In-house brands growing
●
●
●
●
●Future Outlook
● Projected to exceed ~300-350 million shoppers, propelling
the online Gross Merchandise Value (GMV) to US$ 100-120
billion by 2025.
● Expected to surpass the US to become the second largest
E-commerce market in the world by 2034.
Cost Drivers
Marketing (B2B, B2C)
Logistics to drive faster, more efficient purchases
Technology Investment for efficiency, customer satisfaction
Revenue Drivers
●
●
●
●
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Inventory Management for sellers/affiliates
Government Policies (Udaan, Digital/Startup India)
Digital Payments (Customer-side EMIs etc)
Diversified Portfolio (Groceries, Suggestion Algorithms,
Electronics)
© 180 Degrees Consulting - Delhi Technological University
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FMCG
R#13
G#3
Quick Facts
Value Chain
Inbound Logistics
Transportation, fuel, route selection,
planning of distribution
● Fast moving consumer goods (FMCG) is
the fourth-largest sector in the Indian
economy.
● The urban segment contributes to
about 55% of the revenue share, while
the rural segment accounts for 45%.
● The Indian processed food market is
projected to expand to US$ 470 billion
by 2025.
● India leads Advertising growth rate and
volumes with spending increasing by
14% a year while global rate stands
between 2-5% year across 12 major
global markets
Operations
Quality checks, weighing, handling
Outbound Logistics
Packaging, sampling, pre-orders
Marketing
Coupons and discounts, advertising,
collaborations with non-profits
● Achieved the goal to collect, process, and
recycle 22,000MT of post-consumer plastic
three months early
Adani Wilmar (Ground Level Reach Model)
● Opening of physical stores under the name
‘Fortune Mart’ that will exclusively sell their
products
● Using big data and analytics to explore ways to improve
relationships with the customers and gain behavioral insights
● Emphasis on eCommerce and a connected supply chain
management
● Products designed and targeted at Millennials and Gen Zs
●Future Outlook
● Cashless transactions and digitalisation
● Boosting connectivity to smaller cities and northeastern
states
● E-commerce share of total FMCG sales is expected to
increase by 11% by 2030.
Cost Drivers
Major drivers are : Fuel cost, employee cost, transport
maintenance, infrastructure and product packaging
Business Models
Dabur India (Sustainability Model)
Current Trends
KPIs
●
●
●
●
●
●
Stock levels per store
Product margins
Supply chain costs
Average time to sell
Brand preference vs competitors
High consumer demands
Revenue Drivers
● Rising incomes and a growing middle class
● Increased consumption in tier 2, 3, and 4 cities
● Urbanisation and nuclearisation
© 180 Degrees Consulting - Delhi Technological University
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Hospitality & Tourism
R#14
G#3
Quick Facts
Value Chain
● India holds the 54th rank according to
the Travel and Tourism Development
Index (TTDI)
● Number of international tourist arrivals
in India in 2022: 6.19 Million
● Number of domestic tourist arrivals in
India in 2022: 677 Million
● Industry Size in 2020: $75 Billion and
projected to reach $125 Billion by 2027
● Jobs Produced: 39 Million
● 5.8% contribution of travel and tourism
to India’s GDP
● Expected annual growth rate of 10.35%
between 2019 and 2028
JW Marriott
● Four primary value propositions: accessibility,
customization, cost reduction and
brand/status.
● Main resources are human resources
(customer support, waiters, chefs,
housekeeping staff) and properties (value
depends on proximity to airports, commercial
centres; room size etc)
Inbound Logistics
Recurring payment contracts with
suppliers, one-time acquisition of assets
● Covid recovery in tourism
● Medical tourism is predicted to increase at a CAGR of 21%
● Government is providing free loans to MSMEs to deal with
post-covid crisis.
Operations
Production of goods and services,
management of properties
●Future Outlook
Outbound Logistics
Distribution of goods (meals, hampers,
accommodation) & services (room
service, event planning, spa, transport)
Marketing
Coupons, advertising, bulk discounts,
package deals
Business Models
KPIs
●
●
●
●
●
●
Current Trends
Foreign Tourist Arrivals (FTAs)
Number of Tour Operators
Number of Domestic Tourist Visits
Average Daily Revenue
Utilization Rate
Market Penetration Rate
● International tourists expected to increase to 30.5 million
● 18.42% increase in Union Budget allocation in FY’22-23 over
budget allocated in FY’21-22
● Mass utilization of AI/ML based technologies to facilitate
services
Cost Drivers
●
●
●
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Infrastructure procurement and construction
Maintenance and utilities
Insurance and Taxes
Labour costs
Revenue Drivers
●
●
●
●
●
Food and beverage deliveries.
Taxis, self-drive car rentals, railway and flight tickets.
Entry tickets for museums and other places of attraction.
Spa, gym and pool services.
Event organization (sales conferences, destination weddings)
© 180 Degrees Consulting - Delhi Technological University
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IT
R#15
G#3
Quick Facts
Value Chain
● Indian IT industry growing at almost
twice the rate of economy
● There were 4.5 lakh jobs created by the
industry, with over 2 lakh women
recruited in FY22
● The Indian IT industry has a low cost
advantage over other countries
● India saw $70 bn in FDI investments
over the past 10 years and $12.48 bn in
PE investments
● The exports from the Indian IT industry
stood at nearly $194B in FY22
Tata Consultancy Services
● Global leader in IT services, consulting
and business solutions
● Services include application
development, business process
outsourcing, enterprise software,
payment processing
Operations Setup
Infrastructure, talent acquisition,
training and employee retention
● Work from home flexibility increasing growth opportunities
and workforce involved
● Adoption of pioneering technological fields of AI, Big Data,
IoT, Blockchain etc
Customer Acquisition
Client acquisition, product sales and
marketing, business innovation
●Future Outlook
Customer relation and product
delivery
Client requirements catering, product
development, testing, bug fixation and
deployment
After Service
IT support and customer service
Business Models
KPIs
●
●
●
●
●
Current Trends
Software bugs and mean time to fix
Addressable market size
Customer acquisition cost
IT ROI
Average handle time
● By 2025, expected growth to $350bn at an annual growth
rate of 6%
● AI to add nearly $1 trillion to the Indian Economy
● Export revenue to rise by 11.4% in FY23
Cost Drivers
● Employee salaries and perks
● Data warehousing and handling
● Software maintenance
Revenue Drivers
●
●
●
●
Software as a Service (SaaS)
Cloud infrastructure
IT consulting and other range of products
Upgrades
© 180 Degrees Consulting - Delhi Technological University
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Banking
R#16
G#3
Quick Facts
Value Chain
Deposits
People who put money into banks are
called depositors.
● In January 2023, Unified Payments
Interface (UPI) recorded 8.04 billion
transactions worth Rs. 12.98 trillion
● As of April 2022, the total number of
ATMs in India reached 215,677 out of
which 47.5% are in rural and semi urban
areas
● RBI has allowed regional rural banks
with net worth of at least US$ 15.28
million to launch internet banking
facilities.
State Bank of India
● Indian Multinational, Public Sector
Banking and Financial services statutory
body
● Services include savings account, credit
cards, fixed deposits, personal loan,
home loan, business loan, debit card,
loan against property, car loan, gold
loan, mudra loan and more.
●Future Outlook
Loans
Using the accumulated funds of many
depositors, the bank makes loans to
customers on higher interest rates.
● Increase in working population and growing disposable
incomes will raise demand for banking & related services.
● Indian Fintech industry is estimated to be $150 bn. by 2025.
● In the Union budget of 2022-23 India has announced plans
for a central bank digital currency.
KPIs
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●
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●
●
● Banks are increasingly looking at consolidation to derive
greater benefits such as enhanced synergy, cost take-outs
from economies of scale, organisational efficiency and
diversification of risks.
Interest
The depositor thus earns some interest
from the principal deposited.
Economy
The money borrowed goes to buy
products or services, to manufacture
goods, and to start businesses.
Business Models
Current Trends
Strong economic growth
Rising disposable incomes
Increasing consumerism
Easier access to credit
Rising rural income
Cost Drivers
● Intake operations for new loan applications, such as home
equity, mortgage, and consumer loans
● Personnel and security expenses
Growth Drivers
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●
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Policy support
Infrastructure financing
Cross-border payments
Open banking ecosystem
© 180 Degrees Consulting - Delhi Technological University
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Transportation
R#17
G#3
Quick Facts
Value Chain
Inbound Logistics
Receive orders and delivery records
● Major segments aviation , roads and
railways
● Contributes to roughly 8.4% of GDP
● Additionally, the logistics industry
accounts for 13-14% of the GDP
● Road network is 2nd largest in the world
and covers 6.3 million kilometers
● Rail network is 2nd busiest transporting
3.52 bn passengers and 1.42 billion
tonnes of freight as of 2022
● India is the 3rd largest market in terms
of aircraft passengers
Operations
Checking packaging
Outbound Logistics
Delivery of goods, flow and inventory
management
Current Trends
● 100% FDI in road and aviation sectors.
● Sector received M&A deals worth USD 1,461 Mn.
● Emergence of new technologies including robotic process
automation, drones, AI , autonomous vehicles and IoT.
●Future Outlook
● Expected to grow at a CAGR of 5.9%
● Mass rapid transit system(MRTS) to be available in more
than 50 cities by 2025
● Expected to account 40% of rail activity worldwide by 2050
Marketing and Service
Partner with various companies, speed
of delivery
Cost Drivers
Major drivers are : Fuel cost, labour cost,infrastructure, facility
infrastructure (storage, maintenance).
Business Models
KPIs
● Private-Public-Partnership (PPP) which
gives room for private players in the
industry
● Uber and Lyft
Peer-to-Peer model ie, rent out vehicles
whenever it’s needed
●
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On-time delivery over time
CO2 emissions over time
Transoprtation Time
Percent Trucking Capacity Use
On-Time and In-Full (OTIF)
Revenue Drivers
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Rising exports
Freight services.
Growing FMCG sector
Increasing interstate movement
© 180 Degrees Consulting - Delhi Technological University
Page 127
R#18
G#3
Real Estate and Infrastructure
Quick Facts
Value Chain
Initiation
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Most globally recognised sector.
Comprises of four sub-sectors: housing,
retail, hospitality and commercial.
In India, real estate is the
second-highest employment generator.
Bengaluru is the most favoured
property investment destination for
NRIs.
According to Savills India, real estate
demand for data centres is expected to
increase by 15-18 million sq. ft. by 2025.
- Business Appraisal
- Initial Financing
- Negotiations
Compliances
- Investments
- Funding
- Shareholding
Current Trends
The sector has witnessed a digitization wave on a large scale.
Developers are using innovative technological tools and
practices across various stages of business operations. Virtual
walkthroughs have been a game-changer for the industry.
●Future Outlook
●
Sales
- Marketing
- Agreements
Asset Development
●
- Construction
- Contracting
By 2040, real estate market will grow to Rs. 65,000 crore
(US$ 9.30 billion) from Rs. 12,000 crore (US$ 1.72 billion) in
2019.
Real estate sector in India is expected to reach US$ 1 trillion
in market size by 2030.
Cost Drivers
Asset Management
- Utilization
Business
Models
●
MagicBricks
MagicBricks is a real-estate portal that
makes its money primarily from Producers,
who spend a lot to expand their new
operations. Another income stream is
selling leads to dealers. And ads are just a
minor portion of it.
KPIs
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Payback Period
Return on Investment
Average Mortgage Rate
Tenant Turnover
Real Estate Demand Growth
Number of days on market
Major drivers are: Demographics, Interest rates, The economy,
Government Policies/Subsidiaries
Revenue Drivers
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Urban Population
Affordable Housing
Infrastructure Development
Home Loan Rates
© 180 Degrees Consulting - Delhi Technological University
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Alternate Energy
R#19
G#3
Quick Facts
Value Chain
● India stands at 4th position for overall
installed renewable energy capacity in
the world.
● Renewable energy forms a quarter of
India’s total installed power capacity accounts for 13% of the country’s
electricity generation.
● Global Industry Size - $1030.95B in 2022;
projected to reach $1,977.6B by 2030 at
a CAGR of 8.6%
● 120.90 GW of renewable energy
capacity installed as of Dec 2022, which
is nearly 69 percent of the target
intended to be achieved by then
●
●
Generating clean energy, such as
wholesale power purchase
agreements (PPA).
Procuring clean energy, such as
leasing models and direct off-site
PPAs.
Upstream Process
The process of procuring renewable
energy sources. E.g - Biomass, Wind,
Solar, Hydropower, Geothermal
● Integration of Artificial Intelligence, Big Data and IOT in clean
energy sector
● Accelerating the use of Green Hydrogen Energy
● Companies setting science-based and net-zero targets at
record rates
Production Management
●Future Outlook
Conversion process of each
renewable energy source into
electricity using specific devices
developed for this purpose
Downstream Process
The process of distribution of all energy
forms to end users (Industry, Domestic
and transportation sectors)
Business Models
KPIs
●
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●
●
●
Current Trends
Power Cuts & Average Duration
Consumption by Sector
Operating Cash Flow
Energy Production Distribution
Performance Ratio
Production Costs
● India to produce 50% of electricity & install 450GW by 2030
● It is expected that by 2040, 49% of the electricity produced
will be by renewable energy(RE)
● The Central Electricity Authority (CEA) estimates, by 2029-30,
RE generation would increase from 18% to 44%
Cost Drivers
Major drivers are : huge upfront production cost, storage system
for energy produced is expensive
Revenue Drivers
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Government initiatives, commitments and incentives
Increasing investments, FDI inflows and M&As
Social and Economic development
Falling costs of production
© 180 Degrees Consulting - Delhi Technological University
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APPENDIX
Appendix: Datasheet - India
India Demographics
Age Spread
Population %
0-14 yrs
26%
464 people/Sq.km
15-24 yrs
18%
Lok Sabha Constituencies
543
25-34 yrs
17%
Life Expectancy
70 Years
Sex Ratio (F:M)
943 : 1000
35-44 yrs
14%
Average Household Size
4.4
45-54 yrs
Urban : Rural (Population)
35 : 65
55+ yrs
Literacy Rate
77.70%
GDP (Nominal)
$ 320,000 crore
GDP Growth Rate (2021)
8.7%
Internet Penetration
56 Crore (40%)
Total Population
140 Crore
Area (L x B)
3214 km x 2933 km
Density
Area Distribution of India
Cultivated
60%
Forest Cover
20%
Built Up Area
10%
Misc
10%
Income Group
Class
Composition
BPL
10%
Lower-Middle
40%
10%
Middle
40%
15%
Upper
10%
Religion
Hindu
Muslim
Christian
Sikh
Others
Population
80%
14%
2.5%
1.5%
2%
Sector
Overall Gross Value
Added
(as of 2022)
Distribution of workforce
Agriculture
17%
42.4%
Industries
30%
25.6%
Services
53%
32%
© 180 Degrees Consulting - Delhi Technological University
Page 131
Appendix: Datasheet - Delhi NCR & DTU
Demographics of Delhi
DTU Demographics
Student Teacher Ratio
30:1
Student Staff Ratio
20:1
Area of DTU
165 Acres
Perimeter of DTU
2.5 KM
Boys Hostels
9
Delhi Constituencies
Total Population
2 Crores
Literacy Rate
86%
Work Participation Rate
32%
BPL Household
18%
GDP
₹7.80 lakh crore
Delhi Metro
Lok Sabha
7
Districts
11
Assembly
70
Wards
372
Area Distribution (1600 Sq. KM)
Number of lines
10 (6 major)
Average Stations
30 per line
Girls Hostels
3
Enrollment in DTU
10,000
Number of Trains
310
No of Hostellers
2900
Coach length
20 m
No. of Departmental Blocks
5 + DSM + 14 SPS
Daily Ridership
No. of Canteens
4
Girls : Boys
1:5
Residential
25%
Commercial
20%
30 Lakh
Roads
20%
Average distance
Between 2 stations
2 KM
Green Cover
25%
Average distance
between 2 pillars
100 m
Misc
10%
© 180 Degrees Consulting - Delhi Technological University
Page 132
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