Chapter - 1: Market Research

CHAPTER -1
INTRODUCTION
1.1INTRODUCTION ON EXPANSION OF WRIST WATCH BUSINESS
Despite the fact that growing a wrist watch business might be challenging, with the appropriate
plan it can be profitable. The first stage in growing a wristwatch company is to carry out market
research to pinpoint the target market, their preferences, and the industry's rivals. The
development of a marketing strategy and business plan that appeals to the target market will be
aided by the information provided.
Adding new product and styles to the current assortment of wristwatches is one method of
growing the wristwatch industry. The updated designs must reflect the target market's shifting
fashion preferences and tastes. The company can do this by working with designers and fashion
influencers to generate distinctive designs that will draw in new customers.
Increasing the Business distribution network is another strategy for growth. Partnerships with
retail establishments, e-commerce sites, and wholesalers can be used to accomplish this. To
reach a larger audience, the company can also open its own brick-and-mortar locations and
online presence. To promote the company and build brand awareness, the Advertising, social
media, and influencer collaborations should all be part of the marketing strategy.
The company should also put quality and customer service as a top priority if it wants to stay
competitive in the industry. Building a loyal client base and enhancing the brand's reputation
will be facilitated by the provision of warranties and after-sales services. To stay current and
satisfy the needs of the market, it's also critical to stay on top of industry trends and
technologies.
By using these tactics, a watch company can reach a wider market. This is how:
Market research:
By understanding the target market's preferences, a company may better design its product
offerings to satisfy those customers' wants. The company may increase its reach and appeal to
more customers by locating and targeting the correct audience.
1
Business plan:
Creating a thorough business plan can assist the company in outlining its objectives, target
market, marketing plans, and financial projections. A well-thought-out plan can assist the
company in focusing on its goals, enabling it to broaden its appeal and increase its customer
base.
Location:
Finding the ideal location is essential for expanding your audience. The company should pick
a location that is simple to get to. Providing a broad selection of wristwatches, such as luxury,
sports, and fashion timepieces, can assist the company reach a wider clientele. To diversify its
product line, the company may also think about selling accessories like watch straps, bands,
and cases.
Finally, proper planning, research, and strategy are required for the growth of a watch
company. Despite the fierce competition in the sector, a successful business can be pursued
with the appropriate approach. The secret to success is to put a strong emphasis on quality,
deliver first-rate customer service, and stay up to date with emerging technology and fashion
trends.
1.2 RESEARCH OBJECTIVE
This chapter deals with the objectives of the study.
1.1.1 primary objectives
Here the objective focuses on the understanding business and the expansion of it in the market.
1.1.2 secondary objective
1. Understand how social media and can be used to promote and sell wrist watches.
2. Analyze market segmentation by age, gender, income, and lifestyle to better understand
target customers and develop effective marketing strategies.
3. Explore the impact of new technologies, such as wearable devices and smartwatches,
on the wrist watch industry.
4. Evaluate distribution channels (online, brick-and-mortar, authorized dealers) to identify

the most effective ways to reach customers and boost sales.
2
1.3AREA OF STUDY
The area of study is to “expansion of the business” in JAI GURUDEV TIMES. The
company is located in Sowcarpet, Chennai.
1.4RESEARCH METHODOLOGY
Type of Research: Descriptive Research Method

Descriptive research is a type of research that is used to describe the characteristics of a
population. It collects data that are used to answer a wide range of what, when, and how
questions pertaining to a particular population or group.
Sample size: 64
Sampling method: Simple random Sampling.
A simple random sample is a randomly selected subset of a population. In

this sampling method, each member of the population has an exactly equal chance of
being selected.
DATA COLLECTION
a) Primary data: Questionnaire

b) Secondary data: Research Articles, Journals, Internet, Media.
1.4LIMITATIONS
• Due to the study being limited to Chennai, there is a limited capacity to generalise to
the entire state.
• The person's viewpoint might change in the future
• Participants in the research may be more inclined to give good or negative feedback,
which could skew the findings.
• The study was based on a questionnaire.
3
1.6CHAPTERISATION
CHAPTER 1:
Consists of introduction about the Project Title, Objectives, Area of Study, Methodology,
Limitations of the Study, Chapterisation
CHAPTER 2:
Consists of Industrial Profile
CHAPTER 3:
Consists of Company Profile
CHAPTER 4:
Consists of Analysis and its Interpretations
CHAPTER 5:
Consist of Findings from the data, Suggestions and Conclusion.
4
CHAPTER – 2
INDUSTRY PROFILE
2.1INDUSTRY PROFILE
The wrist watch market in India is a growing and competitive market, with a projected CAGR
of ~13.21% from 2019 to 2024.
The market is segmented by product type (quartz, digital, and smart watches), distribution
channel (online and offline), and end-user (women, men, and unisex).
The market is dominated by several well-known brands, such as Titan, Timex, Casio, Fossil,
Fastrack, Sonata, etc., as well as some emerging Indian brands like Noise, BOAT, Fire-Bolt
etc.
The market is driven by factors such as rising disposable income, increasing awareness about
health and fitness, changing consumer preferences and lifestyles, and growing e-commerce
penetration.
The market faces challenges such as competition from smartwatches and other wearable
devices, counterfeit products, high import duties, and supply chain disruptions due to
COVID-19 pandemic.
The market offers opportunities for growth such as product innovation and differentiation,
expansion into rural areas, adoption of eco-friendly materials, and partnerships with celebrities
and influencers.
As a small retailer in the wrist watch market in India, you need to be aware of these trends and
challenges and devise strategies to attract customers. Some possible strategies are:
• Offering a wide range of products at different price points to cater to different segments
of customers
• Providing quality customer service and after-sales support
• Leveraging online platforms such as social media and e-commerce sites to reach out to
potential customers
5
• Creating a unique brand identity and value proposition that differentiates you from
competitors
• Collaborating with local communities and influencers to build trust and loyalty.
2.1.2 Market segmentation by product type

The wrist watch market in India is segmented by product type into quartz, digital, and smart
watches. Quartz watches are the most popular type of watches in India, accounting for more
than 80% of the market share. Digital watches are mainly preferred by young consumers and
sports enthusiasts. Smart watches are the fastest-growing segment in the market, driven by
increasing demand for health and fitness monitoring devices.
2.1.3 Market growth influencing factors

There are a number of factors that influence the wristwatch market in India, including:
• Growing consumer concern for fitness and health: Customers are searching for
gadgets that can record their physical activity, calories burned, heart rate, and other
data in order to monitor their fitness and health.
• Changing consumer preferences and lifestyles: Consumers are looking for watches
that suit their personality, style, and occasion. They are also opting for multiple watches
for different purposes.
• Growing e-commerce penetration: The online channel has emerged as a major
distribution channel for wrist watches in India, offering convenience, variety, discounts,
and easy returns to consumers.
2.1.4 Opportunities for growth in the market
• The rising demand for smart watches and hybrid watches with digital capabilities that
offer health and fitness tracking, smartphone connectivity, and other features. Smart
watches are expected to reach a market size of nearly USD 100 billion by 2027.
6
• The growing e-commerce penetration that offers convenience, variety, discounts, and
easy returns to consumers. Online platforms also provide consumers with more
information, reviews, and comparisons of different brands and models of watches.
• The changing consumer preferences and lifestyles that seek watches that suit their
personality, style, and occasion. Watches that have unique designs, colours, materials,
and functionalities are appealing to consumers who want to make a fashion statement
or express their individuality.
• The growing popularity of vintage and retro watches that appeal to consumers who
appreciate the nostalgia and history of wrist watches. Vintage and retro watches are also
considered as collectibles and investments by some consumers who value their rarity
and craftsmanship
7
CHAPTER – 3
COMPANY PROFILE
3.1 COMPANY OVERVIEW
JAI GURUDEV TIMES began its journey in the wristwatch industry in 2001 as a wholesaler
and retail supplier of Wrist watch.
The business was established by successful businessmen Javanaram, who recognized a need in
the market for high-quality wristwatches tailored to the preferences and requirements of all
target customers. Over the years, as the business grew and evolved, we expanded our product
offerings to include timepieces for all ages and preferences. We now provide a broad range of
wristwatches at our retail location, including sports watches, vintage watches, and, in addition
to our selection of kid-friendly timepieces. Our dedication to high-quality goods and services
has allowed us to become a trusted supplier of wristwatches to a broad range of customers. We
currently offer a large selection of wristwatches from both Indian and foreign manufactures
and serve all types of consumers. To satisfy the requirements and preferences of our clients, we
provide these watches both at wholesale and retail prices. We take delight in offering our clients
top-notch goods and first-rate services. we believe in providing a wide range of selections to
match the needs and tastes of our diversified consumer base. Our skilled team of specialists is
committed to provide watch repair and upkeep services for all models. Our professionals are
dedicated to provide the best possible customer service and workmanship, and they have over
23 years of expertise in the industry.
3.1.2 BUSINESS OPERATION
Our company is focused on importing a broad selection of timepieces from nation including
China. We place a priority on client happiness and have earned a reputation for offering superior
products and outstanding service.
We have a distribution network in Tamil Nādu that reaches places like Madurai, Coimbatore,
and Tambaram, as well as the states of Andhra Pradesh and the southern portions of Tamil
Nadu. Customers looking for a large assortment of high-end timepieces frequently visit our
retail store in Chennai. We have ties with a number of online merchants and YouTubers who
market timepieces on their platforms. These people buy our goods and then resell them to their
8
audiences, giving our company more visibility. We have been able to reach more people and
increase our consumer base because to this win-win cooperation.
3.1.3 PRODUCTS AND SERVICES:
Products: To meet a variety of preferences and demands, JAI GURUDEV TIMES offers a
comprehensive selection of wristwatches.
Men's watches such Casio Vintage, piamo, G Shock, Sonata, and Daniel klein. We also have a
selection of wearable watches, such as fitness trackers and smartwatches. We give our
consumers a wide selection of options, we purchase our items from both well-known brands
and smaller, emerging businesses.
Women’s watches such as Geneva, Casio vintage ladies, Lorenz, Glory.
Children's watches like Tikkers, Timex, Baby G, Kids, Kidzstuff, and Swatch Kids are among
those we offer.
We have also introduced other fashion accessories for men, such as wallets, belts, and watch
straps, to boost our sales and give our customers more options to choose from. These
accessories go well with our wristwatch products and help our customers achieve a stylish and
high-quality look. We aim to draw new customers and offer more value to our current ones by
diversifying our product line, while keeping our quality and customer satisfaction high.
Services: JAI GURUDEV TIMES. we are dedicated to giving our clients first-rate services.
We not only provide premium wristwatches but also provide watch repair services to people
in need.
3.1.4 PRODUCTS AND OTHER FASHION ACCESSORIES
For Young Adults:

• Casio G-Shock
• Piamo
• Seven Friday
• Smart watch
9
For Men:
• Timex
• Casio Edifice
• Daniel Wellington
• Naviforce
For Women:
• Fossil
• Skagen
• Citizen
• Anne Klein.
3.1.5 FASHION ACCESSORIES:

Watch Straps, Air pods, wallet, sling bags, sunglasses.
3.1.6 MISSION STATEMENT:
The company’s goal and vision are to grow their wristwatch business in both the kids’ market
and the smartwatch market. By focusing on the kids’ market, the company wants to make
wristwatches a key accessory for younger generations, teaching them the value of being on
time and managing time well from a young age. At the same time, entering the smartwatch
market allows the company to deliver more cutting-edge and modern technology to customers
who like the ease and connectivity of a smartwatch. In the end, the company aims to offer a
wide range of choices that suit the needs and tastes of all their customers, while maintaining
their dedication to quality and style.
3.1.7 MANAGEMENT TEAM
"A committed group of experts with a combined 23 years of expertise in the retail and watch
sectors leads JAI GURUDEV TIMES. Our four qualified staff members assure efficient
operations and client satisfaction, while our owner offer expertise and knowledge to the
business. JAI GURUDEV TIMES. is positioned for continuing growth and success in the retail
wrist watch sector with an emphasis on quality and customer service."
10
3.1.8 COMPANY DETAILS:
COMPANY NAME JAI GURUDEV TIMES
COMPANY STATUS ACTIVE
COMPANY HEAD JAVANARAM
COMPANY CATEGORY SOLE PROPRIETORSHIP
CLASS OF COMPANY PRIVATE
COMPANY LOCATION CHENNAI
YEAR OF INCORPORATION 2001
GST NUMBER 33AACPJ1144L1Z1
11
3.1.9 FAMILY GENOME
JAVANARAM
[2005-PRESENT]
AMRIT PRADEEP
[2012-PRESENT] [2022-PRESENT]
12
CHAPTER-4
4.1 MARKET ANALYSIS:

Market Size: The global wristwatch market, which was valued at $46.6 billion in 2020, is
anticipated to rise at a CAGR of 4.1% from 2020 to 2027, reaching $62.3 billion.
The digital watch segment, especially smartwatches, is gaining popularity among young
consumers who are more aware of smartphone technology and health monitoring
features. Smartwatches are also becoming more expensive due to the increased prices of
chipsets.
The Asia-Pacific region is the largest and fastest growing market for watches, accounting for
more than half of the global market share. China, India and Japan are the key markets in this
region, with high demand for both luxury and value-for-money watches.
India is one of the emerging markets for watches, with a projected CAGR of 20.32% from 2018
to 2028. The Indian watch market is influenced by factors such as increasing urbanization,
rising middle-class population, growing e-commerce penetration, changing consumer
preferences and celebrity endorsements.
The offline retail channel dominates the Indian watch market, with specialty stores being the
preferred choice for consumers who seek variety and quality service.
4.1.1 CONSUMER BEHAVIOUR, PREFERENCES, INTENTIONS, ATTITUDES AND

REQUIREMENTS:
Behaviour:
• Reputation of the brand and level of customer service provided: Consumers may
consider the reputation of the brand and level of customer service provided when
purchasing a wristwatch. They may look for brands that have a good reputation for
quality and customer service. A good reputation can help consumers feel more
13
confident in their purchase decision and may lead to increased satisfaction with their
purchase.
• Availability of the watch and ease of purchase: Consumers may also take into account
the availability of the watch and the ease of purchase. They may prefer to purchase
watches that are readily available and easy to purchase. This can help consumers save
time and effort when making a purchase.
• Comparison of prices and features across different brands and models: Consumers may
compare prices and features across different brands and models before making a
decision. This can help consumers find a watch that meets their needs at a price they
are willing to pay.
Preferences:
• Style or design: Some consumers may prefer watches with a certain style or design,
such as a classic or modern look. The style or design of a watch can be an important
factor in determining whether it meets a consumer’s needs.
• Specific materials: Others may prefer watches with specific materials, such as leather
or metal straps. The materials used in a watch can affect its durability, comfort, and
overall appearance.
Intentions:
• Investment piece or for a specific occasion: Consumers may purchase a wristwatch as

an investment piece or for a specific occasion, such as a wedding or graduation. In these
cases, consumers may be willing to spend more money on a watch that they view as
special or meaningful.
• Fashion accessory or to complement personal style: Consumers may also purchase a
watch as a fashion accessory or to complement their personal style. In these cases,
consumers may be more interested in finding a watch that matches their personal taste
than in finding one that is practical.
Attitudes:
14
• Versatility and ability to be worn in different settings: Consumers may value the watch’s
versatility and ability to be worn in different settings, such as at work or during leisure
activities. A versatile watch can be worn with many different outfits and in many
different situations.
• Brand loyalty: Some consumers may be loyal to specific brands when purchasing
wristwatches. This loyalty can be based on factors such as quality, design, or customer
service.
Requirements:
• Warranty and after-sales service: In addition to considering the watch’s warranty and
after-sales service, consumers may also look for watches that are environmentally
friendly and sustainable. This can help consumers feel good about their purchase
decision and reduce their impact on the environment.
4.1.2 COMPETITOR ANALYSIS (SWOT)
SWOT analysis is a strategic planning tool used to pinpoint and evaluate a company's
advantages, disadvantages, opportunities, and threats. This is an illustration of a SWOT
analysis of competitors for a Wholesale & retail store:
Strengths Weaknesses
- Wide range of products - High competition
- Established brand name - Dependence on suppliers
- Large customer base - Limited marketing budget
- Good reputation - Limited product differentiation
- Strong online presence - Online competition
15
Opportunities Threats
- Growing demand for smartwatches - Economic downturns
- Expansion into new markets - Increasing competition from other brands

- Increase in online sales - Changes in consumer preferences
4.1.3 PRICING STRATEGIES:

A pricing strategy is an approach taken by businesses to decide how much to charge for their
goods and services1. It involves changing and adjusting the price of goods and services in
response to market factors such as research, market conditions, consumers’ willingness to
pay, competition, trade margins, expenditures incurred.
JAI GURUDEV TIMES follows Markup pricing strategies, depending on their product type,
price range and distribution channel.
MARKUP PRICING STRATEGY:

Markup pricing (also called cost-plus pricing) is the most common and intuitive pricing
strategy for retailers and wholesaler. You add a percentage of the base cost of individual items
to create a profit — but you apply a different markup depending on the product.
4.1.4 DISTRIBUTION CHANNELS AND MARKETING
JAI GURUDEV TIMES expand its market reach and increase sales by utilising a variety of
distribution channels, including physical stores, online seller, Retailer, wholesalers, The
following are some potential advantages of each distribution method.
E-commerce sites watch seller:
JAI GURUDEV TIMES. may contact customers outside of its local area and increase its
customer base globally by selling its products online. Having e-commerce sites watch seller
we can also help build brand recognition and trust.
16
Wholesalers and retailer:
JAI GURUDEV TIMES reach new markets and clients that it otherwise might not have been
able to by collaborating with wholesalers and distributors.
MARKETING STRATEGY:
Relationship marketing: Building strong relationships with customers can increase loyalty
and retention. Retailers can engage with customers through social media, email campaigns, and
other communication channels to provide personalized recommendations and support.
Sales: Offering discounts, promotions, and other sales incentives can encourage customers to
make a purchase. This strategy can be particularly effective during the holiday season or other
key shopping periods.
influencer marketing: The marketing strategy that wristwatch retailers and wholesalers can
use to promote their products and increase sales. By partnering with popular social media
influencers and YouTubers, companies can reach a wider audience and tap into their followers'
trust and loyalty towards the influencer.
4.1.5 BRANDING
JAI GURUDEV TIMES, develop a distinct brand identity that sets it apart from other retail
establishments.
Putting Customer Service First:

To foster loyalty and trust, provide top-notch customer service. Your sales personnel should
receive training so they are educated about the things you sell and can make recommendations
to consumers that are unique to them.
Niche:
The seller should identify a niche or a specific segment of customers that it wants to cater to.
For example, the seller can focus on selling vintage watches, sports watches, luxury watches
etc., depending on its expertise and passion. The seller should then create a brand identity that
reflects its niche and communicates its value proposition clearly.
17
Customer feedback:
The seller should collect and display customer feedback such as reviews, ratings, testimonials
etc., on its website and social media platforms. This can help build trust and credibility for the
seller and encourage word-of-mouth referrals.
4.2 FINANCIAL ANALYSIS
Financial analysis is an assessment of how viable, stable, solvent, and profitable a business or
project is1. It refers to the process of reviewing and analysing a company’s financial statements
to make better economic decisions2
4.2.1 COST OF PROJECT (WITH BREAKUPS)
Project Scope:
The project entails a cost of a watch retail shop in a prominent shopping district in India.
Business Type:
The business operates as a specialty retailer and wholesaler that specialises in selling both
men's, women's wrist watches, and unisex model that range in price from midrange to luxury
Project sale:
JAI GURUDEV TIMES revenue per month goes around 13 to 13.5lakhs approx. based on the
market condition and season
Project Location:
The stores are situated in a crowded retail area in Chennai, and the monthly rent is INR 60,000.
Expense of labour:
The shop needs a full-time management and three part-time salespeople. The sales associates
will be paid INR 15,000 per month for working an average of 60 hours per week. Manager
Salary: INR 500,000 per year
18
Inventory Cost:
The cost of procuring inventory for the business is projected to be INR 90,00,000. This also
covers all the two wholesale and retail shop and price of buying wristwatches from different
brands, display, and other retail fittings.
Cost of damage:
Losses resulting from theft, breakage, spoiling, or other events that may have an impact on the
inventory's or property's worth might be included in the cost of damages.
utility costs, insurance premiums, electricity, transport and other expenses are included in the
overhead cost. This is projected to be INR 50,000 every month.
Cost Category Estimated Cost (INR)
Rent (12 months) 7,20,000
Labour Cost
- Manager Salary (12 months) 5,00,000
- 3 Sales Associates Wages (12 months) 5,40,000
Inventory Cost 90,00,000
Overhead Cost (12 months) 6,00,000
Electricity, insurance, transport 6,00,000
Cost of Damages (2% of inventory) 1,20,000
Total Cost (per year) 1,14,80,000
Revenue (per month) 13,00,000
19
4.2.2. SOURCE OF FINACE
In 2001, JAI GURUDEV TIMES was started with an investment of INR 15,00,000 from
personal savings. This means that the founders used their own funds to finance a portion of
the start-up costs. The business also used supplier credit and a personal loan to finance its
operations. While taking on debt can be risky, as it requires regular payments and can impact
the financial health of the business if not managed properly, the business was able to manage
its cash flow and pay off its debts. It is now doing well and has been successful in
maintaining profitability.
The business also negotiated payment terms with its wrist watch suppliers, allowing it to pay
for inventory 45 days after the date of delivery. This provided some flexibility in managing
cash flow. Maintaining strong liquidity is important for a business to successfully handle
daily operations, pay for unforeseen expenses, and seize growth opportunities. Liquidity is
defined as having enough cash on hand and other liquid assets to cover short-term financial
obligations.
4.2.3 BREAK EVEN POINT

To achieve a situation where you are neither making a profit nor a loss with a monthly sale of
13 lakhs and a total cost of 9.56lakhs per month, you would need to increase your monthly
sales to 7.06 lakhs per month, which is equal to your total cost. This means that your total
revenue should be equal to your total cost for you to break even.
In other words, you need to make a monthly sale of 9.56 lakhs and day sales of 31 thousand to
cover all your costs and break even.
Profitability
To determine if your business is profitable, we need to calculate your monthly profit based on
your sales revenue and total costs.
Monthly profit = Sales revenue - Total costs
In your case, your monthly sales revenue is 13 lakhs and your total costs are 9.56 lakhs. So,
your monthly profit would be:
20
Monthly profit = 13 lakhs – 9.56 lakhs
= 3.44 lakhs
Therefore, JAI GURUDEV TIMES business Need to generates at least INR 31000 per day in
sales revenue to break even and cover its costs. If the business generates less than the break-
even point, it will incur losses, and if it generates more than the break-even point, it will
make a profit.
4.2.4 FINANCIAL PROJECTION

Based on the information provided, the potential financial projection for JAI GURUDEV
TIMES
1. Gross Revenue: INR 13 lakhs per month
2. Gross Profit: 3.44 lakhs INR per month
3. Net Profit: INR 3.5lakhs per year (after deducting all the expenses)
4. Return on Investment (ROI): 26.92% (assuming a (42,00,000 / 1,56,00,000)
5. Break-even Point: INR 31k per day in sales revenue
Note that this analysis is based on the information provided and may not be accurate. It is
important to regularly review and update your financial projection as your business evolves
over time.
4.3 TECHNICAL ANALYSIS

Technical analysis is a method of evaluating securities by analyzing statistics generated by
market activity, such as past prices and volume1. It is used to identify trends and patterns in
the market that can help predict future price movements1.
In the context of a wrist watch retail and wholesale shop, for example JAI GURUDEV TIMES
technical analysis can be used to analyse sales data and identify trends in sales volume over
21
time. This can help retailers make informed decisions about inventory management, pricing
strategies.
4.3.1 INPUT ANALYSIS (SUPPLY CHAIN)
The following inputs, among others, would be taken into account in JAI GURUDEV TIMES.
input analysis:
Suppliers and distributors:
In order to source the timepieces, JAI GURUDEV TIMES. would need to collaborate with a
number of vendors and Distributors To guarantee that it is getting high-quality timepieces at
fair prices, it would need to assess the dependability and caliber of each provider.
Transport:
One important input would be the movement of the timepieces from the manufacturers and
distributors to JAI GURUDEV TIMES. JAI GURUDEV TIMES would need to examine the
transportation prices, lead times, and reliability of the transportation service providers.
Effective inventory management is necessary for JAI GURUDEV TIMES. to guarantee that it
has the appropriate timepieces in stock to fulfil demand
4.4 ECONOMIC ANALYSIS
Cost benefit analysis:
Indeed, based on the given financial data, here is a cost-benefit analysis for JAI GURUDEV
TIMES.
JAI GURUDEV TIMES. has a 26.92% return on investment (ROI), which implies that for
every INR 1 invested in the business, it makes INR 0.26 in profit. This is an excellent ROI,
indicating that the business is making strong earnings in relation to its investment.
22
The payback period is the length of time it takes for a business to recover its initial
investment. According to the statistics given, the company has a total investment of INR
84,80,000, and its annual net profit is 42,00,000INR. As a result, JAI GURUDEV TIMES.'s
payback term is calculated as 2.71 years
Break-even Point: The break-even point denotes the amount of sales income required by the
business to cover its variable and fixed costs. According to the information given, JAI
GURUDEV TIMES.'s daily sales income break-even point is INR 31k. The minimal sales
income necessary for the business to be profitable can be calculated using this information.
Overall, the financial data made available for JAI GURUDEV TIMES. points to a successful
and sound business. It is producing substantial earnings in relation to its investment, and
both its ROI and EVA are strong. The modest payback period also shows that the company's
initialexpenditure will probably be recovered within a few years.
23
CHAPTER-4
DATA ANALYSIS:
TABLE 4.1: AGE OF THE RESPONDENTS:
S. NO AGE NO. OF PERCENTAGE

RESPONDENTS
1 Below 18 years 7 10.9%
2 18-28 38 59.4%
3 29-39 11 17.2%
4 40-50 8 12.5%
Total 64 100%
CHART 4.1: AGE OF THE RESPONDENTS:
INFERENCES:
Out of 64 responses taken from the customers of JAI GURUDEV TIMES
• 59.4% of the respondents are between the age group of 18-28

• 10.9% of the respondents are between the age group of below 18 years
24
TABLE 4.2: GENDER OF THE RESPONDENTS:
S.NO ATTRIBUTES NO. OF PERCENTAGE

RESPONDENTS
1 MALE 39 60.9%
2 FEMALE 25 39.1%
3 OTHER 0 0%
TOTAL 64 100%
CHART 4.2: GENDER OF THE RESPONDENTS:
INFERENCES:
● 60.9% of the products are purchased by Male.

● 39.1% of the products are purchased by Female
25
TABLE 4.3: OCCUPATION OF THE RESPONDENTS
S.NO OCCUPATION NO. OF PERCENTAGE

RESPONDENS
1 BUSINESS OWNER 10 15.6%
2 PROFESSIONAL 6 9.4%
3 STUDENT 28 43.8%
4 OTHERS 20 31.3%
TOTAL 64 100%
CHART 4.3: OCCUPATION OF THE RESPONDENTS
INFERENCE:
• 43.8%of the products were purchased by student

• 31.3% of the products were purchased by others.
• 15.6% of the products were purchased by business owner
• 9.4% of the products were purchased by professional
26
TABLE 4.4: CUSTOMER PREFERNCE TOWARDS WATCH STRAP

RESPONDENTS
1 METAL 22 34.4%
2 RUBBER 14 21.9%
3 LEATHER 15 23.4%
4 FABRIC 13 20.3%
TOTAL 64 100%
CHART 4.4: CUSTOMER PREFERNCE TOWARDS WATCH STRAP
INFERENCE:
• 34.4% of the respondents preferred to have metal strap

• 23.4% of the respondents preferred to have leather strap
• 21.9% of the respondents preferred to have rubber strap
• 20.3% of the respondents preferred to have fabric strap
27
TABLE 4.5: FREQUENCY OF PURCHASE
S. NO ATTRIBUTES NO. OF PERCENTAGE

RESPONDENTS
1 FREQUENTLY 11 17.2%
2 OCCASIONALLY 26 40.6%
3 RARELY 12 18.8%
4 NEVER 15 23.4%
TOTAL 64 100%
CHART 4.5: FREQUENCY OF PURCHASE
INFERENCE:
• 40.6% of respondents occasionally purchase the product.

• 23.4% of respondents rarely purchase the product.
• 18.8% of respondents never purchase the product.
• 17.2% of respondent frequently purchase the product
28
TABLE 4.6: WILLING TO SPEND ON A WRISTWATCH

RESPONDENTS
1 HIGH 9 14.1%
2 MEDIUM 24 37.5%
3 LOW 23 35.9%
4 VERY LOW 8 12.5%

64 100%
TOTAL
CHART 4.6: WILLING TO SPEND ON A WRISTWATCH:
INFERENCE:
• 37.5% of respondents are willing to spend Medium (2500-5000) on a wrist watch

• 35.9% of respondents are willing to spend Low (500-2500) on a wrist watch
• 14.1% of respondents are willing to spend High (above 5000) on a wrist watch
• 12.% of respondents are willing to spend Very low (below 500) on a wrist watch
29
TABLE 4.7: FACTORS CONSIDER WHILE PURCHASING WRIST
WATCH
S. NO ATTRIBUTES NO. OF PERCENTAG

E
RESPONDENT
S
1 PRICE 20 31.3%
2 FEATURES 11 17.2%
3 STYLE 7 10.9%
4 BRAND 11 17.2%
5 15 23.4%
ALL THE ABOVE
TOTAL 64 100%
CHART 4.7: FACTORS CONSIDER WHILE PURCHASING WRIST

WATCH
INFERENCE:
• 31.3% of respondents consider price as factor while purchasing

• 23.4% of respondents consider all the above as factor while purchasing
• 17.2% of respondents consider features as factor while purchasing
• 17.2% of respondents consider brand as factor while purchasing
• 10.9% of respondents consider style as factor while purchasing
30
TABLE 4.8: PREFERNECE OF WRIST WATCH

RESPONDENTS
1 SMART WATCH 23 35.9%
2 ANALOG 23 35.9%
3 DIGITAL 18 28.1%
TOTAL 64 100%
CHART 4.8: PREFERNECE OF WRIST WATCH
INFERENCE:
• 35.9 of respondents Prefer to have analog watch

• 35.9% of respondents Prefer to have smart watch
• 28.1% of respondents Prefer to have digital watch
31
TABLE 4.9: SATISFACTION OF THE CUSTOMER TOWARDS
DISCOUNTS AND SERVICE OFFERED

RESPONDENTS
1 HIGHLY SATISFIED 23 35.9%

2 SATISFIED 18 28.1%
3 NEUTRAL 10 15.6%
4 DISSATISFIED 9 14.1%
5 HIGHLY DISSATISFIED 4 6.3%
TOTAL 64 100%
CHART 4.9: SATISFACTION OF THE CUSTOMER TOWARDS

DISCOUNTS AND SERVICE OFFERED
INFERENCE:
• 35.9% of the respondents are highly satisfied with the discount and services.
• 28.1% of the respondents are satisfied with the discount and services.
• 15.6% of the respondents are neutral with the discount and services.
• 14.1% of the respondents are dissatisfied with the discount and services.
• 6.3% of the respondents are highly dissatisfied by the discount and services.
32
TABLE 4.10: PURCHASE OF WRIST WATCH FROM STORE OR
ONLINE

RESPONDENTS
1 IN-STORE 23 35.9%
2 BOTH 22 34.4%
3 ONLINE 19 29.7%
TOTAL 64 100%
CHART 4.10: PURCHASE OF WRIST WATCH FROM STORE OR

ONLINE
INFERENCE:
• 35.9% of the customer prefer to purchase wrist watches In-store.

• 34.4% of the customer prefer to purchase wrist watches at both the places
• 29.7% of the customer prefer to purchase wrist watches in online
33
TABLE 4.11: CUSTOMER PREFERENCE TOWARDS PURCHASE OF
SMART WATCH
RESPONDENTS
1 YES 43 67.2%
2 NO 21 32.8%
TOTAL 64 100%
CHART 4.11: CUSTOMER PREFERENCE TOWARDS PURCHASE

OF SMART WATCH
INFERENCE:
• 67.2% of the customer interested in purchasing smart watches.

• 32.8% of the customer are not interested in purchasing a smartwatch.
34
TABLE 4.12: INFLUENCE OF DISCOUNTS AND OFFERS AT THE
TIME OF PURCHASE

RESPONDENTS
1 DEFINITELY 22 34.4%
2 PROBABLY 27 42.2%
3 NOT SURE 11 17.2%
4 NOT AT ALL 4 6.3%
5 64 100%
TOTAL
CHART 4.12: INFLUENCE OF DISCOUNTS AND OFFERS AT THE

TIME OF PURCHASE
INFERENCE:
• 42.2% of customers is decision is definitely influenced by discount and offers.

• 34.4% of customers is decision is probably influenced by discount and offers.
• 17.2% of customers is decision is not surely influenced by discount and offers.
• 6.3% of customers is decision is not at all influenced by discount and offers.
35
TABLE 4.13: INFLUENCE OF FREE SHIPPING AT THE TIME OF
PURCHASE

RESPONDENTS
1 YES 12 18.8%
2 MAYBE 24 37.5%
3 NO 28 43.8%
TOTAL 64 100%
CHART 4.13: INFLUENCE OF FREE SHIPPING AT THE TIME OF

PURCHASE
INFERENCE:
• 43.8% of the respondents selected the option NO for decision cannot be influenced on
free shipping.
• 37.5% of the respondents selected the option MAYBE for decision can be influenced
on free shipping.
• 18.8% of the respondents selected the option YES for decision can be influenced on
free shipping.
36
TABLE 4.14: EXPANSION OF BUSINESS ON TO ONLINE SALES
PLATFORM SUCH AS EBAY AND AMZOAN

RESPONDENTS
1 AGREE 28 43.8%
2 NEUTRAL 10 40.6%
3 DISAGREE 26 15.6%
TOTAL 64 100%
CHART 4.14: EXPANSION OF BUSINESS ON TO ONLINE SALES

PLATFORM SUCH AS EBAY AND AMZOAN
INFERENCE:
• 43.8% of the respondents agree with the expansion of the online sales platform for the
business.
• 40.6%% of the respondents are neutral about the expansion of the online sales
platform for the business.
• 15.6% of the respondents disagree with the expansion of the online sales platform for
the business
37
TABLE 4.15: CUSTOMER STATISFACTION TOWARDS EXPANSION
OF FASHION ACCESSORIES

RESPONDENTS

3 NEUTRAL 9 14.1%
TOTAL 64 100%
CHART 4.15: CUSTOMER STATISFACTION TOWARDS EXPANSION

OF FASHION ACCESSORIES
INFERENCE
• 40.6% of customers highly satisfied with our expanded fashion

accessory range.
• 31.3% of customers are satisfied with our expanded fashion accessory
range.
• 14.1% of the customers are neutral satisfied with our expanded fashion
accessory range.
• 7.8% of the customers are dissatisfied with our expanded fashion
accessory range.
• 6.3% of the customers are highly dissatisfied with our expanded fashion
accessory range.
38
TABLE 4.16: CUSTOMER SATISFACTION TOWARDS WATERPROOF
WRIST WATCH

RESPONDENTS
3 NEUTRAL 10 15.6%
TOTAL 64 100%
CHART 4.16: CUSTOMER SATISFACTION TOWARDS WATERPROOF

WRIST WATCH
INFERENCE
• 40.6% of the respondents are highly satisfied with the water resistance feature of their
wrist watches.
• 28.1% of the respondents are satisfied with the water resistance feature of their wrist
watches.
• 15.6% of the respondents are neutral with the water resistance feature of their wrist
watches.
• 14.1% of the respondents are dissatisfied with the water resistance feature of their wrist
watches.
• 6.3% of the respondents are highly dissatisfied with the water resistance feature of their
wrist watches.
39
TABLE 4.17: CUSTOMER SATISFACTION TOWARDS IN STORE
REPAIR AND MAINTENANCE SERVICE

RESPONDENTS
3 NEUTRAL 9 14.3%
TOTAL 64 100%
CHART 4.17: CUSTOMER SATISFACTION TOWARDS IN- STORE

REPAIR AND MAINTENANCE SERVICE
INFERENCE
• 36.5% of the respondents are highly satisfied with instore repair and maintenance
service.
• 28.6% of the respondents are satisfied with instore repair and maintenance service.
• 14.3% of the respondents are neutral with instore repair and maintenance service.
• 14.3% of the respondents are dissatisfied with instore repair and maintenance service.
• 6.3% of the respondents are highly dissatisfied with instore repair and maintenance
service.
40
TABLE 4.18: AVAILABILITY OF A WIDE VARIETY OF WRISTWATCH
AND COLOR DOES MATTER AT THE TIME OF PURCHASING.

RESPONDENTS
1 DEFINITELY 36 56.3%
2 PROBABLY 17 26.6%
3 NOT AT ALL 11 17.2%
TOTAL 64 100%
CHART 4.18: AVAILABILITY OF A WIDE VARIETY OF
WRISTWATCH AND COLOR DOES MATTER AT THE TIME OF
PURCHASING
INFERENCE:
• 56.3% of respondents definitely consider the availability of a variety of wristwatch and

colours when making a purchase."
• 26.6% respondents probably consider the variety of wristwatch and colours when
making a purchase.
• 17.2% of respondents not at all consider the availability of a variety of wristwatch and
colours at all when making a purchase."
41
TABLE 4.19: CUSTOMER SATISFIED TOWARDS AVIALABILITY OF
WIDE VRIETY OF BRANDS IN STORE

RESPONDENTS
3 NEUTRAL 6 9.4%
TOTAL 64 100%
CHART 4.19: CUSTOMER SATISFIED TOWARDS AVIALABILITY OF
WIDE VRIETY OF BRANDS IN STORE
INFERENCE
• 45.3% of the respondents are highly satisfied with wide variety of wrist watch in
store
• 35.9% of the respondents are satisfied with wide variety of wrist watch in store
• 9.4% of the respondents are neutral with wide variety of wrist watch in store
• 6.3% of the respondents are dissatisfied with wide variety of wrist watch in store
• 3.1% of the respondents are highly dissatisfied with wide variety of wrist watch
in store
42
TABLE 4.20: PURCHASE EXPERIENCE OF CUSTOMER TO REVISIT
THE STORE

RESPONDENTS
1 YES 48 75.0%
2 MAYBE 11 17.2%
NO 5 7.8%
TOTAL 100%
CHART 4.20: PURCHASE EXPERIENCE OF CUSTOMER TO REVISIT

THE STORE
INFERENCE:
• "75.4% of respondents selected 'yes' to indicate that their purchase

experience influenced them to revisit the store.
• 16.9% of the respondents have selected the option MAYBE when asked if
their purchase experience influence them to revisit the store.
• 7.7% of the respondents have selected the option chose NO when

asked if theirpurchase experience influence them to revisit the store.
43
TABLE4.21: CUSTOMER SATISFACTION TOWARDS OVERALL
SERVICES AND PROUCT
S.NO ATTRIBUTES NO.OF. RESPONDENTS PERCENTAGE
3 NEUTRAL 18 28.1%
TOTAL 64 100%
CHART4.21: CUSTOMER SATISFACTION TOWARDS OVERALL

SERVICES AND PROUCTS
INFERENCE
• 23.4% of the respondents are highly satisfied with the product and service.
• 23.4% of the respondents are satisfied with the product and service.
• 28.1% of the respondents are neutral with the product and service.
• 17.2% of the respondents are dissatisfied with the product and service.
• 7.8% of the respondents are highly satisfied with the product and service
44
5.1 FINDINGS

• 60.9% of the products are purchased by Male.
• 49.6%of the products were purchased by others profession.

• 34.4% of the respondents preferred a metal strap over other options such as leather,
rubber, or fabric.
• 40.6% of respondents occasionally purchase the product.
• 37.5% of respondents are willing to spend a medium amount (2500-5000) on a
wristwatch.
• 31.3% of respondents consider price as a factor while purchasing the product.
• 35.9% of respondents prefer Analog watch over other types of watches.
• 35.9% of the respondents reported high satisfaction with the discounts and services
provided.
• 35.9% of customers prefer to purchase wristwatches in-store.
• 67.2% of customers surveyed were interested in purchasing smartwatches.
• 42.2% of customers reported that their purchasing decision is definitely influenced by
discounts and offers.
• 43.8% of respondents selected 'no' to indicate that their decision cannot be influenced
by free shipping.
• 43.8% of the respondents agree with the expansion of the online sales platform for the
business.
• 39.1% of respondents reported that extended warranties may influence their decision
to purchase a wristwatch.
• 40.6% of the customers are highly satisfied with our expansion into other types of
fashion accessories
45
• 36.5% of the respondents are highly satisfied with the water resistance feature of their
wrist watches.
• 78.1% of the respondents said yes, they are interested in our store's
repair and services.
• 45.3% of the respondents are highly satisfied with wide variety of wrist watch in store
• 82.8% of the respondent said 'yes' the store has wide wristwatch range.
• 75.4% of respondents selected 'yes' to indicate that their purchase

experience influenced them to revisit the store.
• 23.4% of the respondents are highly satisfied with the product and service
5.2 SUGGESTION
▪ Based on the feedback, it seems that a significant portion of the respondents are
dissatisfied with the discount and services being offered. To address dissatisfaction with
discounts and services, businesses can review and improve current offerings, solicit
feedback from customers, train staff on exceptional customer service, and monitor
satisfaction levels.
▪ The business will be maintaining and adding more fashion accessories like purses, air
pods, or sunglasses to its product range since a large proportion of customers (40.6%)
strongly support the idea of the company expanding its offering in other categories of
fashion accessories. This could help attract more customers and increase revenue from
existing ones.
▪ Customers are dissatisfied with the in-store repair and maintenance service. To fix this
problem, businesses can take some actions to increase customer satisfaction. First, they
should evaluate and enhance their current service offerings. This could include offering
more choices, quicker service, or simpler process. Second, they should collect feedback
from customers to understand their wants and needs.
46
▪ The business could improve the low customer satisfaction with the wristwatch variety in-
store by adding new watch brands and styles that appeal to different customer tastes. They
could also train sales staff to give personalized suggestions and offer a customer feedback
program to collect ideas and preferences. These small changes could enhance the
shopping experience and ultimately raise customer satisfaction levels.
5.3 CONCLUSION
In conclusion, based on the information provided, there are several opportunities for JAI
GURUDEV TIMES to expand its business. By offering a wider range of fashion accessories,
investing in online sales channels, and expanding repair and service offerings, the company
could attract and retain more customers. Additionally, investing in watches that are more water-
resistant and smartwatch available in a variety of colours could help to differentiate the
company from competitors and appeal to a wider range of customers.
Finally, the company could expand its repair and maintenance services to include more options
and leverage its expertise in the wristwatch industry to build a loyal customer base. By taking
these steps, JAI GURUDEV TIMES could position itself for long-term success and growth in
the competitive fashion accessories market.
To conclude, customer satisfaction is essential for the survival and growth of any business. By
paying attention to customer feedback, businesses can discover areas where they can improve
and take steps to make their offerings, customer service, and product variety better. These steps
can ultimately lead to higher customer satisfaction, retention, and revenue. It is crucial for
businesses to keep track of customer satisfaction levels and adjust to changing customer
demands and expectations to keep a loyal customer base and succeed in a competitive market.
Customer satisfaction is not a one-time goal, but an ongoing process that requires constant
attention and improvement from businesses.
47
BIBLIOGRAPHY:
“Zero to One: Notes on Start Ups, or How to Build the Future” by Peter Theil and Blake
Masters.
“The Lean Startup How Today’s Entrepreneurs Use Continuous Innovation to Create
Radically Successful Businesses" by Eric Ries.
Family Business" by Ernesto J. Poza
WEBSITE:
• mordorintelligence.com
• globalmarketestimates.com
• technavio.com
• https://www.watchtime.com/
• https://monochrome-watches.com/
48
ANNEXURE:
QUESTIONNAIRE
1. Age of the respondent
A. 18-28 years
B. 29-39 years
C .40-50 years
D. Below 18 years
2. Gender of the respondent
A. Male
B. Female
C. Others
3. Occupation of the
respondentA.
B. professional
C. other profession
4. Which type strap do you prefer
A. Leather
B. Metal
C. Rubber/Silicone
D. Fabric/Nylon
5. How frequently do you purchase wristwatches?
A. Very frequently (more than once a month)

B. Frequently (once a month)
C. Occasionally (once every three months)
D. Rarely (once or twice a year)
49
E. Never
6. How much are you willing to spend on a wristwatch?
A. High (above 5000)

B. Medium (2500-5000)
C. Low (500-2500)
D. Very low (below $50)
7. What factors do you consider when purchasing a wristwatch?
A. Brand
B. Price
C. Style
D. Features
E. All of the above
8. What type of wristwatches do you usually prefer?
A. Analog
B. Digital
C. Smart watch
9. Are you satisfied with the discounts and services offered by our retail store?"
A. highly satisfied
B. satisfied
C. neutral
D. dissatisfied
E. highly dissatisfied
10. Would you prefer to purchase wristwatches in-store or online?
A. In-store
B. Online
50
C. Both
D. None
11. Would you be interested in purchasing a smartwatch?
A. Yes
B. No
12. Would discounts and promotions influence your decision to purchase a wristwatch from
our store?
A. Definitely
B. Probably
C. Not sure
D. Not at all
13. Would free shipping influence your decision to purchase a wristwatch from our store?
A. Definitely
B. Probably
C. Not sure
D. Not really
14. Do you believe our business should expand into online sales platforms such as Amazon or
eBay?
A. Yes
B. No
15. How satisfied are you with our expansion into other types of fashion accessories like
sunglasses, Air pods, belts, and purses?
A. highly satisfied
B. satisfied
C. neutral
D. dissatisfied
51
16. How satisfied are you with our waterproof wrist watch?
A. highly satisfied
B. satisfied
C. neutral
D. dissatisfied
17. How satisfied are you with our in-store watch repair and maintenance services?
A. highly satisfied
B. satisfied
C. neutral
D. dissatisfied
18. does the availability of a wide variety of brands and colour matter to you at the time of
purchasing?
A. Definitely
B. Probably
C. Not at all
19. How satisfied are you with the availability of a wide variety of wrist watch brands in our
store?
A. highly satisfied
B. satisfied
C. neutral
D. dissatisfied
20. Did your purchase experience influence you to revisit the store?
52
A. Yes
B. Maybe
C. No
21. what is the overall satisfaction level of our product and services?
A. highly satisfied
B. satisfied
C. neutral
D. dissatisfied
53

Chapter - 1: Market Research

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chapter - 1: Market Research

Uploaded by

Copyright:

Available Formats

CHAPTER -1

1.1INTRODUCTION ON EXPANSION OF WRIST WATCH BUSINESS

1.2 RESEARCH OBJECTIVE

This chapter deals with the objectives of the study.

1.1.1 primary objectives

1.1.2 secondary objective

4. Evaluate distribution channels (online, brick-and-mortar, authorized dealers) to identify

Type of Research: Descriptive Research Method

A simple random sample is a randomly selected subset of a population. In

a) Primary data: Questionnaire

the entire state.

• The person's viewpoint might change in the future

which could skew the findings.

• The study was based on a questionnaire.

2.1.2 Market segmentation by product type

2.1.3 Market growth influencing factors

2.1.4 Opportunities for growth in the market

3.1 COMPANY OVERVIEW

3.1.2 BUSINESS OPERATION

3.1.3 PRODUCTS AND SERVICES:

Women’s watches such as Geneva, Casio vintage ladies, Lorenz, Glory.

3.1.4 PRODUCTS AND OTHER FASHION ACCESSORIES

For Young Adults:

3.1.5 FASHION ACCESSORIES:

3.1.6 MISSION STATEMENT:

3.1.7 MANAGEMENT TEAM

COMPANY NAME JAI GURUDEV TIMES

COMPANY STATUS ACTIVE

COMPANY HEAD JAVANARAM

COMPANY CATEGORY SOLE PROPRIETORSHIP

CLASS OF COMPANY PRIVATE

COMPANY LOCATION CHENNAI

YEAR OF INCORPORATION 2001

GST NUMBER 33AACPJ1144L1Z1

4.1 MARKET ANALYSIS:

4.1.1 CONSUMER BEHAVIOUR, PREFERENCES, INTENTIONS, ATTITUDES AND

• Investment piece or for a specific occasion: Consumers may purchase a wristwatch as

4.1.2 COMPETITOR ANALYSIS (SWOT)

- Wide range of products - High competition

- Established brand name - Dependence on suppliers

- Large customer base - Limited marketing budget

- Good reputation - Limited product differentiation

- Strong online presence - Online competition

- Growing demand for smartwatches - Economic downturns

- Expansion into new markets - Increasing competition from other brands

4.1.3 PRICING STRATEGIES:

MARKUP PRICING STRATEGY:

4.1.4 DISTRIBUTION CHANNELS AND MARKETING

E-commerce sites watch seller:

Putting Customer Service First:

4.2 FINANCIAL ANALYSIS

4.2.1 COST OF PROJECT (WITH BREAKUPS)

Cost Category Estimated Cost (INR)

Rent (12 months) 7,20,000

- Manager Salary (12 months) 5,00,000

- 3 Sales Associates Wages (12 months) 5,40,000

Inventory Cost 90,00,000

Overhead Cost (12 months) 6,00,000

Electricity, insurance, transport 6,00,000

Cost of Damages (2% of inventory) 1,20,000

Total Cost (per year) 1,14,80,000

Revenue (per month) 13,00,000