STEP 1- Competitor analysis Proximity analysis Positioning analysis STEP 2- Segmentation check To understand where your customers reside

ide To help design specific promotions STEP 3- Turnover Prediction

T = CA x AI x C x AS x RP
T= Turnover (Rs.) CA= Catchment Area (population) AI= Attendance Index (%) C= Conversion (%) AS= Amount Spent (Rs.) RP= Repeat Purchase (No. of times)

Population (2011 census) = 8,56,376 Competition= Crossword Segmentation= High profile literate customers Expected T/O= Rs. 3.6 Crore

T= 850000 x 15% x 30% x 300 x 2 = 2,29,50,000

Population (Indicative) = 4,00,000 No Competition Segmentation = Sec B and Sec C Expected T/O = Rs. 2.88 Crore

T= 400000 x 50% x 5% x 250 x 1.5 = 37,50,000

Population (Indicative) = 2,00,000 Competition = Crossword Corner Segmentation = Sec C and Sec B Expected T/O = Rs. 72 Lacs
T= 200000 x 10% x 60% x 250 x 2 = 60,00,000

Particulars Expected T/O Actual T/O Percentage

Satellite 3,60,00,000 2,29,50,000 63.75%

Gurukul 2,88,00,000 37,50,000 13.02%

Bopal 72,00,000 60,00,000 83.33%

Suggestion

Rent out a shop in shop of 1000 sq ft to a caf joint on profit sharing basis.

Do not consider

Keep more of educational books and concentrate more on the merchandise than the ambience.

Guesstimated figures for all parameters based on data given in the case and available over the internet. Does not consider the impact of promotional activities on sales. Assumed that the real estate costs are same in all the areas. Model uses optimization of sales as the only parameter for success. Assumes sales to be bound by geographical area.