Ramjas Consulting 2023-24

CASEBOOK
2023-24
2nd Edition
RAMJAS CONSULTING SOCIETY
Ramjas College
University of Delhi
www.ramjasconsultingsociety.org
RAMJAS
DISCLAIMER CONSULTING
SOCIETY
© 2024 by Ramjas Consulting Society - Ramjas College All Rights Reserved.
This casebook is created 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.
Second Edition: February 2024
ISBN: 978-93-5989-216-0
© 2024 by Ramjas Consulting Society 2023-24

RAMJAS
LETTER FROM THE PRINCIPAL CONSULTING
SOCIETY
Ramjas College stands as a beacon of progress and equal opportunity, championing academic excellence and liberal democratic traditions. We're committed to providing a well-rounded
education that addresses both academic and societal needs, shaping individuals into valuable citizens.
Our philosophy at Ramjas revolves around nurturing today's youth, equipping them to tackle future challenges with innovation, creativity, and leadership. The Ramjas Consulting Society has
been pivotal in advancing this mission, leading to the publication of the second edition of the Ramjas Consulting Society’s Casebook and Guesstimate Book. These publications not only provide
students with valuable insights into the consulting field but also enhance their communication skills.
Members of the Ramjas Consulting Society have demonstrated a remarkable flair for creating intellectual and enduring resources, influencing the future direction of learning and teaching. This
initiative promises to be a crucial platform, fostering an engaging teaching-learning experience and cultivating a more vibrant, virtuous, and inspiring academic environment.
With Best Wishes
Prof. Hardeep Kaur

Principal (Acting)
Ramjas College
University of Delhi
© 2024 by Ramjas Consulting Society 2023-24 01

RAMJAS
LETTER CONSULTING
SOCIETY
From the Convenor

At Ramjas, our commitment to holistic education surpasses conventional notions of academic excellence and vocational training. The collaborative endeavours of our entire team have yielded the
much-anticipated second edition of Ramjas Consulting Society’s Casebook and Guesstimate Book. Witnessing the persistent efforts of our students in harnessing their abilities brings me immense
pleasure and pride.
This latest casebook stands as a remarkable achievement, skilfully compiling a diverse array of consulting aspects and shedding light on complementary skills crucial for holistic student growth.
Beyond its role in preparing students for consulting interviews, this casebook serves as a tool to broaden their logical horizons and navigate problem-solving in our dynamic world.
My heartfelt best wishes go out to this promising team, with hopes that they continue to bring honour and remain connected as proud alumni of this esteemed institution.
With Regards
Ms. Nidhi Arora Dhingra

Associate Professor
Ramjas Consulting Society Convenor
Ramjas College, University of Delhi
From the Presidents

Arnav Mittal, President
The vision behind this edition was to provide readers with a one stop solution to expedite their preparation for corporate interviews. Crafting this year’s edition has been a deeply rewarding journey for
me, making me truly enjoy the process of building a case. This collection of innovative cases stands as a testament to the unwavering dedication of our entire team, who tirelessly worked day and night
to bring this edition to fruition.
I wish the best of luck to all readers!
Vrinda Chadha, President

After witnessing the success of the first edition of the casebook last year, as a team the vision was to outdo ourselves and make this resource even more useful. The entire process of building this
casebook starting from the ideation, then execution and multiple renditions has been a truly enriching experience. This process has helped me understand the countless possibilities of ideas and
solutions to any possible case. All of it has been possible only due to the dedication and never-say-never attitude of this team.
I hope that this resource helps you grab choicest of opportunities in the corporate world!

RAMJAS
FOREWORD CONSULTING
SOCIETY
Almost every step in the selection process of consulting jobs aims to gauge the interviewee's analytical and problem-solving ability and what better way is there to
do that than cases, guesstimates, and mind-boggling brain teasers? After the success of the first edition of the Ramjas Consulting Society Casebook, we decided to
take it up a notch and add even more out of the box yet real-life business cases and put ourselves up for a challenge. After putting in 1000+ hours, we are proud to
present to you the second-edition of Ramjas Consulting Society Casebook.
From the very start, we wanted to create an all-inclusive reference book for anyone starting or already invested in their preparation for a job as a management
consultant, and thus, we started noting down everything we felt is required for the same. What followed was a series of renditions and changes to the first index
that was planned, leading to the final draft which now includes multiple frameworks, nuanced preparation guides, industry overviews, Important business models
and casing math basics followed by 30 comprehensive solved cases with different levels of difficulty that we have built from scratch.
RCS has always done things with a twist, which is why we have also incorporated financials or intuitive guesstimates into almost all of our more difficult cases.
Every case and framework included is extremely detailed and even a brief study of the same aided by the glossary should be enough to give the reader a rough idea
of what to expect in such interviews and how to approach them.
Please keep in mind that the solutions and the transcripts in this book do not indicate a “correct” solution but are merely our team’s take on the respective case
prompts and our understanding on an appropriate approach to the same. Our team has put in tremendous efforts and countless sleepless nights in the creation of
this book and we believe it will prove to be a one-stop solution for anyone who is looking for consulting preparation material, irrespective of how far they have
come in their journey of the same
Core Team
(2023-24)

RAMJAS
ACKNOWLEDGEMENT CONSULTING
SOCIETY
We’d like to express our heartfelt gratitude to our Honorable Principal Prof. Hardeep Kaur and the college faculty for providing us with an opportunity to build and release this
casebook. We are also thankful to the faculty advisor of Ramjas Consulting Society Ms. Nidhi Arora Dhingra for being constant pillars of support through our many endeavors.
We would like to thank our mentors for sharing their interview insights and experiences that have enabled us to put together a comprehensive case preparation resource for
consulting enthusiasts.
We are also grateful to various go-to resources such as several B-School casebooks that served as inspirations to undertake this initiative and helped us understand this field
better and grasp certain essential case-solving skills. Lastly, we would like to thank all members of the Ramjas Consulting Society whose immeasurable contributions and hard
work is the reason we could build this edition of the RCS Casebook
We have tried our level best to ensure that the book is free of errors and conceptual ambiguities. However, if there are any mistakes, please do reach out to us at
ramjasconsultingsociety@gmail.com and let us know. We’d love to hear your feedback and review of the casebook and how we can make it more user friendly for the next
edition.
Batch of 2024 Batch of 2025

Vrinda Chadha Sahil Sah Aastika Ratti Hardik Bedi Kusum Lata Priyal Suhana Abrol
Arnav Mittal Shreya Singh Arav Agrawal Harsh Goel Manan Sood Rahul Gupta Suryansh Arora
Dev Raj Garg Udit Goyal Arjun Rastogi Harsh Saini Manreen K. Mahon Riya Jain Yajur Mahajan
Vedansh Agrawal Sujal Mittal Arnav Mohapatra Hrishi Pasricha Nitya Gupta Shagun Jain
Shourya Gupta Anshuman Mahajan Daksh Mittal Kajal Singhal Paarth Jaitly Shreshtha
Bhavya Khurana Harshit Kumar Diya Sehgal Kartik Jain Pragun Kumar Shreya Gupta
Vanshika Gourisaria Eakansh Goel Khushi Kukreja Prakhar Goel Shruti Jain

RAMJAS
FOREWORD FROM THE R&P TEAM CONSULTING
SOCIETY
Shourya Gupta, Director Sujal Mittal, Head

I'm thrilled to introduce the second edition of the Ramjas Consulting Society Casebook. Our After the successful first edition, I love to welcome you all to the second edition of Ramjas
journey began with our team coming together, brainstorming ideas, and putting in consulting society casebook. I am thrilled to present this comprehensive curation of case
countless hours of research, all with the goal of making this book as helpful and studies, offering practical insights and solutions to complex business challenges. Each case
comprehensive as possible. embodies our commitment to excellence in consulting and showcases the diverse
understanding of our society members.
It's more than just a book; it's a tool crafted to assist students, working professionals, and
anyone else preparing for interviews and beyond. I'm excited to share our collective effort Whether you're a student, a professional, or an enthusiast in the field, I trust this casebook
with you and hope it proves invaluable on your path to success. will serve as a valuable resource for learning and inspiration. Enjoy the journey through
these thought provoking scenarios and advance in the realm of consultancy.
Kajal Singhal, Associate Shagun Jain, Associate Yajur Mahajan, Associate

From drawing inspiration, from the 1st edition of our The vision of this casebook transcends across the avenues of Describing this book as the product of mere dedication over
casebook to actively working on its 2nd edition, this excellence and prowess towards acing interviews and case the past six months would be an understatement. While its
journey of crafting different approaches has been preparation. Each segment of this book has been contents may appear as a simple compilation
invaluable for me. We have put in dedicated effort to comprehensively worked and meticulously researched upon. of approximately 200 pages, those involved in its
meticulously shape and design each case, making them creation can unequivocally affirm that no other resource
well-structured and comprehensive. Personally, I think it's The second edition of our casebook targets to address the rivals its ability to gather real-world business problems
more than just curating cases — it's exchanging new ideas specifics of intellectual void designed collaboratively in and develop solutions of similar feat. With this, I trust
with the best peers in college. association with renowned mentors. this book fulfils its dual mission: equipping
consulting aspirants to excel in their case interviews and
To those navigating through the fragments of this book, I serving as an introductory guide to the consulting world
From all these experiences, I can definitely say that this
request you to accept it with an open mind. for beginners.
casebook goes beyond its pages, and I hope it helps you in
your case interview preparation! Happy Learning!
Welcome to the RCS Casebook!

RAMJAS
ABOUT RCS CONSULTING
SOCIETY
The Ramjas Consulting Society was founded in 2019 with the intention of developing a consulting-oriented environment at the college and striving to establish a student-led
organization that is distinguished by tenacity and creativity.
Completely run by students, RCS is committed to providing corporate clients with the best consulting services available. It has played a significant role in preparing future experts
in financial advice and strategy formulation from college onwards. In the past years, RCS has worked on twelve projects that have been successfully completed and is currently
working on three more. These projects include business transformation, social impact, go-to-market strategies, expansion plans, and startup funding analysis. The society has
also published industry reports on several industries, including the street-wear, sneaker, and fantasy league industries.
The society has achieved significant milestones, with its members clinching 70+ national and international podium positions and securing more than 100 finalist spots in
finance, business strategy case, and analytics competitions organized by esteemed institutions like IIM Ranchi, IIM Kashipur, FMS, SRCC, Hindu College, BITS Pilani and Shaheed
Sukhdev College of Business Studies. As a constant endeavor to up-skill society, we trained 200+ individuals across the domains of consulting, strategy and finance under the
aegis of our fellowship program.
Maintaining an active presence on various social media platforms, RCS endeavors to offer valuable insights through its classified series focusing on different aspects of consulting
and finance. For further information, please visit our social media handles.

RAMJAS
INDEX CONSULTING
SOCIETY
S.No Topics Page No: S.No Topics Page No:

1. How to use the book 07 vii) Fintech 28
2. Case Interview Guide 10 ix) Aviation 29

x) EdTech 30
3. What is Consulting? 13
6. Cases
4. Frameworks
i) Profitability 31
i) Profitability 14
ii) GTM 54
ii) Market Entry 16
iii) Growth 78
iii) Growth 17 iv) Pricing 101
iv) Pricing 18 v) Private Equity 117
v) Mergers & Acquisitions 19 vi) Mergers & Acquisition 139
vi) Private Equity 20 vii) Unconventional 156
5. Industry Overviews 7. Case Competition Guide 164

8. Company Interview Processes 167
i) Banking 21
9. Business Analysis Models 174
ii) Electric Vehicle 22
10. Casing Math 194
iii) Media & Entertainment 23
11. Brain Teaser 197
iv) Pharmaceutical 24
12. Guesstimate Hygiene Sheet 203
v) Q - Commerce 25 13. Glossary 204
vi) Cosmetics 26 14. Testimonials 209
vii) Insurance 27 15. Our Team 210
RAMJAS
CASE INDEX CONSULTING
SOCIETY
S.No Case Industry Difficulty Level Page No: S.No Case Industry Difficulty Level Page No:
Profitability Pricing
15. Race to TV Media Moderate 101
1. High Pressure Med-Tech Easy 31
16. Level Up Construction Moderate 105
2. Grounded Aviation Moderate 36
17. Super App Entertainment Moderate 110
3. Slippery business MSME Moderate 38
18. Coalect! Energy Challenging 114
4. What The Foodie! Food-Tech Moderate 40 Private Equity
5. Fizz In the Case F&B Moderate 46 19. Lights, Camera, Action Entertainment Moderate 117
6. Consulting the OGs Consulting Challenging 50 20. Best out of waste Waste Management Moderate 122
21. Real interest Jewellery Moderate 125
Go To Market
22. Chocolaty affair FMCG Challenging 130
7. Onboard to hoard? Retail Easy 54
23. Harvesting Capital Agriculture Challenging 135
8. Swap Right Automobiles Moderate 60
Mergers & Acquisition
9. FundVenture Financial Services Challenging 66 24. Careful! Telecom Moderate 139
10. ChatGPT 2.0 Info-Tech Challenging 72 25. Turbo Thrust Aviation Challenging 141
Growth 26. VR from Texas Social Media Challenging 145

27. Time-2-rent Hospitality Challenging 150
11. Goal Line Gambit Sports Easy 78
Unconventional
12. Terminal Triumph Cosmetics Moderate 84
28. Verse Voyage Technology Easy 156
13. Let us raise! E-Fund Raising Moderate 89 29. Thrill Alliance Electronics Easy 159
14. Loaded Entry Tech- Logistics Challenging 94 30. Back to School Education Easy 162

HOW TO USE
THIS BOOK
RAMJAS
HOW TO USE THIS BOOK CONSULTING
SOCIETY
This casebook was created with the vision that a case should contain 3 important aspects that are tested in a consulting interview: framework, guesstimate & financials.
The book comprises of 30 cases with 12 comprehensive cases that include the above 3 aspects and 18 shorter cases. The cases cover different domains namely:
profitability, go-to-market, growth, pricing, private equity and venture capital, mergers and acquisitions & unconventional cases. While the longer cases might not
resemble the ones asked in actual interviews, the aim is to familiarize the user with all three aspects as any one or two can be tested in an interview setting.
The 3 parts of the case were created in a way so that they can be independently solved. The transcript of a mock interview is like any other case that you solve which tests
your basic ability of problem solving. For the financials, we have tried to incorporate problems that involve basic concepts to help understand terms that are commonly
used in this field. The guesstimates included are made in excel and thus an interviewee is not expected to attain that level of numerical accuracy, however, what is tested in
interviews is the structure more than the numbers.
A basic structure is provided in the transcript that can be referred to while solving the same, depending on the time limit, the interviewee can delve into the level of
detailing. The financials and guesstimates can be solved without the help of a case partner, however, the basic case structure would require you to solve the case with
someone so as to gain feedback on your structuring and problem-solving skills.
Before diving into any case, it's necessary to understand its classification. For this, we’ve made a list of basic frameworks that can be used while solving a case of that
particular domain. These frameworks will help you make mental notes of the aspects that you have to cover while solving a case. We have tried our level best to make them
exhaustive, however, it should be kept in mind that every case is unique and these frameworks can only be applied to a certain extent and used as a quick trick in case of a
mental block or time crunch. It’s crucial that one starts developing their own frameworks with time and practice.
We’ve also included a glossary at the end of the casebook to cover some of the difficult terms that might confuse a reader. Please refer to it in case of queries, however, if
you feel that there are any more unclear phrases, please do let us know so we keep that in mind for the next time. Apart from this the casebook also includes multiple other
aspects which are explained better in the upcoming pages that will help you prepare for a role in this field.

RAMJAS
SOCIETY
Guides: Case Interviews & Case Competitions

The case interview guide will help you understand how to approach a case along with
Case Competitions are an important factor that helps you understand an industry
tips related to common mistakes made. Since case interviews have a certain format
better and hone your research skills. However, there is a certain methodology that you
that needs to be followed, it’s essential that one learns and gets accustomed to the
need to follow so that your solution does not lack in any area. We have tried to add
basic flow before sitting in an actual one. The guide also consists of interview processes
aspects that many students don’t pay proper attention to that usually affect their
of top consulting firms so that you are familiar with all the aspects that you need to
chances to perform well.
practice other than case solving.
Business Analysis Models Brain Teasers

There are certain frameworks that are commonly used and applied to the majority of Since consultants are expected to give solutions that are out-of-the-box, interviewers
the cases. Even though they seem easy to understand, their practical application can be usually grill you by giving you tricky brain teasers. The questions may seem intimidating
quite tricky at times. We have included 8 basic models along with a real-life example to initially, however, you later realize that they are quite simple and just require a different
explain them better. It’s necessary that you know these frameworks before sitting in an approach. This is why we have tried to include a variety of brain teasers to help you
interview as even though you shouldn’t directly apply them while solving a case, you experience a distinct set of questions to help you get familiar with the same.
should mentally take note that you’ve covered all aspects.
Casing Math Guesstimate Cheat Sheet
Casing Math becomes an essential part of a consulting interview. Often familiarity with Most consulting interviews involve solving guesstimates, for this, we’ve created a cheat
casing math concepts such as NPV, IRR, Break-even Period, Free Cash Flow, Cash Burn sheet that has basic data for the majority of the guesstimates. It’s necessary to know
Rate and Churn Rate proves useful as these concepts become a part of the case basic information eg: the population of India, the rural-urban divide, etc., before
interview or a consulting interview in general. sitting in an interview.

RAMJAS
SOCIETY
2 4 5 7
1 Difficulty Level 2 Transcript 3 Case Facts 4 Recommendations
It shows a mock conversation between the To help simplify and break down the case, This comprises a very crucial component of
Every case has been denoted it’s level of case solving, it indicates how well you’ve
interviewer and interviewee and covers a this section seeks to provide you with the
difficulty so as to ensure that you pick a understood the problem and how
basic flow of events of how the interview key points that you need to keep in mind
case according to your level of practice while solving the case efficiently you help counter that problem
would unfold in a professional setting
5 Brownie Points 6 Framework 7 QR Code

There are always certain questions/ pointers Since structuring thoughts is an essential Every long case has QR code linked in the
that may or may not affect your case, but component of consulting every case has guesstimate slide which will direct you to
they definitely show your knowledge and a flowchart to summarize it for easy the detailed version of the solution
out-of-the-box thinking skills understanding
Note: The transcript, brownie points, framework & recommendations provided in the casebook are not rigid, although the problem won’t differ, there may be multiple solutions for a case.
CASE INTERVIEW
GUIDE
RAMJAS
CASE INTERVIEW GUIDE CONSULTING
SOCIETY
Structure
It's important to note that the structure of case interviews can vary depending on the company, interviewer, and type of case, but the basic phases remain similar.
Prompt Introduction
The interviewer presents a business problem along with some background on the
BASE client. You must look to define the problem and its scope.
Introduction + Questioning
(Fit Interview)
Data Gathering
Try to gather information and data related to the problem, either by asking
clarifying questions or by using hypothetical information provided by the
interviewer.
Analysis
Analyze the data and draw out a "roadmap" breaking down the statement into its
components. You can use frameworks as a guide to your approach.
ANALYSE Synthesis & Elucidating

Case Interview Provide the interviewer with insights gained from identifying patterns in data.
Always walk the interviewer through you approach to ensure that everyone's on
the same page. At this stage, the former might want you to focus on specific
details enabling you to further build the case.
Conclusion
Give a brief run-through of the initial problem, present the logical conclusions and
solutions that arose from your analysis and brainstorming backed by resonable
data.
RECOMMEND
Question & Answer Implementation and Follow-Up
Lastly, discuss potential implementation issues and any follow-up actions that
should be taken. Also point out any potential risks involved.
RAMJAS
SOCIETY
Tips for cracking a consulting interview
• Keep in mind that the case interview is also an interview of interpersonal skills. The interviewer • Use nice and easy numbers whenever you are estimating market size, price, costs, etc. to avoid
will be looking at your poise, confidence, communication skills, enthusiasm, energy, factoring decimals.
persuasiveness, listening ability, etc.
• Develop clear and decisive recommendations. Provide options and a recommendation based on
• When the case is presented, make sure you fully understand the problem statement and write your analysis as to which solution is most suitable to achieve the objective at hand.
it down, capturing all of the relevant details. Before you start the analysis, ask questions to
clear up any ambiguity and restate the scenario to the interviewer.
• Practice. Practice. Practice. Cracking the Case is mostly a developed skill. Understand the
reasoning behind each case. The more cases you practice, the more you will be exposed to the
• Take a minute to capture and structure your thoughts on paper. As much as you might have the
different problems and the more you will be prepared. Leave nothing to chance. Good Luck!!!
urge to, do not start talking about the analysis right away. Politely ask if you can take a few
moments to think. (Remember, do not try to force the case into a specific framework or use a
framework verbatim like the 4Cs or Porter’s Five Forces. Incorporate your own various concepts
as necessary)
• Briefly walk your interviewer through your framework and approach. Explain the path you have
taken, outlining your rationale for choosing it.
• Ask relevant questions to gain further insight. Remember, asking the right questions is key. You
are only given information to the questions that you ask, and if you make assumptions, state
them clearly.
• Do not rush to get to "a solution." You are being evaluated, most importantly, on your logic and
the process of your analysis. You are being judged at every step so it is preferred to break down
the process into smaller steps. The recommendation you give at the end is only as sound as the
thought process you used. So think out loud!
• Even though there might not be "a right answer," there certainly are better approaches than
others. Stay focused on the problem at hand. Refrain from digging into detail that may not shed
light on the issue just to sound impressive.

RAMJAS
SOCIETY
Tips for Brainstorming Ideas
The key to brainstorming is structure. The candidate should first devise two or more "buckets" or categories to organize his/her thoughts. These constraints make it easier to be creative and
provide a more vivid mental model to pull from.
Example for Brainstorming Frameworks:

1. Internal vs External
The internal bucket represents any aspect internal to the client, (e.g. products, brand, financials, leadership, etc.)
The external bucket represents factors external to the client, (e.g. market trends, geopolitical dynamics, competition, etc.)
2. Financial vs Non Financial

The financial bucket includes costs, hurdle rates, cash flow, etc.
The Non-financial bucket would include all the other factors.
3. Long-term vs. Short-term
Useful for devising strategies and making decisions.

Examining potential consequences of a decision.
4. The Supply Chain

Each step in the supply chain is a category: raw materials, manufacturing, warehouse, transport, retail, customer, etc.
Useful for exploring causes or solutions to cost problems.
5. Stakeholders
It includes clients, employees, investors, suppliers, regulators, etc.
You should deliberate upon how are they affected, or what are they looking for.
6. Customer Journey
Breaking down the journey into 4 steps- AIDA- Attention, Interest, Desire and Action.

WHAT IS
CONSULTING?
WHAT IS CONSULTING?
RAMJAS
CONSULTING
SOCIETY
Meaning
o The practice of helping firms improve their performance by analyzing their current business operations and identifying existing problems for the development of future courses of action.
o Involves a variety of processes, such as conducting research, interviewing people within the organization, collecting data from clients or third-party market research reports, and more.
o Aims to improve performance by correcting organizational structures, strategies, marketing, and other aspects.
o Involves solving complex business problems such as increasing revenues, cutting costs, entering a new market, mergers, acquisitions, etc.
History
o 19th century: World's first modern consulting firms were founded.
o 1930s: Consulting firms started to grow their size beyond a few founding partners and small teams.
o In the next decades, rapid expansion with today’s well-known US firms such as Arthur D. Little, A.T. Kearney, Booz Allen Hamilton, and McKinsey & Company playing frontrunner roles.
o In the next thirty years, a phase of unprecedented growth across western markets, far outpacing the growth of the world economy during the same period.
o At present, one of the most mature sectors in the professional services industry, generating between $100 billion to $300 billion in revenues.
Roles & Processes

o Acquiring accurate and up-to-date information by conducting market surveys, cost studies, financial studies and gathering primary data.
o Defining the real issue for better understanding of the problem and responding to the client’s implicit needs.
o Use their expertise and experience to analyze the situation, develop solutions, and help implement them. This can involve anything from improving operational efficiency to launching a
new product to navigating complex regulations.
o Consultants act as knowledge repositories, drawing on their accumulated expertise in specific fields like business strategy, technology, healthcare, or marketing. They share this knowledge
with their clients and help them make informed choices.
Global Trends
Digitalization and Technology: Shifting Priorities:
o Generative AI tools are revolutionizing how consultants gather data, analyze o ESG (Environmental, Social, and Governance): Corporate sustainability, ethics, and
trends, and provide insights. Expect to see AI-powered platforms assisting with ESG are rising in importance. Consultants specializing in ESG
everything from project scoping to performance optimization. integration, reporting, and stakeholder engagement are in high demand.
o With businesses heavily invested in digital initiatives, consultants adept in cloud o Purpose-Driven Consulting: Clients are increasingly seeking consultants who align
computing, cybersecurity, and digital strategy are highly sought-after. with their values and purpose. Social impact and sustainability initiatives are
becoming integral parts of consulting engagements.

FRAMEWORKS
PROFITABILITY
RAMJAS
CONSULTING
SOCIETY
Framework
Profit
Revenue Cost
Selling Price per Product Mix

No: of Units
Unit
Supply Demand
Value Chain Number of Average Order

Order Frequency
Customers Amount
Primary Activities Supportive Activities

Pre Service During Service Post-Service
Procurement SG & A
Manufacturing Infrastructure & IT Firm Level Industry Level Macro (PESTEL)
Distribution Human Capital
Post Sales Service

PROFITABILITY
RAMJAS
CONSULTING
SOCIETY
Framework
Procuring Raw Materials Manufacturing Distribution & Storage Post Sales Service
Primary Activities
- # of customers x
- Cost of raw materials - Plant maintenance
average order - Number of customers x
- Transportation & - Idle capacity/
amount x frequency frequency of service x
packaging costs opportunity costs
of service x cost cost incurred
- # of suppliers, - Wastage, wear and
incurred - Spare parts, returns,
contract amount, tear
- Spare parts, returns, replacement, waste
duration - Set up time and cost
replacement, waste
Cost
Human Capital (Capacity x Selling, General &

Research & Development Financing Costs Branding & Advertising
Efficiency x Utilization) Administrative
Supporting Activities
- Channels
- Equipment/ Tech - Spend on each
- Raising debt
- Human Capital channel
- Raising money
- Financing (physical/digital)
through Equity
- Patents - Conversion rate of
each channel

MARKET ENTRY
RAMJAS
CONSULTING
SOCIETY
Framework
Market Entry
Preliminary
Questions:
Market Barriers to
Ques. 1: Always ask about the Customers Competition
Attractiveness Entry
company’s objective (also growth
quantum and targeted timeline).
- Financial constraints
- Product, Price, Place, Promotion
- Addressable market - Market structure Capabilities/Resources
Ques. 2: Get a comprehensive - No. of competitors & market
- Growth rate - Reaction to entry - Suppliers
understanding of the company: what it share
- Profit Margin - Segments - Govt. Regulations
does? What product to launch? - SWOT Analysis
- Patents, IP
Ques. 3: Record of previous launches,
their performance & why this particular 3CP Approach
geography/product launch?
Ques. 4: Who are the customers?

Customers Company Competition Product
Market size and price sensitivity?
Ques. 5: What part of value chain does - Segments - Product Mix

- No. of competitors &
it want to set-up? - Needs - Resources - Gap between customer
market share
- Size & Growth - Key Assets expectations and
- SWOT Analysis
Ques. 6: What are the risks & market - Target Group - Value Chain Analysis available products
- Barriers to entry/exit
barriers and if any competition exists. - Market Share - Financial Analysis (break-
- Regulations
even point)
NOTE: Ask if the data is credible and
accurate. Please mention if there is any How To Enter?
margin of error.
Organic Inorganic
Greenfield Joint Venture
Acquisition
GROWTH
RAMJAS
CONSULTING
SOCIETY
Framework
Preliminary Growth
Questions:
Ques. 1: Clarify objective, Core Activities Non-Core

quantum of growth and (Profit Metric) Activities
timeline
• Lease space,
Ques. 2: Business Model – Product Mix Profit per Unit capacity for
Units Sold
Where does the firm lie in advertising, rentals
the value chain? What are its • Value added
revenue streams and services
Revenue per
distribution channels? Market Size Market Share Cost per Unit
Unit
Ques. 3: Understand
customer segments - Can price be - Value chain
Inorganic Organic Organic Inorganic analysis,
increased?
Ques. 4: What is the Inelastic demand, process
product mix? Any M&A - Improvise - Acquire monopoly innovation
differentiating/ new features customer journey emerging - Bundling - Strategic
in products? - Increased branding competitor, - Price vertical
- Omnichannel, O2O substitutes Discrimination integration
Ques. 5: What is the - Improve customer - Develop - Cross Selling
competitive landscape? retention E2E skills - Upselling
Growth Strategies
Existing Geographical Portfolio Inorganic Business

Market Expansion Expansion Growth Integration

PRICING
RAMJAS
CONSULTING
SOCIETY
Framework
Step 1: Understand the Pricing

requirements of the
client (for example:
whether it is a mass
market firm or catering
Inward Looking External Looking
only to upper class,
etc.).
Step 2: Apply the Cost Based Benchmarking Value Based

framework for deciding
which type of pricing to
go with, cost based, - Willingness to pay
Value Based Features
competition based or Costs Returns - Opportunity costs
value based. - Extrapolate benefits
- Structure - Additional features
Step 3: Determine an
- R&D one time costs - Markup - Feature of other - Differentiating benefits
optimal price and
- Production costs- - Margins substitutes, compliments - Others’ price range
recommend a price
fixed & variable - Breakeven or other proxies.
range.
- Other specific costs Period
- Payback Period
Types of Pricing
Cost Based Pricing Competitive Pricing Value Based Pricing
• Cost of Goods Sold (COGS) - fixed costs and variable costs • Availability of substitutes • Value proposition of the product
• Expected break-even point • Competitor’s price points • How much does the customer spend on a similar utility?
• Profit Margin over break-even • Company’s positioning – premium or economy • How much is the customer willing to pay for such a product?
• R&D Expense- Does the company plan to recover it or is it a • Company’s vision- profit margins vs. market share • Can a higher value be appropriated through product and
sunk cost? • Price = Competitor’s Price ( in line with organization goals) marketing investments?
• Price = COGS + Profit Margin • Price = Value appropriate to the product

MERGER & ACQUISITION
RAMJAS
CONSULTING
SOCIETY
Framework
Questions to be asked: Framework
1. Understand client’s company

Questions can be asked to learn about client’s Market Company Synergies Financial Associated
company, its current state, value chain, revenue Attractiveness Attractiveness Considerations Risks
streams, industry in which it operates, growth
strategy and aspirations.
Soft / Cost Hard / Revenue
2. Understand target company
Questions can be asked to understand the
target’s market, market share, operating
geography, revenue streams, profitability, and Shared Supply Improved Research Lower Patents Complimentary Complementary
its competitors. Information Chain Sales and and Salaries Products Geographies &
Technology Efficiencies Marketing Development and Wages Customers
3. Client Objective
Any particular reason to choose that particular
Approach/ Framework for NET BENEFITS
company over other players, when is the client
planning to enter into the transaction,
budgetary constraints, expectation from
Financial Non-Financial
acquisition.
Clarifying the objective of the Deal Value Added Costs Acquirer Fit External
Risks
Deal Rationale Business Objective
Political
1. Budget constraint 1. Business Synergies Company Synergies Acquisition Integration Economic
Valuation Price Costs Social
2. Competition Technological
2. Cost Reductions
Elimination Legal
M&A Process Flow and Stakeholder MECE Analysis Environmental
3. New Market/Product 3. Portfolio Expansion
Internal Need Target Due Deal Implement And
4. Investment
Analysis Screening Diligence Execution Post Deal

PRIVATE EQUITY
RAMJAS
CONSULTING
SOCIETY
Framework
It is essential to understand the objective behind the investment, for which the following questions shall be asked:-
Financial
Why? Is the PE backing the firm financially? Will this financial support help the
company in unleashing its value?
Objective behind the investment
Synergies
Is the Investment leading to creation of synergies?
When?
The timeline of investment Growth
What are the incentives in the business, does the company belong to an
emerging sector?
Management
What? Is the PE looking forward to takeover the management of the business
What is the target rate of return from investment which was deemed to be one of the main issues with the company?
Once the investment expectations are set, evaluation can be done on the following metrics and basis:-
Target Specifics Industry Attractiveness PE Firm Characteristics Sources of Returns
Business Model Market Size/Growth Fund Size Operational Efficiency
T I P S Valuation Profitability Fund Style Unlock Potential
Management Capability Barriers to Entry Portfolio Use Leverage
Product Services Competition IRR
Matrix Willingness to sell Customers Exit Period
Market Share & Growth Costs & Risks
Suppliers Suppliers
INDUSTRY
OVERVIEWS
BANKING
RAMJAS
CONSULTING
SOCIETY
Overview Business Segments Market Key Drivers

The banking industry refers to Opportunities
extensive network of banks Retail
•Deposits, Credit Cost Revenue Growth
and NBFCs (non-banking Cards and Mortgage • Digital Inclusiveness
financial institutions) which • Fintech Partnerships
• Regulatory • Deposit Growth • Rural Digitization
provide financial services to •Mergers & and Investments •
Compliance Cost Brokerage Mortgaging • Fintech Partnerships
individuals, enterprises and Wholesale Acquisitions • Sustainable Finance • Provision for NPAs Services • Large Consumption
government like credit •Corporate Lending
• Customer Retention • Cross-Selling Market
facilities, managing risks,
storing and managing various Wealth •Brokerage Services
forms of wealth. Mgt. •Asset Management Market
Challenges Recent Policy & Updates
• Regulatory • HDFC Bank, became the first bank to have 2 crore credit cards in force (CIF).
Leading Players Compliance • Listed private sector banks posted a strong 23.8% YoY net profit growth, reaching US$ 5.2
• Global Economic billion (Rs. 43,543 crore) in Q3 FY24, driven by high credit offtake and cost reductions.
Slowdown • Bank accounts opened under GoI Pradhan Mantri Jan Dhan Yojana have deposits of over
• Cyber Attacks ~US$ 25.13 billion in beneficiary accounts by 15 December 2023.
Key Sectoral Data Value Chain Analysis

Macroeconomic Data 10% Customer
Fund Inbound Out Bound Customer
Relation
Acquisition Service Service Acquisition
Management
Market Size (‘Q2 FY24)- $2.9Tn 35% 17%
Fund Acquisition Designing and Identifying Customer Associated

CAGR (‘23-’30)- 8% (Private Sector) from customer conception of distribution acquisition and services and
38% deposits, operations and channels and relationship products like
borrowings and services such as lending to management after-sale services,
Amount of FDI (in %) – 20% capital markets
withdrawals,
individuals, through marketing assistance and
Public Sector interest,
(In-bound insurance, enterprises or and efforts and advisory services
Private Sector Logistics). government (Out- personalized for customer
Market Projected Value (‘29)- brokerage and
Foreign Banks others. bound Logistics). services. retention.
$166.78Bn (Retail) Regional Rural Banks
ELECTRIC VEHICLE
RAMJAS
CONSULTING
SOCIETY

The Electric Vehicle (EV)
• Motors
Opportunities
industry focuses on advancing Hardware • Charging Cost Revenue Growth
hardware and software to • Powertrain Infrastructure
improve performance, • Manufacturing • Subscription • Technological
• Energy Storage
efficiency, and sustainability. • User Interface Optimization Models Advancements
This commitment reshapes Software • Fleet Electrification
• Connectivity
the automotive landscape, • Battery Replacement • Battery Expenses • Charging Services • Sustainable Practices
promoting a more eco- • Batteries
friendly and efficient future. Energy
Storage • Storage Tech Market
• Infrastructure Gaps • Electric passenger vehicle sales grew by 114.71 per cent to 82,105 units last year
Leading Players • High Costs against 38,240 vehicles in 2022.
• Perception Barriers • Propel Industries debuts indigenous EV Dump Trucks at Excon.
• Adaptability
• Adani Total Gas is on target to install 75,000 EV charging stations by 2030.

Macroeconomic Data 4.84 5.06
Raw Material Manufacturing Distribution Customer
Charging
Market Size (‘21)- $1.45Bn Acquisition and Assembly and Logistics Network Support
36.59
CAGR (‘21-’31)- 23.47% 53.51 Identifying optimal Timely maintenance,
Efficient sourcing of This phase optimizes Streamlining
lithium, cobalt, and production for cost distribution charging station repairs, and regular
Amount of FDI (in %) – 100% nickel. Strategic efficiency and waste minimizes costs. locations, and software updates for
partnerships with reduction. R&D Collaborations with integrating smart improved
grid technologies performance and
Market Projected Value (‘31)- E- Three Wheelers responsible mining ensures innovative logistics partners improve the features are
$113.99Bn E- Two Wheelers companies to ensure manufacturing, enhance overall reliability & prioritized.
an ethical and stable maintaining strict supply chain efficiency of charging Continuous feedback
E- Cars supply chain. quality control for efficiency. networks. mechanisms.
Others EVs.

MEDIA & ENTERTAINMENT
RAMJAS
CONSULTING
SOCIETY

The Media & Entertainment Opportunities Cost Revenue Growth
Audio & •TV, Cinema Cost Revenue Growth
industry comprises businesses Visual • E-Sports
•Music •Tech Infrastructure •Subscription-based
creating and distributing • 5G •Evolving Consumer
content across diverse • Video Streaming (OTT) •Marketing & Promotion models Demands
Digital •Digital Connectivity
media—movies, TV, music, Media & •Social Media • Virtual Reality (VR) & •Talent Acquisition & •Advertising
Streaming •Streaming Services Augmented Reality (AR) Retention •Licensing •Response to Cultural
books, games, and digital
•Content Development •Merchandise Sales Shifts
platforms, contributing to
varied entertainment •Print & Digital
Publishing Market
format
experiences.
• Piracy • The Indian Government increased FDI limit from 74% to 100% in cable and direct-to-home
Leading Players • Legal & Regulatory (DTH) satellite platforms.
Compliances • Disney's India unit, currently valued at around $4.5 billion, fall short of initial $10 billion
• Shortening Attention target in ongoing talks with Reliance Industries for entertainment business merger.
Span • Zee Entertainment incurred Rs 366.59 crore in compliance expenses for the failed merger
• Data Security with Sony, which was called off due to a stalemate over leadership and other issues.

6% 6%
Macroeconomic Data 7%
Content
Market Size (‘22)- INR 2.1 Trillion Production Distribution Consumption Monetization
49% Creation
11%
CAGR (’22-’30)- 10%
2% 19% Development of Deliver content End-user Revenue
Filming, recording, or
Market Projected Value (‘30)- Television & Films original content developing content through various experience, generation
across various channels, like including viewing, through
Digital Media for distribution.
$100bn mediums. broadcast, digital reading, playing, subscriptions,
Radio & Music Manage post-
platforms, etc. or listening. advertising,
Print production for licensing, and
Internet Penetration (‘23)- 880Mn polished final
Optimize global & local
Online Gaming targeting for effective merchandising.
Animation & VFX products.
OTT CAGR (‘23) – 14% reach.
Others
PHARMACEUTICAL
RAMJAS
CONSULTING
SOCIETY

The pharmaceutical industry is
• Generic Drugs Opportunities
a branch of the medical field • Bulk Drugs • Digital therapeutics Cost Revenue Growth
Drugs
that finds, develops, • OTC Medicines • Neglected tropical
manufactures, and distributes diseases • R&D • Strong domestic • Medical Tourism
pharmaceutical drugs for use • Vaccines • Focus on mental health • Regulatory Compliance demand • Healthcare Reform
as self-administered or Biological • Biosimilars & • Prevention and Early • Export Opportunities
Biologics • Manufacturing and • Government Support
patient-administered Detection Distribution • Government Initiatives
medications with the goal of
curing or preventing disease Research • Contract Research
or its symptoms.
& Manufacturing Market
• Supply Chain Disruptions • In September 2023, the government launched the National Policy on Research and
Leading Players • Inflation Development and Innovation in Pharma-MedTech Sector.
• Workforce Challenges • Production Linked Incentive (PLI) schemes have been initiated to offer financial incentives
• Competition from to companies for manufacturing specific essential drugs and medical devices domestically.
generics and biosimilars • The government issued new guidelines in December 2023 requiring stricter adherence to
Good Manufacturing Practices (GMPs).

Macroeconomic Data 7% 1% 1%
Research and Clinical Trials Marketing and Pharma-
3% Manufacturing and Regulatory
Market Size (‘23)- $50 Bn Development Affairs Distribution Covigillance
20%
CAGR (‘21-’29)- 10.70% 67%
Brand awareness. Monitoring safety
Identifying Optimizing large- Testing to
potential drug scale production evaluate the Educating of marketed
Amount of FDI (in %) – 3.7% targets. processes.APIs and safety and healthcare drugs. Ensure
Generic Drugs Conducting pre- finished drug efficacy. Obtaining professionals. patient safety and
Branded Drugs clinical and clinical formulations. approval from Establishing suppy drug
Vaccines trials. Compliance with agencies like the chains. Storage improvements.
quality control US FDA or EMA. and handling.
OTC Drugs regulations.
Biologics and Biosimilars

Q - COMMERCE
RAMJAS
CONSULTING
SOCIETY

Q commerce, also referred to Opportunities
as quick commerce or on- Product • Groceries Cost Revenue Growth
demand commerce, is the term • Hyperlocal Delivery
• Personal Care
for the quick, usually within a • Subscription • Product Sales • Enhancing Delivery
Services • Product Procurement
few minutes or hours, delivery • Infrastructure & • Subscription capabilities
• Pureplay • Efficient Inventory
of goods and services. In order Company logistics Services: • Tech driven Innovation
to guarantee quick and • Non-Pureplay Management
• Marketing • Expanding Markets
effective order fulfilment,
technology and logistics are
Region • Geographic
used. Market
• Swiggy is now at an annualised rate of Rs 1,000 crore in advertising revenue and is
Leading Players • Logistics and likely to bump to 2000 crore next year.
fulfilment efficiency • Amazon’s and Flipkart’s cumulative revenue came in at Rs 8,705 crore, or over $1
• Quality Control and billion in 2023.
Product Freshness • Dunzo’s revenue from operations surged 4.1x to Rs 226 crore in FY 2023 from Rs 54
• Customer Acquisition crore in FY 2022.

Macroeconomic Data 10% Sourcing and Inventory Order Last-Mile Customer
Procurement Management Fulfilment Delivery Service
20% 40%
Market Size (‘24)- $3,349.00m
10% Identifying and Optimizing Streamlining the Designing and Providing
20%
CAGR (2024-2028)- 27.42% selecting suppliers inventory levels process of implementing excellent
who can provide to ensure product receiving, efficient delivery customer service
User Penetration Rate- 1.8% Groceries and Essentials the necessary availability while processing, and routes and to handle
Food Delivery goods or services minimizing fulfilling methods to inquiries, resolve
Pharmacy and Healthcare within the holding costs. customer orders ensure fast and issues, and
Retail and Convenience required time efficiently. reliable deliveries ensure customer
Specialty Items frame. to customers. satisfaction.

COSMETICS
RAMJAS
CONSULTING
SOCIETY

The cosmetic industry • Hair Care Opportunities
describes the industry that Product • Self Care • Technological Cost Revenue Growth
• Beauty Adaptations
manufactures and distributes • Ingredients and R&D • Product Innovation • Influencer marketing
cosmetic products. These • Leap towards • Packaging, Marketing, • Brand Reputation • eCommerce
• Hair Appliance
include color cosmetics, Appliances sustainability Branding and • Product Quality expansion
• Massagers
skincare and haircare • E-commerce Distribution • Global Expansion • Beauty trends
segments within the broader
spectrum. Toiletries • Personal Hygiene Market
• Supply Chain • Cosmetic companies will soon be required to submit safety data to the Central Drugs
Leading Players Standard Control Organization (CDSCO) seeking approval for products.
Disruptions
• L'Oréal's strategic venture capital fund, BOLD, has acquired a minority stake in Timeline,
• Rising Price
a Swiss longevity biotech company, emerged from bankruptcy after cutting more than $2.7
• Misleading billion in debt and handing control of the beauty products company to its lenders.
Advertisements

6.40%
Macroeconomic Data 23%
After Sales
Branding & Transport &
Manufacturing Packaging Support
Marketing Storage
Market Size (‘21)- $54.3Bn
30.60%
CAGR (‘21-’31)- 4.3% Manufacturing Sustainable Ensuring proper Ensuring that For maximum
17.30% the product as and labelling and transport and consumer
10.40% biodegradable appropriate storage facilities satisfaction, after-
12.30% per
Amount of FDI (in %) – 100% packaging, marketing for have appropriate sales beauty
Skin-care Hair-care
sustainability
standards. temperature better reach of temperature and services are
Market Projected Value (‘31)- Colour Fragrance resistant. the products. pressure controls. required.
$262.3Bn Toiletries Others

INSURANCE
RAMJAS
CONSULTING
SOCIETY

An insurance is a legal Opportunities
agreement between an • Auto, home, Cost Revenue Growth
Property commercial • Robust Demand
insurer (insurance company)
and an insured (individual), in • Policy Support • Claims paid • Premiums collected • Increase in Per capita GDP
which an insured receives • Individual and • Increasing • Product • Investment income (interest • Digital Disintermediation
Life and Development, marketing income)
financial protection from an group Investments • Low Penetration
Annuity and sales support (Underserved Market)
insurer for the losses he may • Operating and IT support
suffer under specific
circumstances. • Private and
Health Public Market
• Lack of organized • As announced in June 2023, Go Digit Life Insurance, in which both HDFC Bank and Axis Bank have
Leading Players data
bought stakes, plans to invest Rs. 500-600 crore (US$ 60.3-72.4 million) in the initial 18 months to
start out as the country's 26th life insurer.
• Distribution • India's insurance sector saw 25% rise in surrenders and withdrawals from life insurance policies in
• Low insurance 2023.
penetration • As informed in September 2023, the UK and India have agreed to launch a partnership to boost cross-
market investment by the insurance and pension sectors.

Macroeconomic Data Distribution
Policy
Product Administration
Marketing Underwriting and Claims
Development and Sales
• Market Size (‘22)- $131Bn Management
• CAGR (‘23-‘27)- 12.5% Using customer Understanding and Driving, monitoring Analyzing risk Evaluating and
and market insights strategically and enabling sales profiles and settling claims,
to design, develop penetrating the and customer premium pricing including payment,
• Amount of FDI (in %)- 74 and deploy addressable market retention through models to bind and reinsurance
products and to deliver products brand management, issue policies. recovery and
services. and services and to advertising and litigation; managing
• Market Projected Value generate revenue. customer administrative
engagement. activities.
(‘26)- $222Bn

FINTECH
RAMJAS
CONSULTING
SOCIETY

The fintech industry is a broad Opportunities
and rapidly evolving sector • Ecommerce, Cost Revenue Growth
that encompasses any Application
Utilities, Travels • Emerging
company that uses technology technologies
to improve or automate • Compliance and • Transaction fees • Market size and user
financial services. This can • Digital payment • Increased demand regulation • Subscriptions adoption
Type • alternative lending for personalization • Marketing and • Industry partnership
include a wide range of • personal finance • Interest Income
activities, from mobile acquisition and collaborations
banking and payments to • Micro investing
robot-advising and Wealth
Management • fractional share Market
cryptocurrency trading. investing
• Cybersecurity • India’s fintech industry is expected to contribute an additional $400 billion to the national
Leading Players threats economy in the next seven years
• Regulatory • India's Paytm plunges 20% after RBI halts payments bank business due to non-compliance
tightening with Central Bank’s rules
• Data privacy • Policybazaar shares cross IPO price after 2 years, jump 14% on first-ever profit

Macroeconomic Data 1.58% 0.79%
Infrastructure Marketing & Technology
8.22% Research & Distribution
Development & Operations Sales & Service Management
Market size (‘22) – $584Bn 14.90% 46.25%
Identifying user Building and Branding and customer Delivering financial Selecting, integrating
CAGR (‘21-’29)- 10% 28.26%
needs, designing and maintaining software acquisition, user services through online and maintaining
developing new applications, cloud onboarding and platforms, mobile technological tools and
fintech infrastructure, data education, partnership apps, managing platforms aligned with
Fintech Adoption Rate in solutions, leveraging centers, customer development, and transactions, providing business needs and
India- 87% (against global Lending Tech Payments
innovative support systems and marketing campaigns
leveraging digital
customer support, and
ensuring user
ensuring data security
technologies ensuring data security and privacy.
average of 64%) Insurance Tech Neo Banking
(AI, blockchain, big channels experience
data) optimization
Investment Tech Fintech SaaS

AVIATION
RAMJAS
CONSULTING
SOCIETY

The aviation industry refers to Opportunities
the collective business Commer • Passenger aircraft Cost Revenue Growth
cial • Sustainable
activities involved in the • Freighter Aviation • Aircraft acquisition
design, manufacture, • Ticket sales • Global Connectivity
• Technological and maintenance
operation, and maintenance • Combat innovations (AI) • Cargo Services • Tourism Growth
of aircraft, as well as the Military • Fuel and labour cost • Ancillary Services • Urbanization
• Non -Combat • Aviation training • ATC Fees
provision of air transportation
services.
• Helicopter
General
• Business jets Market
• Climate change • As per Civil Aviation Ministry, India will have more than 140 million passengers in FY2024
Leading Players alone.
• Cyber attacks
• Fuel cost and • Boeing’s FY23 revenue increased by 23.34% from $66.6B to $75.75B.
efficiency
• Unemployment • IndiGo secured the prestigious title of the World’s Youngest Aircraft Fleet 2024 for the
second consecutive year in the 100+ aircraft fleet category.

Macroeconomic Data $386.21Bn
Suppliers Airlines Airports In-Flight Services Customer Service
& Support
$333.96Bn Suppliers are Coordinates travel They provide the These services These services
CAGR (‘23-’28)- 2.95% responsible for experience, infrastructure and include catering, include addressing
providing raw including flight facilities necessary entertainment and passenger
materials and scheduling, crew for aircraft take- cabin crew inquiries, resolving
Largest Global Market- other coordination, offs, landings and services which issues, and
Asia Pacific components. ticketing, check- passenger contribute ensuring a positive
2023 2028 ins, and baggage handling. towards passenger travel experience.
handling. experience.
Projected Market Value (‘28)- $386.21Bn
EDTECH
RAMJAS
CONSULTING
SOCIETY

EdTech (a combination of Opportunities Revenue Cost Growth
“education” and “technology” Hardware •Sub Sectors • Augmented reality
Cost Revenue Growth
refers to hardware and • Gamification • Online Learning • Tech Infrastructure • Demographic Trends
software designed to enhance • Digital learning • AI Advancements • Marketing • Access to Internet
•Skill Development
teacher-led learning in Software • Nano library • Globalization of • Customer Retention • Public Crises
•Test Preparation
classrooms and improve education • R&D
students’ education outcomes
•K-12
Content Market
•Online Certification
• Content Quality • Unacademy reduced cash burn by 60%, has Rs 1,800 crore in the bank.
Leading Players • Data privacy & • UpGrad’s FY23 revenue almost doubled to INR 1,194 Cr and adjusted EBITDA loss
security shrunk.
• Digital divide • Prosus marked down BYJU’S valuation to under $3 Bn from peak $22 Bn.
• Financial constraints • Byju’s appointed Jiny Thattil as new CTO amidst Anil Goel’s exit, as top level exits
continue.

Macroeconomic Data Content and User
23% Platform Distribution and Analytics and
Curriculum Engagement
40% Development Delivery Monitoring
Development and Experience
27% Involves educational Developing the Distributing the
CAGR (‘21-’31)- 14.50% At this step, Monitoring
9% content curation technical content to end users
companies look to students' performan
such as videos, infrastructure to which includes
incorporate ce by levering
K-12 1% books, assessments facilitate the delivery students and
Lead Conversion Rate (in %) – 2.5% and resources – of content using online institutions by
personalisation and analytics to derive
Higher education which is a part of learning platform, user leveraging direct
interactivity to useful changes
Language & casual interfaces and enhance user and improvements
Market Projected Value (‘31)- the customer value sales, partnerships
management system. learning journey. in the content.
Test prep proposition. and licenses.
$288.4Bn Reskilling
CASE
INTERVIEWS
PROFITABILITY
HIGH PRESSURE (1/5)
RAMJAS
Profitability Declining Growth CONSULTING
SOCIETY
Interview Transcript
Your client is an online medicine delivery company, that delivers all kinds of Allopathic medicines No. of customers has declined in the past few years.
on a written prescription within 2 hours. It is undergoing negative growth in India. You have to The decline in the number of customers can be due to external and internal factors. Which one do you
examine the problem and plan on how to increase the growth. But before beginning, I want you to want me to focus on?
estimate the market size of Online Medicine Delivery Applications in India.
Let's go ahead with the external factors first.
I would like to ask a few clarifying questions before estimating the market size. Can I go ahead with
Okay, Considering the external factors through the 3CP framework there could be a change in
taking only urban areas into account, considering people in rural areas are currently not open to
government policies or consumer preference which could be due to licensing of a medicinal firm.
ordering medicines online?
There could be negative publicity for the company due to any rumors in the market. Apart from this,
Yes, you may go ahead with urban areas for this estimation right now. there could be a new competitor in the market or a new product launched in the market due to which
Alright, so considering that people having an income above 2.5 lakhs will be able to afford and order our customers have shifted to their brand.
medicines online. Of these people, any one family member would be placing the order, so avg.
Indian family size can be taken as 4 which gives us a number of 9 crores. Based on assumptions Yes, there has been a new competitor in the market last year but there has been no change in the
taken, as to what kind of medicines urban population prefers between allopathy, homeopathy, and government policies nor any negative publicity.
ayurveda. Taking into account that our client delivers only allopathy which can further be divided Alright, I would like to know more about the competitor. What are the product offerings by the
into serviceable and unserviceable, finally reducing the number to 6 crores orders. The orders can competitor and are they offering any features other than ours?
further be divided into two divisions- subscription-based orders and non-subscription. Considering The competitors offer online Medical Consultation which has proved to be efficient in them garnering
the average amount and frequency of these two divisions, we can come up with the market size, a larger amount of subscriptions and customers. You can now move to the internal factors.
which is approximately Rs. 25,000 crores.
Alright, Since we are not a manufacturing firm. It could be due to any problem in the distribution
Great, now you may go ahead with the case-solving aspect of the problem statement. channel or a change in consumer behavior. Do we know which one has changed?
I would like to ask a few clarification questions before I analyze the problem. Since how long has the
client been operating in India and in which cities? The distribution channel has been through a single warehouse in each city we operate but we are
not able to deliver the orders within 2 hrs. Rest all factors remains constant.
The client has been operating since 2015 in India and they are operating in 5 Top tier 1 cities.
Is the company using any marketing techniques to acquire customers?
Is the Company facing the problem in all the operational cities and what is the growth rate in the last
5 years? No, not since the last 2 years. I think you now have enough information and can now start with the
Yes, the company is facing problems in all the cities and the average growth rate for the last 5 years recommendations.
is -2% and has reached 8% from a previous growth rate of 18-20%. Alright, I would divide my recommendations into three parts. One would be a change in the
Alright, As the problem statement states that there has been negative growth i.e. profits had distribution channel by opening dark stores to reduce the delivery time and setting up a Medical
declined. It could be due to an increase in costs or decrease in revenue or a combination of the two. Consultation service on our website with features like instant appointments, to further gain traction on
Do we have an idea on which side the problem lies? the website and retain the customers and lastly to use marketing techniques for attracting new
customers and retain previous ones.
The revenue has declined.
Okay, I would like to further segment revenue into - Number of customers x Average Order. Do we Great, I would like you to now calculate the cost of doing the same and the expected growth rate
know which one has seen a decline? after the execution.

HIGH PRESSURE (2/5)
RAMJAS
SOCIETY
Yes sure, so let us first look at the average cost of setting up 1 dark store, we will incur expenditure
on some fixed assets such as furniture (Racks, fridges, tables, packing equipment, etc.), and we can
roughly take these costs to be 30 Lakhs. We will also need to set up a robust computer system so
that there are no delays in receiving the orders or tracking the delivery executive, for which we can
incur 2.5 Lakhs of expenditure. We can consider 2. The expenditure on recurring expenses would
include the rent of the store, salaries of employees, utility bills, insurance premiums, and other
miscellaneous expenses. I have assumed that for a 2,000 sq feet store, the annual rent will be
around 18 lakhs, the salaries will amount to rupees 24 lakhs considering the average monthly salary
for an employee to be 20k, the average consumption of utility services will incur an expense of 10
lakhs per annum along with an Insurance premium of 1 lakh and miscellaneous expenses of around
a lakh, reaching out to 58 lakhs per annum.
5 Lac of expenditure for miscellaneous expenses. Our total cost of setting up one dark store would
be 93 lakhs.
Ok, and how many dark stores would you recommend, and on what basis?
Sir I would recommend doing an analysis of the 5 cities and identifying densely populated areas (for
the complete capacity utilization & maximum revenue from dark stores). We should place at least 4
dark stores per city, so a total of 20 stores.
Ok, what could be the estimated cost of setting up the teleconsultation vertical?
For that, we would be required to set up an application, a comprehensive one can be built in around
50 Lakh rupees as the average cost of setting up an AI is 10 lakhs and would require a maintenance
of around 3 lakhs per month , and I believe teleconsultation doctors draw a fixed salary, so the salary
for 15-20 doctors could be around 1.5 to 2 crores.
Having incurred these costs, what do you think will be the impact on revenue?
Sir our expenditure on dark stores will not make the delivery process efficient, but will be able to
strengthen the company's position in their areas through constant marketing and instant supplies.
Teleconsulting is an add-on feature, which will not only help us in increasing our user base but also
retain it. I believe these services could help the company grow by at least 8-10% more each year,
upon successful implementation.
Impressive, thank you for sharing your approach
Thank you sir, thanks for the opportunity!
HIGH PRESSURE (3/5)
RAMJAS
SOCIETY
Your client is an online medicine delivery company, that delivers all kinds of Allopathic medicines on a written prescription within 2 hours. It is
undergoing negative growth in India. You have to examine the problem and plan on how to increase the growth.
Case Facts Approach/Framework

• Overview - online medicine
Profits
delivery company delivering
only allopathic medicines.
• Industry Scenario – Problem
specific to the company
• Operational geography – Top 5
tier-1 cities Revenue Cost
• Problem- Experiencing
negative growth
No. of
Average Order
Customers
External factors Internal factors
Dema
Government Change in consumer Distribution
Customer nd behavior channel
Policies
Competition Product
Recommendations Brownie Points

• Revamping distribution channel by opening dark stores. • Serviceable and unserviceable medicines
• Setting up online medical consultations on the website. • 3CP framework
• Use of marketing techniques. • Supply-chain Management

HIGH PRESSURE (4/5)
RAMJAS
SOCIETY
Guesstimate
Market size of Online Medicine Delivery App
Urban Rural Average <500 500-1000 1000-2000 2000<
40% 60% amount 250 750 1500 2000

Urban-Rural
Population Division 52 crore 78 crore % of people ordering 1% 2% 2% 3%
130 crore (in cr.) 14.3325 85.995 171.99 343.98
0-2.5 Lacs 2.5-10 lacs 10 Above Total (in cr.) 616.2975

Capacity of restaurant Capacity of restaurant
30% 50% 20% Frequency 3 6 9 12
Income Wise Incomeof orders
Wise
Occupancy Rate Occupancy
in 1 Rate
year 30%
Distribution- Urban 15.6 26 10.4 Distribution- Urban 10% 20% 40%
15.6 crore 36 crore Total Subscription (in cr.) 184.8892 1109.335 1109.335 2958.228
4 Non-Subscription
Avg Family Size
9 crore <500 500-1000
Average 1000-2000 2000<
Allopathy Homeopathy Ayurveda amount 250 750 1500 2000
Type of 70% 20% 10 %
Medicines % of people ordering 25% 40% 25% 10%
6 crore 2 crore (in cr.) 358.3125 1719.9 2149.875 1146.6
Serviceable Non-Serviceable Total (in cr.) 5374.6875
Allopathy
Medicine 90% 10% Capacity of restaurant
Frequency 6 4 3 2
Division Incomeof orders
Wise
5.7 crore Occupancy
in 1 Rate
year
0.6 crore Distribution- Urban 20% 30% 30% 20%
Assumptions Total Subscription (in cr.) 6449.625 6449.625 4837.21875 2149.875
• Earning above 2.5 lac would be able to afford, as they have access to
doctors who prescribe medicines and can afford to go to private doctor TOTAL (in cr.) 25248.132
• Estimated major orders to come from the avg bill of Rs750
HIGH PRESSURE (5/5)
RAMJAS
SOCIETY
Financial Exhibits
EXHIBIT 1: Financials
Particulars 2020P 2021P 2022A 2023E 2024E
CAGR 12% 10% 8% 12% 16% 22%
Cost (% of Revenue) 10% 15% 20% 17% 12% 10%
EXHIBIT 2: Cost of opening a Dark Store (in lacs)

Particulars Proposed value Particulars Proposed value
Expenses Assets
Annual Rent 18 (For 2,000sq ft) Furniture 30
Annual Salaries 24 (For 10 employees) Other Assets 5
Annual Insurance 1 (20k per employee) 35
Utility bills 10
Other Misc. expenses 5
58
Total Cost of 1 dark store 93
Total no. of dark stores 20 4 dark store in each city
Total Cost 1860
EXHIBIT 3: Cost of starting teleconsultation (in lacs)

Particulars Proposed value Particulars Proposed value
Maintenance cost of AI
3 per month Setting up AI 10
(Customer care included)
Salaries for Doctor 220 For 15-20 doctors
Total Cost 266
Overall Cost (in lacs) 2126

GROUNDED (1/2)
RAMJAS
Profitability Increasing Revenue CONSULTING
SOCIETY
Our Client Ramco Airline has seen an unusual increase in profitability. Can you find out the What changes have been made in the advertisement services?
reasons behind the same?
Previously we used to have advertisements by a different company in the back seat area. Now it’s
Okay. I would like to start by asking a few preliminary questions. replaced by the client’s own in-flight app/website.
Sure. Go ahead. Interesting. What services does the client offer in the flight app?
Has this unusual increase happened only to our client or to the competitors as well? Through this in-flight app passengers can book taxis, and hotels, rent movies and order food on
flights, and much more.
This unusual increase in profitability is limited to our client only. You can go ahead and work out
the revenue streams for our client Has there been an increase in usage of this service?
Okay. I would like to segregate the revenue of the client into ticket revenue, cargo services, in- Yes, the usage of this app has become 4-fold after placing the advertisement behind the seat.
flight catering services, advertisement, and flight entertainment. Do you want me to go on the
cost side as well? Interesting. How is the revenue split among different inflight services of Ramco airline
No, let us focus on the revenue side only. The revenue split is as follows: Taxi Booking- 10%, Hotel Booking-15%, Renting movies: 5%,
Ordering Food:30% and inflight shopping: 40%
So, first I would like to look at ticket revenue. Ticket Revenue = Price of Ticket * No. of Flights *
Inflight shopping is having big share of total revenue. When did Ramco introduce the inflight
No of Seats * Occupancy Rate
shopping feature?
Do you have information on any of these factors?
No. The revenue from selling tickets is constant. Try looking at other factors We introduced this feature along with our new ad campaign that I mentioned earlier.
How about cargo services if the client has diversified the business in terms of services offered, So, inflight shopping is the reason behind unusual increase in profitability.
number of planes & coverage area
Great. What all recommendation do you want to suggest to sustain the revenue?
No, the services are the same as before
The recommendation would be to make the app more engaging by offering various offers,
Great. How about advertisements is there a change in revenue from the same collaborating with other brands to offer there service in the app and constantly pushing the update
to make app fluid.
Actually, it’s the opposite there has been a slight reduction in revenue by advertisement. Great, Thank You. We can close the case now.
GROUNDED (2/2)
RAMJAS
Profitability Increasing Revenue CONSULTING
SOCIETY
Our Client Ramco Airline has seen an unusual increase in profitability. Can you find out the reasons behind the same?

• Client is an airline company Profits
• Client ha changes its
advertisement strategy
• Client had unusual increase in
the profitability Revenue Costs
Passenger Advertisemen Catering

Cargo Services Advertisements Fixed Variable
Tickets ts Services
Number of Magazines, Posters, Ads,

Ticket Price Marketing Lease Hanger Salary
Flyers Newspaper Screens
In-App
Normal Premium In-App services
entertainment
Movie, Songs
Taxi Services Hotel Booking Shopping
and games

• Engaging by offering various offers • Unusual change in pattern of passenger
• Collaborating with other brands to offer there service in the app • Change in company strategy
• Constantly pushing the update to make app fluid

SLIPPERY BUSINESS (1/2)
RAMJAS
Profitability Declining Revenue CONSULTING
SOCIETY
Your client is a shop owner near a temple. Recently, he is facing a sharp decline in profit. You have So there is no change in the selling prices. The number of customers coming to shop has reduced. Also,
been hired as a consultant to identify the reasons and give recommendations. you can suggest some changes in the product mix too.
I would like to ask a few clarifying questions as I’d like to understand more about our client before I Since the number of customers coming to shop has reduced. There could be 3 possible reasons for the
begin to analyze the case. same. Firstly, is there any recent construction which made the shop inaccessible for the customers?
• At what type of location is the temple located, is it a tourist place? Secondly, there could be some quality issues with the product. Lastly, there could be some additional
• How long has our client been in this business? changes made by the direct competitors. Or anything else you think I am missing?
The temple is a small tourist place located in a village. Our client has been in this business for the You have included all the possible factors. So there is no construction in the locality so the shop is
last 7 years. accessible to the customers. The quality of the product is the same. Yes, there is a problem with the
competitors.
Ok so as it is a tourist place, I can assume that there are few competitors in the locality as well. So
what are the products sold by the client and the competitors? In that case, is there any change in the price or the products? Or are there any additional services
Yes, there are competitors present and the products sold by the competitors are the same as ours. provided? For example, giving special services for senior citizens, Priests for some special worshipping of
God, or service keeping footwear of the visitors?
Also, what is the price band of our competitors? And how long has the client been facing a decline in
profits? So the prices and products are the same as they were before but recently he has started giving
The products sold are of two categories. The first one is an individual item and the second is a services of keeping footwear for free at his shop for the customers.
combo in a basket. The client has competitive pricing but is facing a decline in profits from the last 2 In that case, is there any change in the price or the products? Or are there any additional services
months. provided? For example, giving special services for senior citizens, Priests for some special worshipping of
Do all the competitors face the same problem or is it specific to our client? Also could you please God, or service keeping footwear of the visitors?
elaborate more on the combos sold by our client? So the prices and products are the same as they were before but recently he has started giving
The problem is specific to our client only and the combos sold are as follows: services of keeping footwear for free at his shop for the customers.
• Basket 1- Flower, Small packet of sweets
• Basket 2- Flowers, a packet of sweets, coconut, and a cloth Ok, so I have identified the problem. Since our competitor has started a free footwear-keeping service for
• Basket 3- Rose Flowers, ½ kg of Sweets, coconut, cloth, and a diya all the customers, the footfall has increased there since everyone wants to keep their footwear before
Thank you for the information. I would like to take 30 seconds to make a structure entering the temple.
Alright Fair enough. Now we can move on to the recommendations part.
As we know that Profits= Revenue - Cost. So is it a cost-side problem like is there any increase in the • Can provide free footwear and water services for handwashing
cost of raw materials or a revenue-side problem? • Can provide VIP pooja Thalis and baskets facilities
The costs of raw materials remain the same. It is a revenue-side problem. • Can provide the facility of VIP Darshan
Since it is a revenue-side problem. Revenue is equal to the number of customers multiplied by the • Can provide special facilities to senior citizens like wheelchairs, TV aarti
selling price. Also, there is a possibility of a problem with the product mix of the client. So in which
Thank you for the approach, I think we can end our discussion here.
aspect do you want me to dive in?
SLIPPERY BUSINESS (2/2)
RAMJAS
SOCIETY
Your client is a shop owner near a temple. Recently, he is facing a sharp decline in profit. You have been hired as a consultant to identify the
reasons and give recommendations.
• Store is running a business for
the last 7 years. Profit
• Temple is a small tourist place
located in a village.
• Provide Basket combos and Revenue Cost
Individual items
• Decline in profits from last two
months. Product Mix Number of Units Selling Price
Basket Combo & A decline from 2

No Change
Individual Items months
Accessibility Competition Quality
Product Services Price
Free Footwear
Services

• Can provide free footwear and water services for handwashing. • Starting the discussion by understanding the demand or supply side
• Can provide VIP pooja Thalis and baskets facilities. problem
• Can provide the facility of VIP Darshan. • Creative solutions to distinguish client from competitors
• Can provide special facilities to senior citizens like wheelchairs, and TV aarti.
WHAT THE FOODIE! (1/6)
RAMJAS
SOCIETY
Your client is Tomato, an Indian multinational restaurant aggregator and food delivery company. It Our client generates revenue through the following streams:
provides information, menus and user-reviews of restaurants as well as food delivery options from
partner restaurants in select cities. It’s currently facing a decline in its profitability. You have been •Commission on food delivery
hired to solve this conundrum. •Restaurant listing and Advertising
•Tomato Gold Membership
Is there a decline in profitability throughout the industry or is it specific to our client. For how long •Consultancy to restaurants
have they been facing such a decline?
Great. Do we know which of these streams has/have been affected? Or do you want me to assess any
The decline is specific to Tomato. The client has been facing the problem since the past 6 months. particular stream?
Has there been any major technological upgrades? I would like you to assess the revenues generated by way of commission first.
No, there haven’t been any changes. So revenues here would be no. of orders x (average order value x average commission received). Have
the no. of orders been affected or our commission rates changed?
Have any new competitors entered the market in the past 6 months?
Currently our commission rates have remained the same and are competitive. I would like you to
No, there has been no change in substantial competitors. estimate the number of orders received by online food apps in a day.
To analyze the problem further, I would now like to look at the revenues and costs of the business. So, I would now come to those numbers through a guesstimate. To analyze the number of food orders
We know that, Profit = Revenue – Costs. I’d like to start by assessing the cost side first. Cost= Fixed received in a day in India, I took the urban and rural population of India and gave them different
Costs + Variable Costs accessibility ratings given the current coverage of online food delivery services in India. The resulting
Fixed Costs: population can be divided into the working & non working population. Amongst the working
population, only people earning over 10000 a month are considered to be consumers factoring in
1. Insurance: General Liability Coverage, Commercial Auto Insurance, Worker's Compensation affordability. The non working population can be divided into students & retired folks. Only students
2. Employee Benefit Expenses over the age of 16 are considered as only they have the resources to place an order(in case a smaller
3. Finance Costs child orders, it will come under the parents working population number). A small percentage is taken in
4. Technology (development, deployment and maintenance) terms of retired people due to cultural practices and trends. After this, the living conditions are
Variable Costs: considered, dividing them into living in a home, a PG or a flat (with/without cook) which influences the
1. Delivery & Related Charges likelihood to order food. These filters give us the number of online food orders received in a day as
2. Advertisement & Sales Promotion approximately 10.5 lakhs.
3. IT Support Services Thank you for running us through your approach. The number is quite close to our projections.
4. Outsourced Support Cost Now, I would like to focus on other factors. I will consider the restaurant listing and advertising. Are
5. Payment Gateway Charges there any overall changes in the advertising revenues of the company?
6. Legal Payments
Have any of these costs been affected? Yes, we are currently facing a decline in the revenue from this source.
No, the costs have not been affected. Revenues here will be a product of the number of brands opting for advertising and the average
Alright. I shall look into the revenue side then. What are the revenue streams of our client and charges for advertising. Has the no. of brands opting for advertising gone down or have there been any
which are the major ones? changes in the prices we charge for this?
RAMJAS
SOCIETY
The no. of brands opting for advertising has gone down Incompatibility & Unfriendly UI are the major reasons for this low return.
I think the following reasons can be the cause of this problem: I’d like to give the following suggestions to improve the compatibility and brand conversion of the app:
1.Low conversion of customers
1.Enabling push notifications based upon the area of the user.
2.Incompatibility between the product and the app.
2.Brands can be given a dynamic option for advertising, providing different formats including main ads
3.Unethical practices or bad public image that causes degradation of brand value.
and other small ads.
We have received feedback that we are unable to tap beneficial brands to advertise on our app, 3.Making engaging adverts that persuade the users. Video graphic ads can be used.
major reasons being non- compatibility, lower click through rates & conversions. We have the data
Great, you’ve analyzed the problem quite well and have given some really good suggestions. Thank
of 2 months for 3 clients. The monthly allocation data for client 1 is 30% on Facebook, 20% offline,
you!
10% on Tomato, 40% on promotions, giving a return of 35, 15, 12, 45 in month 1 and 35, 14, 13, 27
in month 2 on each of these allocations respectively.
For client 2 it is 10% on Facebook, 10% offline, 40% on Tomato, 40% on promotion with the revenue
being 30, 20, 105, 115 for month 1 and 32, 18, 100, 115 for month 2 respectively.
And for client 3 it is 10% on Facebook, 20% offline, 60% on Tomato, 10% on promotions, giving 65,
120, 280, 55 for month 1 and 66, 125, 250, 55 for month 2 as the revenue. What can you infer from
this data?
I can calculate the return on ad spend for each of these clients for the two months, which comes out
to be 117%, 75%, 120%, 113% and 117%, 70%, 130%, 118% for month 1 and 2 respectively for client
1. Similarly, it is 120%, 80%, 105%, 115% and 128%, 72%, 100%, 115% for client 2. 130%, 120%,
93%, 110% and 132%, 125%, 83%, 110% for client 3.
MoM ROAS in Tomato grows for Client 1 which has less revenue, and decreases for Client 2 & Client
3. The subsequent effect leads to bigger clients pulling out money from Tomato adverts leading to a
net negative effect. Highest ROAS channel for each client moderately grows MoM whereas the
lowest ROAS channel for each client moderately decreases MoM.
That is a good analysis. What could be the reasons for this low return according to you?
Reasons for low return can be:
1.Shift of target customers to the apps of competitors
2.The budget might be too low.
3.The cost per click has been enhanced.
4.Incompatibility of the brand and the app.
5.Change in food ordering preferences of customers
6.Unfriendly UI of the app/ bugs and technical difficulties

RAMJAS
SOCIETY
Your client is Tomato, an Indian multinational restaurant aggregator and food delivery company. It provides information, menus and user-reviews
of restaurants as well as food delivery options from partner restaurants in select cities. It’s currently facing a decline in its profitability.

• Overview – Tomato, a food
Profitability
delivery platform facing a
decline in revenue.
• Industry Scenario – Problem
specific to the food delivery
platform.
• Modes of Operation – Food Revenue Cost
Delivery & Restaurant listing
• Change in Regulation – None
Advertisement Food Delivery
Number of Brands Advertising Avg Commission Received
Incompatibility Low conversion of

customers Bad Brand image
between product & app
Low RoAS Low Click Through Rate

• Enabling push notifications to improve RoAS. • Identification of ROAS as a measure of effectiveness.
• Making engaging adverts that persuade the users. • Dynamic advertising option.
• Giving dynamic options for brands to advertise.

RAMJAS
SOCIETY
Guesstimate
Number of Online Food Orders Placed in a Day
Living in a Home Living in a PG Living in a Flat
55% 15% 30%

Living Conditions
13,36,97,850 3,64,63,050 7,29,26,100
With Cook Without Cook

70% 30%
20% 40% 20% 80%

% Likely to Order
2,67,39,570 5,34,,79,140 1,09,38,915 1,45,85,220
10,57,42,845
% Likely to Order on 1
10%
specific day
Number of Online Food

Orders Received in a Day 10,57,42,845
Assumptions
• The day considered is a weekday and does not lie on any festival or extraordinary event.
• Online food orders include orders placed on food-tech companies as well as orders placed directly on the websites/apps of
restaurants
• People earning less than 10000 INR a month cannot afford expensive food and the delivery charges, hence they have been excluded
• Students under the age of 16 do not have the adequate resources to order for themselves
• Retired people may order food due to physical inability to cook themselves, tastes & preferences, family get togethers etc.

RAMJAS
SOCIETY
Guesstimate
Number of Online Food Orders Placed in a Day
Population of India 130,00,00,000
Urban Rural
Urban Rural Divide
30% 70%
39,00,00,000 91,00,00,000
Accessibility Factor 80% 15%

31,20,00,000 13,65,00,000
Working Non- Working
60% 40%
Working Population INR 0 - 10000 INR 10000 - 50000 INR 50000+ Students Retired
(Monthly Income & Type) 30%
30% 50% 20% 70%
8,07,30,000 13,45,50,00 5,38,20,00 <16 Years >16 Years % likely to order
65% 35% 20%
8,16,27,000 4,39,53,000 1,07,64,000
Total Sales
Assumptions
• People living at home are less likely to eat outside food as food is already prepared at their homes Scan the QR
• People living in a PG are More likely to eat outside food due to food quality issues and tastes & Code to access
preferences the
Guesstimate
• People living in a flat with a cook are Not as likely to eat outside food as food made as per the wishes Spreadsheet
• People living in a flat without a cook are most likely to order due to unavailability of any source of food

RAMJAS
SOCIETY
Financial Exhibits
EXHIBIT 1
Month 1
Client 1-100 Client 2-250 Client 3-500
Allocation Avenues Revenue ROAS Allocation Avenues Revenue ROAS Allocation Avenues Revenue ROAS
30% FB 35 117% 10% FB 30 120% 10% FB 65 130%
20% Offline 15 75% 10% Offline 20 80% 20% Offline 120 120%
10% Zomato 12 120% 40% Zomato 105 105% 60% Zomato 280 93%
40% Promotions 45 113% 40% Promotions 115 115% 10% Promotions 55 110%
Month 2
Client 1-100 Client 2-250 Client 3-500
Allocation Avenues Revenue ROAS Allocation Avenues Revenue ROAS Allocation Avenues Revenue ROAS
30% FB 35 117% 10% FB 32 128% 10% FB 66 132%
20% Offline 14 70% 10% Offline 18 72% 20% Offline 125 125%
10% Zomato 13 130% 40% Zomato 100 100% 60% Zomato 250 83%
40% Promotions 47 118% 40% Promotions 115 115% 10% Promotions 55 110%

FIZZ IN THE CASE (1/4)
RAMJAS
Profitability Product Design CONSULTING
SOCIETY
Interview
Transcript
Your client Energyz is a beverage manufacturer in India and they have been facing a decline in Good! Our client has been incurring huge expenses through government fines and penalties due to
profits for the past 6 months. You are required to find the cause and provide recommendations for specific non-compliance or violation of regulations. Can you identify the root cause of paying penalties?
the same. Absolutely. For this, shall I walk you through the value chain of a beverage manufacturing company and
To begin with, I would like to understand the quantum of the decline and the parts of the value identify the problem therein?
chain they operate in.
Interesting. Go ahead.
They have been facing a 20% decline in profits. The client manufactures, distributes and retails their
The value chain of a beverage manufacturing firm can be broken down into procurement, production,
products.
packaging, storage, and distribution. Additionally, there might be transportation between these steps.
Do we have any more information on their distribution? Is it a pan-India distribution system or do Is there any step that I am missing that you would like me to focus on?
they have any geographical concentration?
Quite accurate. Please proceed with the production costs of our client.
They distribute nationally.
Producing energy drinks requires ingredients, labour, machinery, technology and other overhead
Alright. How much competition does the client face and are their competitors also facing a decline in
expenses.
profitability?
There is majorly only 1 competitor and they have undergone only a 10% profit decline. The components of the beverage have posed a problem here.
Okay. Lastly, I would like to know the product segments of our client and if any particular products Since the costs lie within non-operating expenses, they can be associated with the pricing of the
have been facing this issue. If yes, which ones? ingredients or the volume of the ingredients used. Additionally, including or omitting an entirely new
They sell a variety of products but the main concern is regarding their energy drinks. raw material could have also triggered the regulations. Do we have any relevant information on any of
these factors?
Now that I have the requisite, I shall begin my analysis by looking at the two functions of profit -
revenues and costs. Next, I will identify which of these is a problem and further look into the Yes, we do. The quantity of their ingredients and nutrients has committed an offence. Here are the
internal and external factors that may lead to a change in the revenue or the cost structure for the contents of the energy drinks produced by our client : [Exhibit 1]
category. Would you like me to proceed in this way? Ingredients - Carbonated Water, Sugar, Acidity Regulators (330, 331), Sequestrants (452(i), 385),
Sure. There has been both a decline in the client’s revenues and an increase in their costs. Taurine, Caffeine (38 mg/100 ml), Preservatives(211, 202), Sweeteners (955, 950), Inositol, Vitamin
I’d like you to begin with the cost side and then proceed to the revenues of the client. Premix.
Accounting for a decline in profits for our competitor, can I assume that there is an industry-wide My awareness regarding the FSSAI standards and regulations is limited but sugar, sodium, caffeine, and
problem? inositol are harmful to the human body if consumed in huge amounts. Is there any difference in the
composition of our competitor’s product?
Yes, there is an industry-wide problem affecting the costs that are external to the firm.
Alright, external costs can be viewed as social costs, legal costs, and environmental costs. Is this a Not at all. Their ingredients are the same as our client’s.
fair assumption? Then the only probable cause for a penalty is the exceeding limit as per regulations.
Yes, it is. The increased costs seem to be due to the legal scenario of the F&B industry. Yes, great work! The government has advised the sugar levels to be a maximum of 12 g per 100 ml
Understood. From an industry point of view, these costs can be due to government fines and compared to the previous 15 g per 100 ml whereas caffeine needs to now be limited to 35 mg per 100
penalties, compliance costs, or unpredicted lawsuits. ml as compared to the then 40 mg per 100 ml.
RAMJAS
SOCIETY
I believe that this is the reason why Energyz and its competitor have been facing losses. Good observation. Continue with the exterior product.
Should I proceed with the revenue side of the company to ascertain the rest? That clarifies a lot. Hence, the product or packaging might be the problem. The potential problems that
Yes, please go ahead. I see include the product design, packaging material, packaging size, sealing of the product, handling of
Okay. A manufacturing organisation’s revenue is determined by the selling price of its units sold and the product, unclear labelling, and limited or misleading information. Have I pinned the answer here?
the number of units sold. Which of these factors have changed? Bingo! The sealing of the bottle is a little problematic.
The price has remained constant but there has been a deduction in the number of units sold. I see. Since this is a company-specific problem, is it safe to assume that the sealing of our competitor is
Alright. I can now see this as either an issue from the demand perspective or the supply side. Has hassle-free and more convenient to remove?
there been a reduction in the supply of energy drinks or has the demand from the consumers You are right. Our client’s products usually require you to have a bottle opener to consume the
decreased? beverage which might not be available instantly. Hence, they prefer our competitor’s energy drink
Supply has been the same over the years. Try to analyse the demand for the product. which earlier required a bottle opener but has now changed its cap seal which is easier to open. How
Sure. Demand is essentially determined by the number of customers, their average order value and do you suggest we manage all of this?
the frequency with which they purchase our products. So should I start with a particular segment? Sure, I would like to structure the recommendations into two parts. One details how the client can
Yes, The number of buyers has drastically reduced in the past 6 months for Energyz. improvise on the packaging and the other for tackling the sudden change in the regulations:-
Okay. A customer interested in relishing our energy drink would first have to be aware of our To address the packaging and revenue decline:- Research and understand the competitor’s seal.
product. Further, the accessibility of our product would greatly determine how they weigh in their Explore alternative materials to reduce costs and simultaneously improve customer experience.
options. Affordability is what will make our product stand out and then the customer experience is Explore the option of redesigning the entire packaging to give a fresh and new look.
dx
going to assure us of repeat purchases. Since our client is one of the two major players, has a pan- To address the change in government regulations:- Reformulation of the drink, including looking for
India presence and the prices are competitive, then it is safe to assume that awareness, accessibility artificial ingredients to replace sugar and alternative sweeteners. Diversify into other products that
and affordability would not be a problem. Am I headed in the right direction? require less caffeine and sugar content but have a similar requirement for other ingredients. Develop a
Good going. You are in the right direction. The client has been receiving feedback and reviews for marketing strategy that educates and informs target customers of the product’s compliance with
the past few months. government regulations and improved health benefits.
I would like to break this customer journey of our product into 3 categories:- Pre Consumption, Fine. We can now close the case.
During Consumption, and Post Consumption. Which of these phases have received the most
reviews? Also, are the reviews directing us towards an internal problem or an external one?
I need you to elaborate upon “internal” and “external”.
Sure, Sir. Internal would indicate to us that the problem lies within the product and external would
tell us about the environment of consumption.
Well, the reviews mainly revolve around our product and that is not related to consumption or post-
consumption.
Alright. If consumption and post-consumption are eliminated, will it be fair if I conclude that the
problem lies within the exterior product and not the drink as consumption and the side effects of
the drink post consumption also get eliminated?
RAMJAS
SOCIETY
Your client Energyz is a beverage manufacturer in India and they have been facing a decline in profits for the past 6 months. You are required to find the cause and provide
recommendations for the same

Profits
• Change in government
restrictions of caffeine and
sugar components. Costs
Revenue
• Client faces a 20% decline in
profits whereas competitors
face a 10% decline in profits. Social Legal Environmental
Price Units
• The Upper limit on sugar and
caffeine in drinks has
been capped at 12g per 100 ml Govt
Lawsuits Compliance
Customers AOV Frequency Fines
and 40 mg per 100 ml.
• The clients drink requires to
Value
be opened using a bottle Chain
Customer
openner. Awareness Accessibility Affordability
XP
Procurement Production Packaging Storage Distribution

Pre- Post
Consumption
Consumption Consumption
Internal External Components Technology Labour Machinery Overheads
Non- Taxable Sugar Caffeine Inositol Sodium

Design Material Seal Size Labelling Handling taxable

• Explore alternative materials to reduce costs and simultaneously improve customer experience. • Product diversification to escape strategic interdependence due to duopoly.
• Explore the option of redesigning the entire packaging to give a fresh and new look.
• Reformulation of the drink, looking for artificial ingredients to replace sugar and sweeteners.
• Diversify into other products that require less caffeine and sugar content but have a similar
requirement for other ingredients.
RAMJAS
SOCIETY
Exhibits
EXHIBIT 1: Contents
NUTRIENTS QUANTITY (Per 100 ML)
Energy 28 kcal
Protein 0g
Carbohydrate 15 g
Total Sugar 15 g
Fats 1g
Saturated Fat 0.5 g
Trans Fat 0.5 g
Sodium 41 mg
Vitamins 2.6 mg
Vitamin B3 2.1 mg
Vitamin B6 0.3 mg
Vitamin B12 0.2 mg

CONSULTING THE OGs (1/4)
RAMJAS
Profitability Internal Restructuring CONSULTING
SOCIETY
You’re working as a consultant in a leading management consulting firm. The firm is facing a 2. Corporate Strategy: Our company’s overall game plan can have a big impact on our work. If corporate
decline in profit margins. How will you approach this problem? strategy isn’t a part of our strategic planning, we might find ourselves struggling to make our consulting
To reiterate, I’m working as a consultant in a leading management consulting firm and it is facing a and compliance efforts effective.
decline in profit margins. I am required to analyze why and suggest solutions. 3. Budget Allocation: The amount of cash our company is willing to put towards projects can affect our
ability to provide top-notch consulting services.
That’s correct. You can proceed. 4. Training and Development: The firm should constantly strive to up-skilling its employees hard and soft
Before starting with the case, I would like to know more about the firm. How long has the company skills such that the firm continues serving clients in spite of any industry-wide disruptions.
been operating and what is the quantum of this year on year (YoY) decline in profitability? The external factors are not the reason. You can now focus your approach on internal factors.
The company has been operational since 2014 and is 10 years old now. The company hasn’t been Sure, as far as internal factors go I can think of lack of expertise in our team. If our employees don’t have
able to achieve its profitability target of 20% for the past 3 years. enough know-how on matters pertaining to our scope of work, the firm may lose its credibility. Also,
May I know the composition of the clientele of the firm and its area of operations? inadequate resources can be a reason, since an investment in development of resources to aid our
consulting efforts is necessary. Additionally, poor communication in presenting our recommendations in
The clientele of the firm is diverse since it offers 9 different industry verticals. The firm has pan- an efficient and constructive fashion is a hurdle to the firm’s success. Finally, the internal structure, is the
India operations with its headquarters set up in Gurugram, Delhi. way our verticals are structured can have an impact. An assessment of hierarchy, work division and work
Is this problem being faced by the entire industry or is it specific to our firm only? load is crucial.
To further delve into the root cause of the problem, I would also like to know if any particular vertical of
The problem is faced by our firm, the rest of the industry is performing well.
the firm is facing the profitability issue.
We know that profits are the difference between revenue and costs, so is there any data available
You’ve accurately pointed out the probable reasons. The issue lies in the internal structure of the
regarding the firm's revenues?
sustainability vertical.
No. We do not have financials about the revenue or costs at the moment. I would urge you to Can you share some insights about the sustainability vertical - the scope of work, the ideal case team
present your approach now. structure and the other relevant information about the vertical.
Okay, so there might be internal and external reasons. By internal factors we mean the factors The vertical was established 3 years ago when the partners of the firm realized that there was an
which are present within the vertical while by external factors we mean those factors which are in increasing need for ESG-based consulting and compliance. Hence to cater to that market, they
control of the consulting firm but not in the hands of the vertical individually. introduced this as a separate vertical in 2021.
You can divide the factors in this way. Could you enlist some probable factors which might affect So the firm has segmented the sustainability vertical further down or have they kept it as one
our vertical? consolidated vertical?
Sure, I believe the following might be some of the external reasons: The firm has segmented the vertical into ESG Consulting and ESG Compliance so that efficient work takes
1. Organizational Structure: The way our company is structured can make or break our efforts place.
to deliver results. If we don’t have clear roles between different verticals, then it might be Is there any information regarding the areas where these 2 segments operate and the division of clients
difficult to get work done. between the two segments?
RAMJAS
SOCIETY
This vertical is further segmented into ESG Compliance and ESG Consulting. ESG Compliance Following is an exhibit with data on firm’s yearly engagements. (Please refer to Exhibit 2)
consists of the guidelines and standards the client has implemented in internal policies that are Thank you for the data, do we have any insights on the variation in the case cycle (time taken for 1 case)
mandated by regulatory bodies and ESG Consulting has a primary focus on providing clarity into the for ESG Compliance segment if more SME’s are introduced in the vertical and any significant increase in
risks and opportunities associated with addressing environmental, social and governing issues for case cycle if SME’s are withdrawn from ESG Consulting? Using the above, I would calculate the revised
our client firm. The workforce division is 7:3 between ESG consulting and ESG compliance Annual Case Engagement using the formula = SME’s x No. of Projects Completed by 1 SME per case cycle
respectively. x Number of periods per year relative to Case Cycle. The existing Annual Case Engagement stands at 90
Okay, so before going forward I will require the current internal structure that is present. Can you cases per year (15x2x360/120) for ESG Consulting and 80 cases per year (5x4x360/90) for ESG
please provide insight towards the roles and their responsibilities? Compliance.
Sure The structure is Introduction of 1 new SME into the ESG Compliance segment would reduce the Average Case Cycle by 3
1. Partner: Leads strategic direction, makes key decisions, and ensures alignment towards goals. days. Simultaneous reduction of the same SME from ESG Consulting will cause an increase in Case Cycle
by 3 days. Altering cases per SME to 2 and 3 would be ideal. Please present your solution now.
2. Subject Matter Expert (SME): Provides expert advice and insights in a specific area.
3. Associate: Supports the team to draw insights from primary and secondary research and inform I would recommend restructuring the firm’s sustainability vertical which would help in redistributing the
decision-making. workload from ESG consulting SMEs to ESG compliance SMEs. This would help in balancing the workload
and reducing the burden while also ensuring that the costs are lowered. By redistributing some of the
4. Analysts: Conducts day-to-day tasks such as research, report preparation, and client support.
workload from the consulting SMEs to the compliance SMEs, we can optimize our operations. My
5. Backend Support: Ensures seamless operation of systems and processes.
calculation shows that the current revenue of the firm at maximum capacity stands at $32.9 Million.
Thank you for this information. This makes the picture more clear. Is there any data provided for If a total of 5 SME’s are shifted from the ESG Consulting to ESG Compliance while altering case’s per SME
the case arrangement and allocation for the roles in the two segments? to 2 and 3 respectively, the Case Cycle for ESG Consulting would stand at 135 Days and 75 Days for ESG
Yes, there's a table showcasing the personnel costs as well as the case allocation for both ESG Compliance. The rationale behind shifting only 5 employees relates to the assumption that the company
Consulting & ESG Compliance. (Please refer to Exhibit 1) wants both of the ESG segments to be competitive and scaling the ESG Compliance segment is not at the
cost of losing out market share to competitors. Further, the ESG Compliance segment’s Annual Case
Upon inspection, I was able to analyze that the Subject Matter Experts in the two segments share a Engagement Capacity would grow to 144 cases per year (10x3x360/75) while it will reduce to 52 cases
different workload and in fact there’s altogether a different number of SMEs present. The ESG per year (10x2x360/135) for ESG Consulting. However, these recommendations would elevate the firm's
Consulting vertical has 1 SME working on 2 cases at a given time, while the ESG Compliance vertical revenue to $36.1 Million, a net increase of $3.2 Million or 9.72%.
has 1 SME working on 4 cases at a given point in time. This leads me to believe that there’s a
significant imbalance in the workload between the SMEs in ESG consulting and those in ESG That is a very comprehensive analysis. Do you have any other suggestions for the firm?
compliance which is leading to inefficiencies. According to the exhibit, 1 SME is working on 4 cases 1. Continuous Learning and Development: Encourage continuous learning and development among
and is shouldering a heavier burden. SMEs. This can help them stay updated with the latest trends and best practices in ESG consulting
and compliance.
Yes, that’s accurate. Apart from this can you identify any potential problems which might occur 2. Regular Review of Workload: Conduct regular reviews of workload distribution to ensure it remains
from this structure? balanced. This can help identify any imbalances early and take corrective action promptly.
I would like to assess the Average Case Cycle, Contract Value and Yearly Cases taken up by the ESG Thank you for the suggestions. We’ll wrap the case here.
verticals. Do we have any data for the same so that I can synthesize effective recommendations?
RAMJAS
SOCIETY
You are working as a consultant at a top management consulting firm. The firm is facing declining profit margins. How will you approach the
problem?

• Overview: Consulting firm Profits
facing declining profits
• 9 different verticals in the firm
• Industry Scenario: Problem
Revenue Cost
specific to the company
• Period of Decline: 3 years
• Change in regulation: None
No. of clients $ per case Indirect Costs Direct Costs
G&A Expenses Marketing & Sales Overhead Costs Salaries Lodging & Travel Per diem Software Cost
Sustainability Vertical
ESG Consulting ESG Compliance
Number of SME’s Workload per SME Revenue Generated Number of SME’s Workload per SME Revenue Generated
Environmental Sustainability Social Sustainability Environmental Sustainability Social Sustainability

• Restructure the sustainability vertical • Identification of internal structure to be a probable reason
• Reallocate the Subject Matter Experts from ESG compliance to ESG consulting • Understanding the hierarchy of the vertical
• Redistribute Backend support to strike a balance between the segments

RAMJAS
SOCIETY
Financial Exhibits
EXHIBIT 1: Personnel Costs and Case Allocation for the vertical

ESG Consulting ESG Compliance
Position Compensation (in $/ Year) No. of Cases per
No. of employees per case No. of Cases per Employee No. of employees per case
Employee
Partner 200,000 1 3 1 3
SMEs 120,000 1 2 1 4
Associates 90,000 2 1 2 1
Analysts 70,000 2 1 2 1
Backend Team 50,000 4 4 4 4
EXHIBIT 2: Firm’s Yearly Engagements Interviewee’s Calculations

Metrics ESG Consulting ESG Compliance Metrics ESG Consulting ESG Compliance
Average Case Cycle 120 Days 90 Days Average Case Cycle 135 Days 75 Days
Annual Demand for Cases 600 800 Number of SMEs Available 10 10
Number of SMEs Available 15 5 Cases per SME 2 3
Average Contract Value $210,000 $175,000 Average Contract Value (A) $210,000 $175,000
Firm’s Annual Case Firm’s Annual Case
90 (15x2x360/120) 80 (5x4x360/90) 52 (10x2x360/135) 144 (10x3x360/75)
Engagement Capacity Engagement Capacity (B)
Estimated Revenue (A x B) $18.9 Million $14 Million Estimated Revenue (A x B) $10.92 Million $25.2 Million
Total Revenue $32.9 Million Total Revenue $36.12 Million

GO TO MARKET
ONBOARD TO HOARD? (1/6)
RAMJAS
Market Entry Target Market CONSULTING
SOCIETY
Your client is WholesaleCo (a big box retail chain) and it wants to enter India. They are considering Yes, the target market is promising. What are the costs that you can identify which will have to be
entering the Indian market, and you have been hired to determine whether they should enter the undertaken by WholesaleCo as it sets up in India?
Indian markets or not.
I can think of some fixed costs that are rental lease payments, salaries, electricity, insurance,
To clarify, the client is a big box retail chain, currently operating overseas and is currently planning advertising; one time costs such as R&D costs, and some variable costs that include cost of goods sold,
to enter the Indian market and we have to advise them whether it will be favorable for them or not. wages, transportation and warehousing costs.
Yes, and in case it is favorable, also suggest a strategy to enter the Indian Market. We do have some data regarding some of the cost heads you mentioned and the revenue projections
I would first like to learn more about the client and its overseas capabilities for the first year. Based on that I would like you to assess whether a shift to India will be economically
viable for WholesaleCo or not.
WholesaleCo is an American multinational corporation which operates a chain of membership-
only big-box retail stores. As of 2020, WholesaleCo was the third largest retailer in the world and Based on industry standards, I’d like to assume the revenue growth rate for WholesaleCo at 8%. Does
has been in business for over 45 years. this assumption seem fair to you?
Prior to estimating the target market WholesaleCo would be able to cater to in India, I would like to Yes, you can continue with this assumption.
know the reason behind picking India by the client.
According to my calculations, assuming revenue growth rate at 8%, it shall break even in the third year
India has been chosen due to various positive factors including growing middle income population,
and the company shall be profitable by the end of year 3. Therefore it will be economically viable for
increased consumerism, a price driven market and positive macroeconomic trends. You can now
WholesaleCo to set up in India.
continue with your estimation of the Target Market for WholesaleCo
Considering that the Indian population is price sensitive and that WholesaleCo stores are generally Thank you for that analysis, I'd further like to ask if WholesaleCo were to set up here, how would you
define its value chain?
located in urban areas, we can consider the people living in metropolitan and non metropolitan
metro cities earning a monthly income of more than 20000 as our main target audience. The primary activities of WholesaleCo can be categorized into
i) Inbound Logistics, which includes receiving shipment of products, storing inputs, cross-
As people generally buy in bulk at wholesale shops such as WholesaleCo, people having a larger docking/depot;
family size are more likely to go there and would also have a higher average order value.
ii) Operations, including testing, assembling, allocation of goods, packing and shipment to
warehouse stores
The penetration rate of such a venture can be considered at 12% given the resources and brand
iii) Outbound Logistics, including warehousing, scheduling, order processing, invoicing, transporting
image of WholesaleCo and lack of a consistent wholesale supply network by relatively smaller
and delivery to destination
competitors.
iv) Marketing and Sales, including sales force, advertising, pricing, promotional activities, channel
This gives WholesaleCo a target population of 69 lakh people which would be visiting its stores once selection, quoting, building relations with channel members
a month to buy goods every year imputing a target market of Rupees 1421 crores. v) Services, which include special services for members, warranty services, installation services and
post sales maintenance

RAMJAS
SOCIETY
Secondary Activities can be categorized into Thank you, that was well summed up.
i) Human Resource Management which includes hiring, training and development,
compensating, motivating and retaining
ii) Firm Infrastructure which includes general management, quality management, finance and
accounting, legal services
iii) Procurement including buying connection with various manufacturers, negotiating prices,
procedures, supplier qualification rules
iv) Technology Development, consisting of technology selection.
Who would you identify as Wholesale Co's main competitors and how can WholesaleCo keep a
competitive edge over them?
Currently, retail chains such as Reliance Fresh, Best Price, Metro, Pantaloons etc. can be considered
as its competitors. However, WholesaleCo can maintain a competitive edge through its membership
program through which it can offer special discounts to its members and build customer loyalty.
Further, given Wholesale Co's resources and brand value, it can build a network of well connected
stores in areas of high footfall to remain a step ahead.
Could you also suggest some potential areas where WholesaleCo stores can be set up in India to
maximize footfall?
Areas which are densely populated and not consisting of the upper class would be most preferable
because they will mostly prefer ordering online. Further we can look for the areas where there is a
rush, well connected with colleges and corporate offices, centrally located, has major metro stations
for connectivity, near shopping and commercial hubs or even near airports. The main focus should
be on nearby areas with a middle class population.
I believe that is satisfying. We can now summarize the case.
The Indian market is an economically promising one for WholesaleCo to enter into due to its
growing customer demand and price sensitivity. The areas of entry such as Joint Venture, M&A or
an organic entry can be further explored. It should start by leasing land in densely populated areas,
containing rush, well connected with colleges and corporate offices, centrally located, containing
major metro stations for connectivity, focusing more on nearby areas with middle class population
and put great emphasis on its procurement costs, storage costs (warehousing, cross-docking),
pricing and membership services in order to capture a good market share and ensure an efficient
network of stores to enter the Indian market with.

RAMJAS
SOCIETY
Your client is WholesaleCo (a big box retail chain) and it wants to enter India. They are considering entering the Indian market, and you have been
hired to determine whether they should enter the Indian markets or not.

• Overview : WholesaleCo is a US
Market Entry
big box retail chain which
wants to enter India
• Geography: Price sensitive
consumer market with a Market
Customer Competition Company Case Analysis
growing urban population and Attractiveness
a target market of Rs 1421
crore Analyse client’s problem
Retail chains
• Customers : Urban Population Revenue Families having avg Value Chain Financial
( Reliance Fresh, Best Analysis
having a monthly income of Growth Rate 8% income >Rs. 20,000 Analysis
price. Etc.)
more than Rs 20000 (Break-even
point) 3rd year Understand target market
Addressable Market Target Market: -
Rs. 142 billion Urban population
How to Enter
Industry average Determine cost feasibility
Profit margin 2.5%
Organic Inorganic
Devise a strategy for

Leasing Land & setting Acquisition Joint Venture
Merger entering the market
up its own supply chain

• Introduce membership program to build customer loyalty. • Targeting metropolitan urban population having monthly income of Rs 20000
• Build a network of well connected stores in areas of high footfall. • Leasing land and acquiring a small wholesale company
• Emphasis on its procurement costs, storage costs (warehousing, cross-docking) and pricing
• Set up of its own supply chain
• The areas of entry such as Joint Venture, M&A or an organic entry can be further explored.
• Targeting well connected and centrally located areas

RAMJAS
SOCIETY
Guesstimate
Estimating the Market Size of WholeSaleCo in India
Population(1300000000)
Urban(30%)
Delivery
Metropolitan(40%) Non- Metropolitan(60%)
High Upper Middle Lower Middle Low High Upper Middle Lower Middle Low
Monthly Income
>80000 50000-80000 20000-50000 <20000 >80000 50000-80000 20000-50000 <20000
15% 45% 30% 10% 10% 40% 35% 15%
Reliability High Upper Middle Lower Middle High Upper Middle Lower Middle
50% 30% 20% 40% 25% 15%
6 members 4 members 2 members 6 members 4 members 2 members
Average Family Size 15% 50% 35% 30% 50% 20%
Likelihood to Purchase
80% 60% 30% 80% 60% 30%
Penetration Rate 12%

Members demographics 15% 50% 35% 30% 50% 20%

RAMJAS
SOCIETY
Guesstimate
Sales
Average order Value 3000 1800 1200 2500 1500 1000
Purchase Frequency (year) 12
WholesaleCo
Rs 142,145,902,080
(Total Market)
Assumptions
• Since it is a "members only" hence it does not really cater to the low income group. Scan the QR
• Indians don't trust new brands easily and get an annual membership. Hence the reliability filter is included. Code to access
• India is a price driven market and frequency of purchase is taken once every month. the
Guesstimate
• Likelihood to purchase has been added as a filter as WholesaleCo deals in wholesale goods and more population due to increased
Spreadsheet
population density in metropolitan cities

RAMJAS
SOCIETY
Financial Exhibits
Information About WholesaleCo-

• Since the company is just starting out its business in India, it plans on taking land & building, machinery and some equipment's for its warehouse store on lease.
• However, the company will have to make some investment for office set up, etc. which shall amount to Rs. 150000000
• Revenue for the first year is estimated at around Rs. 600 million, but is expected to increase every subsequent year.
• Overhead costs estimated to be Rs. 200000000 per year, direct costs estimated to be 60% of revenue.
EXHIBIT 1: Calculation of revenue growth rate
Year 1 Year 2 Year 3
Revenue 600,000,000 648,000,000 699,840,000
Capital Investment (150,000,000) 0 0
Direct Costs (360,000,000) (388,800,000) (419,904,000)
Overhead Costs (200,000,000) (200,000,000) (200,000,000)
Loss for last year - (110,000,000) (50,800,000)
(110,000,000) (50,800,000) 29,136,000
Revenue growth = 8%

SWAP RIGHT (1/6)
RAMJAS
Market Entry Expansion CONSULTING
SOCIETY
Your client is a leading Electric Vehicle (EV) manufacturer based out of the UK. Due to the After assuming a 15% margin the wholesale price to be 16.6 lakhs and adding the dealership margin of
saturation in the current markets in which they are operating, they are looking to expand. You are 15% the ex showroom price becomes approximately 19.1 lakhs.
hired to advise them and devise a market entry strategy for them. Above calculations show that it is less favorable to enter Brazil as the efficiency in both units and cost
To clarify, the client is a leading foreign electric vehicle manufacturer, currently operating in the UK. within a single production cycle is lower. Close relationships with the government of India further
As a result of the current markets reaching a point of saturation, the client wants to expand to new implies no distribution issues as well in India as we can enlist their help in obtaining access to third
markets and I have to advise them. party channels.
These are fair points. Now analyze the feasibility of entering India.
Yes, that sounds right. Sure. I’d also like to estimate the profit by multiplying market share with market size and average
I would first like to learn more about the client and its capabilities. Also, is there any specific order value and subtracting total cost.
country that they are looking to enter? Let's start by estimating the market size of the 4-wheeler EV market first. Considering the population
With its unique battery switching technology, the client leads the electric vehicle market. With of India to be 140 crores, further dividing it into an urban-rural split of 30% and 70%, respectively. We
more than 45 years of experience in the industry, it is ranked as the third-largest manufacturer in will ignore rural areas completely because they lack charging stations, maintenance shops, or roads
the world as of 2023. Observing the current government activities in the EV industry, they are suitable for cars.
aiming to enter Brazil or India, both of which have significant upside potential. They get along well Next, we'll divide the urban population into lower, middle, and higher income groups to account for
with the government of India. the affordability factor. The division percentages are 60%, 38%, and 2%, respectively. To get the
Also, how is the competitive landscape of both markets? number of households, we will divide by 4.
For India, there are majorly 4 players in the market occupying more than half of the market. For Assuming the average life of a car is 12 years for the middle class and 8 years for the higher income
Brazil, the market is fairly competitive with 5 major market players occupying almost the whole groups, and considering that 50% of the middle class people have cars (usually 1.5 cars per
market. household), of which 10% are premium cars, we arrive at a total of 1.33 lakh cars.
Okay, so both markets are highly concentrated and exhibit a similar competitive landscape. Additionally, assuming that 100% of the higher income segment owns cars, with an average of 3 cars
You may start with the analysis. per household, out of which 60% are premium and 40% are luxury cars, we arrive at a total of
Since any company entering into a new market wants to have a seamless production set up. Is approximately 7.8 lakh cars.
there any data for me to calculate the costs per unit? Alright. That sounds good. Let's continue
Yes, we have the following table (Exhibit 1) Since it's a new company entering Indian markets for the 1st time it would preferably opt to choose
the higher income segments and make cars like sedans to maximize its adoption. We get the number
For India:
of households with higher incomes as 21 lakhs . As mentioned that top 4 brands have more than 50%
Using the given information , the cost of production per unit comes out to be 11.8 lakhs [1.2 lakhs + share it means that its a highly concentrated market, its safe to assume that these brands must have
(50 crores/500)] captured the high income consumers first. So, given the exclusive battery swapping technology I am
After assuming a 15% margin the wholesale price to be 12.8 lakhs and adding the dealership margin assuming 3% of the higher income consumers.
of 10% the ex showroom price becomes approximately 14 lakhs. The average order value of an EV is around Rs. 20 lakhs, while the battery swapping technology could
For Brazil: reduce the upfront cost by 20% thus decreasing the average order value to 16 lakh and increasing the
The cost of production per unit comes out to be 14.5 lakhs [2 lakhs + (50 crores/400)] projected market share to 5%.

SWAP RIGHT (2/6)
RAMJAS
SOCIETY
By using the above calculated figures, the annual profit comes out to be 120 crores. Is it viable for Additionally, the company should explore entering the hybrid electric vehicle (EV) technology, similar
the client to enter? to what is found in the Hyundai Kona, as it has experienced significant adoption.
Yes, that seems feasible. Can you now devise a strategy to enter the market? Alright. We can close the case here.
Sure. The client can consider both brown field (inorganic) and greenfield (organic) strategies. Is
there any information available for me to make my choice?
There are no companies that the client could acquire. There are two Battery as a Service (BAAS)
companies that they can joint venture with.
After analyzing the manufacturing cost and the market for EVs in India, the company should prefer
to establish its own production units, thereby entering the EV market organically. Additionally, as
there are no companies available for acquisition, I recommend entering into a contract with either
of the BaaS (Battery as a Service) companies. The contractual agreement is preferred because
otherwise, the company would have to set up a battery-swapping infrastructure in India, incurring a
significant cost. Is there any information available to decide which company to partner with?
There is some data available to make a choice. (Exhibit 2)
After evaluating the metrics quantitatively and qualitatively, the major factor to consider is the
subscription cost because there is no additional charge for switching the battery. So, even though
Mercus provides batteries that offer less mileage than Venro, the availability of swapping stations
reduces range anxiety. The subscription model of Mercus is more user-friendly for both opting in
and opting out. Thus, both quantitatively and qualitatively, Mercus seems to be a better option for
the company.
Sounds good. Is this all you want to consider?
I'd like to conclude by doing a break even analysis to see how long it will take for the company to
make profits?
Brilliant. What is the data that you would require?
Based on the provided data about the fixed cost, selling price and the variable costs the client
needs to sell 428 units per production cycle to break even.
Do you have any recommendations for the client?
I have a few recommendations for the client:
The client should initially enter through the contract, but over the years, they should strive to
establish their own battery swapping infrastructure to maximize profits.
SWAP RIGHT (3/6)
RAMJAS
SOCIETY
Your client is a leading Electric Vehicle (EV) manufacturer based out of the UK. Due to the saturation of the current markets in which they are
operating, they are looking to expand. You are hired to advise them and devise a market entry strategy for them.

• Overview: EV manufacturer Market Entry
Market
based out of UK who wants to
enter new market due to the
saturation of the current
markets in which they are
Market Attractiveness Customer Competition Company
operating
• Battery swapping technology
exclusively and third largest
CAGR: 66.52% Profit margin 2% - 3%
manufacturer in the world
• Excellent relations with Govt of Addressable Market Families income Urban Upper Value-Chain Financial & Break-
5 Major Players
India Rs. 52 billion >Rs. 50,000 Middle Class Analysis Even Analysis
• Industry Scenario: Fairly
competitive with 4 major Entry
players occupying the market
Organic Inorganic
Own Supply Chain Acquisition Merger Joint Venture

• To build their own battery swapping infrastructure in the years to come • The consumer doesn't have to pay for the battery for when he is not using
• To keep experimenting with emerging technology like the hybrid EVs. the car for months

SWAP RIGHT (4/6)
RAMJAS
SOCIETY
Guesstimate
Total Population (140)
Urban (30%) Rural (70%)

42 98
Lower Middle Upper

Income Split
60% 38% 2%
(42*60%)/4 (42*38%)/4 (42*2%)/4

No. of families
6.3 3.99 0.21
0 40%*1 100%*3
Cars per Household
0 1.596 0.63
Avg Life Cycle 0 12 8
Assumptions
• Considering market for only 4 wheeler passenger vehicles
• Avg household size - 4 member/family
• Normal EV price - 11 Lakhs and Premium EV price - 25 Lakhs
• In middle class, 50% families will have a car. Among them, 80% will buy normal cars and 20% premium cars
• In elite class, 100% population will have a car, all will be buying premium cars plus additional luxury cars.
• Exclude rural areas entirely because they dont have charging stations , maintainence shops or roads for a car
SWAP RIGHT (5/6)
RAMJAS
SOCIETY
Guesstimate
Middle Class Upper Class
Segment wise cars Normal Premium Premium

90% 10% 5%
0.1197 0.0133% 0.04725%
Penetration Rate 1% 1% 4%
No. of EVs 0.001197 0.000133 0.00189
Segment-Wise EV 0.001197 (Normal) 0.002023 (Premium)
Price (in Rs.) 10 Lakhs 20 Lakhs
Market Size 1197 Cr 4046 Cr
Total Available Rs. 52 Billions (approx.)

Market
Assumptions
• Innovators/Environmentalist and Financially smart among rich : 20%, who will adopt to EV. Innovators/Environmentalist Scan the QR
among middle class - 5%, who will adopt EV Code to access
• Average years a car is used by rich people - 8 years the
• Average years a car is used by middle class - 12 years Guesstimate
Spreadsheet
• EV is currently in introduction stage in India, so not considering second hand EV
• Demographic divide: Urban Rich = 2%, Middle class = 38% and Poor = 60%
SWAP RIGHT (6/6)
RAMJAS
SOCIETY
Financial Exhibits
EXHIBIT 1: Calculating Costs Per Unit

Particulars Brazil India
Labor & Input costs per unit 150000 120000
No. of units produced in 1 production cycle 400 units 500 units
Fixed Cost per Production Cycle 500000000 500000000
Dealership Margin 15% 10%
EXHIBIT 2: Companies available for partnering

Criteria Mercus Venro
Subscription Plan 8000/month 9000/month
Security Deposit 300000 300000
Battery Efficiency 500Km 600Km
Charging Infrastructure All over India Tier 1 cities and NHs
Contract Fee (one time payment) 30Cr 35Cr

FUNDVENTURE (1/6)
RAMJAS
Market Entry Geographical CONSULTING
SOCIETY
Your client is a bulge bracket investment bank looking to set up a mutual fund in India. You have The population would then be further filtered by being divided into those who have financial
been hired to analyze the viability and route of entry for the client. knowledge and those who don't. This is based on the assumption that, as a result of marketing
campaigns and word-of-mouth, a sizable portion of the former group will become potential investors,
To reiterate, our client is a bulge bracket investment bank that wants to enter the Indian market by
and a smaller portion of the latter group will also become potential investors.
setting up a mutual fund and we are required to analyze whether it is viable or not, and if viable,
Taking rational percentages for the same, we boil down to a number of approximately 8 Crore
suggest entry routes.
potential mutual fund investors. Shall I continue and calculate the amount invested in mutual funds?
That's correct. You can proceed. Yes, you may proceed.
Before starting the case, I would like to know more about the client. Where does the client currently In continuation, to calculate the amount invested in mutual funds, an estimation can be made of the
operate? Do they have any prior experience in the Indian market? What are the client’s objectives average amount invested by people. For this, I assume that 30% of the potential investors have less
behind setting up a mutual fund in India? than 2.5 lakh in their savings, another 30% have 2.5-5 lakh, 15% of them have 5-10 lakh and that the
Our client is a US-based investment bank operating in multiple markets and this will be their first remaining 25% have more than 10 lakh.
experience in the Indian market. The reasons behind setting up a mutual fund in India include Furthermore, on an average, I assume that based on the amount in their savings account, they invest 1
various favorable factors such as positive macroeconomic trends, a growing middle-income lakh, 2.5 lakh, 5 lakh, and 7.5 lakh in mutual funds respectively. Thus, as per my calculations, an
population and the need for global diversification. amount of 30 lakh crore is invested in mutual funds by retail investors. Adding 15% for HNIs and
Which group of the Indian population does the client aim to target and what is the existing level of Institutional Investors, we can conclude that approximately 35 lakh crore is invested in mutual funds.
competition in the market? Sounds good. What would you consider next?
The client does not aim to target any specific segment of the population. Moreover, the Indian Coming back to the competitors, what can be our potential penetration rate?
mutual funds market is moderately competitive. Taking the current competition into consideration, if we enter the market we will be able to penetrate
Also, is the mutual fund targeted towards any securities? 5% of the market.
No, the client will not be targeting any specific securities, it will be a diverse portfolio holding. You So, at a rate of 5%, we would be able to penetrate the market equivalent to 1.75 lakh crores.
can start with assessing the viability of entering the market. Great, the target market seems promising! Now that it is concluded that it is viable to enter the market,
what probable entry routes do you suggest that the client can opt for?
To assess the viability, I would like to calculate the market size of the Indian Mutual Funds Market.
The probable entry routes that the client can opt, can either be setting up an own Asset Management
Okay, you can continue.
Company, acquiring an existing mutual fund, opting for a joint venture with a well-known bank, or
First, I would calculate the number of potential investors of mutual funds in India by focusing on the opening a subsidiary.
age bracket of 24-60+ years and above in urban areas, which is usually the age bracket that invests Keeping those in mind, what are the possible barriers to entry that the client could face?
and only 24-60 years in rural areas, excluding the 60+ age bracket since they are risk-averse and
more inclined towards fixed income options with less market interactions. Further, I would classify Considering industry wise barriers, the Indian mutual fund market is strictly regulated. Moreover, being
the population on the basis of income-divide. In urban population, the middle and high income a foreign bank, there are a lot of compliances from various authorities like SEBI, RBI, AMFI & MCA that
category would be considered assuming percentages of 40% and 10% respectively, whereas in the needs to be fulfilled. Being a legal process, it can be very time-consuming and hectic.
case of the rural population, I would consider the high income category with a percentage of 5%. Additionally, opening a subsidiary or acquisition will require more compliance issues and hefty funds
requirements.
FUNDVENTURE (2/6)
RAMJAS
SOCIETY
We are not willing to invest a huge amount so, suggest whether the client should enter the market Great, so now let's assume we will be entering in a joint venture with 75% of profit share since the
by setting up an own Asset Management Company or they should enter in a joint venture with a venture bank will lend its name for regulatory compliance and goodwill and the operations would
well-established Bank. primarily be carried out by the foreign bank. Can you compute our return in this scenario?
To analyze both the options, I would consider: Sure, I would start by assessing the changes in our variable cost drivers. Would there be any impact on
Cost of setting up: Setting up a mutual fund has a cost relating to registering the firm with different our marketing and employee benefit expenses due to the enhanced goodwill of the existing bank and
authority, tie ups with banks, tie ups with underwriters and issue houses. Apart from it, setting on its knowledge of the country’s regulatory compliances?
own will also cost a higher advertising cost. However, if we enter through a joint venture, we will be Yes, the marketing cost will be saved by 20% and employee cost by 5%. Additionally, entering into a
sharing this cost. joint venture will bring in additional 15% Assets Under Management. Will it impact any of our other
Regulatory issues: There can be a lot of regulatory issues of setting up an own AMC which can be costs?
reduced by opting for a joint venture. Yes, Since the portfolio management fees and operations cost are charged as a percentage of Assets
Goodwill: Entering a joint venture with an established bank will provide us a face, common and under management, any change in Assets under management will lead to a proportionate increase in
trusted amongst the general public and also a face for the fund towards regulatory bodies. these costs. Both of the costs will increase by 15%.
Based on this analysis, it can be concluded that the option of joint venture does have more pros but
Great, both of these costs will be rising by 15%. Now, you are required to compute the revenue for the
the client should keep in mind the drawbacks of entering through a joint venture like profit sharing
joint venture. Assess and evaluate both the situations keeping the taxes @30%.
and ownership dilution. However, I believe in this case, the pros of opting for a joint venture
outweigh its cons. Since we were having a return of 325.2 crores, and now due to additional goodwill of the venture, our
Yes, that is a reasonable conclusion. Let’s analyze these options quantitatively as well. I will be total assets under management will rise by 15%, bringing the cost of the venture at 304.93 crores
providing you with a few facts and figures and you will have to analyze which option is more which can be bifurcated as marketing cost at 66.4 crores as we are saving 20% due to goodwill of joint
profitable for the client. In order to establish a mutual fund in the Indian market we will have to venture, employee cost at 79.32 crores due to a decrease of 5%, operational cost 115 crores and
register with SEBI which requires 30 lakhs as one-time fees. Additionally, there is a minimum annual portfolio management fees at 31.05 crores, with an increase of 15% due to proportionate increase of
fee with SEBI which is 2.5 lakhs which can go up to 10 lakhs. Additionally, there will be scheme 15% in assets under management. Our net return will be 32.01 crores after deducting taxes at 30%,
running expenses which can be bifurcated as: Marketing cost at 83 crores, Employee costs at 83.5 that is 12.8 crores and considering our 75% cut.
crores, portfolio managers fees and commission at 27 crores and other operational costs will stand Comparing both the results, the net profit of a joint venture is approximately 33.33% higher than that
at 100 cr. Calculate the total cost for me to establish our own asset management company. of entering organically, again concluding that joint venture would be a better option.
So our one-time fee is 30 lakhs, and on an average, we will be required to pay a sum of 6.25 lakhs to Yes, that would be correct. Would you like to give any recommendations regarding the same?
SEBI as fixed annual fees. Additionally considering 293.5 crores of scheme expense the total cost As concluded before, in the given scenario, the client should enter through a joint venture. As a
required will be 293.8625 crores before tax. recommendation, they should choose a well-established bank with strong goodwill as their co-venture.
Great, Now we are expecting to get a return of 8% on total cost including taxes. Calculate the However, the client should keep in mind all the statutory requirements. Moreover, they should focus
revenue and profit we will be generating keeping in mind 30% taxes. on marketing strategies & enhancing the investor experience to successfully penetrate the competitive
Since our total cost is 293.8625 crores, an additional tax @ 30% will be charged on profit, that can market. Some ways to advertise can be digital marketing through emails and social media, uploading
be computed by deducting cost from revenues. So our tax will be 7.25 crores and our total cost timely content on websites & newspapers having financial advisors and investors as their audience.
(including tax) will be 301.1125 crores. And our profit will be 0.8*301.1125 which will be Thank you, we can end the interview here.
approximately 24 crores.
FUNDVENTURE (3/6)
RAMJAS
SOCIETY
Your client is a Bulge Bracket Investment Bank looking to set up a mutual fund in India. You have been hired to analyse the viability and route of
entry for the client.

• Company Overview: A US- Market Entry
based Bulge Bracket
Investment Bank operating in
multiple markets with no prior
experience in the Indian Company Costumer Competition Products
market.
• Objective: Geographical
diversification and growth.
• Market Overview: 5% Market
penetration rate in case of US Based bulge bracket High and middle income Moderate
Diversified portfolio
setting up own asse.t investment bank segment of population competition
management company and an
additional 15% over it in case of
Geographical diversification Customer Fund managed by US based
joint venture. Market size - 35 lakh crores Unconcentrated market
and growth Study investment bank
• Manages diversified portfolio
holding.
No prior experience in Indian Customer
Penetration rate @5%
markets Study

• The client should enter the market through a joint venture with a well-established bank. • In the guesstimate, an additional 15% can be taken into account for
• They should focus on marketing efforts and enhancing investor experience. the amount invested by institutional investors in the mutual fund market.
• Some ways to advertise can be digital marketing through emails and social media, uploading timely • Providing recommendations to increase the potential customer base
content on websites & newspapers who have financial advisors and investors as their audience. and channelizing the household savings into mutual funds.
FUNDVENTURE (4/6)
RAMJAS
SOCIETY
Guesstimate
Estimating the Market Size of Mutual Funds Market in India
Step-1 Calculating the number of potential investors in India
Population 1,40,00,00,000
40% 60%
60%
Urban/Rural Divide
56,00,00,000 84,00,00,000
24-60 60+ 24-60
Age Divide 50% 10% 50%
28,00,00,000 5,60,00,000 42,00,00,000
Middle High Middle High High

Income Divide 40% 10% 40% 10% 5%
11,20,00,000 2,80,00,000 2,24,00,000 56,00,000 2,10,00,000

Factors for determining
potential investors
Have Not Have Have Not Have Have Not Have Have Not Have Have Not Have
Financial Knowledge 40% 60% 60% 40% 20% 80% 50% 50% 99%
1%
4,48,00,000 6,72,00,000 1,68,00,000 1,12,00,000 44,80,000 1,79,20,000 28,00,000 28,00,000 2,10,000 2,07,90,000
90% 20% 95% 30% 80% 10% 85% 30% 60% 0%
Word of Mouth &
Advertising Efforts
4,03,20,000 1,34,40,000 1,59,60,000 33,60,000 35,84,000 17,92,000 23,80,000 8,40,000 1,26,000 -
Total Potential Investors 8,18,02,000

FUNDVENTURE (5/6)
RAMJAS
SOCIETY
Guesstimate
Step –2 Estimating the average amount invested in Mutual Funds
Total Potential Investors 8,18,02,000
<2.5 lakh 2.5-5 lakh 5-10 lakh 10+ Lakhs

Number of people with
30% 30% 15% 25%
given amount in Savings
2,45,40,600 2,45,40,600 1,22,70,300 2,04,50,500
₹ 1,00,000 ₹ 2,50,000 ₹ 5,00,000 ₹ 7,50,000

Average Amount
Invested
₹ 24,54,06,00,00,000 ₹ 61,35,15,00,00,000 ₹ 61,35,15,00,00,000 ₹ 1,53,37,87,50,00,000
Total Amount Invested in

Mutual Funds by Retail ₹ 3,00,62,23,50,00,000
Investors
Margin for HNIs and IIs 15%
Total amount invested in ₹ 3,50,00,00,00,00,000 (approx)

Mutual Funds
Market Share as per 5%
₹ 17,50,00,00,00,000
penetration rate
Assumptions
• 60+ age group in rural areas excluded considering they are risk-aversive and more inclined towards Scan the QR
fixed income options Code to access
• Having financial knowledge and impact of word of mouth and advertising determine number the
of potential investors Guesstimate
Spreadsheet

FUNDVENTURE (6/6)
RAMJAS
SOCIETY
Financial Exhibits
EXHIBIT 1: Breakup of Cost, Return and Profit-Cut

Particulars Amount ( in Rs. In Lakhs)
Cost associated with setting up a mutual fund Amt if Independent unit Amt if JV % increase in cost in case of JV
Non-Refundable deposit for Registration with SEBI(One time fees) ₹ 5.00 ₹ 5.00 -
Registration fees with SEBI(One time fees) ₹ 25.00 ₹ 25.00 -
Average Annual fees(Fixed annual cost) ₹ 6.25 ₹ 6.25 -
Max annual fees ₹ 2.50 ₹ 2.50
Min annual fees ₹ 10.00 ₹ 10.00
Scheme Expenses ₹ 30,075.00 ₹ 30,457.00 1.27%
Marketing, Advertising, Publicity, Legal and IT Expenses ₹ 8,300.00 ₹ 6,640.00 (20%)
Employee Cost ₹ 8,350.00 ₹ 7,932.00 (5%)
Portfolio Management commission and fees (% of AUM) ₹ 2,700.00 ₹ 3,105.00 15%
Cost of operations and managing the business(Annual) ₹ 10,000.00 ₹ 11,500.00 15%
Taxes ( @ 30% ) ₹ 725.00 ₹ 1,280.00
Total Cost Associated ₹ 30,111.25 ₹ 30,493.25
Expected Return (as a % of cost) 108% 114%
Expected Return ( in Rs in Lakhs) ₹ 32,520.15 ₹ 34,762.31
Share in profit 100% 75%
EXHIBIT 2: Comparative financial evaluation of entering the Indian mutual funds market through Independent Unit or Joint Venture
Comparative solution Amount ( in Rs. In Lakhs)
Particulars Amt if Independent Unit Amt if JV
Total Return ₹ 32,520.15 ₹ 34,762.31
Cost ₹ 30,111.25 ₹ 30,493.25
Profit ₹ 2,408.90 ₹ 4,269.06
Cut 100% 75%
Net Return ₹ 2,408.90 ₹ 3,201.79

ChatGPT 2.0 (1/6)
RAMJAS
SOCIETY
The global smartphone market size was valued at USD 457.18 billion in 2021. The market is A. CHINA
projected to grow from USD 484.81 billion in 2022 to USD 792.51 billion by 2029, exhibiting a • Pros: Cheap labor cost and advanced technology.
CAGR of 7.3% during the forecast period. So to en-cash this opportunity our client, a US-based • Cons: Disruptive Intellectual Property has a chance of a leak. China’s legal system usually punishes
end-to-end smart devices manufacturer, is looking to enter South Asia to sell its special AI-enabled counterfeiting and IP theft.
software. Now ascertain the attractiveness of the Indian market for your client and if the market
deems fit devise a market entry strategy for them with planned capex investment for 3 years. B. TAIWAN
What is the main objective behind this market entry? • Pros: Biggest semiconductors producing country so the cost of making these bots would
The company is looking to raise the next round of investment and for this purpose, they are decrease exponentially due to the quick availability and proximity of the above and its creator.
looking to increase their revenue to get a higher valuation multiple. • Cons: Geopolitical tensions, in case of invasion by China the capex investment might go in vain
or might get stuck.
Are they selling this AI-enabled software in any other country as of now? And also are they similar
to ChatGPT and Bard in any way?
C. INDIA
Yes, they are selling these bots in the US and Europe. The product has been a success there and
• Pros: Under the "Make in India" scheme the government is providing tax concessions and
has captured a market share of 35% and 39% respectively in the segment. Ignore the similarities
between our product and other AI-enabled software for this case. production-linked incentives which will push down the overall cost drastically.
• Cons: Infrastructure is not that sophisticated and developed in comparison to the other two
Does our client have any particular country in mind where they are looking to enter? What is the
product mix of the Client? countries. Problems like water logging may result in logistics issue if the production unit is set
up in India.
They are looking to enter India, China, or Vietnam. Since it is an end-to-end smart devices
manufacturer. It has a diverse product mix from smartphones to televisions smart, LED'S and even Okay, so which country would you recommend the company to enter and what is the thing we
smartwatches.
can do to make a USP for our products?
The software used in these devices is also in-house production or do we have third-party tie-ups for
it? India as it is a low-risk and high-reward proposition. We can highlight the technical capabilities and
relevance of our special AI software to showcase the product differentiation like- capable of media
It is produced in-house. playback, Helps in making to-do lists, setting alarms for weather, traffic, sports, and other real updates.
Do we sell this software B2B to other companies for their products? Also, Since our client is a Product Relevance- integration with other smart devices i.e., smart televisions, housing and related
manufacturer. So will they import these products from different countries or are they willing to set appliances.
up a plant here?
What will be our target customer? Calculate the total addressable market (TAM) for our product,
Yes we do sell B2B. The client hasn’t given a thought as to whether they will be importing or prepare a guesstimate on it and what factors will drive our pricing strategy?
manufacturing in the country itself. You may begin with your approach now.
Urban population (specially generation-z) in the 8 metropolitan tier 1 cities and high-income groups in
Now I would like to do an in-depth analysis of all three countries by providing a rough structure. I’ll tier 2 and 3 cities. We can use price skimming in which we can charge a high initial price that customers
try to give a brief summary about the respective by listing their pros and cons: will pay and then lower it over time.

ChatGPT 2.0 (2/6)
RAMJAS
SOCIETY
As the demand of the customers is satisfied and competition enters the market, we will lower the 2. We can also enter into a future dated agreement with Vio, if they decide to enter the US then we can
price to attract another, more price-sensitive segment of the population. Also, do you have a provide their employees with training and could share our manufacturing facility.
timeline in mind for the market entry?
Okay you can close the case now.
Don't focus on this. Please explore the options for market entry.
There are two ways of entering a market. Organically and inorganically, so, what would the company
look to enter the Indian market?
Since we want the results to quickly reflect on our accounting statements so doing everything from
scratch won't be feasible, so what would you recommend in an inorganic way? Do an analysis for
each case a- joint venture, merger, or acquisition.
The acquisition would require a big capex investment from our side and also there is no mid or
small-size firm working or making strides in the particular domain for AI in India so an acquisition
might require ground-up work.
A joint venture can be a better way to expand in the Indian market because through that we will be
able to get the association of that brand with us which will result in better customer acquisition and
would reduce the customer acquisition cost as the established brand name would also act as the
pulling factor for customers.
Okay go ahead with this option. What are the prospective business houses we can collaborate
with?
Veliance might be a very good option for this due to its diversified business and its presence in both
online and offline space through Vio Mart and Veliance retail offline (Veliance Digital). Through this,
we will have a strong distribution network.
List some other benefits of this proposed joint venture too.
Through a joint venture we will also enter into a B2B type of business model where we will have our
payments upfront which would reduce the company's exposure to business risk and will also ensure
better cash flows.
Okay but why would a company of such a size enter into a joint venture with us?
The company might enter into a joint venture with us, owing to the certain benefits/deliverables like:
1. We will provide our special AI software to Veliance, to be run exclusively in their devices. It will be
akin to what Apple has in their devices, in the form of Siri.

ChatGPT 2.0 (3/6)
RAMJAS
SOCIETY
The Client, a US-based end-to-end smart devices manufacturer, is looking to enter South Asia to sell its special AI-enabled software. Now ascertain the
attractiveness of the Indian market for your client and if the market deems fit devise a market entry strategy for them with planned capex investment
for 3 years.
• The client is an end-to-end US Market Entry
based smart device manufacturer.
• The product has been a success in Inorganic Organic
US and Europe and has captured a
market share of 35% and 39%
respectively in the segment. Joint Venture Mergers Acquisitions
• The client is an in-house producer
and sells the software B2B to other
companies as well.
• Objectives: To increase the Customer Company Product Barriers to Entry
revenues in order to get higher Sales & Distribution
valuation multiples & to raise new Product relevance- Automated AI High competition
Channels
investments into their portfolio. integration with other conversational (various
Website bot substitutes
• Market Specifics: smart devices Independent e-
commerce available)
o Global smartphone market size in
2021: USD 457.18 Bn Target segment: Urban
Population (Gen-Z) Offline Retail Stores
o Expected market size by 2029:
792.51 Bn Requirement of pre Restrictive Regulations AI
o Expected CAGR: 7.3% existing ecosystem for by the government implementat
connected device to ion is costly
succeed

• To launch in India: JV with Veliance, to exclusively provide the software for their products. • Asking questions pertaining to Chat GPT. Shows awareness about the present
• A joint venture with Vio is: if they plan to enter US market, to provide training to their employees and trends.
share manufacturing facilities. • Taking geopolitical factors into consideration before making investment decision.
• Addressing the need for introduction of Indian languages in the software.
ChatGPT 2.0 (4/6)
RAMJAS
SOCIETY
Guesstimate
Total Population
Rural Urban
84 56
Income <1 LPA 1-5 LPA 5-10 LPA >10 LPA <1 LPA 1-5 LPA 5-10 LPA >10 LPA
30% 25% 25% 20% 15% 25% 35% 30%
(84*30%)/6 (84*25%)/6 (84*25%)/6 (84*20%)/6 (56*15%)/4 (56*25%)/4 (56*35%)/4 (56*30%)/4

No. of Households
4.2 3.5 3.5 2.8 2.1 3.5 4.9 4.2
Total households in a <1 LPA 1-5 LPA 5-10 LPA >10 LPA
given Income range
6.3 7.0 8.4 7.0
* All values in the guesstimate are in crores.
Assumptions
• The AI conversation bot is a user-interactive chatbot • To estimate the market size, we will first estimate the
software. number of devices the software can be operated in and
• Can be operated in devices like smartphones, laptops then derive the market size according to the pricing of
and other smart devices the product
• Other smart devices include tablets, Bluetooth • Assuming that the number of people in each household is
speakers etc. 4 for the urban areas and 6 for the rural areas

ChatGPT 2.0 (5/6)
RAMJAS
SOCIETY
Guesstimate
Total households in a
Affordability for the Devices
given Income range
% of households 5 90 100 100
Avg. No. of devices 1 1.5 2 2.5

SMARTPHONES
per Household
No. of smartphones 6.3*5%*1 = 0.3 7.0*90%*1.5 = 9.5 8.4*100%*2 = 14.1 7.0*100%*2.5 = 17.5
LAPTOPS Avg. No. of devices 1 0.5 0.5 1

per Household
No. of smartphones 6.3*1%*1 = 0.1 7.0*10%*0.5 = 0.4 8.4*50%*0.5 = 1.7 7.0*50%*1 = 3.5
OTHER SMART Avg. No. of devices 0 1 0.5 1

DEVICES per Household
No. of smartphones 6.3*0%*0 = 0 7.0*5%*1 = 0.4 8.4*40%*0.5 = 1.7 7.0*40%*1 = 2.8
Total no. of Devices available 0.4 10.2 17.5 23.8
Assumptions
• We assume three types of devices to operate the software
that every three households own two devices.
in- smartphone, laptops and i-pads irrespective of their
• Since I-pads are not preferred by people so frequently as a
brands.
result of affordability and feasibility, a very less proportion
• Not all households own an equal number of devices of each
of them own I-pads. The number is zero in the case of
kind. So, we assume that the average number of devices per
people with the lowest income as a matter of affordability.
household as mentioned in the table. For eg: 1.5 means

ChatGPT 2.0 (6/6)
RAMJAS
SOCIETY
Guesstimate
Total no. of devices

0.4+10.2+17.5+23.8 = 51.8
available
Version Type NORMAL PREMIUM
70% 30%
No. of Devices 51.8*70% = 36.26 51.8*30% = 15.54
Price (in Rs.) 3000 5000
Market Size 36.26*3000 = 108780 15.54*5000 = 77700
Total Available 108780+77700 = 186480

Market
Assumptions
• Since the premium version is costlier, people prefer
• We assume that the company provides two kinds of buying the normal version. Only a 30% (mostly people Scan the QR
versions of the software: a normal and a premium from the highest income range) prefer the premium Code to access
version. the
version with different prices.
Guesstimate
• The price of the software is same for all kinds of • The total available market is the function of total devices Spreadsheet
devices. available for installing the software into and the price of
the software.
GROWTH
GOAL LINE GAMBIT (1/6)
RAMJAS
Growth Utility Expansion CONSULTING
SOCIETY
A famous football stadium is currently experiencing stagnation. As a consultant, your role is to 3. Since it is a legacy club, exhibitions will be a very suitable option to increase footfall & utility in the
provide strategic recommendations for the same. off-season phase.
So just to clarify the objective, a famous football stadium is experiencing no growth and ways need 4. Pre-season events are a great way to increase the interest and anticipation of matches as well as to
to be figured out to increase its growth rate? generate some additional income in the off-season phase.
Yes, you are right. Out of these, two of the ideas: concerts and pre-season events could be incorporated. Throw some
light on the concert element. Explore if this avenue is financially feasible and economically viable.
Is the stadium targeting short-term growth or long-term growth? Additionally, When was the
stadium established, and is it home to a legacy club? I would like to begin by enlisting the various costs involved in conducting a concert. These would
include stage construction costs, backstage set-up costs, sound systems costs, seats, and
The objective is to develop a strategy that would help in increased returns over a longer period. Yes,
acoustic improvements. Additionally, there would be some logistical costs like security and crowd
it is a legacy club operating on a large scale for the past 20 years.
control, electricity and utility, ticketing systems, vendors, maintenance & marketing. Do we have
Alright. Could you tell me about the maximum seating capacity and occupancy? any information about these expenses?
The maximum seating capacity is 100000 and the occupancy rate during a high-stakes match is Yes, refer to exhibit 1 for the expenses.
about 95% and in general, it is about 85%.
So to check this idea’s financial viability, we would need to do a guesstimate to estimate revenue per
Are there any expansion plans on the horizon for the stadium or any changes in the operational concert. Shall I proceed?
frequency?
Yes, you can proceed with the guesstimate.
No, as per the current regulations and league commitments, we cannot do that as of now. Try to
navigate through a general football cycle. So for the total revenue earned by a concert, I will be adding up the 5 major sources of revenue for a
concert-hosting stadium. They are:
Considering a general football cycle, about 3-4 months are utilized for intra-league practice matches Ticketing revenue, revenue from stalls, revenue from brand sponsorships, revenue from parking, and
or intra-league sessions. The remaining 5-6 months are peak match seasons wherein the stadium is revenue from the artist. Does this approach work?
being used for different tournaments. That leaves us with 3 months when there is uncertainty about
stadium utility. Yes, continue with this approach.
Yes, in the 3 off-season months, utility is approximately 20-30% only, owing to only tourist visits. So for ticketing revenue, we will take a 10-30-60 divide for the proportion of high, medium, and low-
priced tickets, with their respective prices being 500$,300$, and 150$. We will be taking the occupancy
To ensure maximum utility, could we repurpose the stadium during these months? for a concert to be 80,000 i.e. 80%. Are these numbers fair?
Yes, please go ahead and explore options for alternative utility in these months.
Yes, you can go ahead with these numbers.
For repurposing, we could separate the stadium’s identity from the club. Various avenues could be
Okay, so the ticketing revenue comes up to be $4 million from high-priced tickets, and $7.2 million
explored, a few of them being:
each from medium and low-priced tickets. Total ticketing revenue comes out to be
1.Concerts can be a major revenue source for a football stadium with the right sponsors and ticket
approximately $18.4 million. Now we will be paying a major share of the ticketing revenue to the
pricing.
artist. Assuming the industry average which is about 30%, revenue left for us comes out to be $5.52
2. Iconic bars can be set up in and near the stadium to generate user traction & increase the LTV of
million.
the attendees.
RAMJAS
SOCIETY
Fine, you can explore the other sources now. For marketing, the stadium can inculcate these activities:
1) Fan meet-ups: People who come to the concerts get a chance to meet with their favorite
Coming to stalls, there can be 2 types of stalls, food and games. Assuming that 40% people grab
players of the club.
something to eat and that the average ticket size is 15$, and 20% people pay for games at an
2) Guest appearance: The special appearance of some prominent football players in between the
average ticket size of 10$, revenue from stalls comes out to be $640 K. If the stadium charges them
concerts would boost its popularity.
25% of revenue, revenue for us remains $160 K.
3) Direct marketing: Since the tickets for football games are almost always sold out, directly
Now for revenue from brand sponsors, assuming a 30% revenue of ticketing sales to be received
marketing the concerts to them would be a good idea.
from brand deals, the number comes out to be $5.5 million.
4) Social media: Leveraging the large following of a legacy club, we can create hype and teasers
Are these assumptions fine?
about an exciting project.
Yes, these assumptions are valid, you may proceed. 5) TV advertisements: Running the concert advertisements while a home game is being aired
would directly aim at our target audience
Now, for parking, assuming 20% of people come by their vehicles and that the parking ticket is 5$, Great, thank you for your time.
revenue from parking comes out to be $80 K.
For revenue from artists, since the stadium is of a legacy club with high occupancy, I believe
charging artists $10 million for renting the stadium for a concert is a fair ask.
That is a fair assumption. So what is the final annual revenue the stadium can expect?
Adding all these up, the stadium can expect a revenue of $21.28 million per concert. How many
concerts per year can we expect to have, to come up to a yearly revenue figure?
We can have these concerts once every two months, so 6.
So the projected annual revenue from these concerts comes up to be approximately $127.68
million. Coming to costs, our per concert cost stands at $9 million, which comes up to be an annual
cost of $54 million.
Return on investment for hosting such concerts comes out to be $127.68 million/$54 million * 100 =
236.44%, giving the stadium an annual profit of $73.68 million.
Therefore, in conclusion, hosting concerts would be an economically viable and financially lucrative
idea for utilizing the stadium for the three off-season months.
Good job on the financial aspect! You are now required to provide a few more suggestions for
marketing purposes.

RAMJAS
SOCIETY
A famous football stadium is currently experiencing constant growth. As a consultant, your role is to provide strategic recommendations for the
same.

1. Famous football stadium Pre Season
experiencing constant growth. Events Concerts Iconic Bars Exhibitions
2. Football stadium belongs to a
legacy club.
3. The occupancy rate is 80%.
4. The number of matches or
seats cannot be increased.
5. Stadium faces utility issues in
the off-season (only 20-30%). Revenue Costs
Brand Rental Logistical Infrastructural

Ticketing Parking Others
Sponsorships Revenue Costs Costs
Security Stage Construction Marketing
Electricity Sound System Ticketing Backstage Maintenance

1. Repurposing of the stadium to utilize it in the off-season. 1. Providing the interviewer with multiple repurposing alternatives to narrow
2. Hosting concerts throughout the year to generate additional revenue. down to the lucrative ones.
3. Some other ideas for repurposing are Exhibitions, Iconic bars, and trade fairs. 2. Division of the expenses into varied categories: stage construction costs,
4. Engage in fan meet-ups and guest appearances to market these concerts. backstage set-up costs, sound systems costs etc, including the logistical costs
and maintenance & marketing.
RAMJAS
SOCIETY
Guesstimate
Revenue from
- tickets Revenue from stalls
Occupancy = 80,000 Dine-In Attendees = 80,000
Ticket price divide High Medium Low

Type of stall Food Games
% 10% 30% 60% 40%

% of people that engage 20%
Total 8,000 24,000 48,000 Average ticket size 15$ 10$
Ticket price 500$ 300$ 150$ Revenue from stalls 480000 160000
4000000 7200000 7200000 640000

Revenue
18400000 Stadium's share (25%) 160000
Stadium's share (40%) 5520000
SAM
Assumptions
1)Tickets are of 3 categories, high, medium and low priced as 500$, 300$ and 150$.
2)A 60-40 split of ticketing revenue is being done with the artist.
3)40% of attendees buy food and 20% engage in game stalls.
4)Stadium charges 25% of revenue from stalls.

RAMJAS
SOCIETY
Guesstimate
Revenue from Brand Sponsorships
Revenue $ 5520000
Revenue from Parking Revenue from Renting the Stadium per

$ 10000000
Concert
% of people coming by
20%
personal vehicle
Number of people 16000
Average ticket size 5$
Revenue $ 80000
Total Revenue $ 21280000
Assumptions
1)Assuming a 30% of ticketing revenue to be the revenue from brand sponsorships (industry average). Scan the QR
2)20% attendees come by their own vehicle. Code to access
the
Guesstimate
Spreadsheet

RAMJAS
SOCIETY
Financial Exhibits
EXHIBIT 1: Total cost to hold one concert

Type of cost Estimated cost
Stage construction $4 million
Backstage Set up $500 K
Sound Systems $500 K
Seats & Acoustic improvements $1 million
Security & Crowd control $1 million
Electricity & utility $500 K
Ticketing systems $500 K
Maintenance & Marketing $1 million
Total $9 million

TERMINAL TRIUMPH (1/5)
RAMJAS
Growth Market Expansion CONSULTING
SOCIETY
Your client is a cosmetics brand which is looking to open a store at an airport. You have been hired The decision to choose Gatwick over Heathrow is based on a strategic assessment of our objectives.
to study and determine which airport should the brand open a store in. While Heathrow Airport has a larger overall passenger volume, it primarily caters to business
travelers, and our target audience may be more diverse and representative of a broader demographic.
Can you please provide more information about the company?
Gatwick, on the other hand, attracts a mix of leisure and business travelers, providing a more varied
The company is based out of US, positioned as premium cosmetic brand. It is currently operating in customer base that aligns with our goal of testing the brand's appeal across different segments.
North America, primarily US and Canada and has substantial market share in this geography. Additionally, the size and complexity of Heathrow, with multiple terminals and limited inter-terminal
What is the primary objective of the company that it wants to achieve by opening the store at an commute options, poses logistical challenges that could impact the accessibility and visibility of our
airport? store. Gatwick, being a more compact and traveler-friendly airport, offers a conducive environment
for our brand to be easily accessible to a diverse range of passengers. Based on these reasons, the
The company's core objective in opening a store at an airport's International Terminal is threefold:
client should choose Gatwick Airport over Heathrow.
to advance its brand through international expansion, conduct market testing in diverse cultural
May I know the locations provided for store by both the airports?
settings, and enhance brand visibility across different geographies. By strategically positioning itself
in high-traffic airport locations, the company aims to tap into a global audience of travelers, Changi being in development phase is providing the space in a prime location whereas Gatwick being
an old airport, is providing the space in the inner area of terminal which is not easily accessible.
providing a unique opportunity to assess market reception and consumer behavior. The move
aligns with the company's broader goal of creating a strong international presence and establishing Can you provide some insights into the financial considerations for setting up the store at Gatwick and
itself as a globally recognized brand. Changi airports?
Alright! Has the company identified any specific airport? The costing for establishing the store at both Gatwick and Changi airports is almost identical. This
The client has identified Singapore and London as potential locations for opening their store at the includes expenses related to lease agreements, store design and construction, staffing, initial
International Terminal. inventory, and promotional activities.
Is there any particular reasons for considering Singapore Changi and London airports for this Are there any specific cost factors that are unique to each airport?
venture? The main cost factors unique to each airport revolve around marketing strategies to address the
Absolutely. The choice of Singapore Changi and London airports is strategic and aligned with the specific challenges and opportunities at each location. For Gatwick, the additional costs may include
company's objectives. Singapore Changi, known for its status as a major international hub, offers a targeted promotions and efforts to enhance the store's visibility in a less frequented area. At Changi,
diverse and extensive passenger base, providing an excellent testing ground for the brand's global where the store enjoys a prime location, the focus might be on creating an aesthetically appealing
appeal. On the other hand, London, having some of the busiest airports in Europe, presents an
opportunity to gauge the brand's resonance in a prominent western market. Both locations boast storefront and leveraging promotional activities to maximize exposure to the diverse and growing
high international traffic and diverse customer demographics, providing valuable insights into the passenger base. We are done with preliminary questions, you can go ahead with your approach.
brand's potential success in distinct geographies.
Thanks sir, I will be assessing both the airports on different qualitative factors that should drive the
Do we have any information regarding the specific airport the client is pursuing in London since it decision to open store at which airport. In the qualitative factors, I'll be focusing upon market testing
has multiple airports? which includes geographical mix, regional viability for our products and best region to establish the
Well, the client is confused between Heathrow and Gatwick Airport given their unique propositions. business leveraging our existing competencies. Next, I'll analyze the competition in different markets
What would you suggest? aligning with the overall objective of the company. Further, I'll check which airport’s ambience and

RAMJAS
SOCIETY
What about the consideration of terminals at both airports?
facilities align with our brand image and appeal to Gen Z who will be one of the biggest customer of
the brand in upcoming years. At last, I'll assess the terminals feasibility at the airports so that Both the airports have multiple terminals and it may not be feasible for the company to maintain
logistical issues can be minimized and footfall in our store can be increased. stores on multiple terminals due to staggering costs. Changi Airport has well designed inter terminal
Sounds Good! You may proceed. train service but there is no such facility available in Gatwick. Further, Changi Airport may get its new
terminal by 2030 thereby increasing the passengers served, while Gatwick’s plan of expansion is still in
The company can start with market testing to understand people from which region/country buys pipeline with no proposal of terminal creation and just expanding current terminal making space for
their product and has repeat purchases from which particular region. The company can also check if few more passengers. This implies that we will get a greater ROI in long run from Changi Airport.
the existing products suit the skin of people of which region and the company doesn’t need to put Based on these factors, we can conclude that the company should opt for Singapore Changi
money and time in research& development for that particular region where they can start their International Airport for its first international store.
business operations based on data collected from this store.
Gatwick has more European Passengers while Singapore has a great geographical mix, being a Alright! Can you provide an estimate of the expected footfall at our store in Changi airport?
major transit hub and a prime airport of Indo- Pacific region. Through this way, we can ensure that Sure, do we have an estimated number of flights operated from Singapore Airport in different
we get a mix of customers from Asia, Australia, Europe, Africa and America considering the vast segments like short haul, medium haul or long haul?
operations of Singapore Airlines and South East Asia being a major tourist destination and
Yes, approximately 1000 flights operate from Changi Airport but we don't have segment-wise
Singapore in itself being a financial hub attracting lots of fluent travelers.
information.
Alright! Discuss the brand presence and customer attractiveness on the two airports.
Thanks for the datapoint. Now we know there are about 1000 international flights that operate from
Gatwick airport majorly operates flights between European Union and England drawing a significant the Changi Airport. These flights vary in their capacities depending on the type of flight - short,
portion of passengers from Europe, where there are multiple well established brands in the medium or long haul. Thus we create two categories which are short haul and medium & long haul
cosmetic industry who have a loyal customer base from these countries, so there are less chances amounting to 40% and 60% respectively. The average capacity for short-haul flights stands at
that these passengers would try to a new brand for them. approximately 150 passengers, while the capacity for medium and long-haul flights is around 350
On the contrary, there is no such case with Singapore as mostly western brands have presence here passengers per flight. Consequently the daily footfall at the airport will amount to 270000 visitors in a
and another American brand can make its presence felt in Singapore. Also, people in Asian and day. We will further classify these visitors in the basis of time spent by them at the airport-
African region consider western brands superior than the brands from their own country thereby 1. Individuals spending 1- 1.5 hour account for 20% i.e. 54000 people
making Singapore a good choice. 2. Individuals spending 2- 4 hour account for 60% or 162000 people
And how does the perception and facilities at each airport factor into the decision-making process? 3. Individuals spending more than 4 hour account for 20% i.e. 54000 people
Gatwick, often considered a secondary airport to London, has older constructions and fewer It is assumed that there will be approximately 75% occupancy rate given the average standard vacancy
facilities compared to its newer counterparts. The trend of budget airlines dominating operations rate in global aviation is around 25% due to cancellations, no-show, demand issues, unserviceable seat
may also indicate a less affluent customer base. On the other hand, Singapore, rated as the best etc. Individuals who spend 1 -1.5 hour at the airport are not likely to explore the airport due to the
airport by multiple agencies, offers extraordinary leisure facilities, including a waterfall, children's time constraint imposed by security checks, immigration etc. thus eliminating them. From the
play area, and a full-fledged mall. Moreover, its accessibility to non-passengers for shopping makes remaining two categories a total of about 50% are likely to spend their time at the airport lounge .
it an obvious choice for our brand. Consequently , the number of visitors likely to explore the retail space at the airport can be narrowed
down to 81,000 i.e. the other 50%.
RAMJAS
SOCIETY
What promotional strategies can be deployed to boost our sales in this store?
The company should consider collaborating with airlines for joint promotions along with special
launch offers. Event marketing within airport can be a good way to attract customers in the store.
Can you suggest how the company should measure the success of this store?
The success metrics will revolve around sales performance, customer feedback, and brand
recognition. Customer feedback, both qualitative and quantitative, will be instrumental in
understanding the preferences and expectations of the diverse customer base.
Thank you for discussing your approach. The case can be concluded here.

RAMJAS
SOCIETY
Your client is a Cosmetics Brand which is looking to open a store at an airport. You have been hired to study and determine which airport should the
brand on a store in.

• Overview- Cosmetic brand
looking to open a store at an Proposed Analysis
airport.
• Positioning- US based premium
cosmetic brand currently
operating primarily in US and Assessment of
Qualitative Analysis Post Selection
Canada with substantial market Objectives
share.
• Objective- International
expansion, conducting market Customer
Location
Study Market Testing Estimated
testing and enhancing brand
visibility. Footfall
• Problem- Choice of airport
between Singapore Changi and Cost Analysis Facilities
London Gatwick.
Promotion
Terminal Strategies

• Open the store at Singapore Changi International Airport because its strategically aligned to • Analysis of airports within London.
company's goals and has much better facilities than Gatwick along with geographical advantage. • Decision taken on the basis of multiple factors and also suggested
• Use special launch offers and targeted marketing. marketing strategies.
• Analyse the customer feedback, sales and brand recognition.
RAMJAS
SOCIETY
Guesstimate
Estimating the footfall on the Changi Airport
Estimating the likeliness of people to explore retail space on the airport

Avg no of international flights 1000
in a day Dine-In
1-1.5 hr 2-4 hr >4 hr
Division on the basis of
Short Haul Medium and Long Haul time spent
Division on the basis of type of 20% 60% 20%
haul
40% 60%
Number of people 40,500 1,21,500 40,500
No of Flights 400 600
Total 1,62,000
Average Capacity 150 350
Likeliness to spend time at % Number
Occupancy Rate 75% 75%
Airport Lounge -- 50% 81,000
Avg visitors on the airport 157500
45000
in a day Exploring retail space -- 50% 81,000
TOTAL 2,02,500
Assumptions
• People who spend time within the range of 1- 1.5 hr on the airport do not visit the airport lounge or Scan the QR
retail space. Most of their time is used in the security check, immigration and other procedures. Code to access
• Since in the global aviation there is average cancellation, vacant seats etc. is about 25% so we are the
assuming the occupancy rate to be 75%. Guesstimate
Spreadsheet

LET US RAISE! (1/5)
RAMJAS
Growth Expansion CONSULTING
SOCIETY
Your client is an online fundraising platform. They want to increase tie-ups with NGOs, SHGs, and Fair enough. What kind of organizations do you think would be interested in health-related causes
big businesses. Examine the problem and provide recommendations. and how would you identify them?
Alright, I would like to understand the client a little better. NGOs, SHGs, and NPOs working towards health causes or providing medical benefits would deem fit
• Does this platform cater to a particular cause or is open to all social issues? for such collaborations. To ensure that the chosen organization would have a system in check, that
• When did the online fundraising platform start? would monitor their community interaction, their allocation of funds, their impact metrics - like the
• Are there any previous tie-ups with NGOs, SHGs or businesses? number of people on board, medical professionals on board, etc. Big businesses like corporate
• Our main revenue source? hospital chains - Medanta, Apollo, and Max Healthcare would be open to collaborating as a part of
their CSR initiatives.
The platform is opening to all kinds of social causes. It is functional from 2020. There has been a
tie-up with an NGO for 6 months and an SHG for 14 months. The main revenue source is 1-2% of How would a fundraising platform fit in the CSR initiative of these organizations?
the donations made and the revenue from advertisements. A fundraising platform wherein the majority of the donations are for healthcare expenses/needs
Understood. Are the scale of operations limited to a specific area or do they cover the entire would be a viable fit for the CSR initiatives which mainly focus on pro bono services and spreading
country? Also, do we accept donations internationally? Do we take the covid period into awareness about disease prevention and cure.
consideration while proceeding with the case? Were the tie-ups done at overlapping durations or How about you estimate the total revenue that can be generated from the platform donations and
was there any time interval? the tie-ups?
The scale of operations is PAN India and no, the donations are not accepted internationally. No Okay sure. To estimate the total revenue that can be generated from the donation platform, I
need to put emphasis on covid period while proceeding with the case. Tie-ups were done at would begin by calculating the total number of possible donors in India. For this, I would filter the
overlapping durations. population of India (130cr) using the urban-rural divide - 35 and 65%. I won't be taking the rural
population into consideration due to resource limitations. Now for the urban population, I will
Before I begin with my analysis, I would like to clarify my client’s objective: do they want to divide the population on the basis of age groups. Now I will further take the income divide to
increase their number of collaborations and improve credibility? calculate the population that is eligible to donate. People in the age group 0-18 and 60+ will not be
Yes, that is right. considered as usually they don't have any regular source of income and hence might not consider
donating.
To increase the number of collaborations, I would first begin to understand which are the most
common causes that are funded on the platform. That will filter out the organizations with which This would give the total addressable market for this industry.
we can target to collaborate. In India, according to me the common fundraisers are for causes Further, I would take into account the different methods that are used to convince people to
related to health and medical expenses, education, animal rights, and child welfare. donate on various platforms. These include - in-person persuasion, social media, non-video media,
video media, and cause-oriented websites. Now assuming that a certain percentage of the TAM will
The aforementioned causes are correct. But the most popular cause is medical treatments and be covered under the purview of each method, like 30% of the people will be reached out to via
expenses. persuasion, 20% by the website, and so on.
Alright, since we know the most popular cause, we should be targeting the organizations that Then a conversion rate can be taken for each of the methods, using which I would arrive at the total
align with this respective cause. number of people who actually donate.

LET US RAISE! (2/5)
RAMJAS
SOCIETY
How will you come up with a conversion rate for all these different methods?
We’ll have to keep in mind any normal customer reaction to all these methods as the basis for
coming up with a conversion rate. The method which directly makes an impact on the customer
will have the maximum conversion rate, similarly a video based method which appeals to him/her
will also have relatively high conversion rate, as compared to a non-video method. The website is
the primary source of awareness, so trust factor will play a role and eventually lead to a good
conversion rate.
Okay, then according to you which of the methods you stated above would have the highest
conversion rate?
As per my understanding, the highest conversion rate will be out of persuasion, i.e. 50% because
mostly when people talk to others about the causes, they are urged to donate.
Fair enough, you can continue with the guesstimate.
I will also consider the frequency of donations. The most common frequency will be once a year
and the least common is 6 times a year. The majority of the population will be donating once a
year and a small proportion - about 10% - will be donating on the highest frequency - 6 times a
year. Using the frequency, we will be able to obtain the total number of donations made.
Further, to calculate the total amount of the donations, we will differentiate the donation size -
Rs 100, 200, 500, 1000, etc. We can distribute the number of donations as per the ticket size, like
30% of donations are of Rs 100 and 10% are of 2000 to arrive at the total donation amount.
Further assuming that of the total donations received, 15% would be our market share, we arrive
at the total donations for our platform. Then the funds received from partnerships and tie-ups
are also added to calculate the total funds raised. 1-2% of this would be our total revenue.
That’s a good approach. I think we have come to the end of this case.
Thank you.

LET US RAISE! (3/5)
RAMJAS
SOCIETY
Your client is an online fundraising platform. They want to increase tie-ups with NGOs, SHGs, and big businesses. Examine the problem and provide
recommendations.

• An online fundraising platform, Growth
that is open to all kinds of social Framework
causes, functional from 2020.
• Ongoing tie-ups with an NGO for
6 months and an SHG for 14 Core Activity
months. Non-Core Activity
(Revenue from Donation)
• Main revenue source- 1-2% of
donations made & revenue from
advertisements. Donation open for No. of Profit per Donation
• Objective to increase the tie-ups all kind of social causes Donations
with NGOs, SHGs, and big
businesses. Increase market share Cost per
Revenue per Donation
Donation
Organic Growth Transaction Processing

1-2% on each Donation
Fee
- Collaborating with organisations that

line up with respective social cause
- Improve customer persuasion

• Collaborating with organisations that line up with respective social cause. • Understanding the most popular cause for fundraising.
• Improve customer persuasion. • Narrowing down to realize that highest rate of conversion for donations happen
through persuasion.

LET US RAISE! (4/5)
RAMJAS
SOCIETY
Guesstimate
Total Population (130 Crore)
Urban Rural
40% 52 Cr. 60% 78 Cr.
0-18 (25%) 18-24 (15%) 24-60 (50%) 60+ (10%)
Age Wise Distribution
13 cr 7.8 cr 26 cr 5.2 cr 33.8 cr
Above 10 lakh (15%) 5 lakh- 10 lakh (25%) 2.5 lakh- 5 lakh (30%) <2.5 lakh (30%)
Income Wise Distribution
5.07 cr 8.45 cr 10.14 cr 10.14 cr 13.52 cr
Persuasion (30%) Social Media (25%) Non Video (10%) Video (15%) Website (20%)
Capability to Donate
4.06 cr 3.38 cr 1.35 cr 2.03 cr 2.70 cr
50% 40% 10% 30% 30%
Conversion Rate
2.03 cr 1.35 cr 0.14 cr 0.61 cr 0.81 cr 4.93 cr
6 (5%) 4 (10%) 3 (15%) 2 (30%) 1 (40%)
Frequency 6*5%*4.93 4*10%*4.93 3*15%*4.93 2*30%*4.93 1*40%*4.93
1.48 cr 1.97 cr 2.22 cr 2.96 cr 1.97 cr 10.61 cr
2000 (10%) 1000 (15%) 750 (20%) 500 (25%) 100 (30%)
Amount of Donation by
2000*10%*10.61 1000*15%*10.61 750*20%*10.61 500*25%*10.61 100*30%*10.61
Individual Donors
2122 cr 1591 cr 1591 cr 1326 cr 318 cr 6949 cr
Our Platform (15%) Other Platforms (85%)

Penetration Rate 15%*6949 85%*6949
1042.41 cr 5907.02 cr

LET US RAISE! (5/5)
RAMJAS
SOCIETY
Guesstimate
Collaborations
Sources Corporates NGO Sponsors Advertisements SHGs/NPOs

No. of Collaborations 0 1 0 5 1
Amount per Collaborations 50 cr 1.5 cr 2 cr 0.5 cr 1 cr
Total 0 cr 1.5 cr 0 cr 2.5 cr 1 cr 5 cr
Total funds raised 1042.41 + 5 1,047.41 Crore
Causes of Fundraising
Causes Medical Education Child Welfare Animals Others

As % of total Donation 40% 25% 15% 10% 10%
Donation (In crore) 419 262 157 105 105
Assumptions
• Population of India – 1.4 billion. No of active internet users – 700 million Scan the QR
• Considering rural, only Rural Upper Class will think about online donation. Code to access
• People donating belong to Age group 15+. the
Guesstimate
• Assuming People between 18-60 are financially active/capable to make a payment.
Spreadsheet
• Our platform penetration is a bit low, considering it is a comparatively new platform.

LOADED ENTRY (1/7)
RAMJAS
SOCIETY
Your client is a Tech-based logistics startup on Series-B funding, currently operating in 2 Indian 2. Is the client thinking of expanding to B2C?
states, looking to grow into 3 more states. You are required to devise a go-to-market strategy, Direct competitors are Truckky, Wheelseye and Porter. Also, there are some unorganized players in
along with the factors that should be considered for state selection. the market. No, the client wants to be in B2B only.
I would like to ask a few clarifying questions as I’d like to understand more about our client before Can I take 30 seconds to make a structure?
I begin to analyze the case. Sure
1. In what geography is the client currently operating? So for the growth aspect I would like to suggest some changes in the pricing model as it will help
2. What type of logistics services does the company provide? with flexible pricing and increase the attractiveness towards the company which leads to growth of
3. What is the market share of the company in the industry? the company as well as the transit time. Then some ways for organic and inorganic ways to grow.
4. Are the services B2B or B2C?
Ok start with the suggestions for the pricing model.
The client is working in 2 south Indian states, Kerala and Tamil Nadu. The client currently provides Since live pricing turns out to be the prominent USP, the customers would be able to find the real
truck-based logistics services. I would like you to calculate the truck-based logistics market size in time price update on the app now they search for a specific itinerary. This provides an estimate to
India and then we can get back to this question. The client provides logistic services to the the customers about the fair price which is updated on regular intervals and is calculated based on
businesses, for example, transportation of raw materials, machinery, etc. the model of the truck, its features, weight of the freight, the distance that must be covered etc.
Ok so I will start by calculating the total truck-based tech logistics services in India. My approach Another important feature to consider is the Rate index for the truck drivers which is calculated as
will be to calculate the total number of units in different sectors of the country. the total of the rate that is coated on the load, fuel surcharge pricing as well as an additional fee for
After that, we will calculate the units using any kind of transport for logistics. detention, multi-stop charges, driver unload, lumper fees etc. Such a rate index should be easily
(refer to guesstimate) visible and accessible to the customer through the app.
Yes, that's a good number. Alright, what additions can the company make to enhance the existing USP?
What information do we have on the dominant players in the market as well as the market share There are some main points for the customers while initiating the request, following factors could be
of our company considered to update the application and to enhance the existing USP:
• Customer feedback
The market is very fragmented; thus, no player holds a dominant market share as of now. Right
• Hassle-free booking feature
now, we have an annual revenue of 50 crores with 20% EBITDA margin
• Reducing transit time as compared to typical operators. The reason why one would choose a tech-
Ok sure. Before that can you please elaborate on the features of the application through which a based logistics firm is if it offers perks over other operators and therefore transit time is a big factor
customer can book a truck? What is the pricing model adopted by the company? considered by companies while doing so.
The application has basic features, the customer can open the app and choose the type of truck as • Providing a live tracking system - The introduction of such a system where customers can track the
per convenience. Once the truck is booked the driver approaches the location and delivers the vehicle and get live support through chat in case of any modification and assistance would help to
goods. The company has fixed charges as well as charges per km based on the truck category. bring in more ease and transparency in the processes of route planning, real-time tracking and reliable
documentation and control, among others.
Further I would like to know:
1.What type of companies are the major competitors? Alright, what strategies do you suggest that the company should employ to expand/grow?

LOADED ENTRY (2/7)
RAMJAS
SOCIETY
The company should enter the market by acquiring local and unorganized logistics providers. The And what about Andhra Pradesh?
client can do it in two ways: The proximity of ports in Andhra Pradesh provides a window for a logistic company to set up its
1. By providing a platform for unorganized players to tap new clients. operations here. Most Coal-based power plants in the country are located which as well would
2. By taking over the local players and providing services to their clients require a logistics infrastructure as well. Key industrial segments including Biotechnology, Bulk
Other Techniques I’d like to suggest would be: drugs, Pharmaceuticals, textile and automotive industries all comprising the target market of the
1. Offline company are also present here.
2. Advertising the company on all the trucks owned by the company Okay, Go for Telangana next.
3. Advertisement hoardings Telangana is a hub of the pharmaceutical and IT industries while also being a major producer of
Fair enough. How do you plan on selecting the three states for expansion? fruits and vegetables. It is a mineral-rich state. Two important rivers of India, the Godavari and
Krishna, flow through the state; its agriculture sector is booming as well.
3 potential states to be considered for expansion can be selected by keeping in mind the following
criterion: The prominence of food crop production and transport coupled with mining activities justifies the
requirement for logistics services in the state.
State Selection Criteria:
I hope this analysis adequately demonstrates the need for logistics services in the mentioned states.
1.The state which has a high number of manufacturing units.
2.States which are near to Ports as the logistics are used to transport products from units to the Sounds about right. Thank you for this comprehensive approach. Also, as we are going for series B
ports. funding, could you suggest to us the best valuation method and valuation of our company?
3.The state with operational SEZs. Valuation in the Series A funding round should be multiplied by the times the revenue has
Alright, How would you go about that? increased. Whereas the company is still in its initial phase the best valuation approach is the market
multiple approach
Since we’re already operating in two south Indian states, we have a pre-established inventory,
equipment and customer base. To take full advantage of potential operational synergies, I suggest Could you elaborate on why the market multiple approach is feasible?
that we expand into the states that lie in the vicinity of our current operations. So, we can narrow The multiples approach seeks to capture many of a firm's operating and financial characteristics in a
down the major states according to the above criterion: single number that can be multiplied by a specific financial metric like EBITDA to yield an enterprise
1. Karnataka or equity value. It’d be the most credible approach as it relies on actual market transactions and
2. Andhra Pradesh involves minimal assumptions. Basically, indicating what the market is willing to pay for a company.
3. Telangana Could you elaborate on why the market multiple approach is feasible?
Please state specific reasons for each state, beginning with Karnataka. So for valuing the company I need some data regarding the recent acquisitions in the Logistics industry.
Karnataka has a vibrant automobile, agro, aerospace, textile and garment, biotech, and heavy Ok, Go ahead with the valuation.
engineering industries, also it houses an attractive mining sector.
From the given information, company B is not a comparable company so it should be excluded from
It is home to many operational SEZs as well. The prevalence of the manufacturing sector and the the analysis. Whereas, from the remaining 2 acquisitions we can identify that we can value the
existence of SEZs illustrates a need for truck-based logistics services here. company by 5X EBITDA multiple. (Refer to financials)
LOADED ENTRY (3/7)
RAMJAS
SOCIETY
Ok. Can you give me the exact number?
Since our client is making a revenue of 50 crores annually with EBITDA margin of 20%. Which gives
us the EBITDA of 10 Crores. EBITDA multiple is 5X, so we raise round B funding at around 50 Crores.

LOADED ENTRY (4/7)
RAMJAS
SOCIETY
Your client is a Tech-based logistics startup on Series-B funding, currently operating in 2 Indian states, looking to grow into 3 more states. You are
required to devise a GTM strategy, along with the factors that should be considered for state selection.

• Tech-Based Logistics Startup 3CP Approach
• On Series B Funding Round
• Current Operations: Kerala & Company Customer Competition Product
Tamil Nadu Tech based logistics Truckky, Wheelseye and
Works in B2B model Logistics via trucks
company Porter
Currently in Kerala and Don’t want to expand in Application for booking
Unorganized players
Karnataka B2C the truck
How To Enter? Fixed and variable charges
Organic Inorganic
Rate index a platform for unorganized
Customer feedback players to tap new clients
Booking Feature
taking over the local players
Reducing Transit Time
Live-tracking system STATE SELECTION
Advertisement CRITERIA
Vicinity to Operational SEZs
ports
High number of
manufacturing units

• Aim of reducing transit time. • Analyzing more valuation methods.
• Providing a live tracking system. • Interviewee should have suggested to go B2C as it will have a high growth
• Efficiently progressing with the live pricing technique. probability.

LOADED ENTRY (5/7)
RAMJAS
SOCIETY
Guesstimate
Core Activity Total trucks used

(Revenue from Donation)
Small Medium Large Total
Units 1.2285 0.12285 0.04095 1.3923

Compact 30% 40% 5% 0.4197375
Midsize 5% 30% 10% 0.102375
LOADED ENTRY (6/7)
RAMJAS
SOCIETY
Guesstimate
Full size 0% 5% 30% 0.0184275

Heavy duty 0% 5% 30% 0.0184275
Other transport 65% 20% 25% 0.8333325
Total trucks used 0.5589675
PRICING
Types of trucks Compact Midsize Full size Heavy duty

Fixed charges 500 2000 5000 10000
Variable charges 25 30 35 40
Average distance covered 100 300 600 1000
Number of trucks 0.4197375 0.102375 0.0184275 0.0184275
Market size 1259.2125 1126.125 479.115 921.375
Total market 3785.8275
Assumptions
• People above the age of 50 don't drive trucks Scan the QR
• Two wheelers and three wheelers are not considered Code to access
• Person who is driving has a driving license the
Guesstimate
• Business is B2B Spreadsheet
• Trucks are used for logistics, House shifting, Tow trucks, Firefighting trucks
• Unit is crore
LOADED ENTRY (7/7)
RAMJAS
SOCIETY
Financial Exhibits
EXHIBIT 1: Firm value for 3rd funding round

Name Description EBITDA Selling Price
A Logistics company operating in B2C
Company A market by small vehicles like, 2 & 3 250 Crores 1250 Crores
wheelers
A fintech company providing payment
Company B 125 Crores 300 Crores
gateway for B2B payments
A logistics company in B2B and B2C
Company C 100 Crores 500 Crores
market
EXHIBIT 2
Client Revenue EBITDA Margin EBITDA Multiple Valuation
Tech Based logistics company 50 Crore 20% 5X 50 Crores

100
PRICING
RACE TO TV (1/4)
RAMJAS
Pricing Cost Based CONSULTING
SOCIETY
Your client is a popular OTT broadcasting company wishing to broadcast F1 in India on an exclusive A total of 15 minutes ad is run right before and after the match which is attributed to the revenue from
platform, determine the maximum amount they can bid to gain the broadcasting rights. the race.
These figures yield Ad revenue of about 20160 lacs.
Alright sir. Can I know more about the client? How many years have they been operating for and [15 seconds * (120 mins/5 mins)] + [15*60]
what are the goals that they are planning to achieve from the deal? = [360 seconds + 900 seconds]
The client is streaming all kinds of live events and sports from around the world. They have been = 1260 seconds
operating in the market for 6 years. Seeing the growing popularity of F1, they wish to enter the Next I would like to approach the subscription angle. This majorly includes the number of races,
markets that are largely untapped and showcasing great viewership potential. They have identified average viewership, and cost to stream a race. Is there any information available about the last 2
the Indian market and want you to analyze if an investment would be fruitful. factors ?
The company is looking to generate a profit of 25% from streaming F1 after taking into account all The industry trend suggests the cost of one race for a viewer is Rs. 50. As for the viewership, I’d like
costs including the investment made. you to do an estimation for that number.
Well I will begin with assuming the total population of the country to roughly be about 150 crores.
How is the client looking to stream the races. Will it be through their already existing platform? Establishing an urban-rural divide with 40% and 60% respectively. Moving forward I’ll segregate the
They are currently planning to launch a platform specifically for F1. There are reports that a population based on the income categories they fall under since a subscription model has to be
competitor might bid close to 2 billion dollars (1662963 lakhs) for the global broadcasting rights of followed. We will also take in account the Internet and OTT penetration assigning logically assumed
F1. percentages, a large proportion of which would be taken up by the middle-to-high income groups.
Furthermore, we will proceed with estimating the total F1 OTT enthusiasts in India which come out at
Alright sir, I’ve noted the essentials regarding the case problem, please allow me to have some time around 83 lakhs.
to gather my thoughts and frame a solution. Since the company wants to maximize the profits, I’d Considering the likeliness of unpaid and paid subscriptions, we assume a rough percentage of about
like to explore the revenue and costs attached to it, separately. 50% paid subscribers. Giving a consideration of 80% to the new subscriptions to OTT against the
already existing ones, gives us approximately 33 lakh subscribers.
Looks good, go ahead Taking that into account we can say that the revenue from subscriptions is 33000 Lakhs.
Beginning with the revenue side, there are primarily 2 major streams of revenue — advertisements [(Viewers/race * Number of Races) * Cost per Race]
and subscriptions. Advertisement revenue can further be shown as a multiple of total races in a [(33 Lakhs * 20) * 50]
year, duration of ads in a normal race and the cost of an ad. Do we have any data relating to this? [33000 Lakhs]
So, our total revenue is 53160 Lakhs.
Yes. 20 races per year of 120 mins on an average are expected. Advertisements are shown via split [Ad Revenue + Subscription Revenue]
screen during the match and other ads before and after the race. A ten seconds ad generates close [20160 Lakhs + 33000 Lakhs]
to 6.5 lacs in revenue. [53160 Lakhs
Alright. So the duration of ad per match can be estimated as 1260 seconds or 21 mins. Great. Please analyze the costs which will be incurred.
This number has been taken by assuming that a fifteen seconds ad is shown via split screen after Sure. There are two major costs apart from the bidding cost, the coverage costs and the opportunity
every 5 minutes on an average. costs. Do we have any data about these?
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SOCIETY
The coverage costs are 26980 Lakhs. The opportunity cost can be assumed to be 30 Lakhs/min.
Alright. So the total opportunity cost will be around 12600 Lakhs (20*21*30), considering the cost
per hour multiplied by the total ad duration in a year. Total ad duration has been calculated by
multiplying total races in a year i.e. 20 and ad duration per match i.e. 1260 seconds or 21
minutes. With the coverage costs being 26980 Lakhs, The total costs associated with the
broadcasting will be 39580 Lakhs.
Therefore, the profit for one year can be estimated at around 13580 Lakhs.
Do we have any information about the duration of the agreement and when exactly is the bid
made?
Good Question. The bid is made one year in advance. And the deal is for 3 years post which the
contract may or may not be renewed.
So the profits calculated above need to be discounted to the present value and also the future value
of the profit needs to be calculated. What is the cost of capital prevalent in the industry?
Take cost of capital as 10%
Based on this, the profits for the 3 years can be estimated as follows — 12345 lakhs, 13580 lakhs
and 14938 lakhs respectively. The total profit for the 3 years is 40863 lakhs.
Were any assumptions taken when considering the 3 years?
So, it can be said that the opportunity cost remains constant for the 3 years and is in comparison
with an investment in the broadcasting rights of any other sport for a similar time frame.
Okay. Is there anything left?
Oh yes! Lastly the company was looking to retain 25% of the profits. So the total bid amount should
be 75% of 40863 lakhs, which comes out to be 30648 lakhs.
Offer your final recommendation to the company.
So based on my approach and the above estimates the company can bid anything equal to or lower
than 30648 lakhs in order to meet its objectives. A bid above that price may require the company to
reduce its expected rate of return from the broadcasting.
Great Job. It was a nice case. Thank you
Thank you!
102
RACE TO TV (3/4)
RAMJAS
SOCIETY
The client is a fairly popular OTT broadcasting company wishing to broadcast F1 in India on an exclusive platform, determine the maximum amount
they can bid to gain the broadcasting rights.

• Client is a sports broadcasting
Profitability
company.
• Want to bid for the
broadcasting rights of F1 in
India.
• Planning to generate a profit of Revenue Costs
25% from such a bid over an
agreement period of 3 years.
Revenue from
Revenue from ads Opportunity Cost Coverage Cost
subscriptions
Number of races Number of ad slots

X X
Cost per race Cost per slot

X
Total Viewers

• The company should bid lower than 30648 crores to broadcast F1. • Question regarding the time of the bid and the duration of the agreement.
• Guesstimate for the estimation of F1 viewership in India.

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SOCIETY
Guesstimate
Total Population = 150 crores Estimating F1 enthusiasts in India

Dine-In
Total OTT using families 8,37,00,000
Urban- rural Urban Rural
OTT sports enthusiasts
of the total families 50%
% 40% 60%
Total (in cr.) 4,18,50,000
Total (in cr.) 60,00,00,000 90,00,00,000
F1 OTT enthusiasts 20%
Income Divide Less than 2l 2l- 10l More than 10l
Total (in cr.) 83,70,000
% 30% 50% 20%
Estimating new F1 subscribers
Total 18,00,00,000 30,00,00,000 12,00,00,000
F1 paid and unpaid Paid Subscriptions Unpaid Subscriptions
Number of families 4,50,00,000 7,50,00,000 3,00,00,000 % 50% 50%
Total 41,85,000 41,85,000
% of families with internet
70% 90% 100%
in different income groups Old vs new subscriptions Old subscribers New subscribers
Total (in cr.) 3,15,00,000 6,75,00,000 3,00,00,000 % of Paid subscribers 20% 80%
Total (in lacs) 8,37,000 33,48,000
OTT Penetration 30% 70% 90%
New subscribers 33,48,000
Total 94,50,000 4,72,50,000 2,70,00,000
Assumptions
• Assuming one family consists of 4 members and will have one subscription Scan the QR
• There are 50% paid subscribers of F1 Code to access
the
Guesstimate
Spreadsheet

104
LEVEL UP (1/5)
RAMJAS
SOCIETY
Your client wants to build a multilevel parking facility in a densely populated metropolitan area to lack of the service price based on the value offered. Competitor pricing would not be as relevant due
tackle parking issues. As a consultant help them in formulating a pricing strategy. to lack of competitors in the region. Cost based pricing can help in achieving the profit margin desired
I want to ask a few preliminary questions before I begin. Is the area residential or commercial? And by the client.
how crowded is the market in that region? I would like you to go ahead with the cost based pricing approach for this venture.
The area is mostly commercial, and the market is usually very crowded. Alright, for cost based pricing, I would start by dividing the costs into fixed and variable components.
Since the area is usually crowded, what modes of transportation do people use to travel to this For the fixed cost, I want to know if the client is going to acquire the land for the project or rent it, and
area? what would be the cost for the same.
Primary mode of transportation is metro, buses and rickshaws. Private vehicles accounts a small The client wants to build the facility with the LDO model (Lease-Develop-Operate). Under this
percentage as a mode of transportation. agreement, the government retains the ownership of the newly created infrastructure facility and
receives payment in terms of a lease agreement with the private promoter. The time period of the
Then, even after the availability of the public transport system, why has the client chosen this lease will be 10 years, and the associated cost will be around 22 crores for 10 years for 4,500 sq
location? meters.
There are many offices nearby, and people seem to face parking issues because the area lacks Is the lease to be paid in installments or as a lump sum?
proper parking facilities as needed.
The lease has to be paid in 10 equal installments over the 10 years.
Alright, then what kind of parking facility does the client want? Does the client have any previous
experience in this, or is this a new venture? Alright, how many storeys does the client expect in this parking space, and do we have any idea about
the parking area?
No, the client doesn’t have any prior experience in this area. Assume that the parking facility falls
into the economy category and all the amenities are at par with industry standards. It will be a G+4 level parking space. You can assume the area per floor 4,500 sq meters.
What sets the client apart from other parking facilities? Is there any unique selling proposition for Since it's a five-storey facility, with each floor covering 4,500 sq. meters, allocating approximately 30%
this venture and are there any competitors? to turns and pathways, 10% to cleaning services, the remaining 60% results in roughly 2,500 sq. meters
The major advantage is that this location has no competitors nearby. Secondly, the client wants to for the parking area of the vehicles. Do we have any idea about the parking space required per vehicle
build a parking facility with better capacity, staff, and surveillance facilities, along with a chauffeur and any specific proportion to consider for 4 wheelers and 2 wheelers?
service. Do you have any other ideas that the client could add?
Yes, on average one car requires 18 sq. meters, and one two wheeler needs 6 sq. meters. You can
Since you mentioned capacity, the client can arrange special parking spaces for luxurious cars. Also, assume a 75% distribution for cars and 25% for 2 wheelers per floor.
the client can rent out the extra space for cleaning and chauffeur services to a third party, which can
fetch him some additional income. Considering the above parking space requirements and vehicle distribution, it would accommodate
around 100 cars and 100 2 wheelers per floor. Therefore, it has a total capacity of 500 for both 4
That’s a very good idea. Please move ahead with the pricing strategies. wheelers and 2 wheelers. Can I go ahead and calculate the number of vehicles that would be parked in
Okay, I would like to explore three kinds of pricing – value-based pricing, competitor pricing, and the parking facility in a year?
cost-based pricing. For value-based pricing, the services discussed above would help in determining
Yes, you can go ahead.
the service price based on the value offered. Value based pricing would not be as relevant due to
105
LEVEL UP (2/5)
RAMJAS
SOCIETY
For how many hours will the parking facility operate? I am assuming that the price charged for 4-wheelers will be double that for 2-wheelers, considering the
It will operate as a 24-hour facility. same as it was in the variable cost. I will consider revenue for 4-wheelers as 2x and that for 2-wheelers
as x, since the client needs to earn an annual revenue of 6.5 crores, it calculates to approximately 4.3
Assuming that the parking facility is open for 24 hours, I would divide the hours into three crores (6.5 cr/3*2) in revenue to be recovered by 4-wheelers and 2.2 crores to be recovered by 2-
categories: peak, semi-peak, and non-peak. Considering the peak category for 6 hours with a 100% wheelers. This equates to an average of Rs. 135 (4.3 cr/3,24,000) to be charged from 4 wheelers and
occupancy rate, semi-peak for 6 hours with a 60% occupancy rate, while the non-peak for the Rs. 68 (2.2 cr/3,24,000) to be charged from 2 wheelers.
remaining 12 hours with an occupancy of 20%. This would result in a total of 900 for both 2
That is a fair assumption. You can proceed with your analysis.
wheelers and 4 wheelers in a day, and hence 3,24,000 vehicles in a year for both.
I will proceed with a breakdown of parking hours into four distinct categories to calculate the parking
Alright. This number aligns with our expectations. service cost. These categories include 0-4 hours, 4-8 hours, 8-12 hours, and beyond 12 hours. For each
Now I would like to find out the total cost that the client will incur in the next 10 years for operating of these segments I am considering occupancies of 20%, 50%, 20%, and 10%, respectively. I am
the multi-parking facility. Is there any data available that can help me find out the fixed and variable assuming that since most of the people are office-goers they will tend to park their vehicles for 4-8
costs that the client will incur? hours the most, followed by an equal split for the 1st and 3rd category. The occupancy is at its
minimum for those who use the parking facility for up to 12 hours a day.
Yes, the total cost of constructing 1 square meter in the area of the client’s multi-level parking
facility is Rs. 11,000, and the variable cost is Rs. 20 per 4-wheeler and Rs. 10 per 2-wheeler. The Sure. You can continue with these numbers to arrive at the price for each of these categories.
construction costs will be recovered over a period of 10 years. I would consider that for each successive category of hours, the price would increase by a unit,
Considering the construction cost of 1 square meter to be around Rs. 11,000 for a crowded denoted as y. Here, taking y as the revenue factor for each hour category. Assuming the price for 0-4
metropolitan city area of 4500 sq. meters for 5 floors, the total construction cost will be around Rs. hours as y, similarly for 4-8 hours as 2y, 8-12 hours as 3y, and for 12+ hours as 4y. Now, calculating for
25 crores (4500x5x11000). Yearly payments of construction cost will therefore be Rs. 2.5 crores. 4-wheelers by multiplying the revenue factor per hour category with the vehicle occupancy per
Adding this together with the lease cost, the yearly fixed cost would be around Rs. 4.7 crores (2.5 category gives revenue of 71,200y. Equating it with the annual revenue of 4.3 crores which has to be
+2.2cr). For the variable cost, it is Rs. 20 per 4-wheeler and half of that for a two-wheeler, recovered by 4 wheelers gives us the approximate value of y as Rs. 60. Multiplying y according to the 4
amounting to approximately 1 crore a year, considering 3,24,000 vehicles annually in the parking categories gives us an annual revenue of approximately 4.3 crores.
facility. So, for the client to be able to earn a profit, they need to secure an annual revenue of more Alright, what would this equate to as price per category for 4 wheelers and 2 wheelers?
than 5.7 crores. For 4 wheelers, the price per category would stand as:
Alright 0-4 hours – Rs. 60, 4-8 hours – Rs. 120, 8-12 hours – Rs.180 and 12+ hours – Rs. 240.
Similarly, for 2 wheelers, the price per category would stand as:
What profit margin is the client aiming for?
0-4 hours – Rs. 30, 4-8 hours – Rs. 60, 8-12 hours – Rs.90 and 12+ hours – Rs. 120.
The clients wants to have a profit margin of 15% Using this pricing model during the first year, the client can expect to achieve a profit margin of 15% on
Considering the profit margin, the client needs to secure an annual revenue of approximately 6.5 their yearly cost.
crores. May I proceed with the pricing the service? Thank you for your recommendation. We can end the case here.
Yes, sure.

106
LEVEL UP (3/5)
RAMJAS
SOCIETY
Your client wants to build a multilevel parking facility in a densely populated metropolitan area to tackle parking issues. As a consultant help them
to formulate a pricing strategy.

• Overview - The client wants to
build a multi-parking facility in
a densely populated Pricing Strategy
metropolitan area.
• The project works on LDO

model (lease-develop-operate) Value Based Cost Based Competitor Based
with a lease of 10 years. Pricing Pricing Pricing
• The client expects a profit
margin of 15%
Special area for
Fixed Cost Variable Cost
luxurious cars
Build in house
cleaning area Construction Maintenance
Lease Cost Utility Cost
Cost Cost
Complimentary
Customer Base

• Arrange special parking space for luxurious cars • Considering the other income sources.
• Rent out some space for in-house cleaning services and chauffeur services • Calculating the growth rate of business every year.
• Prices can be adjusted keeping in mind the cost and demand • Considering inflation and the time value of money.

107
LEVEL UP (4/5)
RAMJAS
SOCIETY
Guesstimate
Vehicle capacity of the parking facility Annual number of vehicles in the facility
Area 4500 sq. meters Operating hrs Peak Semi - peak Non - peak
Utility Turns Cleaning service Parking No of hours 6 6 12
Utility 30% 10% 60% Occupancy rate 100% 60% 20%
Area for parking 2500 sq. meters No. of 4 - wheelers 500 300 100
Vehicle bifurcation 4 - wheelers 2 - wheelers Daily 900

Monthly 27,000
% Divide 75% 25%
Yearly 3,24,000
Space required 18 sq. m 6 sq. m
No. of 2 - wheelers 500 300 100
Vehicle per floor 100 100
x x Daily 900
No. of floors
5 Monthly 27,000
Total no of vehicles 500 500 Yearly 3,24,000
Assumptions
• The metropolitan area has a lot of office buildings and a crowded market Scan the QR
• Allocating 30% of area to turns and pathways, 10% to cleaning services, the remaining 60% for Code to access
parking service. the
• Dividing operational hours into 3 categories: peak, semi - peak and non - peak Guesstimate
Spreadsheet

108
LEVEL UP (5/5)
RAMJAS
SOCIETY
Financial Exhibits
EXHIBIT 1: Annual costs

Lease 2.2 cr.
Construction 2.5 cr.
Variable cost Rs 1 cr.
Total cost Rs 5.7 cr.
Profit % 15%
Revenue to obtain 15% profit 6.5 cr.
Revenue from 4 wheelers 4.3 cr.
Revenue from 2 wheelers 2.2 cr.
EXHIBIT 2: Pricing the service

Hours 0 – 4 hrs 4 – 8 hrs 8-12 hrs 12h+
% in each 20% 50% 20% 10%
No of cars (annually) 64800 162000 64800 32400
Price y 2y 3y 4y
Revenue 64800y 324000y 194400y 129600y
Total revenue 712800y
Annual revenue 4.3 cr
y 60
EXHIBIT 3: Calculated prices

Hours 0 – 4 hrs 4 – 8 hrs 8-12 hrs 12h+
4 wheelers Rs. 60 Rs. 120 Rs. 180 Rs. 240
2 wheelers Rs. 30 Rs. 60 Rs. 90 Rs. 120

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SUPER APP (1/4)
RAMJAS
Pricing Value Based CONSULTING
SOCIETY
Your client is a prominent player in the entertainment industry who has developed an inclusive Which pricing option will you consider for estimating the price range?
digital platform broadcasting every piece of entertainment including shows and music. Devise an To price the product effectively and ensure market penetration, we can use a combination of
effective pricing strategy for the firm. competitor-based strategy along with tier-based pricing. Since we are using competitor-based pricing,
Okay, I would like to begin by knowing more about the company and their future offerings. For how is there any data available related to the competitors?
long has the company been in the entertainment industry? Here are the two exhibits for prominent players in OTT and music broadcasting.
The company has been in the entertainment industry for over 10 years, but they are now venturing Okay, is there any data on number of total subscribers?
to enter the digital content space and its objective is to penetrate the market. The client aims to The total no. of paid OTT users are 49 million of which 40% are base plan subscribers and further
provide an all-inclusive digital platform that has every piece of entertainment like shows and music. divide of standard plan and premium plan is 50% and 10% respectively. Consider the same for music
The objective of this product is to simplify the user’s experience while providing all types of content broadcasting. Please continue with your estimation.
under one unified platform. Yes, sure. The exhibits illustrate major OTT competitors' market shares and price plans in India. With
How is this product different from other streaming and web-based services, i.e. its unique value 49 million paid users, we estimate users for each platform by multiplying market share with total paid
proposition? subscribers. Additionally, we'll calculate users per platform per pricing plan based on the above
assumed percentages. Should I go ahead with this approach?
The product provides OTT, audio streaming and news and sports broadcasting through a single
Yes, this seems fine.
platform, which makes the user experience simpler and easier. The product also helps the consumer
by decreasing their expenditure on different services by clubbing them under a single multi-faceted By considering the weighted averages across varied plans and OTT users, we derive the average
platform. charges per plan in India as charged by competitors: Rs. 90 for basic, Rs. 170 for standard, and Rs. 251
for premium services. This analysis indicates a price range for our OTT platform's services between Rs.
Will the product include all the non-exclusive content like VODs and TV-series that are being 90 and Rs. 250 in the Indian market. In the case of music & podcasts services, we calculated the price
offered by the competitors? range by computing the weighted average of the three distinct plans across all paid users of major
Yes, it will include all the non-exclusive content that is being offered by competitors. We are also competitors in India. The average plans for music services are: Rs. 60 for student, Rs. 140 for
working on plans to include some exclusive content and set up in house productions the same, individuals and Rs. 200 for family packs. Finally, we’ve taken the weighted averages of OTT and music
Kindly include this while making considerations for the pricing. services according to the plans provided assuming the preferences of Indian customers to pay a
Alright. How much profit does the client aim to earn through this? Is there any specific profit margin premium for these services being 80% and 20% respectively. The bundle price range comes out to be
to be taken in consideration? 85-240 for our product.
The objective of the company is to penetrate the market and not earn profit in the short run. This looks great! Please move on to recommendations.
There are three potential revenue sources – subscriptions, advertisements and partnerships. Is I have derived 3 plans which will include the OTT and music services namely - essential access plan –
there anything else that I have missed? wherein all the content is accessible but with advertisements, a premium plan with advertisements and
No, we can move to the subscription pricing strategy now. access to platform exclusive plans and, VIP – all access plan with exclusive content access, prelaunch
Understanding the value propositions of our platform's primary verticals - the OTT (Over-The-Top) content access and no advertisement option.
service for video content and the music-cum-podcasts segment - it's evident that these are the Thank you. We can conclude the case here
primary areas where consumers are likely to demonstrate willingness to pay.

110
SUPER APP (2/4)
RAMJAS
SOCIETY
Your client is a prominent player in the entertainment industry who has developed an all-inclusive digital platform broadcasting every piece of
entertainment including shows and music. Devise an effective pricing strategy for the firm.

• Pricing for an all-inclusive digital Competitive Pricing
platform that has every piece of
entertainment like shows and Availability of Substitutes
music.
• The product provides OTT, Audio OTT Streaming Music & Podcasts streaming
streaming and news and sports
broadcasting. Price Points of major Competitors Price Points of major Competitors
• The target consumer age will be Weighted Average for estimation of Price Weighted Average for estimation of Price
16-40 years. range range
• The product will include all the Bundle/Umbrella Price Range

non-exclusive plus exclusive
content that is being offered by Weighted Average of both the services and according to
competitors. the preference of the Indian Market
• Objective is earning profits Company’s Positioning : Economy

according to industry standards.
Company’s Objective : Market Share
Tier Based Pricing
Essential Access Plan Premium Experience Plan VIP All - Access Plan

• Implementing a tiered pricing structure leveraging the competitive landscape in India. • Upper Price ceiling can also be calculated by determining the value addition
• Considering 80% inclination towards paid OTT subscriptions and lower interest in paid music services, per customer by providing an exhausting content library under a single
establish an overall platform price range at Rs. 85 - Rs. 240, amalgamating OTT and Music & Podcasts subscription
services for diverse consumer offerings. Diverse service tiers blend affordability and premium features, • Super premium package targeted towards upper income groups.
appealing to varied preferences within the market spectrum.
111
SUPER APP (3/4)
RAMJAS
SOCIETY
Financial Exhibits
EXHIBIT 1: Market Scenario of OTT platforms

Competitors Stream Verse Cinematiq Motion Max Watchify PlayNext
Market Share 10% 25% 35% 8% 7%
Base Plan(monthly) 200 100 75 50 50
Standard Plan(monthly) 500 200 100 75 75
Premium Plan (monthly) 650 350 125 90 100
EXHIBIT 2: Market Scenario of Music and Podcasts streaming platforms

Competitors SoundWave AudioVibe PodTunes StreamBeat
Market Share 30% 15% 25% 10%
Student Pack 60 80 50 60
Individual Pack 120 200 150 100
Family Pack 180 350 250 200

112
SUPER APP (4/4)
RAMJAS
SOCIETY
Financial Exhibits
Price Range Estimation
Competitors (OTT) Market Share Total Subscribers Base (Monthly) Standard (Monthly) Premium (Monthly) Preference
Stream Verse 10% 4.9 200 500 650 OTT Music
Users (in millions) 2.0 2.5 0.5 80% 20%
Cinematiq 25% 12.25 100 200 350 Base Standard Premium
Users (in millions) 5 6 1.2 84.76029412 164.875 241.5857317
Motion Max 35% 17.15 75 100 125 Bundle Recommended Range Rs. 85 - 240
Users (in millions) 7 8.6 1.7
Watchify 8% 3.92 50 75 90
Users (in millions) 1.6 2.0 0.4
Play Next 7% 3.43 50 75 100
Weighted Average 90.8 170.6 251.51
Recommended Range Rs. 90 - 250
Competitors (Music) Market Share Total Subscribers Student Individual Family

SoundWave 30% 3 60 120 180
AudioVibe 15% 1.5 80 200 350
PodTunes 25% 2.5 50 150 250
StreamBeat 10% 1 60 100 200
Weighted Average 60.625 141.875 201.875
Recommended Range Rs. 60 - 200

113
COALECT (1/3)
RAMJAS
Pricing Investment CONSULTING
SOCIETY
Your client is a steel manufacturing company looking to buy a coal mine. You’ve been onboarded So, we can have approximately 200 metric tonnes of coal extracted per year available. Now, I would like
as a consultant, and the client wants you to find the maximum price they should be willing to pay to estimate the financials and profits associated with the coal mine. Since we are planning to sell 50% of
for the coal mine. the coal in the market, we will be making a revenue of Rs. 35,00,000. At 15% margin on profits from this
sale, our target profits come out to be Rs. 5,25,000 per year
Okay, so to begin with, I would like to know the objective of the company for purchasing the coal
mine. So what do you think can be the allowed total cost of coal as per sale estimates?
Looking at the revenue and expected profits from the sales, the total cost allowed for coal per year is
Sure. Our profit margins are quite low because of high costs, so as a cost-cutting measure, we wish
Rs. 29,75,000. Furthermore, for 50% coal extraction, the cost is Rs. 25,00,000. One-third of the
to purchase a coal mine so as to be able to procure coal for the steel manufacturing process at a
purchase cost of the coal mine can be obtained by subtracting the extraction costs from the total
lower price.
allowed costs. So, 1/3rd purchase cost of the coal mine comes out to 4,75,000 and the maximum
Can you please tell me what the current status of the company and the industry is like? What are purchase cost of the coal mine we can have comes out to be Rs. 14,25,000.
the profit margins of the company, and what are the industry average profit margins? Great. But we are going to use the extracted coal in the steel plant as well. So, how would you
For the last financial year, we had profit margins of 15% in comparison to an industry average of estimate the maximum price of the coal mine as per the target profits of the steel manufacturing
plant?
20%.
Okay, so may I know how much revenue is expected from the steel manufacturing plant and what
Also, how does the company plan to use the coal extracted from the mine? Will the company be
profit margins are we targeting this year?
using the coal extracted from the coal mine only for internal use in production?
Both. We have estimated to have revenues up to Rs. 10 crores and expect to have a 20% of target
No, the steel producing plant has enough production capacity to only be able to use 50% of the profit margin for this financial year.
produced coal at any point in time, so the remaining coal shall be sold in the market.
Clear. So, this means we can have a maximum of Rs. 8,00,00,000 allowance for all our costs. How much
What will be the selling price of the coal? Also, does the company have an expected profit do you think will be our costs just for the steel plant?
margin it would like to reach while selling coal? You may assume that we incur Rs 7,70,00,000 operating our steel plant.
The coal will be sold in the market at Rs. 35,000 Per metric tonne. Yes, we would like to have a Okay. That means we can have a maximum of Rs. 30,00,000 to spend on the coal mine. For 50% of the
profit margin of 15% from the sale of coal. coal extraction, we will have to spend Rs. 25,00,000. So, we will have Rs. 5,00,000 left to spend on the
coal mine. Again, assuming that approximately one-third of the purchasing cost of a coal mine is
Now I would like to analyze the details of the coal mine. So, what is the estimated quantity of
covered by this amount, the maximum purchase cost of the coal mine we can have comes out to be
coal that is expected to be present in the coal mine?
Rs.15,00,000.
It is only known that the coal mine is in the form of a cylinder, 100 meters deep, and has a radius of Great. So, what would you recommend in this case?
2 meters. It is also known that the average amount of coal that can be extracted from other coal
mines in the area is 0.5 Metric tonnes per 1-meter cube of the volume of the mine. Keeping both figures in mind, I’d recommend that the steel plant should be acquired for a maximum
So, if we estimate the total amount of coal in the mine, it comes out to be approximately 628 metric cost of Rs. 14,25,000. This will ensure that the client is able to gain a profit of 15% on the sale of
tonnes. How much time do you think will be required for complete extraction? coal and increase the profit margin of its steel manufacturing plant to 20%.
It is estimated to be three years. Thank you for this strategy, I believe we can end the discussion here.

114
COALECT (2/3)
RAMJAS
SOCIETY
Your client is a steel manufacturing company looking to buy a coal mine. You’ve been onboarded as a consultant, and the client wants you to find
the maximum price they should be willing to pay for the coal mine.

• The existing profit margins of the Pricing of Coal Mine
company are 15% (quite low).
• The company plans to use the coal
extracted in two different ways: Amount of coal in a coal mine
direct sale in the coal market and
for manufacturing steel.
• One-third of the purchase cost of Cost of extraction of coal mine
the coal mine can be obtained by
subtracting the extraction costs
from the total allowed costs. Pricing of coal mine
• The target profit margins of the
company after purchasing the coal
mine are 20%.
Upper Price Limit as per sales Upper Price Limit as per target profits
Lower of the two
estimates of coal of a steel manufacturing plant
Expected Revenue - Expected Revenue -

Extraction cost Extraction cost
Target Profits Target Profits

• The maximum purchase cost of the coal mine as per sale estimates of coal comes out to be Rs. 14,25,000. • Having prior knowledge of the industry
• The maximum purchase cost of the coal mine as per the target profits of the steel plant comes out to be • Ability to comprehend and solve the financials
Rs. 15,00,000.
• The lowest upper limit to purchase the coal mine comes out to be Rs. 14,25,000.
115
COALECT (3/3)
RAMJAS
SOCIETY
Financial Exhibits
EXHIBIT 1: Calculation of Amount of Coal available in mine EXHIBIT 4: Costs for extraction for one year (in Rs.)
Radius of coal mine 2m Engineers (Mining, mechanical, operational and electrical) 20,00,000.00
Labour 8,00,000.00
Depth of coal mine 100 m
Tools and Machinery 7,00,000.00
Volume of the coal mine 1257.14 m3 Mine Managers 15,00,000.00
Amount of coal per meter cube of mine 0.5 mt Total Extraction cost of 200 Mt of coal 50,00,000.00
Estimate coal in the mine 628.57 mt
EXHIBIT 5: Steel Manufacturing Plant estimates (in Rs.)
Time taken for extraction for coal 3 Years
Expected Revenue from steel manufacturing plant 10,00,00,000.00
Coal extracted per Year 209.52 mt
Target Profit Margin 20%
EXHIBIT 2: Total amount of coal extracted per year (Rounded Off in Mt) Target Profits 2,00,00,000.00
Usage Steel Manufacturing Sale In Market Maximum Costs 8,00,00,000.00
% 50.00% 50.00% All Costs Except Those related to coal 7,70,00,000.00
Quantity 100.00 100.00 Maximum Cost allowance for Coal 30,00,000.00
Coal Extraction costs for 50% of coal 25,00,000.00
EXHIBIT 3: Calculation of Allowed total cost of coal as per sale estimates (in Rs.)
1/3rd of Purchase Cost of coal Mine 5,00,000.00
Price of coal per tonne 35,000.00 Actual Purchase cost of Coal mine allowed 15,00,000.00
Revenue from Coal sale per year 35,00,000.00 Rs
Profit margin Target 15.00%
Profit target per year 5,25,000.00 Rs
Allowed total costs per year on coal 29,75,000.00 Rs
Coal Extraction costs for 50% of Coal 25,00,000.00
1/3rd of Purchase Cost of Coal Mine 4,75,000.00
Actual Purchase cost of coal mine allowed 14,25,000.00

116
PRIVATE EQUITY
LIGHTS, CAMERA, ACTION (1/5)
RAMJAS
Private Equity Investment Analysis CONSULTING
SOCIETY
Bravo Capital is looking to invest in a production house for creating a superhero movie. You have The financials and the related data are listed in Exhibit 1. You can refer to that.
been hired to recommend which production house should the company invest in.
Based on the data in Exhibit A, Marvel is the clear choice. Its global revenue is almost 5 times that of
Has Bravo Capitalist made prior investments in film productions? And in what other sectors has the DCU. It has a phenomenal break-even ratio, indicating that all production costs are met easily and the
company invested in? rest is for the investors to take. DCEU pales in this comparison as well. The last three films that have
been produced by Marvel have been a financial success, whereas DCEU is nearing the break-even
No, Bravo Capital is a PE Firm. It has a diverse portfolio in various sectors, but it is the first time that
point with all of its productions.
the company is looking to invest in the entertainment industry and has no prior investments in
sectors related to film production. Alright, that inference seems more than fair. Move ahead with the case.
What are the company’s objectives regarding this investment avenue? Is the company in it for a We would like to proceed with estimating the cost and revenues for producing a new character movie.
single production or multiple future projects? We would be guesstimating the fanbase for the new character, figures of estimated revenues and
costs, and making assumptions therein.
The company plans to invest in the possibility of multiple renditions of a newly introduced
character, but it depends largely on the performance of the first instalment. Sure. Go ahead with the guesstimate.
What is the projected investment budget? What are the company's benchmark criteria to decide We’ll begin by bifurcating the Total Box Office Collections as per the different regions. This figure can
whether to continue with the project? be taken from Exhibit A itself, which is $30 Billion.
We’ll assume factors for the different regions to be taken into consideration as follows:
The potential investment budget ranges between $150M - $250M.
Asia: 3/10
With the average return from superhero action movies ranging from 20-30%, it expects the return
to at least remain in this range, if not more than that. Africa: 1/10
Oceania: 2/10
Can you provide a brief overview of the superhero film industry? Europe: 2/10
Sure. The superhero films industry is booming due to the innovation in cinematic graphics The Americas: 2/10
processes making them a spectacle among the young and ever-growing audience of the spectrum. Alright, how will you further estimate the new character's fanbase, revenue, and cost?
The market size is valued at $28.5 billion and growing. The growth is driven by streaming,
technology, and existing franchises. Asia Pacific is the fastest growing region due to population and We’ll now assume the average ticket prices for these regions, and then divide the region-wise revenue
income. by their respective ticket price to arrive at the number of tickets sold.
This figure will help estimate the number of fans in each region.
Alright. So, investing in this ever-growing sector would be beneficial to the client.
Average ticket prices assumed:
The way I see it is that the best way to go forward would be to compare two of the biggest
Asia: $10
production houses, Marvel CU and DCEU, in this segment.
Africa: $7.5
Yeah, sure. Go ahead with the two major players only. Oceania: $25
Are the financials and the facts of the latest productions of these production houses readily Europe: $20
available? The Americas: $20
117
RAMJAS
SOCIETY
Alright, this seems fair and logical in arriving at the number of fans. Alright, following are the major risks involved in funding a new movie project:
OTT Factor: Most of the target audience now watches their favorite movies in the comfort of their
After dividing the revenue by the ticket prices, we will accumulate the number of fans from a
own space through the various OTT applications available. Nonetheless, people still prefer to watch a
regional to a global basis. Then after adjusting for repeaters, we will arrive at the true number of
new movie, specially of the superhero segment, at least once in a theatre to soak in all the thrill of it
estimated fans.
all. Although, if proper attention is not given to this problem, it can be a major factor for a
Total number of tickets sold is 2.1 billion production’s loss.
Total number of fans is 2 billion after adjusting for repeaters, assumed to be 0.1 billion. Lower Acceptance: Given the hardcore fan base of Marvel, it sometimes becomes unnecessarily hard
How would you use these figures to arrive at the number of fans for a new character movie? to introduce a new character, without facing significant backlash. The new character needs to put out
in front of the audience in such a way that it seems relatable and feels like it belongs there with the
We assume that 2.5% of these fans would be interested in watching a new character’s first rest of them. Eternals was one such project that was not marketed well and could not fit in with the
instalment based on the fact that Marvel is producing it. rest of the existing characters
So, the lower ceiling of the number of fans for the new character is 50 million These are the major risks involved in this project.
Now, we would be using this number to estimate the revenue by multiplying the average ticket Alright. Thanks, now we can conclude the case.
price by the number of fans.
For estimating the cost of the project, we would require the inflation-adjusted budgets for the
initial instalments of the existing characters.
Alright. This data can be referred to in Exhibit B.
Taking the average ticket price as $10.
Revenue for the project would come out to be $500 million.
Production cost for the project has been computed based on the inflation-adjusted budgets
provided in Exhibit B.
Production Costs: $203 Million
Okay, now that the estimated revenues and costs have been computed. What would you
recommend to Bravo Capitalist?
As the investment in such a project is estimated to yield a profit of $297 Million.
We would recommend Bravo Capitalist go ahead with the investment, and possibly enter into a
long-term sustainable partnership with Marvel, and combine it within Marvel’s Cinematic Universe.
Alright. Since the profits have been computed, now throw some light on the risks associated with
this line of films.

118
RAMJAS
SOCIETY
Your client is looking to invest in a production house for producing a superhero movie. Show the viability of the project, by giving a profit estimation
and listing potential risks.

• Bravo Capitalist, a PE firm, is
looking for investment avenues
in different production houses Investment Analysis
for producing a superhero
movie.
• Objectives: To evaluate the
opportunity of finding a high
NPV superhero movie project. Market Attractiveness Financial Attractiveness Risks
• Market Specifics:
Global Superhero Movie
Market Size in 2023: $ 28.5
Billion Inflation Lower Acceptance of
Market Size Estimated
Expected Market Size by Adjusted New Character
Revenue
2030: $ 43.7 Billion Costs
Expected CAGR by 2030: 5.2%
The OTT
Market Growth
Factor

• To opt for Marvel’s Production house for producing the movie. • The cost of making the new movie has been computed by averaging the
• Forging a sustainable partnership with Marvel for multiple future projects. inflation-adjusted budgets of the existing characters’ first installments.
• Introduce a new character and combine it with the already comprehensive cinematic universe • Because many of the fans watch the same movie more than once, they
rather than building on an existing character. have been adjusted.
119
RAMJAS
SOCIETY
Guesstimate
Estimating the fan base of the new character’s movie
Global Box Office Collections (Exhibit-A) = $ 30,000,000,000
Region Asia Europe Africa Oceania The Americas

Factors (Total=10) 3 2 1 2 2
Revenue Bifurcation $9,000,000,000 $6,000,000,000 $3,000,000,000 $6,000,000,000 $6,000,000,000
Average Ticket Price $10 $20 $8 $25 $20
Number of Tickets Sold 900,000,000 300,000,000 400,000,000 240,000,000 300,000,000
Total Tickets Sold 2,140,000,000
Adjusting for
140,000,000
Repeaters (Assuming)
Global Marvel Fans 2,000,000,000
Global Marvel Fans 2,000,000,000 Global Revenue $500,000,000

Average Budget (Inflation-Adjusted) $203,000,000
Assuming 2.5% as Definite Viewers 50,000,000 (Exhibit-B)
Average Ticket Price (Globally) $10 Estimated Profit $297,000,000
Assumptions
• The factors for bifurcating the revenue across different regions have been assumed. Scan the QR
• Average ticket prices for the regions have also been assumed. Code to access
• The number of repeaters is also assumed to arrive at a rounded figure for further estimation. the
Guesstimate
• Assuming that 2.5% of the global marvel fans will watch the new character’s movie based on just
Spreadsheet
the fact that Marvel is producing it, as many fans are pure fanatics of Marvel Studios and watch
every single movie it produces without considering the storyline or the character(s) involved.

120
RAMJAS
SOCIETY
Financial Exhibits
EXHIBIT 1
Total Films Global Revenue Break-even Ratio Highest Grossing
Marvel CU 33 $30 Billion 93.93% Endgame ($2.7 Billion)
DCEU 14 $6.7 Billion 42.85% Aqua-man ($1.15 Billion)
EXHIBIT 2
Budgets for First Instalments of Existing Characters Actual Inflation-Adjusted
The Ironman $140,000,000 $196,000,000
Captain America: The First Avenger $140,000,000 $182,000,000
The Incredible Hulk $150,000,000 $210,000,000
Spiderman: Homecoming $175,000,000 $218,750,000
Black Panther $200,000,000 $240,000,000
Black Widow $280,000,000 $280,000,000
Thor $150,000,000 $195,000,000
Antman $130,000,000 $156,000,000
Doctor Strange $165,000,000 $206,250,000
Shang-Chi And The Legend Of The Ten Rings $150,000,000 $165,000,000
Captain Marvel $160,000,000 $184,000,000

121
BEST OUT OF WASTE (1/3)
RAMJAS
SOCIETY
Your client is a PE Firm that is looking forward to investing in a Waste Management Company in Yes, I am assuming that there are approximately 5,00,000 street vendors in Delhi. The total collection
Delhi. The company is looking forward to developing capabilities to transform the waste collected amount will be Rs.18 crores on an annual basis. For commercial establishments, they can be further
into energy. divided into malls, medical establishments, retail outlets, HORECA & educational establishments. I am
estimating the number of establishments per 10 lac citizens of Delhi, and the collection size on
I would like to begin by asking some preliminary questions.
establishments is estimated according to their pre-conceived sizes. We end up with a final figure of
Sure. Go ahead. Rs.44.118 Crore.
What are the objectives behind this investment of the PE firm? What is the time frame for exit and Alright. Go ahead. Their market share is about 70% for both. Continue wit your calculations.
what is the expected return? Is the firm looking to contribute financially, technologically, or an Ok, then their estimated annual revenue from the waste collection in Delhi turns out to be Rs.415
amalgamation of both of them? Crore. Now that we have the figure, may I know what has the growth been in the past years?
The company’s revenues are growing at about 2-3% per annum.
Yes, so the firm is a thematic investing Private Equity, focused towards green investing. A time
The revenue growth rate and the market share are symbolic of the fact that the company has
frame for exit is around 10 years and they are looking forward to making a financial contribution.
matured, and there doesn’t seem to be a lot of steam left in the waste collection business. As a
Where and what services is the waste management company providing? backup, the underlying business of the company cannot unlock any value for our private equity firm.
The company is into the collection of municipal waste and is based out of & operating in Delhi. Ok, what other parameters would you want to weigh the business’s ability to transition into an energy
business?
Ok, may I know something about the financial performance of the company? How is its revenue
I will be weighing the proposition on sources of returns, target specifics and industry attractiveness. As
growth and what share of the market has it captured?
I mentioned, the business if converted to an energy-driven one, can give immense returns, however,
The company has a sizable portion of the market and is the largest player amongst the 3 in this the underlying business, even as a backup is a mature and unattractive one from our PE firm’s
industry in Delhi. I would now like for you to tell me the estimated revenue. perspective. As far as the energy business is considered, the prospects are bright, the industry is
Yes sure, so they must be collecting 3 types of waste from Households, Street Vendors, and rapidly growing, and there will be government support as well. However, there are major barriers, the
Commercial Establishments. foremost one being the knowledge and expertise barrier.
Ok, kindly elaborate on the barriers
Alright, go ahead
Yes, based on the information about the company, and as per my understanding, it is evident that the
First, I am going to calculate the number of households, the population of Delhi is about 2 crores, company’s core operations are basic at their best, involving the collection and dumping of waste. They
and the average family size is 3, so we get 66 Lakh families. As the collection fee depends upon the have neither the manpower nor the experience or even the expertise to convert waste into energy. It
size of the house in Delhi, it can be divided into 4 types, 0-50 Sqm, 50-200 Sqm, 200 Sqm+, and an will be as good as establishing a new firm, and the only synergy that the two will have is that one will
Unorganized/others category. I assume that 60% of the families live in the first category of houses, provide the other with waste.
followed by 20% in the 50-200 sqm category, 10% in the 200 sqm+ categories, and the rest in the Ok so, do you support the investment decision?
unorganized/others category. We multiply the final number of houses with the monthly waste Based on this reasoning, I am of the view that owing to the target company’s incompetency, this will
collection fee amount of Rs.50, 100, 200, and 0 (for unorganized), respectively. We end up with an be an extremely risky and demanding investment for the PE firm. Hence, the PE firm should avoid
annual collection of Rs. 532 Crores from the residential/household category. investing.
Ok, thanks. We can close the case now.
Alright, please move on to the other 2 categories you mentioned earlier.
122
RAMJAS
SOCIETY
Your client is a PE Firm that is looking forward to investing in a Waste Management Company in Delhi. The company is looking forward to
developing capabilities to transform the waste collected into energy.

1. Our Private Equity firm is Why?-Objective Behind the Investment
focused towards Green
investing.
2. The waste management
company is a service oriented Financial Synergies Growth Management
company, and doesn’t possess
technical knowledge to be able Source of Return Target Industry Attractiveness PE Firm Characteristics
to convert waste into energy.
Specifies
Operational Efficiency Business Model Market Size/Growth Fund Size

Unlock Potential Valuation Profitability Fund Style
Portfolio
Use Leverage Management Capability Barriers to Entry
IRR
Product Service Competition
Exit Period
Willingness to Sell Customers
Market Share & Growth Costs & Risks
Suppliers Suppliers

• For the PE Firm: Find more attractive investment opportunities, which match its vision and investment • The interviewee takes into consideration the PE Firm’s characteristics, and
criteria focus while investing.
• For the Waste Management Company: If a foray in technical business is tough, discover expanding • The interviewee has given the conclusion in light of the existing capabilities
geographically, in the same business line. of the company
123
RAMJAS
SOCIETY
Guesstimate
Firm’s Revenue =( Household + Street Vendors + Commercial Establishments ) X Market Share
Households Street Vendors Commercial Establishments
Medical
Total Population of Delhi 2 No: of street vendors 2 (Clinics, Retail Educational
Number of Malls Hospitals,
HORECA Establishments
Chemists)
outlets
Average Family Size 3 Organized/Unorganized Organized Unorganized
Per 10 Lac people 1 30 2000 200 20
No: of families 0.67
% 30% 70%
Area of house 0-50 Sqm 50-200 Sqm 200 Sqm+ Unorganized
Total Outlets 20 600 40000 40000 400
% of total families 60% 20% 10% 10% Number 0.015 0.035
No: of families 0.4 0.133 0.067 0.067

Collection Fee Collection Fee 75000 25000 500
100
Collection Fee 50 100 200 0
Collection amt(monthly) 1.5 Collection amount 0.15 1.5 2 2 0.02
Collection amt 20 13.33 13.33 0
Annual Revenue 560 Annual Revenue 18 Annual Revenue 68.04

Annual Revenue 646.04
Annual Revenue 70%
Assumptions
• Assuming an average family size of 3 Scan the QR
• Assuming 4 categories of houses in terms of area occupied Code to access
• Assuming Collection Fee is a function of the area of the establishment, and varies directly with the the
size. Guesstimate
Spreadsheet
• Assuming the commercial establishments, as a number per 10 Lac people.

124
REAL INTEREST (1/5)
RAMJAS
Private Equity Acquisition CONSULTING
SOCIETY
Your client is a PE firm looking to acquire an artificial jewelry-making company looking to expand Great, so the store will be visited by 21000 customers approximately, in a year. Now, if we look at the
online retail. They come to you to understand the way forward for this objective. products offered by the firm. Should I consider all the items sold individually or consider them in
sets? I am assuming that they sell two types of jewelry items- jewelry sets and items like earrings,
Alright, I would like to understand the client better before I proceed with my approach to devise a
bracelets, and necklaces, may I?
strategy.
You can consider them in sets - one being jewelry sets and the other being items sold individually
Our client is Alpha Capital, a PE firm established 50 years ago. Since its inception, the firm has as earrings, bracelets and necklaces.
invested in varied industries ranging from EV, e-commerce, q-commerce and lifestyle and apparel
brands. Alright. Considering their average bill values and the number of items purchased by a customer at a
particular visit, we can come up with the revenue for one store, which comes to approximately Rs
What are the goals that the fund is aiming to achieve through this investment? 28,900,000. Since all the stores are located in the same area, it would be reasonable to assume that
The firm is looking forward to maximizing profits and at the same time diversifying its investments all the stores are visited by more or less the same number of customers. Hence, the total offline
to balance the risk proportions. Ideally, the investment option should have a high growth potential revenue of the firm comes out to be Rs. 579,000,000.
and some existing synergies with its existing business. Alright, now this firm is planning to expand its operations in the online space and downsize the offline
operations. What are the possible ways in which this can be done, and which method would you
Fair enough. I would now deep dive into the potential investment. Could you tell me something suggest?
about the artificial jewelry business? The company can choose to launch its own website or can collaborate with a fashion e-commerce
They have been operating in Delhi and NCR regions of Noida and Gurugram for about 15 years. platform. To get better traction and improve sales, collaboration would be better suited. The cost of
They have about 20 stores currently. They sell all types of jewelry - sets, necklaces, earrings, listing the brand will comparatively be lower than the cost of setting up its own website alongside
bracelets, etc. They specialize in modern Indian wear items. delivery logistics costs. With e-commerce, operations will no longer be limited to the Delhi and NCR
region, thus multiplying the revenue.
I would like to begin by analyzing the attractiveness of this jewelry segment first. I will start by
segmenting the industry. The jewelry industry in India has two major segments - precious metals Fair enough, I would like for you to estimate the revenue obtained from the online expansion as well.
and stone jewelry and artificial jewelry. Further, both categories have big-scale local players, small- Okay, I am assuming we are collaborating with a well-established fashion e-commerce platform, let
scale local players, and branded players. us say that it is visited by 10,000,000 users in the festive season and 8,000,000 users in the non-
Ok great, further I would like you to estimate the revenue of the artificial jewelry firm from their festive season, out of which 40% visit the jewelry section and 15% of these visit the artificial jewelry
current operations. section further. Considering the competition in this market, shall I assume that initially, only 10% of
these users will be looking at the products from our brand in the festive season and 5% in the non-
Okay, so I would proceed with assuming that the major difference in sales is considered by the two festive season?
different phases in the year - the 30% of the complete year is the festive season and the remaining
is the non-festive season. Since the jewelry firm is well-established in NCR, would it be fair to Yes, these proportions are good to go.
suppose that one store is visited by 15 customers and 6 customers every hour in the festive and Cool, so considering that 5% of these users will like our products and add them to their carts, and
the non-festive season respectively? finally 10% of these will buy the item, the number of customers converted in a year becomes 48000,
approximately. Now, to estimate the revenue I would like to assume that there will be a 10%
Yeah, that’s fair enough.
decrease in the prices in online retail with respect to offline retail.
125
REAL INTEREST (2/5)
RAMJAS
SOCIETY
Again, considering the average bill values and the number of items purchased by a customer at a We should try to leverage rising fashion consciousness among teenagers to mitigate this risk. Along
particular visit to the website, we can come up with revenue which approximately is Rs 65000000. with this, we can also focus on the men’s jewelry market which has huge upside potential going
Great! Now I would like you to evaluate the investment into this business. forward.
I would begin by taking into consideration the key metrics of this industry. The metrics taken into What could be the other possible solutions to this issue?
consideration would be the growth rate of the industry and the industry margins.
• We could use the Monthly Unique Transacting customers to analyze the monthly variance in
Considering the niche of the industry and the fact that precious metal jewellery is still the revenue for the e-commerce store. It would help in defining trends pertaining to the cyclical nature
preferred choice of the masses, the CAGR would be nearly 7-8%. Moreover, Considering the low of our business.
cost of production, the profit margins vary from 30-50% depending upon the type of piece like a
• We could reduce the overall expenditure on marketing, starting with funnels that have the highest
necklace, set, earrings, etc. Further, the company is planning to downsize some of its operations
CAC (Custom acquisition cost) and least conversion rates.
and expand into the online space. Considering these factors, there will be cost-cutting - in terms of
In addition to these, to maintain the AOV(Average order value) for the long term, we can start with a
the workforce employed, reduction in store maintenance costs, etc.
scheme of special credit points pertaining to our platform only. Buyers would get 10 points on ₹1000
Adding 10-15% to the profit margin. While collaborating with an e-commerce platform, the
shopping. This scheme will provide heavy discounts to customers that will facilitate increasing repeat
marketing budget would be more weighted towards social media and digital marketing - implying a
orders. This will help in clearing dead stock, in turn solving the problem of high inventory. These
ROAS of roughly 150%. Considering the additional revenue of 25-30% that can be generated from
products can be tweaked according to the present trends and designs to ensure product relevancy.
the expansion plan, the acquisition of the artificial jewellery chain is the viable option and would
justify the deal's value. Considering all the facts related to the company in question, do you think this investment is viable for
Alright, what according to you would be the risks involved in the acquisition of this business, and the client?
suggest methods to mitigate them?
The investment seems a viable option considering the objectives of the firm. The firm can leverage its
The risks involved are mainly business risks and are as follows: connections in the e-commerce and q-commerce fields and contribute to the success of the online
• Considering the expansion into the online space, the bargaining power of the consumers is much expansion. The risk and growth potential are promising enough and in line as per the client’s
more, thus the prices of the products and the discounts offered need to be made competitive to objectives.
ensure the required sales from the online segment.
• Considering that the e-commerce space is very commonly used by the Gen-Z population, Indian
wear jewelry might seem irrelevant to them. Thus, the product line needs to be diversified and
made to include western wear jewelry to cater to a wider segment of society.
• Thirdly, durable and costly packaging might be required to ensure that no damage is done to the
items in the shipment process and that customers are satisfied
So, these are the jitters that our business will have to face in the short term, but what problems
can our company encounter in the long term?
Our business can face the issue of being cyclical. In the future, our business can be pegged to the
Indian wedding season, if the consumer base gets very concentrated. We can shift our focus to
customizing and personalizing imitation jewelry.
126
REAL INTEREST (3/5)
RAMJAS
SOCIETY
Your client is a PE firm looking to acquire an artificial jewelry-making company looking to expand online retail. They come to you to understand the
way forward for this objective.

• PE firm - established for 50 years Target Specifics
• Heavily invested in e-commerce,
q-commerce and lifestyle and
apparel business.
• Investment plan: In an artificial Target Specifics Sources of returns Characteristics Industry Specifics
jewelry firm
• Objectives of the firm: Operating in Delhi and 7-8% CAGR
Diversification of investment Current business is Offline channels- retail NCR
portfolio, risk complexion and geographically restricted store
profit maximization 30-50% net margin
Running since 15 years
Manufacturing and retail Online channel - sales
model of sales through website Currently have 20 offline Low cost of productions
stores
Retailing western and Majority target

Indian wear jewelry sets customers are Gen-Z for
and pieces western wear jewels and
millennials for Indian
Approx. 3 Cr in revenues wear.
in offline business

• The acquisition of the artificial jewelry chain is the viable option and would justify the deal's value. • Competitive prices and products can be offered
• Diversification in the product port-folio • Personalization of imitation jewelry
• Customization of imitation jewelry • Increasing fashion awareness amongst teenagers
• Inclusion of men’s jewelry which has a high growth potential
127
REAL INTEREST (4/5)
RAMJAS
SOCIETY
Guesstimate
Avg customers every Festive season Non-festive season

two hours 15 12
Total Revenue from
Customers in an year 30% (15*12*365) 70% (12*12*365)
offline stores
Customers converted 50% 30%
Total Customers 20893
Jewellery sets Others

Jewelry types
Necklace sets Earrings Bracelets Necklace/chain
Number of people 50%(20893) = 10446 50%(20893)*90% = 9402 50%(20893)*60% = 6268 50%(20893)*70% = 7312
Average Bill Value 500 1000 2000 3000 200 500 300 500 500 1000
40% 30% 20% 10% 60% 40% 50% 50% 50% 50%
%age of people
4178 3134 2089 1045 5641 3761 3134 3134 3656 3656
as % of the respective age
No. of items per 2 customers 3 2 2 2 4 2 3 2 2 2
group
Total Sales 3*4178/2 2*3134/2 2*2089/2 2*1045/2 4*5641/2 2*3761/2 3*3134/2 2*3134/2 2*3656/2 2*3656/2
Total Revenue from one store Rs. 13,579,800 Rs. 12,598,238

(Average bill value*Total sales) Rs. 26,178,038
Revenue from 20 stores Rs. 523,560,756 (approx. Rs. 52 Crores)
Assumptions
• 30% of the whole year is counted as festive season and the remaining as non-festive season
• By festive season, we mean the time during festivals and marriages.
• For all the 20 stores, the sales are approximately same
• Only 50% people buy the products in the festive season, and 30% in the non-festive season
• 50% of the people prefer to buy jewelry sets and others prefer to buy every kind of jewelry
separately. Among those who buy jewelry separately, not all of them buy all the three products
128
REAL INTEREST (5/5)
RAMJAS
SOCIETY
Guesstimate
Festive season Non-festive season

Avg customers visiting the website everyday
10,000,000 8,000,000
Customers visiting artificial jewelry section everyday 60%(10,000,000)*15% 40% (8,000,000)*15%
Total Revenue from Total customers
Customers visiting the products of our brand 10% 5%
Online Channels Customers adding items to their cart everyday 5%(60,000) 5%(24,000)
Customers adding items to their cart everyday 12*365*10%(3000) 12*365*5%(1200)
Customers converted every year 20893
Jewelry sets Others
Jewelry types
Necklace sets Earrings Bracelets Necklace/chain
50%(48180) 50%(48180)*90% 50%(48180)*60% 50%(48180)*70%
Number of people 24090 21681 14454 16863
Average Bill Value 450 900 1800 2700 180 450 270 450 450 900
40% 30% 20% 10% 60% 40% 50% 50% 50% 50%
% age of people
9636 7227 4818 2409 5641 3761 3134 3134 3656 3656
as % of the respective age
4 2 2 2
groupNo. of items per 2 customers 4 2 3 2 2 2
Total Sales 4*9636/2 2*7227/2 2*4818/2 2*2409/2 4*5641/2 2*3761/2 3*3134/2 2*3134/2 2*3656/2 2*3656/2
Total Revenue from one store Rs. 30,353,400 Rs. 12,598,238
(Average bill values*Total sales) Rs. 26,147,286
Revenue from 20 stores Rs. 56,500,686 (Approx. Rs. 5.6 Crores, 10.7% of the offline revenue)
Assumptions
• Of the total people visiting an online shopping website, 60% visit the jewellery section in the festive Scan the QR
season and 40% in the non-festive season. Out of these, 15% visit the artificial jewellery section. Code to access
• 10% and 5% of the resulting number visit the products from our brand. the
• Only 5% of them add the items to the cart everyday and further 10% of them actually buy on a day Guesstimate
Spreadsheet
in the festive season and 5% in the non-festive season.
• All the prices are taken in accordance with a 10% decrease in the prices of offline retail.

129
CHOCOLATY AFFAIR (1/5)
RAMJAS
Private Equity Turnaround CONSULTING
SOCIETY
Your client is a PE firm specializing in lower middle market companies in buyouts, recapitalizations, Okay, so the EBITDA Margin is 20% for all these products, I would like you to focus on other factors.
corporate carve-outs, restructurings, and bankruptcies. They are looking to acquire Willies I believe with the upsurge in fitness trends and growing demand for protein-rich substitutes suitable
Chocolate and aim to achieve 10% EBITDA Expansion within one year to justify the acquisition. for all age groups, protein bars are the alternative I would move forward with as they have a wider
They have come to you to understand the way forward for achieving the growth target. appeal, and a greater market to cater to. Also the client’s established brand name “Willies Chocolate”,
I would like to understand the client better before I proceed to devise a strategy. What are the is likely to synergize with the marketing of Protein bars and customer loyalty can be an added
products Willies Chocolate offers and the sales channel they operate through? advantage.
Willies Chocolates, founded in 1950, is a legacy chocolate brand with a national presence. They
Okay Great! Since you are moving forward with protein bars, I would like you to calculate the market
have two products that are milk chocolate bars and gummy bears. They are present across all the size for the same. (a similar guesstimate can be solved for the other 2 alternatives, however the filters
channels including e-commerce, q-commerce, modern trade, and traditional trade. might differ a bit owing to the nature of these products)
Okay, so may I know the revenue of Willies chocolate, and what is the split between Milk
I would proceed with assuming that the market of protein bars is dependent highly upon age group
chocolate bars and gummy bears? Along with that, what are the YoY growth of Milk chocolate bars
and purpose of consumption which can be classified as health and fitness, and snacks. Also, it
and gummy bears?
depends upon the income level of an individual because of the high price of protein bars.
The market size for Gummy Bears in India is Rs.1,500 Crores, for Milk chocolate, the same is Rs.
15,000 Crores. While we have 15% market share of Gummy Bears, we have a 20% market share Sure.
for Milk Chocolate. The EBITDA margins of Gummy Bears are 8%, while for the milk chocolate, Now, since protein bars are nutrient-rich and healthy, they can be consumed by people of all age
they are 14% from the MRP. groups, and hence I will divide the entire population into 5 age brackets 0-6, 6-18, 18-30, 30-60, and
Okay, now how are our two products performing on a year-on-year basis? 60+ however, the consumption will be negligible under the bracket of 0-6. I will further divide the
The revenue from Gummy Bears grows at a rate of 10% YoY, while the revenue growth rate of milk population based on- Health and Fitness, and Snacking where health and fitness include people who
chocolates is 15% p.a are involved in high physical activity or use protein bars for meal replacement and weight gain.
Okay, based on the data, the revenue of the firm is around Rs. 3,225 Crore, Rs. 225 Crores coming
from the 15% market share we have, and the Rs.3000 Crores being attributable to the 20% market Yeah, that’s fair enough.
of Milk chocolate captured by us. As per my calculations and assumptions, the consumer base for protein bars is 62 lakh individuals
On the back of a lower growth potential due to a small market size, and 8% EBITDA Margins, the in urban areas and the number is 6 lakh in rural areas. Despite a greater proportion of people
product will not be able to contribute to our mission of 10% EBITDA expansion, and must be living in rural India, a relatively smaller number is likely to consume protein bars owing to low
replaced with another product, which has a larger market size, is in line with the changing public market awareness, constraints regarding income, and rigidity in tastes and preferences.
preferences, and has better margins.
That's a reasonable number, what will be the next step?
Now that you have advocated the closure of one product line, you must tell which one to replace it
with. The client has three products in mind- protein bars, fruit- flavored candies, and Dark Now looking at the eating habit of people, I would categorize them in 3 categories- casual, frequent
Chocolates. Which Option would you move forward with and why? Just to be clear we are and regular eaters. Considering the frequency of people varying with their preferences, income level,
indifferent to all the options and just need the reasons on which the decision can be made. and purpose of consumption, there are 2 crore bars consumed by casual eaters, 1 crore bars by
frequent eaters, and 2 crore bars by regular eaters in a month. By taking an average price of Rs. 80 for
I will consider these options on two parameters; one is the EBITDA margin and the other is the one bar, we come up with a market size of approximately 5,601 Cr annually.
growth prospects in the market.
130
RAMJAS
SOCIETY
As per your calculations, the market size of Protein bars is 5,601 Crores. For now let us peg it at
Rs.5000 Crores. Given the EBITDA Margins, and the company's goals, kindly tell me what
percentage of the market shall the company capture, to be able to achieve the target.
As per my calculations, the company's EBITDA lies at Rs. 438 Crores, which is 13.5% EBITDA margin.
If the company wishes to expand EBITDA by 10% in one year, it wishes to achieve an EBITDA of
approximately 15%.
As the revenue from Milk Chocolates grows by 15% P.A, it will increase to Rs. 3,450 Crores, and the
EBITDA from it will amount to Rs.483 Crores.
To achieve an overall 15% EBITDA, the minimum EBITDA to be earned from the Protein Bar Market
is Rs. 96.6 Crores.
As mentioned, the EBITDA margins for protein bars is 20%, the revenue from this product should be
Rs. 483 Crores.
Given that the market size is Rs. 5000 Crores, we must capture roughly 10% of the market within
one year.
Great! Now can you tell me if this target is achievable and if yes, then what are your
recommendations to achieve them.
I would recommend the firm to ramp up the sales network and its reach. As we are supposed to
control our costs, I can only suggest that instead of ramping up marketing cost, one should focus on
the product quality and hence, the target will be achievable.
Great, It was nice interacting with you. All the Best!

131
RAMJAS
SOCIETY
Your client a PE firm is looking to acquire Willies Chocolate and aim to achieve 10% EBITDA Expansion within one year to justify the acquisition.
They have come to you to understand the way forward for achieving the growth target.

• Willies Chocolate’s best selling
products are - Milk Chocolates & Investment Analysis
Gummy Bears.
Customer
Market Size Growth Drivers Synergies Risks
Study
Lifestyle Total Number of Increased Makin use of Threat of

Changes People- 0.63 Cr. Standard of previous possible new
Living acquisitions in entrants
the field of
Total Units- Rising Fitness fitness Approval by
Acceptability
5 cr. Awareness food regulatory
Well established authority
Target Market: Average price of Rapidly growing brand name of Taste &
18-30 one unit- Rs. 80 industry “Willies Preference of
Chocolate” Customers
Market Size =
No. of Units*Average
Price*12

• Shutting down the production of Gummy bears and launch Protein Bars as an alternate product • To be able to solve the case analyze the financials carefully.
• Ramp up the sales network and its reach. • Give reasons qualitative along with quantitative reasons for choosing the
• Focus on the product quality instead of Marketing to achieve the 10% EBITDA expansion. product which is being shut down.
• Because for EBITDA expansion, go ahead with marketing activities which are cost efficient. • Give good reasons for choosing the product.
132
RAMJAS
SOCIETY
Guesstimate
Total
Urban Rural
40% 50 Cr. 60% 78 Cr
Division on the basis of income 0-2.5 Lakh p.a (30%) 15.60 cr 2.5-5 lakh p.a (40%) 20.80 cr 5+ lakh p.a (30%) 15.6 cr
Market Penetration 50%

Average price of Rs. 80
0-6 6-18 18-30 30-60 60+
Age Group one protein bar
10% 1.82 cr 15% 2.73 cr 30% 5.46 cr 30% 5.46 cr 15% 2.73 cr
Market size of
protein bars 4953 Cr
Purpose
Health & Fitness 0% 0 cr 1% 0.03 cr 5% 0.27 cr 1% 0.05 cr 0.5% 0.01 cr

(Urban Population)
Snacking 0% 0 cr 2% 0.05 cr 1.5% 0.08 cr 1% 0.05 cr 0.5% 0.01 cr
Market size of
as % of the respective age protein bars
Total number of people who can consume protein bars including rural area
group 0.63 Crore 5201 Cr
(Including Rural
Calculating the total Population)
Health Purpose Frequency Snacking Purpose Frequency Total
consumption of bars
Casual Eaters 70% 3 80% 1
Frequent Eaters 10 10% 3 5 Crore
20%
Regular Eaters 10% 30 10% 8
Assumptions
• The population is divided upon the income level and people below the income level of 2.5 lakh are • Market penetration means the accessibility of protein bars among the
ruled out due to income constraint people.
• High Physical Activity includes people going either to gym or involved in outdoor sports or have active • The consumers are categorized into 3 types- casual eaters, frequent
movement of body. eaters and regular eaters. Scan the QR
Code to access
• It has been assumed that the population under the age of 6 have almost negligible consumption of • The rural population that can consumer protein bars are taken as 10% the
Guesstimate
protein bar. of the urban population Spreadsheet

133
RAMJAS
SOCIETY
Financial Exhibits
EXHIBIT 1
Particulars Gummy Bears Milk Chocolate
Market Size 1,500 Cr. 15,000 Cr.
Revenue 3225 Cr.
Market Share 15% 20%
YoY Revenue Growth 10% 15%
Revenue Mix 30% 70%
Revenue in Rs. 225 Cr. 3000 Cr.
Net Profit Margin 8% 14%

134
HARVESTING CAPITAL (1/4)
RAMJAS
SOCIETY
You are working as an external consultant for a private equity firm that is interested in investing trends of the repurposed materials market, and the customer segments and needs. Also, the
in an Agri-Tech company. The company is raising funds for their business, which involves competitive landscape and the key players and their market shares, strengths, and weaknesses
converting crop residue into repurposed materials. The company claims that their process is followed by the regulatory and environmental factors and the potential opportunities and threats
environmentally friendly, cost-effective, and has a high demand in the market. The company is for the agritech sector and the repurposed materials market.
seeking a private equity investment from your firm, and you have been hired to analyze the
effectiveness of such an investment. Okay. Estimate the size and growth of the agritech sector and the repurposed materials market?
Please refer to Exhibit 1.
Okay, I have a few questions. First, what is the name of the company and where is it based?
Second, what are the repurposed materials that the company produces and who are their • The estimated size of the agritech sector is $400 billion, and 10% of it is influenced by agritech,
customers? Third, how much funding is the company looking for and what is the expected return then the size of the agritech sector in India would be $40 billion.
on investment? • The agricultural output in India grows at 5% per year, then the agritech sector could grow at 5% or
higher, depending on the adoption and innovation of agritech solutions.
The name of the company is AgriRes, and it is based in India. The repurposed materials that the • The total amount of crop residue generated in India is 500 million tons per year, and 10% of it is
company produces are mainly biochar and biogas, which are used as soil enhancers and converted into repurposed materials, then the size of the repurposed materials market in India
renewable energy sources respectively. The company’s customers are mainly farmers, who use would be 50 million tons per year.
biochar to improve their crop yield and soil quality, and manufacturers, who use biogas to power • The crop residue generation in India grows at 3% per year, then the repurposed materials market
their factories and reduce their carbon footprint. The company is looking for $50 million in could grow at 3% or higher, depending on the demand & supply of repurposed materials.
funding and expects a 25% internal rate of return (IRR) on the investment.
Let's move on to the second part, analyzing the company and its business model. How would you go
Thank you. In order to provide a recommendation on whether to invest or not. I would like to about assessing AgriRes and its business model in the agritech landscape?
analyze four main aspects of the case: first, the industry and market dynamics of the agritech
sector, and the potential growth and profitability of the repurposed materials market. Second, Firstly , investigating the satisfaction level of farmers and manufacturers who are utilizing AgriRes'
the company and its business model, and how it differentiates itself from its competitors and products. Moreover, I'd explore the company's marketing strategies, distribution channels, and the
creates value for its customers and stakeholders. Third, a financial and valuation analysis of the sustainability of their relationships with customers.
company, and estimate its current and future cash flows, profitability, and valuation. Fourth, a Secondly , I’d examine their growth plans, operational scalability, potential expansion into new
recommendation on whether to invest or not, and identify the main risks and uncertainties markets, & the adaptability of its business model to changing dynamics & regulations.
associated with the investment. Thirdly , market positioning, competitors, their strengths, weaknesses, market shares, & any
Does that sound like a reasonable approach? innovations they might have. This would help highlight AgriRes' distinct advantages & potential
risks.
Yes, that sounds like a good structure. Let’s start with the first part, the industry and market Lastly , I’d examine AgriRes’ methods to convert crop residue into biochar & biogas, emphasizing
analysis. What are some of the factors that you would consider to analyse the industry and uniqueness, efficiency, scalability, & technological advantages or intellectual property rights
market dynamics of the agritech sector and the repurposed materials market? compared to competitors.
Some of the considerations includes the size & growth of the agritech sector & the repurposed That's a comprehensive approach. Moving forward, could you discuss how relationship of AgriRes
materials market, both globally & in India. Additionally, the demand and supply drivers and with customers impact its business model & growth potential?
135
RAMJAS
SOCIETY
That's a comprehensive approach. Moving forward, could you discuss how relationship of Sure, give me some time to analyze the data.
AgriRes with customers impact its business model & growth potential? Based of the given data, the Discounted Cash Flow (DCF) value is $208.509 million and the Internal
Rate of Return is calculated to be 32.67%.
Certainly. I aim to collect feedback from their clientele – farmers and manufacturers – to gauge
satisfaction levels, understand their needs, and identify areas for improvement. Assessing the Now, let’s discuss the potential risks associated with investing in AgriRes. How would you identify
reliability of AgriRes' distribution channels, customer support mechanisms, and the extent of and evaluate these risks?
repeat business would be crucial indicators of customer satisfaction and potential growth
avenues. Moreover, investigating the customer acquisition strategies and their success rates I will categorize risks into different buckets –
would provide insights into AgriRes' market reach and growth potential within their target Operational Risks: These might include technology failures in their conversion processes, scalability
segments. challenges as the company grows, or any logistical issues in their operations.
Market Risks: Fluctuating demand for their products, changes in consumer preferences, or
Excellent. How about their market positioning? How would you gather information about competitive market dynamics could impact AgriRes market share & profitability.
AgriRes' standing in the market compared to its competitors? Regulatory Risks: Adverse changes in environmental policies or government regulations could affect
their production methods, potentially leading to compliance challenges or increased operational
Understanding AgriRes' market position would involve examining industry reports, market
costs.
surveys, and possibly conducting interviews or surveys with industry experts. Analyzing market
Financial Risks: Uncertainty in cash flow projections, difficulties in securing funding for expansion,
share, customer feedback, and testimonials could provide insights into their reputation and
or unexpected cost escalations could pose financial challenges for AgriRes.
standing within the agritech sector. Additionally, exploring their partnerships or collaborations
with key stakeholders in the industry could shed light on their market influence and reputation Your risk assessment approach seems prudent. So, considering everything we have covered till now,
among industry players. do you support the investment decision?
That sounds great! How would you assess the technological advantage or uniqueness of AgriRes' Based on the analysis of AgriRes’ business model and the valuation analysis, the DCF Value is higher
conversion processes? than the proposed investment amount of $50 million. Therefore, the investment is undervalued and
has a positive net present value (NPV) of $158.509 million. Also, the IRR is higher than the required
To evaluate the uniqueness of AgriRes' technology, I would seek information about their patents,
rate of return of 25%. Therefore, it can be concluded that It is a profitable investment for the client.
proprietary methods, or any specific technology used in converting crop residue into biochar and
biogas. Also, exploring their partnerships or collaborations with research institutions, which Okay, we can wrap the case now.
might signify technological advancements or exclusive access to innovative processes.
Furthermore, assessing the efficiency of their processes compared to industry standards and
benchmarks would be crucial. Any data on production costs, conversion rates, or environmental
impact metrics would help gauge their efficiency and uniqueness in the market.
Considering the depth of your analysis, how would you approach the financial and valuation
analysis of AgriRes in the next phase? Please refer to the exhibits 2 & 3.

136
RAMJAS
SOCIETY
Your client is a private equity firm looking to invest in an Agri-Tech company. The company; AgriRes is seeking funds for their business which
involves conversion of crop residue into repurposed materials through an eco-friendly & cost effective process. Advise the client on this investment.

• The client is a private equity
firm interested in investing in Proposed Deal Analysis
an AgriTech company.
• AgriRes is an India based
AgriTech company looking to
raise $50 million in funding Financial
with an expected IRR of 25% . Growth Acquirer Synergies Risks Financials
Attractiveness
• AgriRes’ customers are farmers
& manufacturers who use
biochar & biogas respectively.
• The company claims that their Key Drivers Market Size Financial Operational Risk Pricing Fairness (DCF)
process is environmentally
friendly, cost-effective, and has Operational
a high demand in the market. Market Segmentation Market Risk
Growth Constraints Cultural Fit WACC
Competitive Landscape Regulatory Risk

Strategy Fit
Competitive Moats Regulatory Environment Financial Risk IRR Computation

Organisation Fit

• The investment is acceptable & profitable. • A comprehensive & structured approach which includes both quantitative &
• The IRR is higher than the expected rate of return. qualitative factors.
• The investment is undervalued & has a NPV of more than 150 million according to DCF valuation. • A detailed explanation about the business model of the company & the risks
associated with it.
137
RAMJAS
SOCIETY
Financial Exhibits
EXHIBIT 1 EXHIBIT 3: Financial Indicators

Data Value Parameter Value
Total agricultural output in India $400 billion Risk Free Rate 6%
Percentage of agricultural output influenced by Agritech 10% Beta 1.2
Growth rate of agricultural output in India 5% Market Return 12%
Growth rate of Agritech sector in India 6% Market value of equity $40 million
Total amount of crop residue generated in India 500 million tons Total Market Value of the company $50 million
Percentage of crop residue converted into repurposed materials 10% Cost of Equity 15%
Growth rate of crop residue generation in India 3% Debt $10 million
Growth rate of repurposed materials market in India 4% Cost of Debt 10%
EXHIBIT 2: Cash Flows Tax 25%
Year FCF ($ million) Discount Factor Perpetual Growth Rate 5%
1 5 .909
2 10 .826
3 15 .751
4 20 .683
5 25 .621
Total Value 250 .621

138
MERGERS
&
ACQUISITIONS
CAREFUL (1/2)
RAMJAS
M&A Due Diligence CONSULTING
SOCIETY
Your client is a RootNet, is the largest telecom player in the world. The client has identified a We should further judge the competency and capabilities of our bidders to understand where could we
particular arm of the business in a specific geographical location which they want to sell. They have a synergistic handover with reduced transfer costs..
want us to conduct a due diligence study. How would you approach this and what would your
After deciding on selling a majority stake while still holding 49% of the unit what would be the next
considerations be?
step towards completing the sell off?
Sure, I would like to begin with breaking down the analysis into 3 sections- Internal Analysis, Sell
We would next consider our deal execution and implementation considerations.
Options, Deal Execution and Implementation. I would like to know more about the client.
We need to categorize components of our business into critical and noncritical, setting aside the critical
Ok sure, please go ahead part which cannot be transferred to the buyer.
We the need to consider the needs of the acquirer and what they require in maximizing their business
Yeah, so I’d like to start with internal analysis. I would like to understand what is the issue that is
benefit. Finally, the staffing and organization restructuring needs to be implemented. Emphasis needs
causing the client to sell of a business unit- is it based on external or internal factors?
to be on ensuring transparency for all stakeholders.
So, the client is looking to sell off their Indian business unit. While the unit has been extremely
Thank you for your approach, I think we can end the discussion here.
profitable, recent government regulations are favoring its Indian Competitors, who are able to
offer services at comparatively lower prices. Company does not expect the policy to change
anytime soon and sees stagnant growth going forward.
So, I understand this decision of theirs is supported by external factors such as government policies
and competition’s pricing, leading to lower growth. Can I understand the client’s capabilities in this
region?
The client owns multiple offices across the country, in Pune, Gurgaon & Bangalore. They have all
necessary compliances and contracts to run business for the next 3 years, with all standard
equipment required in this business.
Now that I have a clear idea of the client’s reasoning behind selling and its capabilities, I would like
to understand the sell options the client has.
The client has multiple competitors & new entrants bidding on various percentages of majority
stake ownership and the client needs to decide the best of options to sell.
Considering that the unit has been profitable before the new regulations, the client should look at
the market economics and growth potential to understand what percentage of minority ownership
would they like to retain.
Apart from ownership stake, the client needs to consider the capabilities and assets it owns and
what would provide the best deal value.

139
CAREFUL (2/2)
RAMJAS
M&A Due Diligence CONSULTING
SOCIETY
The client has identified a particular arm of the business in a specific geographical location which they want to sell. They want us to conduct a due
diligence study. Devise an approach for this and highlight considerations for this?

• Client is the largest telecom
player in the world. Proposed Analysis
• Recent changes in government
policies have strengthened the
position of the competitors.
Internal
• Multiple bids were offered for Sell Options Deal Execution
buying the unit/ stake in the unit,
Capabilities
however the company chooses to
retain the minority stake of 49%.
Operational Assets and
Concerns Liabilities Market Economics Asset Division
Internal External Human Capital

Concerns Concerns Deal Value
Restructuring

• Ensuring capability, competency and synergy in business with the new acquirer. • Knowing the sell side due diligence framework
• Ensuring complete transparency with stakeholders during the process. • Suggesting acquisition by an experienced player, to back company’s growth.

140
TURBOTHRUST (1/4)
RAMJAS
M&A Market Expansion CONSULTING
SOCIETY
Your client is a major Aviation MRO service provider with the highest market share in Japan. Due to This seems quite comprehensive, you can refer 1 to this Exhibit to perform your analysis.
limited geographic presence, the client has faced challenges in scaling their business beyond Japan. Market Size: The current share of the Indian MRO Market is significantly disproportionate as it
They are seeking your expertise to assess their strategic fit, and develop a comprehensive M&A accounts for 0.25% of a $400 Billion Market which is a mere $1 Billion. However, the upside to the
strategy that aligns with the company's growth objectives and enhances its competitive position in given metric is that India’s re-positioning to the forefront of global economic influence and heavy
the market. investments in infrastructure can possibly unlock the market’s potential in the Indian Geography.
Before moving forward, I would like for some case facts to be validated. Serviceable Market: The serviceable market in India is at par with the state of the fleet sizes of
• The Nature of Business for our client is Maintenance, Repair, and Overhaul services to Aircraft Japanese Airlines. In addition to this, a 300% increase in the Indian fleet size can be witnessed in the
operators. The existing operation base for the client lies in Japan and they are looking to explain short run with 3x aircraft orders compared to the existing fleet.
their operations overseas strictly through an M&A. Market Dynamics - The market is extremely fragmented with 8+ major players, and no specified
• The end customers for our client are Aircraft Operators including Airlines and Private Jets market leader which leaves a lot of room for a well established MRO service provider to disrupt the
Operators including Individuals and Corporations. market.
• The client is a market leader in the existing geography. Do they have target geographies which are Aircrafts per Hub - India has two major MRO hubs - Delhi and Mumbai, compared to other geographies
being considered for the expansion efforts? such as Germany and UK with similar fleet sizes, these countries have several hubs which would imply
The client’s scope of operations has been rightly pointed out. Their expansion thesis indicates an the initial CAPEX for setting operations would be relatively high compared to India. The Aircrafts per
inclination towards an M&A, however, other means can be considered. The majority of the client’s hub for the Indian Market post delivery of the orders would be 1230.5 Aircrafts per hub.
That is an insightful market analysis. You can move on to discuss the various means of entry for the
customer base is Airlines with a marginal share of Private Jet Operators which can be overlooked for
client in the Indian Market.
the purposes of this discussion. The company is a market leader in Japan in terms of Net Sales. They
have identified India to be a suitable expansion target, however, insights to substantiate or refute Surely, given the underlying facts about the client’s operations, I would classify the different means of
the same can be considered. entry into Organic and Inorganic with the following assessment.
Organic: Higher CAPEX require, Compliance fulfillment, No expertise of the Indian Market, Longer
Alright. I would like to follow the following structure to come up with an M&A Strategy for the
breakeven period
client.
Inorganic: Lower CAPEX, since the Indian counterpart has pre-owned assets, No compliance, Shorter
• Market Feasibility of the Indian Market
breakeven, Support by the Indian counterpart with expertise in the Indian Market
• Assessing means of entry for the client
Considering these parameters, an Inorganic entry through a Merger or an Acquisition would be the
• Analyzing the Financial Considerations of the most suitable means
most suitable mode of entry for the client.
• Deciphering synergies for the client in the given market and with the given mode of entry
Alright. We have financial data to evaluate the most suitable mode of entry for the client.
That seems to be a fair approach. You can start with the Market Feasibility and highlight the key
areas you would like to assess. The Financial data suggest the ROI of the Organic venture to be about 55% and that of the inorganic
venture to over 135%. The return on total assets for the organic venture is about 18% and 24% for
Sure. I would like to assess the market across four fronts. First, I would like to understand the market
the inorganic venture with the delta between total assets in the two scenarios being $1200 Million.
size of the Indian MRO market. Second, I would demarcate the serviceable market that the client can
Considering all three parameters - Return on Investment, Break Even Period and Return on Total
cater to. Next, I would use the insights from the initial two metrics to quantify the customer base for
Assets, Inorganic entry through a Merger seems to be the better option.
the client in India. I would conclude this segment by discussing any remaining qualitative market
dynamics and trends.
141
TURBOTHRUST (2/4)
RAMJAS
SOCIETY
What according to you is the key metric that renders a merger to be a better route of entry and the encompassing Human Capital, SOPs, Identifying key decision making areas for each of the two entities,
rationale for it to be the final recommendation? Establishing a Governance structure and Change management plan.
Great, we can close the case here.
The Organic venture has an exorbitantly high fixed cost (75%) compared to about 62% in an
inorganic venture, which can be attributed to the following factors - Thank you
1. Barriers to entry for a foreign MRO service provider
2. Lack of pre-existing contracts, vendors, labour, facilities, etc.
Agreed. This is quite a comprehensive analysis, would you like to conclude the case by identifying
any synergies?
Yes, I can foresee 3 synergies which the client can benefit from via an Inorganic venture.
Strategic Geographic Advantage - Most Indian airlines have Japanese Hubs as their destinations,
while most Japanese clients of our company have Indian hubs as their destinations. This provides an
operational synergy wherein Japanese aircrafts can undergo Maintenance and Repair at Indian hubs
and vice versa.
Operational Linkages - Due to pre-existing operations of the Indian entity, several fixed costs and
variable costs are lower compared to an organic venture.
Blue Ocean Strategy - The MRO Market has never seen M&A activity of such scale, a strong foreign
company joining hands with an Indian player implies cost leadership and advantage due to the
Indian entity and Innovation and repute of the Japanese entity.
Can you also identify some risks associated with this deal and how can we mitigate them?
As for the risks, I would segment them into the following:
Market Risk: Barriers to entry for a foreign player, aggressive response to the entry by existing
competition, price war, currency fluctuations.
Technological Risk: Sector wide disruption in technology, bridging technology and skill gap between
Indian and Japanese entities.
Post-Merger Integration Risk: Managing cross border operations in varied markets, streamlining
operations in different stages of business life cycle, people and culture challenges.
Operational Risk: Infrastructure gaps, supply chain and logistics
considerations, operational regulatory and compliance challenges.
As for the mitigation to the given risks, the former two pose a significant threat to the client,
however, they hold very slight scope of occurring - post our analysis of the market. While, the
latter two can be addressed through effective post-merger integration efforts

142
TURBOTHRUST (3/4)
RAMJAS
SOCIETY
Your client is a major Aviation MRO service provider with the highest market share in Japan. Due to limited geographic presence, the client has faced challenges in scaling their business
beyond Japan. They are seeking your expertise to assess their strategic fit, and develop a comprehensive M&A strategy that aligns with the company's growth objectives and enhances its
competitive position in the market.

• The client is an Aviation Proposed Deal Analysis
MRO Service provider
based in Japan. The
company being the market Market Financial
Mode Of Entry Synergies Risks
leader in Japan wants to Assessment Assessment
expand to other
geographies.
• The key customer base for Market Size Return on Strategic Market risks
the client is Airlines. Organic Geographic
Investment
• India has been considered Advantage
as a suitable expansion
Serviceable Market Technological Risks
target. With an expected
Operational
fleet size growth of 300% Break Even Period
Inorganic Linkages
in the short run. Post-Merger
Aircrafts per Hub
Integration Risks
Return on Total Blue Ocean Strategy
Assets
Market Dynamics Operational Risks

• An Inorganic Market Expansion arising due to the delta in the fixed costs between Organic and • Post merger operational synergies
Inorganic ventures. • Fleet mapping with other countries
• Impactful operational and market entry synergies such as cost leadership, lower CAPEX, etc. can
be established with a merger in the Indian MRO space.
143
TURBOTHRUST (4/4)
RAMJAS
SOCIETY
Financial Exhibits
EXHIBIT 1: Fleet Size of the Indian Aviation Industry

Airline Current Fleet Orders
Air India 127 442
Air India Express 31 46
Akasa Air 20 56
Go First 54 88
Indigo 336 964
Spicejet 29 199
Vistara 64 5
Total 661 1800
Total 2461
Market Size - Global MRO Market $400 Billion
% of Indian Market 0.25
EXHIBIT 2: Project Financials (in $ Million)

Metrics Organic Inorganic (Merger)
Total Assets 1800 3000
Revenue 1650 2400
Fixed Cost 1250 1525
Variable Cost 0.45 0.40
Aircraft Servicing Capacity (Annual) 150 325
CAPEX 600 550

144
VR FROM TEXAS (1/5)
RAMJAS
M&A Valuation CONSULTING
SOCIETY
Your client is a team of young coders, who are designing a social media as a response to the Through this game, different leaderboards will be maintained, at the regional, national, global and
MetaVerse. The social media giant Famebook is moving towards creating a virtual reality, these community level. The points earned by a player is proportional to the number of people they
coders aspire to promote more physical touch in this generation. Calculate the serviceable and meet. A certain number of points earned can be converted into cash to be redeemed via in app
target market size of their product considering the whole social media audience. purchases or other purchases. To provide a holistic experience in the entire process, the company
Famebook offers 100 million in the beginning of this year for acquiring a 90% controlling stake. has its own experience centers where players can meet to experience the trending games and
Should the founders be comfortable in selling the company and if not, how much should they ask have playoffs in AR-VR mode. These experience centers will also act as the meet up hubs for the
for instead? application users.
I would like to begin by asking some clarifying questions about the client. Now I’d like you to estimate the target market size of our client’s product.
Sure, go on. Taking into consideration that the product is launched in the US only, we’ll begin by dividing the
What is the history of this team of coders and where is this company based out of? population of the US on the basis of age. And since the population below 18 years of age is not our
The founders are experienced graduates in CS and AI. The company is currently operating in the target market, dividing the remaining population among the age brackets of 18-30, 30-50 & 50+, gives
US and they started off the venture out of Texas. us the total addressable market as 26 crores. Now we’ll divide the population among these respective
age brackets on the basis of internet availability and compatible devices.
What is the capital composition like for the startup? Are any of the founders looking to exit?
The startup is completely bootstrapped and the 3 co-founders have equal stake till now and none of What do you mean by compatible devices?
the founders is planning to exit from the company. By compatible devices we mean smartphones, PCs, laptops, tablets, etc. electronic devices which are in
What is the vision of the product and services provided by the startup? a working condition for any social media app to run. Now assuming that the younger population has
In times when virtual reality and technological takeover has made it so easy to communicate and smart devices in better proportion as compared to the elder population, we get the Service
interact, the company envisions to promote and propagate the importance of physical touch. Their Addressable Market as 21.9 Cr.
motive is to popularize the concept of meeting people in person. Is that the final target market?
What is the target population for this product? And how does the product function? Now, for the final target market, I’d like to further narrow down the service addressable market by
The target population is the proportion of people above the age of 18 years having internet and taking people who use at least one social media, into consideration. Dividing the respective age
internet compatible devices. The product is an application having two main verticals. The first brackets further according to this, gives us the Service Obtainable/Target Market as 17.1 Cr.
vertical is a preference based chatting platform, through which people can connect with more
The target market estimation makes sense. Now how will you judge this deal?
people having similar interests, liking and choices - in terms of movies, music, hobbies, art,
professions etc - either through group chats or personal messaging. Further post a fixed number of Since the target market is sizable, the market attractiveness of the product is good. I’d like to judge the
hours of chatting, the app locks the chat and unlocks when you meet one of the people you are financial attractiveness of the deal and for that I will have to understand the objectives of the acquirer
chatting with and post a real time picture with them. & whether it is aligned with our client’s business objective or not.
Sounds interesting, what is the second vertical of this application? Sounds good, but we have no information on the objectives of the acquirer.
The other vertical targets the younger population, people around the age of 16+. Under this vertical In that case, I’ll start analyzing the synergies that can exist between the acquirer and our client.
the company launches new trendy games every two months which can be played by people across From the acquirer’s point of view, it will get access to both the online as well as the offline market of
genders and ages. our client.
145
VR FROM TEXAS (2/5)
RAMJAS
SOCIETY
Offline famebook stores will be used to make the target population know more about Meta Verse, From the given information, I can only interpret that the scarcity of options, lack of prior experience
and in addition it will help in upselling the meta products at these places, which is the acquirer’s and being a Texas-incepted company, away from the hustle-bustle and start-up hot spots such as
objective. From our client’s point of view, the geographies & the customers of our client & the California, could be a reason why Famebook pegged an unfair multiple to the company. Given the
acquirer are complimentary, which will act as a revenue synergy. above mentioned synergies, this point of location bias becomes even more stronger.
Alright, and are there any risks associated with this acquisition?
Okay, can you delve deeper into the second factor while considering financial attractiveness?
Yes, the major risk is that the acquirer will be getting a 90% controlling stake in our client’s
Yes sure, the second factor which I’d like to consider is the growth of the company post acquisition,
company. This handcuffs our client from running the company as per their own vision. Also there
which I believe I have covered through the explanation of synergies earlier in the interview. The
will be an emotional risk associated with this acquisition.
synergies are clearly outweighing the risks of the acquisition, and our company’s offline meeting points
Is there anything else that you’d like to analyze to judge this offer ? might as well serve as experience centers for Famebook’s VR gadgets
Lastly, I would like to weigh the deal on its financial attractiveness. This can be further broken down Okay, why do you think you should be concerned by the growth of the startup after its acquisition?
into 2 aspects, the valuation we are currently getting for the deal, and the growth prospects going
It is important to consider this aspect, as the founders are still retaining a minority stake of 10% in the
ahead.
company post-acquisition.
Okay, to be able to analyze the financial attractiveness, please refer to exhibits 1 and 2 and tell me
what you are able to judge from the same. Recently a report stated that 50% of the tech-founders aren't able to take their company to IPOs and
Exhibit 1 shows details of revenue and the valuation at which they were bought by Famebook, in take a backseat within 3 years of inception. Could you state reasons behind the same, and also why
the past 15 years. From quick math, I can judge that Fintagram was given a multiple of 12, would they want to retain a minority stake in the company?
Yopipe 14.4, VROculip 12.5, ChatsApp 11.3, and a whopping 16 to Vreels, its most recent I believe the M&A activity in this field has increased manifold, and tech startups being boundary-less
acquisition. and innovative, are quick to grow. The point is proven quickly, owing to the seamless reach and the
Okay, what can you figure out from the second exhibit? bigger players are keen to fuel the growth, or eliminate their competition through the mergers and
Second exhibit has the details of revenue and valuation at which competitor firms were acquired. acquisition of these companies.
Meet & Greet was given a valuation of 3 times its revenue, Let’s meet was given a valuation of 12.5 This could be one reason why founders take a back seat and sell their company for a hefty valuation.
times its revenue, Off-time was given a valuation of 15 times its revenue, Parkway 12.7 Times and The others could be more qualitative such as getting too passionate about the project, which might not
Game-off 13.3 times the revenue. be economically viable, and hence giving up the power position under duress from investors.
Okay, now, what would you conclude from this data set? There could be multiple reasons for the same, such as benefiting from the growth of the company, on
Referring to Exhibit 3, it is pretty clear that our business model is very close to what Game-Off’s was, the backing of acquisition by the largest social media player. While, the giant might want to retain the
hence our valuation multiple’s base should be nothing short of 13.3. On the upper side, given co-founders, as they seem to be the best fit to run the company, and a minor stake being the best
Famebook’s recent acquisition, Vreels, 16 seems to be justified too. Hence, I would like to conclude manner to compensate them for the same.
that the company should be valued anywhere between $133 Mn on lower side to $150 Mn on Alright, this seems satisfactory, you may leave now, thank you!
upper side. Historical data of acquisitions made by Famebook and the acquisition deals of similar
firms, both point out to the fact that our company is being given an unjust valuation multiple.
Okay, can you give reasons for the same?
146
VR FROM TEXAS (3/5)
RAMJAS
SOCIETY
Your client is designing a social media as a response to the Metaverse. Calculate the serviceable and target market size of their product considering
the whole social media audience.

• A team of coders based out of
Texas has developed an Proposed Deal Analysis
application to popularize the
culture of meeting people.
• Famebook offers to acquire the Client Acquirer Financial
startup at $100 Mn, for a 90% Risks
Synergies Synergies Attractiveness
controlling stake.
• The product has two aspects –
one targeting the older
population around 30+ and the Customer
Complimentary Customer
Access to Online & Customer
Revenue Founders losing
other targeting the GenZ StudyBase
Customer Study
Offline Customers Study Customer
90% controlling
population which involves Study
stake
engagement through games. Product Synergies
Customer
Revenue Customer Customer
• The company has experience with Experience Valuation
Study
Synergies Study Study
centers where people can meet Centres
and experience the games in AR
LossCustomer
of Vision for
–VR. Customer
Industry Customer
Competition Customer
Post Acquisition the Study
company
Study
Experience Study
Disruption Study
Growth

• Comparing the past acquisitions by Famebook, the multiple offered is significantly lower. • Estimating the range for the acquisition value using precedents.
• The deal value should be between $130Mn to $150Mn • Analysing the potential future synergies with regard to product
• The product synergies create great revenue and adaptability prospects for both the client and enhancement.
acquirer.
147
VR FROM TEXAS (4/5)
RAMJAS
SOCIETY
Guesstimate
Total Population = 35,00,00,000

Dine-In Estimating the people using at least one social media
Age group 18-30 30-50 50+ as % of the respective age 90% 80% 65%
group
% 20% 25% 30%
Total (in cr.) 6,00,00,000 6,30,00,000 4,80,00,000
Total
Total 7,00,00,000 8,75,00,000 10,50,00,000 SOM 17,10,00,000
Total
as % ofTotal
the respective
(in cr.) age 95% 90% 70%
group
SAM 6,65,00,000 7,90,00,000 7,40,00,000
21,90,00,000
Assumptions
• Assuming the population of US to be 35 Crores Scan the QR
Code to access
• Not targeting the population in the age group below 18 and assuming they form 25% of the total
the
population of US Guesstimate
• By compatible devices we mean smartphones, PCs, laptops, tablets in a working condition for the Spreadsheet
social media to run

148
VR FROM TEXAS (5/5)
RAMJAS
SOCIETY
Financial Exhibits
Exhibit 1: Fame Book's Previous Acquisitions

Particulars 2018 2018 2019 2021 2022
Company Fintagram Yopipe VROculip ChatsApp Vreels
Revenue $100 Mn $90 Mn $200 Mn $150 Mn $500 Mn
Valuation $1.2 Bn $1.3 Bn $2.5 Bn $1.7 Bn $8 Bn
Exhibit 2: Historical Deals of Competing Firms/Similar Firms

Particulars 2017 2022 2022 2022 2023
Company Meet & Great Let's Meet Off-time Parkway Game-off

Revenue $ 1 Mn $ 1.2 Mn $ 0.8 Mn $ 11 Mn $ 9 Mn
Valuation $ 13 Mn $ 15 Mn $ 12 Mn $ 140 Mn $ 120 Mn
Exhibit 3: About the companies

Meet & Great Chatting & planning celebrations
Let's Meet Friend's chatting & planning application
Off-time Creating off-site/fun act. with colleagues
Parkway Offline date setting application
Game-off Organise offline gaming meet ups

149
TIME-2-RENT (1/6)
RAMJAS
M&A Investment Analysis CONSULTING
SOCIETY
Your client is a vacation rental company focused on short-term homestays and experiences. They Synergies and fit - Advantages or opportunities that the company will have after this acquisition.
have been growing in India but are looking to localize their company in the Indian markets. The Risks - Any potential risks that need to be taken into consideration before going with the acquisition.
management is looking at potential merger & acquisition activities for the same. You’ve been on- Okay , fair enough, you can start with the financial analysis.
boarded as a consultant, and the client wants you to advise them on their M&A plans. Okay, so to calculate the financial attractiveness, I’ll start with the estimation of market size of the
Alright, I would like to understand the client and the problem statement a little better. accommodation industry in tourist spaces. If the addressable market is in line with our clients' line,
• Do they have any specific targets in terms of revenue growth or is it for a strategic motive then I can do payback period analysis for the acquisition and can compare it with the industry
• What do you mean by localizing the company? standards.
• Do they own these places or just act as aggregator? Fine go ahead with your approach for estimation of the market.
They do not have any specific target in mind. They are just looking to expand their business in So to initiate my calculation, I’ll start with places and then I’ll multiply it with such tourism spots
India localizing here means improving our foothold in semi urban areas i.e., increasing reach and across India. I’ll bifurcate these spots into three types. Spots with high, average and low footfall.
accessibility to the customers. The client owns a chain of 50 vacation spaces around India that These spots will be mainly focused upon eco, adventure, cultural and wildlife tourism . Then, after
offers short stay. taking peak season into consideration, I’ll calculate the yearly footfall at these places. Post that I’ll
add a filter of the percentage of people that will be using the rooms and the number of rooms that
What is the location of these vacation spaces and what are the most prominent customers of our will be required by 2 individuals.
client? Okay, why have you taken rooms requirement according to 2 individuals. Nowadays there are a lot of
Out of the above 50 spaces, 45 of them lie in Tier 1 cities and the rest are spread across Tier 2 and people who travel solo and don’t share room with anyone.
Tier 3 cities. 65% of our customers are people who prefer to stay in low-cost accommodations.
According to my assumption, the chunk of people travelling alone or solo is less, only 4-5% maybe
Also do we have any particular companies in mind that we can acquire? and people prefer to travel along with friends and family, so in order to average it. I have taken it to
Yes we have a prospective company in mind for acquisition, Zosle. be 2.
Okay fair enough continue with your approach.
Okay, can you give me the details about Zosle and how are we going to finance the deal?
Now I’ll take into account the duration of the stay of these travelers, because people try to travel to
Zosle leases rooms and sell them under its brand name. They renovate the places according to its
these places over the weekends or on some long holidays. I have divided their stay duration into 1, 2
checklist of standard services and make the property a part of its “standardized budget staycation
and more than 2 days of stay. Given the spending nature of Indians, as they will be the major
chain". The main target customers for them will be the tourists that are looking for budget-friendly
constituents that will be coming to these places, they will try to make their accommodations
stays. They are looking to be acquired for Rs. 120 Cr. This will be an all-cash deal. These are all the
details. Now you can start with your structure:- economical. So I have assumed around 60% of these will be using budget friendly accommodations
within 10 sq. km of area. Post this I’ll assume an average price of Rs. 1500, Rs. 1250 and Rs. 1000 for
So, in order to evaluate an acquisition, I would follow this 4-legged approach. one night stay.
Financial feasibility - Here I would calculate the profitability value of the project using the NPV
method or whether the acquisition results in accretion of EPS. Operational feasibility - Challenges So how would you estimate the number of such spots across India? Also, it provides me with the final
amount of market size too.
and problems that need to be tackled to undertake the entire process.

150
TIME-2-RENT (2/6)
RAMJAS
SOCIETY
Since the total area of India is around 3200 sq km with 29 states and 8 Union territories in India , The first risk that is associated with this deal is lack of standardization in due time of the properties
I’ll assume the average size to be 100 sq km., (Approximately-3000 sq km/assumption of 29 that would come with this acquisition. The user experience might get affected if due attention is not
states). That is almost equivalent to the area of Telangana, taking it as a reference for the number given to the process. Another issue that might arise is the integration challenge as a post merger
of tourist spots. Similarly I’ll assume the average size of UT’s to be 40% of state. After plugging the integration is essential to synergize the work of both companies.
numbers into the above filters the market size comes out to be around Rs. 20000 crores for
Okay, you can close the case now.
affordable accommodations.
Okay the market size number looks fine. Let’s say that Zosle will have a market share of 0.5 % as it
will face high competition from organized and unorganized segment going forward. Do payback
period analysis from this information . Given that industries standard payback period is 10 yrs.
So, with 0.5 % of the market share, our revenue would come out to be around the 100 Cr and
since peers such as the poyo have a profit margin of 15%, we can assume the same for Zosle too.
Therefore, the profit comes out to be 15 Cr and the cost comes to be 85 Cr. Assuming that the cost
and revenue structure will be same for the next 10 years. The payback period would be 8 yrs. So
this makes our deal financially attractive.
While going forward, what do you think could be the potential synergies of this acquisition?
Along with having access to new customers, this acquisition would provide us with a cross-selling
opportunity in terms of pushing our staycation packages of far-located spaces to the customers.
While going forward, we can also advertise and brand Zosle under our brand. This would reduce
the marketing spends of the acquiree company.
Can you list some other benefits that the company can get out of this acquisition?
Since Zosle follows an asset light business model, a franchise-based business will help in avoiding a
lot of major costs i.e., maintenance cost, licensing cost , etc.
In future, the expansion plans will become much easier for clients. It will also provide you with an
upfront cash payment while signing new businesses (staycation places) that will improve the cash
position of the company. It will also help in avoiding unnecessary legal compliance and red tapism
that is involved during the acquisition of land.
What do you think would be the risks associated with this acquisition?

151
TIME-2-RENT (3/6)
RAMJAS
SOCIETY
Your client is a vacation rental company focused on short-term homestays and experiences. They have been growing in India but are looking to
localize their company in the Indian markets. The management is looking at potential M&A activities for the same.

• Overview - Client is a vacation Acquisition
rental company in India who is Analysis
looking to localize the company
in India. Synergies and Fit Financial Attractiveness Operational Feasibility Risks
• Current Scenario – They own 50
vacation spaces in India. Market size of affordable Facilitates future
• Way ahead – Looking to Revenue Cost accommodation ₹20,000 Lack of standardisation
expansion
expand through a potential crore
M&A activity. Cross Selling Reduced Marketing
Zosle Revenue =100cr Increased cash flow Integration Challenges
Opportunity Spend
Profit Margin =15% Cost saving Overestimating possible

synergies
Profit = 15cr Cost = 85cr
Industry standard payback

Payback period 8 years
period 10 years
Deal is financially
attractive

• The Client is advised to go forward with ZOSLE as the potential synergies that come with the • Assessment of financial attractiveness through buy back period analysis.
acquisition are in line with the client’s interest. As, the deal is financially attractive too. • Taking different prices into consideration for economical accommodations
across India.

152
TIME-2-RENT (4/6)
RAMJAS
SOCIETY
Guesstimate
Particulars
Division of tourist spots High footfall Average footfall Low footfall
People using accommodation at the

Monthly visitors 100000 60000 30000 70%
places
Total visitors yearly 1200000 720000 360000

Affordable accommodation pricing 1500
Visitors after taking peak

1500000 900000 450000
season into consideration High footfall tourist spots on an
3
average in a state
Number of people that will be using accommodation places-70%
Average footfall tourist spots
People using accommodations 1050000 630000 315000 10
on an average in a state
2 individuals will be sharing a single room
Low footfall tourist spots
Required Number of rooms 525000 315000 157500 20
on an average in a state

153
TIME-2-RENT (5/6)
RAMJAS
SOCIETY
Guesstimate
1 night stay 2 night stay 2+night stay 1 night stay 2 night stay 2+night stay
No. of days Stay No of days Stay
and percentage wise 50% 35% 15% and percentage wise 55% 35% 10%
allocation allocation"
262500 183750 78750 173250 110250 31500
Percentage of people using affordable accommodation within 10 square
Percentage of people using affordable accommodation within 10 square Km of area-60%
Km of area-60%
Number of people in
People in pairs using affordable 103950 66150 18900
pairs using affordable 157500 110250 47250 rooms
rooms Average per night cost for economical accommodations -Rs 1250.
Average per night cost for economical accommodations -Rs 1500
Revenue Generation 129937500 82687500 23625000
Revenue Generation 236250000 330750000 212625000
from affordable from affordable
accommodation yearly 779,625,000.00 accommodation yearly 236,250,000.00
High footfall tourist spots on an average in a state-3 Average footfall tourist spots on an average in a state 10
87 290
High footfall tourist spots on an average in a UT-1 Average footfall tourist spots on an average in a UT-4
8
32
Total high footfall tourist spots in India
Total average footfall tourist spots in India
95
322
Market size from high footfall tourist places
Market size of average footfall tourist places
74,064,375,000.00 76,072,500,000.00
Rs. 74,000 crore Rs. 76,000 crore

154
TIME-2-RENT (6/6)
RAMJAS
SOCIETY
Guesstimate
1 night stay 2 night stay 2+night stay

No. of days Stay
and percentage wise 60% 35% 5%
allocation
94500 55125 7875
Percentage of people using affordable accommodation within 10 square
Km of area-60%
Number of people in
pairs using affordable 56700 33075 4725
rooms
Average per night cost for economical accomodations-Rs-1000.
Revenue Generation Total market size of affordable accommodation -
from affordable 56700000 49612500 7087500
Rs. 223,166,475,000.00
accommodation segment (Approximately- Rs. 20,000 crore)
yearly 113,400,000.00
Low footfall tourist spots on an average in a state 20
580
Average footfall tourist spots on an average in a UT-8
64
Total low footfall tourist spots in India
644
Scan the QR
Market size of low footfall tourist places
Code to access
73,029,600,000.00 the
Guesstimate
Rs. 73,000 crore Spreadsheet

155
UNCONVENTIONAL
VERSE VOYAGE (1/3)
RAMJAS
Unconventional Distribution CONSULTING
SOCIETY
Your client Alfred Schulz is a poet who has a collection of poems that he wants to publish. The Segmenting the potential customer base, we identify loyal, regular, and occasional buyers. All
collection is his life's work including Limericks and Satires and this is his first time introducing segments exhibit price sensitivity. Proceeding to distribution channels, the poet has primarily utilized
sonnets. He is confused as to whether he should publish it in a physical form, publish it online, or bookstores and Amazon, with Amazon being the predominant source of sales. Does the poet face
curate an app exclusively to publish his poems. Consult him to make a suitable decision. Is the case strong competition from different authors or poets?
problem clear to you? There are a few competitors in the same genre, but our client holds the highest renown. Competitors
Yes it is, Could you elaborate on the poet's body of work and the types of poetry collections they deploy channels like bookstores, E-Commerce, and blogs for publishing.
plan to publish? Okay, so as we move forward, let's categorize our exploration into revenues, costs, reach, pace of
Of course, It's advised that you note these down. reach, and feasibility across different avenues. I'll go with the three avenues available to us – Blog,
The poet has a diverse collection spanning across various genres curated over his career—about 50 App, and Book.
poems intended for publication. The startup costs for a blog are minimal and if we get the right kind of reach, we can have maximum
What level of involvement does the poet seek in the publishing process? revenue. Revenue streams for blogs will include two components which are Number of clicks per ad
and Number of views. The costs will include Site costs that are setting up costs of sites and inorganic
The poet is amenable to various publishing alternatives and desires active engagement in the growth/online marketing costs, in case the poet wishes to market inorganically in order to increase his
publishing process. He wants to be involved or at least be aware of the entire process considering reach. Should I go ahead with the app and the book?
the collection and how it is addressed to the audience, means a lot to him.
Yes please do.
Okay. How has the poet's past financial performance been with their publications?
App is a very popular stream nowadays. Revenues will again include Number of clicks per ad and the
Historically, the poet's publications have demonstrated decent financial performance, but there is
an aspiration for increased financial returns with the forthcoming collection. Number of views. Additionally, premium model of the app, subscriptions, purchases will lead to
revenue generation. Costs include Setting up costs, inorganic growth or marketing costs, costs to the
Has the poet collaborated with publishing companies or pursued self-publishing developer, Freemium model costs.
The poet has opted for self-publishing for their books of poems in the past. Revenues of books include Royalties, Selling price of books sold according to the quantity. The costs
How has the poet's market presence been historically? include publishing costs incurred and commission to the publisher.
The poet's poems have been well-received by customers in the past, establishing a noticeable Which one do you think is the most feasible and which one should the poet go ahead with?
presence among readers, particularly in the field of Satires. Considering these avenues, the app emerges as the most feasible due to its extensive reach, cost
How renowned is the poet's work? efficiency, and potential for categorizing diverse poems.
The poet is highly esteemed, especially for their satirical works, enjoying substantial recognition in Agreed. The app's freemium/premium model aligns with the varied genres and offers superior reach
the literary landscape. compared to a blog or traditional book.
Considering the poet's profile, I'll note down a set of assumptions. The initial assumptions involve The app with an average of 150,000 subscribers, a 10% conversion to the premium version would
an audience appreciating wit, social commentary, and a nuanced understanding of human nature. yield 15,000 monthly subscribers, resulting in an annual revenue of 15,000,000. With annual costs
However, the poet is open to exploring new demographics and genres like narrative poetry. Can I amounting to 4,500,000.
go ahead with these?
The app it is, then. Thank you for your thorough analysis and guidance.
Sure. Go ahead.
156
VERSE VOYAGE (2/3)
RAMJAS
SOCIETY
A poet is unsure whether to publish his collection of poems physically, online, or through an exclusive app. Help him decide on the most
suitable option.

• The poet has a collection of 50
poems that he wants to
publish.
Collection of Poems
• The poems belong to different
genres.
• He’s well known for Satirical
Poetry. He’s been writing for 20
years.
App Blog Book
• The three main avenues are:
Book, Blog and App.
• The target audience is not
specific to particular age Revenue
groups. Revenue
Customer Revenue
Study Subscriptions
Royalties, Selling price and
Clicks per ad, views, Clicks per ad, views
• The poet hopes for increased quantity
financial returns with the
forthcoming collection. Cost Cost
Cost
Setting up, Inorganic growth, Setting up, Running, Inorganic
Publishing costs, commissions
marketing, developing growth, marketing costs

• App is the most feasible option out of the three owing to its minimal costs and higher reach. It is • Using the 3CP framework
widely accepted, user friendly and can integrate different poets on the platform in the future. • Storytelling feature and Possible AI feature in app.

157
VERSE VOYAGE (3/3)
RAMJAS
SOCIETY
Financial Exhibits
EXHIBIT 1: Reach and Costs

Platform App Blog Book
Reach 50,000-2,50,000 25,000-75,000 5,000-25,000
Costs Rs. 3,50,000-4,00,000 Rs. 1,000-3,500 per month Rs. 1,40,000-7,00,000
Revenue (without ads) Rs 1000 annually per subscriber 0 Rs 450 per book

158
THRILL ALLIANCE (1/3)
RAMJAS
Unconventional Public Relation CONSULTING
SOCIETY
Alright. Here is a list of potential brand ambassador names for your analysis:
Your client, Move Pro, a leading foreign company with a portable action camera, aims to establish a
strong presence in India. They are currently in search of a brand ambassador. Assist them in C (New age actor
identifying an ideal candidate for the role? A (Veteran actor - known
Actors B (veteran versatile actor) known for fitness and
for action films and fitness)
I would first like to understand more about the company and the product. action)
D (Cricketer, having most
Move Pro is a US based company. It makes action cameras which are known for their compact Sportsperson E (Chess Grandmaster) -
Instagram followers)
design and high-quality video recording capabilities. They are ideal for capturing adventurous
activities and sports, being durable, waterproof, and equipped with features like wide-angle lenses F (Travel and fashion blogger, G (Travel and lifestyle
and advanced stabilization technology. Influencer -
also recently doing films) blogger for last 10 years)
I would like to know what is their goal of entering India and why is there a need for a brand I (Fitness, health and gym J (Budding fitness
ambassador. Fitness H (Wrestler-turned-fitness
expert with 26 years of entrepreneur and
Enthusiast icon)
The primary goal is to earn profit. By having an ambassador the company aims to enhance brand experience) youtuber.
awareness and boost sales. To identify the best candidate, I would divide my analysis into two parts - qualitative and quantitative
Who is the target audience and what characteristics should this brand ambassador possess? analysis. First, we can use qualitative factors like endorsement of competitor's products, PR &
The target market includes individuals who are active, adventurous, and engaged in various credibility, core values alignment, etc., to narrow down the suitable candidates. Then we'll move to
outdoor and action-oriented activities. The company is looking for someone who not only resonates quantitative factors like budget, number of followers, cost per post, etc.
with the brand values but can also connect with the Indian audience. Additionally, they should have Okay, you can proceed with your analysis.
a strong cultural connection, be relatable to the target market, and possess popularity that can We can start the qualitative analysis with the first factor. Do we have any information about
boost our brand awareness. candidates who already endorse a competitor's product?
Are there any competitors in the market? Yes, we do. Actor B promotes a competing product Action Star, and influencers F and fitness enthusiast
Yes, two Japanese companies have a major share, and there are a few small domestic companies. H also have similar endorsements.
Let's explore the consideration of having either an Indian or an international ambassador. Since Then we could exclude candidates B, F, H from consideration, as their prior endorsements of
there is potential for a more robust cultural connection, relatability, and increased popularity within competitors' products may pose a conflict of interest and compromise our brand loyalty.
our target audience, I think an Indian ambassador will be more suitable. That makes sense. Go ahead.
Makes sense, go ahead. Now we will analyze their PR and credibility.
We can consider five categories of ambassadors: Actor, Athlete, Influencer, Fitness enthusiast, and A: Being a veteran with a broad mass appeal across all age groups.
Comedian. I think it would be fair to eliminate comedians. Comedians, despite their entertainment C: Has more popularity among Gen Z.
value, may not relate well to our product, which is focused on action and adventure. There might be D: Associated with cricket, a widely loved sport in India
an audience mismatch, and their comedic image might not align with the serious and adventurous E: Being a grandmaster has a strong credibility
tone we want to convey. G: Has a decade-long meaningful connection with followers.
159
RAMJAS
SOCIETY
I: With 26 years of experience, possess noteworthy credibility Great, I would now like to consider the quantitative factors. To begin, could you shed some light on
However, candidate J, as a budding YouTuber, lacks substantial credibility in comparison. So the budget allocated for the brand ambassador collaboration? Are we looking at any specific range,
eliminating J due to relatively lower credibility. or is there flexibility in the budget?
Indeed, sounds like a reasonable decision. There's no specific constraint. The company can afford to hire any of the shortlisted brand
ambassadors.
Is there anyone associated with a PR backlash in recent times?
Excellent. Moving on, let's discuss the number of followers. Do we have any insights into the follower
Yes actor C, was recently seen in a PR conflict.
count for each candidate?
Then it would be suitable to eliminate C considering it could risk its brand image. A and D each boast more than 50 million, whereas G has less than 15 million followers.
Sure. Got it. Considering the lower follower count for G, we'll eliminate G from further consideration. Now,
Analyzing the brand fit: let's delve into the cost per post and frequency of posts for A and D.
A: Resonates with our brand, embodying fitness and action-oriented roles. Sure. A charges 40 lakhs for 1 post and 2 stories, while D charges 50 lakhs for 2 posts
D: Has an active lifestyles, so well-suited choice.
E: As a chess player may not resonate as strongly with our target audience. I would like to suggest going with candidate D because posts have a broader reach and greater impact
than stories. Furthermore, posts have a longer-lasting presence compared to stories, which are limited
G: Has a travel-oriented and enthusiastic persona and aligns seamlessly with our brand vision.
in time to 24 hours only. Additionally, since the frequency of A's posts is higher and the cost is lower,
However, fitness influencer I deviates slightly from our product focus. Hence we can eliminate I and
it is more likely that other brands will approach him. Consequently, there is a risk that he may endorse
E.
multiple products simultaneously, making it challenging for people to remember him as our product
Understood. Anything specific that influenced the decision to eliminate I? ambassador.
Yes, I's focus on gym and health, while valuable, doesn't align as closely with the action and Alright, we've covered the necessary aspects. What potential risk do you foresee in having a brand
adventure-oriented tone we aim to convey. ambassador and suggest mitigation measures for the same?
Alright. Some potential risks include the ambassador overshadowing the product, brand reputation risk,
Now analyzing expertise, knowledge, and skills about the product: Actor A, sports person D, and possibility of negative PR or changes in public opinion. Having a clear contractual agreement, regular
influencer G are suitable. evaluation of the ambassador’s performance and brand perception, consistent customer feedback
Understandable. What's the next criteria for analysis? and quick action is necessary for risk mitigation.
Having shortlisted to A, D, G based on qualitative analysis, I would like to now delve into Noted. That concludes our discussion for this case.
quantitative analysis to find the best possible fit. For this, I'd like to understand our collaboration
strategy. Through which platforms are we planning to collaborate - electronic media, social media,
or print media?
For collaboration, we're focusing primarily on Instagram.

160
RAMJAS
SOCIETY
Your client is a leading foreign company with a portable action camera, aims to establish a strong presence in India and is currently seeking a
brand ambassador.

• A foreign company with a
portable action camera aims to Analysis
establish a strong presence in
India
• Through an ambassador, the
company aims to increase Qualitative factors Quantitative factors
brand awareness and sales
• The company seeks a brand
ambassador who aligns with Endorsement of
Budget
Competitor’s Products
the values, connects with the
Indian audience, and boosts
brand awareness
PR and Credibility No of followers
• Target audience includes active
and adventurous individuals
Brand Fit Cost per post
Knowledge and
Frequency per post
Expertise

• Having candidate D for the brand ambassador role • Preferring Indian ambassadors due to higher cultural connect
• Consistent customer feedback • Bucketing the factors needed for analyzing the potential brand
• Quick repose to any negative PR or customer feedback ambassador

161
BACK TO SCHOOL (1/2)
RAMJAS
Unconventional Public Policy CONSULTING
SOCIETY
Your client is the government of a tribal state who is faced with the nation's highest primary school That's helpful to know. Are there any recent government initiatives or projects, especially those
dropout rates. Suggest policies or Public-Private Partnership (PPP) initiatives to address this issue. related to infrastructure development, that have been implemented in the tribal state?
Yes, with the introduction of a new government scheme, construction of 5 dams has been initiated in
Okay, so since our client is the government of a tribal state who is faced with the nation's highest
the past 6 months.
primary school dropout rates, I would like to know some demographics of the state like the
population, urban-rural divide, and the no. of schools in that state. Have there been any reports about the impact of these projects on education, and can you elaborate
on the difficulties students face in reaching educational institutions?
The population of the state is 2 lakhs and the urban-rural divide is 30:70. Talking about the schools,
there are around 50 schools in urban areas and around 30 schools in rural areas. Yes, the local communities have faced challenges in commuting to school. Due to the project, nearly
50,000 people have been relocated.
Considering the urban-rural divide, I want to know if the dropout rates vary in urban and rural areas
Considering the reallocation of 50,000 people in the past 6 months due to this construction project
and is this problem concentrated in a particular gender?
and the problem lying solely in the rural region, I believe the lack of transportation facilities and
The increase in the dropout rates has only been seen in rural regions and the urban areas have not income constraints to afford accessibility have affected the education trend and led to the sudden
been affected. The dropout ratio for boys and girls is 45:55. spike in the dropout rates.
Considering the close dropout ratio, it doesn't seem like a gender-specific issue. Are there any Alright, you've correctly identified the problem. Now, please proceed with the recommendations for
specific demographic groups or regions experiencing a higher dropout rate? Also, could you brief addressing it.
me a little about the major occupations of people in the state? Given the challenges in commuting, a potential solution is the government opening more "Ashram
Approximately 24 rural areas in the tribal state are significantly impacted, with no specific schools" in different regions where the children can study as well as live in the same place. This way,
demographic groups identified. The major occupations of the people include agriculture, hunting, children won't need to travel, enabling them to study where they stay.
gathering and artisanal crafts. Address commuting challenges by suggesting the creation of boarding facilities near existing schools.
This provides a secure environment for relocated students, ensuring they can stay close during the
Okay now that I have a basic demographic knowledge of the tribal state, I would like to divide the week and continue attending their current school. This fosters stability in education, respects tribal
problem into 4 factors which are - Educational, Socio-Economic, Psychological and Administrative. values, and may create business opportunities, boosting employment and local businesses.
Which one would you want me to explore first?
All right, that makes sense. How do you propose incorporating public-private partnerships for the
Yes, all these factors are important to reach to the root cause of this problem You may begin with
the socio-economic factors. betterment of the current situation?
Beginning with the socio-economic factors, as previously mentioned, the problem solely lies in the To tackle dam-related challenges and cut primary school dropout rates in tribal areas, a focused
rural regions of the state. Are factors such as poverty, lack of resources, cultural practices, or Public-Private Partnership (PPP) can be enhanced with strategic policies. This involves private sector
community dynamics correlated with the high dropout rates observed among students? participation, incentive-based compensation, and government tax subsidies for PPP-involved
companies to promote the establishment of Ashram schools. Setting a higher minimum wage for
No, the current increased dropout rates situation has not been influenced by any of these factors.
infrastructure development labor prioritizes school construction, addressing commuting challenges.
Alright, moving on to the educational aspect. Are there issues related to teacher availability, This integrated strategy optimizes private sector resources and government policies to build a
curriculum, or teaching methods that may influence dropout rates? sustainable education infrastructure, aiming to significantly decrease primary school dropout rates.
No, the educational aspects mentioned by you have remained constant for the past 10+ years. Thank You for your recommendations, we can close the case now.
162
BACK TO SCHOOL (2/2)
RAMJAS
Unconventional Public Policy CONSULTING
SOCIETY
Your client is the government of a tribal state is faced with the nation's highest primary school dropout rates. Suggest policies or Public-Private
Partnership (PPP) initiatives to address this issue.

• Statistics of dropout rates in Factors Affecting Dropout Rates
various years:
- 15.6% for 2020
- 9.48% for 2021 Socio
- 6.38% for 2022 Demographic Geographical Administrative Educational Psychological
Economic
- 26.87% for 2023
• The urban-rural divide in the Specific Gender
Customer Urban – Rural Government Projects Teacher
Population and Initiatives Awareness
tribal state is 30:70, wherein Study
and Occupation Divide Availability
the problem solely lies in the
rural region with no impact on Poverty and Lack Customer
Transportation Curriculum and
the urban part. No. of Schools Facilities
Study Teaching Methods
of Resources
• A government initiative to
construct five dams in the rural CulturalCustomer
Practices and
region of the tribal state has Study
Community Dynamics
resulted in the reallocation of
approximately 50,000 people. Recommendations
Ashram Schools Public Private

Boarding Facility
Policy

• Opening of more "Ashram schools" by the government in different regions, so that there is no need to • Having prior knowledge of the Ashram schools becoming prevalent in tribal
travel and the children can study in the same place where they stay. regions.
• Establish nearby boarding facilities for relocated students. • Exploring the possibility of collaborating with NGOs and other government
• The government can focus on Public-Private Partnership which includes private sector participation, agencies except the private sector to leverage resources, expertise, and funding
incentive based compensation and government tax subsidies for PPP-involved companies. to support educational initiatives in the affected areas.
163
CASE
COMPETITION
GUIDE
CASE COMPETITION GUIDE
RAMJAS
CONSULTING
SOCIETY
Presentation Guide
Case competitions provide a near real experience of consulting projects, owing to the short deadlines, designs serve greater importance and have a great weightage in the
solutions' overall appeal. Following is how a typical consulting deck’s slide should look:-
Heading Client’s
Page contents summarised in a line Logo
Sub-Topic Sub-Topic
Key Take away What does X axis & Y Axis denote
Sample Text Sample Text Sample Text
Sample Text Sample Text Sample text Explaining
Sample Text Sample Text Sample Text the graph
Sample Text Sample Text Sample Text Explaining the graph
Source: Hyperlinking
Highlighting the
Source: Hyperlinking
topic being
Consulting
addressed on the
Tope 1 Topic 2 Topic 3 Topic 4 Topic 5 Topic 6 01 Firm’s/ Team
page
Logo
Tracker for all the main topics in the presentation

164
RAMJAS
CONSULTING
SOCIETY
Presentation Guide
Executive Summary
Colour’s Matter! Page contents summarised in a line
• Avoid using primary
colours and go with Problem
Statement
smoother colours, and
use the variants from Challenges
within the same
palette. Solutions
• Try using the clients’
brand’s colour
Conclusions
scheme.
Executive
Summary Topic 2 Topic 3 Topic 4 Topic 5 Topic 6 01
Market Size
Add numbers of TAM Represent the

TAM, SAM & SOM SAM Guesstimate
in each of the through a flow
circles SOM chart, while
making sure each
step is clearly
Link a well
Link to the depicted
designed, self Guesstimate
explanatory
guesstimate’s link
Topic 1 Topic 2 Topic 3 Topic 4 Topic 5 Topic 6 01

165
RAMJAS
CONSULTING
SOCIETY
Presentation Guide
Competitor Analysis
Inference from the Hypothesis
Competitive Metrics: these form the basis of
Domain Scope Competitive Metrics Market Share Strategic Intent Competitive Strategy
the analysis and can include financials
(revenue, profits margins), distribution
network, marketing reach, etc.
Denotes the selected Market Share: denotes the % of market
entities. Generally, commanded by the entity.
the first one being our
Strategic Intent: refers to the strategic
target entity/client objective of the entity with regards to its
and others being presence in a given market/geography.
competitors. Competitive Strategy: it implies those
strategies which can be leveraged by the
Benchmarking Topic 2 Topic 3 Topic 4 Topic 5 Topic 6 01 target entity to acquire market share.
2x2 Matrix Analysis

Inference from the Hypothesis
Scenario Dimension #1
Scenario Dimension #2
To perform the analysis different

Scenario Dimension: these are Strategy 1 Strategy 2
strategies can be assigned
the concepts on the basis of and its and its
quadrants within the matrix
which effectiveness of strategies Implications Implications
relative to their Scenario
is measured. A common example Dimension quotient.
of Scenario Dimensions is Risk Strategy 3 Strategy 4
and Reward. and its and its
Implications Implications
2x2 Matrix Topic 2 Topic 3 Topic 4 Topic 5 Topic 6 01

166
COMPANY
INTERVIEW
PROCESSES
COMPANY INTERVIEW PROCESS
RAMJAS
CONSULTING
SOCIETY
Accenture Strategy Alvarez & Marsal

Accenture Strategy operates at the intersection of business Alvarez & Marsal is a leading, independent global professional services
and technology. Vault ranks it as the 5th best strategy firm. The firm focuses on its deep operational expertise and hands-on
consulting firm. It offers consulting services in strategy, approach to deliver comprehensive turnaround management,
operations, technology and HR. performance improvement, and business advisory services.
FIRM OVERVIEW FIRM OVERVIEW

•Acquisitions - SBC, Kurt Salmon, 2nd Road, Javelin Group, Seabury Group, Axia Limited (6 • Industries Specialization: Aerospace & Defence, Automotive & Industrials, Consumer
acquisitions in past 2 years). Products, Education, Energy, Healthcare, Real Estate and TMT
• Accenture Strategy is primarily focused on strategy. Other Accenture divisions focus on • Focus on both strategy & implementation.
implementation. • 9000 consultants across 6 continents (50+ offices)
• Industry specializations - 15 different focused industries, including media, energy, life • Values: Integrity, Quality, Fun, Objectivity & Reward
sciences, banking, health, public service, etc.
INTERVIEW FORMAT INTERVIEW DETAILS CAREER PROGRESSION

INTERVIEW FORMAT INTERVIEW DETAILS CAREER PROGRESSION
First Round: • Quant heavy cases 1. Analyst
First Round: •Traditionally recruits on 1. Analyst
• 30-minute phone screen • Turnaround and M&A 2. Associate
• On Grounds –Two grounds for its strategy and 2. Consultant (Post
with an A&M recruiter, with cases 3. Senior Associate
Interviews (conducted with operations, federal and IT MBA)
a focus on behavioural • You are going to need a 4. Manager
a manager in a typical case strategy practices 3. Manager
questions. top-notch resume to get an 5. Director
format ) •Looks for well-rounded 4. Senior Manager
Second and Third Round: interview in the first place 6. Senior Director
• Less quantitative candidates who 5. Managing Director
• Each round comprise of and then you’ll need to be 7. Managing Director
Second Round: demonstrate a passion for
two to three 1-hour able to walk your
• On-Grounds- Conducted creating client value through
interviews with consultants, interviewer through each
by at least one Managing practical, implementable
managers, or partners. and every line in a story-
Director solutions
These interviews will each based way to succeed
•Focus on –Style, structure,
have one or two
and communication are key
behavioural or fit questions
and a case interview.

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RAMJAS
CONSULTING
SOCIETY
A.T Kearney Bain & Company

A.T. Kearney is a global team of forward-thinking, collaborative Bain & Company is an American management consulting company
consultants that deliver immediate, meaningful results and a long- headquartered in Boston, Massachusetts. The firm provides advice to
term transformational advantage to clients and colleagues public, private, and non-profit organizations. It is a global consultancy
that helps the world’s most ambitious change makers define the future.

Traditional strengths are in operations with an increasing presence in strategy and private • Generalist, home-staffing model with expertise across all major industries and functions
equity • Redefined boundaries of traditional consulting by introducing “tied economics”
• Strong momentum since management buyout from EDS in 2005; ambitious growth arrangements with some clients, pioneering strategic consulting for PE clients, and
strategy as part of Vision 2020 initiative to double firm revenues by 2020 launching Bain Capital and The Bridgespan Group
• Diverse, collegial, and non-hierarchical work environment • Emphasis on people: dedication to work/life balance, career flexibility with international
• Strongest industry verticals: Consumer, Industrial, Retail, and Public Sector Energy transfers and “Take Two” breaks
(CIRP); Financial Services Growing
INTERVIEW FORMAT INTERVIEW DETAILS CAREER PROGRESSION INTERVIEW FORMAT INTERVIEW DETAILS CAREER PROGRESSION
First Round: • Tend to be graphics 1. Business Analyst First Round: • Tends to be graphics 1. Associate Consultant
• Case (Manager) – 45 min heavy 2. Associate • Two 45 minute interviews heavy (Undergrad)
• Behavioral • Will often provide 3. Manager • 5 minutes behavioral • Will often provide 2. Consultant (MBA)
(Partner/Principal) – 45 immaterial data to force 4. Principal questions each immaterial data to force 3. Manager
min candidates to sift through 5. Partner • 30-40 minutes for case candidates to sift through 4. Senior Manager
Second Round: information Second Round: information 5. Associate Partner
• One 90-minute case • Delivery of case matters • 45 minute case • Delivery of case matters 6. Partner
interview as much as actual case • 45 minute behavioral as much as actual case
• 60 min prep; 30 min analysis/conclusion • 2 hour written case analysis/conclusion
present (Partners) (1 hour prep, 1 hour read
• Two behavioral out)
interviews (Partners)

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RAMJAS
CONSULTING
SOCIETY
Boston Consulting Group Dalberg

Dalberg Global Development Advisors is a strategy and policy advisory firm.
Boston Consulting Group is an American global management consulting
Founded in October 2001 by Henrik Skovby and Søren Peter Andreasen. It
firm founded in 1963 and headquartered in Boston, Massachusetts. It
now has 24 offices worldwide. Dalberg has worked in over 90 countries
partners with leaders in business and society to tackle their most
with over 400 clients including governments, foundations, international
important challenges and capture their greatest opportunities
agencies NGOs, and Fortune 500 companies.

• Generalist model; specialization not expected in first 4 years Consulting for the development space.
• Based in Boston, MA; 6,200 consultants (12,000 total staff) in 85 offices globally Typical clients include Governments, NGOs, impact funds, private companies looking to
work in the development space.
Types of consulting services offered - mostly strategy
Strategy vs implementation: mix of both. But more strategy than implementation.
First Round: • Usually at least one 1. Associate (undergrad) There was a written Looking for people who put 1. Consultant
• Two 45 minute interviews exhibit per case; fairly 2. Consultant (MBA) application followed by impact first 2. Senior Consultant
• ~5 minutes behavioral intuitive/ understandable 3. Project Leader two rounds of interviews, Dynamic problem solvers, 3. Project Manager
questions each • Testing on creativity to a 4. Principal with two interviews per effective communicators, 4. Senior Project Manager
• 30-40 minutes for case larger degree than most 5. Partner and Managing round. and committed to social 5. Partner
Second Round: other firms Director Each interview consisted of impact
• Two 45 minute interviews an introduction including
• 5 minutes behavioral some personal questions
questions each which was followed by one
• 30-40 minutes for case case study per interview

169
RAMJAS
CONSULTING
SOCIETY
Deloitte Consulting EY Parthenon

EY-Parthenon is Ernst & Young's global strategy consulting arm. It is one of
Deloitte Consulting is one of the largest consulting firms with more than
the largest global strategy consulting organizations, with more than 7,700
700 consultants and an ambition to be the leading Danish consultant in
professionals. They help CEOs and business leaders design and deliver
IT strategic consulting. Globally Deloitte has more than 68,000
transformative strategies across the entire enterprise, to help build long-
professionals.
term value to all stakeholders

• National Staffing; network within the firm to get staffed on projects of interest • Founded in 1991 by 2 Bain consultants – John Rutherford and William Achtmeyer
• Generalist model for first 1-2 years, then specialize in industry or service line • Look to hire ‘smart’, ‘nice’, and ‘driven’ individuals
• Headquarters in New York, NY; 30,000 consultants with offices worldwide • Works in multiple sectors such as consumer, education, financial services, healthcare,
life sciences, oil and gas, private equity, etc
• Global leaders in education consulting
First Round: • Cases are interviewer led 1. Business Analyst & First Round: • The classic study, 1. Associate
• 30 minute behavioral • Expect specific questions Consultant (Undergrad) •A 30-minute recruiter call recommendations, defend 2. Senior Associate
• 30 minute case from your interviewer and 2. Summer Associate primarily focused on fit and approach is utilized by 3. Principal
Second Round: several charts/pieces of (MBA Internship) behavioral questions. interviewers 4. Senior Principal
• 2 45 minute cases data 3. Senior Consultant Second Round: • Look for specific 5. Partner
• 90 minute group case 4. Manager • Two 30-minute personality traits like
5. Senior Manager interviews with a accountability, team player
6. Principal, Partner, consultant or a manager at along with critical thinking
Director the firm. One is a and logical skills
behavioral interview and
the other is an individual
case interview.

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RAMJAS
CONSULTING
SOCIETY
KPMG Strategy L.E.K Consulting

KPMG International Limited is a multinational professional services L.E.K Consulting is a global management consulting firm that
network. KPMG’s strategy services are focused on improving value leverages its deep industry expertise and uses analytical rigor to solve
for clients and enabling the pursuit and fulfilment of goals and its clients toughest and most critical business problems
ambition

• Generalist model; specialization not expected in first 3-5 years • Generalist model with specialization possible after one year
• 300 strategy consultants nationwide as of June 2016 • Expertise across all industries and functions, with limited presence in implementation •
• 180,000 employees firm-wide, with 37% of business from consulting Heavier focus on private equity due diligences
• Flexible on location choice; national staffing model • Office-based staffing model limits travel
• Team management responsibility early in career
• Opportunity to transfer to international office
First Round: •Exhibits are typically 1. Summer Associate First Round: They see how you 1. Associate (undergrad)
• Two 45 minute interviews provided orally to test (MBA) • Two 45 min interviews approach specific business 2. Associate Consultant
• 5 minutes behavioral information organization 2. Senior Associate with both fit and case problems, marshaling data (undergrad)
questions each • Strong focus on well- 3. Manager components and your own experiences 3. Consultant (MBA)
• 30-40 minutes for case organized 4. Director • One case on business to reach and defend a 4. Manager
Second Round: recommendations 5. Principal/Partner strategy, one on quant conclusion 5. Principal
• Three 45 minute • Will often ask follow-up (most likely market sizing) 6. Partner
interviews questions to Second Round:
• 2 case interviews (30-40 recommendations • Two 45 minute cases
min. cases) • One 30 min written case
• 1 behavioral interview (with additional 60 mins of
prep)

171
RAMJAS
CONSULTING
SOCIETY
McKinsey & Company Oliver Wyman

McKinsey & Company is a global management consulting firm founded Oliver Wyman is an American management consulting firm. Founded
in 1926 by University of Chicago professor James O. McKinsey, that in New York City in 1984 by former Booz Allen Hamilton partners Alex
offers professional services to corporations, governments, and other Oliver and Bill Wyman, the firm has more than 60 offices employing
organizations. over 5,000 professionals. The firm is part of the Oliver Wyman Group,
a business unit of Marsh McLennan.
• National Staffing; push for Tuesday-Thursday travel when client-approved • Parent Company: Marsh McLennan
• Generalist model, but can also specialize earlier if desired • Specialization: Finance and Risk, Retail and Business Banking, Wealth and Asset
• 11000 employees in 110 offices globally Management
• More emphasis is placed on a 6 to 9 year Partner path rather than a 2-year analyst
program. This is one of the shortest time periods for moving to Partner status
First Round: • Will go very in-depth into 1. Business Analyst First Round: • The firm is selective, and 1. Analyst
• Two 45 minute interviews one very specific bullet 2. Associate • This will be a 40 minute they seek brilliant people 2. Associate
• 10 -15 minutes point on your resume for 3. Engagement Manager case interview and who also fit with their 3. Consultant
behavioral questions the behavioral portion. 4. Associate Principal behavioural round. Your culture. 4. Engagement Manager
each • Interviewer-led with very 5. Partner interviewers will most likely • When you’re preparing, 5. Partner
• 30 minutes for case distinct phases. be associates or plan for a mixture of
Second Round: engagement managers. candidate-led and
• 3 Interviews Second Round: interviewer-led problems,
• 30-40 minute case, 10-15 • You’ll be interviewing with plenty of graphs.
minute behavioral with principals or partners.
Candidates will typically
have three back-to-back
interviews comprised of
case interviews.

172
RAMJAS
CONSULTING
SOCIETY
Roland Berger Strategy&

Roland Berger Strategy Consultants is an independent consultancy wholly Strategy& is the strategy consulting business unit of
owned by its 250 Partners. The firm with international operations has PricewaterhouseCoopers, one of the Big Four professional service
firmly established itself among the top three in the European market and firms. It helps clients solve their issues from strategy through to
the top ten in the global strategy consulting market. execution.

• Founded by a BCG consultant • Regional Staffing with some national/global optionality
• Headquartered in Munich, with 52 offices across 35 countries. The company was • Specialization required, but movement within industries/functions possible
founded in 1967 by Roland Berger and has grown immensely since then with billions in • Based in New York City; ~3000 employees in 57 offices globally
revenue. It has over 2,400 employees worldwide
• Expertise in restructuring and marketing, with a focus on the Automobile Industry and
the capital goods sector
First Round: • Regardless of pass/fail, all 1. Analyst First Round: • First round cases are 1. Associate (undergrad)
• Online test: 90 minutes candidates are given 2. Junior Consultant • Two 45 minute case typically shorter 2. Senior Associate (MBA)
long and will assess your feedback on why or why 3. Consultant interviews w/ managers • Interviewers pay 3. Manager
numerical reasoning, verbal not they were chosen for 4. Senior Consultant • 5 minutes behavioral attention to 4. Director
reasoning, and figurative the role. 5. Project Manager questions each communication as well as 5. Partner
reasoning, like the GMAT. • “Business knowledge 6. Director • 30-40 minutes for case performance on the case
Second Round: discussion.” The business 7. Principal Second Round: • An interview buddy will
• 2 Interviews. A case knowledge discussion is 8. Partner • Two 45 minute case be assigned after passing
interview and a fit very similar to an interviews w/ Partners the first round
interview (often led by unstructured case • 5 min behavioral ques • Second round cases last
consultants). Interviews are interview. • 30-40 minutes for case longer and more exhibits
roughly 40 minutes each. can be expected

173
BUSINESS
ANALYSIS
FRAMEWORKS
PESTLE FRAMEWORK
RAMJAS
Business Model CONSULTING
SOCIETY
Framework
Environmental Factors
Environmental factors are those that are impacted by ecological Political Factors
factors and the environment around them. This component is They determine the potential impact of the government and
becoming more crucial to how businesses should operate as CSR and government policies on a company or an industry. In addition
sustainability become more and more important. Climate, recycling to trade, economic, and taxation policies, this would also
practices, carbon footprint, and sustainability is all factors. involve political stability and policy
Legal Environment
An organization must understand what is legal and Economic Factors
allowed within the territories they operate in. They also An economic component directly affects the
L
must be aware of any change in legislation and the impact economy's performance, which directly affects the
this may have on business operations. Factors include organization's profitability. Interest rates,
consumer law, healthy and safety, and international as employment, and unemployment rates, the cost of
well as trade regulation and restrictions. raw materials, and exchange rates are all such factors.
Technological Factors
The rate of technological innovation and development that could Social Factors
have an impact on a market or sector is one of the technological Here, recognizing new trends and the social environment are the
aspects. Changes in digital or mobile technologies, automation, main concerns. This aids a marketer in better comprehending the
and research and development may all be factors. Distribution, requirements and desires of customers in a social context.
manufacturing, and logistical innovations must also be taken into Changing family demographics, educational attainment, cultural
account. fads, attitudinal shifts, and lifestyle changes are among the
contributing factors.

174
PESTLE FRAMEWORK
RAMJAS
SOCIETY
Example
Application of the PESTLE framework has been illustrated by taking an example of a millet-producing firm, specializing in products made out of millet.
Political Factors
P Union Budget 2023 aims at increasing the total production of millets. The UN has also declared the current year as the international year of millet.
Additionally, 100% foreign direct investment is permitted in food production and processing.
Economic Factors
E The government is planning to set up an agricultural accelerator fund to encourage millet production. Simultaneously, inflationary pressure is
affecting profitability of the businesses and the subsidy rates offered by the government.
Social Factors
S Understanding the needs of society in terms of healthier food options, especially after COVID-19. Moreover, recent studies justify that millet is a
healthier alternative to regular flour and hence its consumption is preferred.
Technological Factors
T Innovation in machinery and production units used for millet production. Additionally, lowered production costs due to economies of scale and a shift
towards machine oriented supply chain. Indian Institute of Millet Research in Hyderabad has played an important role in innovating solutions for
efficient millet production.
L Legal Factors
Providing the workers with the minimum wage as per the latest rules. Increased legislation with regard to the contents of the packaging.
Environmental Factors
E Strict rules related to the packaging and transportation of grains have been implemented. Additionally, water harvesting norms and rules pertaining
to the use of fertilizers and pesticides have been imposed in the agricultural sector.

175
CCCPG FRAMEWORK
RAMJAS
SOCIETY
Framework
C C C P G
CUSTOMER : COMPETITION : COMPANY : PRODUCT : GOVT. POLICY :
• Estimating the market size • Analysing the market share • Feasibility of entry into a • Studying about the substitute • Understanding the government
and industry growth. of the players in the same market or exit from an and complimentary products policies and acting on plausible
• Market research through market. industry needs to be and strengthening or changes in them which can
demographics like – age, • The market leader’s analysed. developing differentiating affect the continuance of
income distribution, spending strategies and • At this stage, the product strategies. operations.
pattern, etc. differentiation policies of share of a company also • Making sure that the product is • This is of immense importance
• Addressing who the target the players. needs to be studied, in positioned in the right market in case of market entry to
customers will be and what • Demand and Supply chains addition to the cost to appropriate customers and ascertain operational feasibility.
market segment within an of the players to structure in order to accessible to the customers. • The ambit of government
industry will be catered. understand cost cutting ascertain financial • Considerations also need to be policies is quite vast and
• Additionally, portions of STP strategies. feasibility of operations and given to packaging, variants, involves everything from
Analysis and Porter’s 5 Forces • Barriers to entry and exit to to determine the need for and shelf life which serve as licensing and permit needs to
can be applied at this stage. analyse the nature of modifications. differentiating factors. taxation policy
competition in the industry.

176
CCCPG FRAMEWORK
RAMJAS
SOCIETY
Example
Using CCCPG Framework to illustrate a market entry strategy for In N Out Burger to expand to India. MARKET ENTRY
CUSTOMER : COMPETITION :
• There are many market players which include both International, National and Local
• The QSR Market in India is valued at $700 Million with a growth rate of 9%. brands.
• The target customer base of QSRs is in the age group of 10-35 and the model caters to Lower • Barriers to entry in the industry are moderate to low, and the company can opt for a
Middle and Middle Class with a high propensity to spend on fast food. franchising model like in the United States.
• QSR has also seen ease of operations through food delivery apps which significantly increases • There is also competition from fine dining chains and local food vendors.
the market size. • The brand is very popular among the newer generations and can gain market share from
• The Serviceable Obtainable Market of this sector is very huge as customers preferences are the hype of its establishment. Precedent of Tim Hortons, which capitalised on its
likely to change over time. popularity to gain market share.
COMPANY : PRODUCT : GOVT. POLICY :
• The company reported a EBITDA of 20% which is • The company is known for its best performing • The approximate registration and licensing process would
very good as per industry standard. Cheeseburger, however, due to the Beef ban in require 6 - 8 months to be processed.
• The company has seen increased growth in revenue India, the brand will have to rethink their star • There are no restrictions or government barriers to
and profitability over the past few years and has product. operate in this sector.
grown to become a household name in the west • Most QSR chains capitalise on well-established
coast of the United States. supply chains which offers standardised products.
• The company has also gained immense goodwill • The products will need to appeal the Indian palette
among pop-culture followers different from the American palette.

177
7Ps FRAMEWORK
RAMJAS
SOCIETY
Framework
Product, refers to the goods or services The price is the amount of money that The people are the employees, customers, Physical Evidence refers to the
and other stakeholders who interact with a
that a business offers its customers. In customers pay for a product. It is tangible aspects of a product,
business. It is important to create a positive
other words, the product is the physical or important to set a price that is both including packaging, branding, and
and memorable experience for these
intangible offering that a business sells to competitive and profitable. Companies more. This aims to ensure that the
people. For example, ensuring customer
its customers. This P covers product design, use different pricing strategies for product matches the customer’s
service representatives respond politely.
quality, features, and packaging. different product offerings etc perception.
1 2 3 4 5 6 7
Product Promotion Price Place People Process Physical
Evidence
Pertains to the communication strategies Process refers to the procedures and

This refers to the distribution channels
employed to make potential customers aware of steps involved in delivering a product
of the business. It can be a physical
and attracted to the product. The various or service to the end-user. It is
store, an online store, or a combination
marketing channels used for promotions include important to streamline the process
of both. The goal of this P is to make the
advertising, public relations, sales promotion, and make it as efficient as possible.
products easily accessible to customers.
and other channels through different media.

178
7Ps FRAMEWORK
RAMJAS
SOCIETY
Example
Application of the 7P framework by analysing the business proposition of one of the leading wearables company boat :
Product categories include earphones,

headphones, speakers, smart watches, The process includes order placement, order
trimmers & accessories Known for delivering processing, deliver and customer servicing in
exceptional audio. This company aims to online orders. For offline in store order, the
deliver products designed to provide an process would also include product trial and
immersive listening experience, and they often interactions with sales executive.
use premium materials to ensure optimal
sound quality.
People would include the investors, the

Boat’s pricing strategy is that they offer quality company management, employees and the
products at an affordable price They’ve been customers. A positive environment for the
able to fill in the initial gap in the market with customers would include a smooth shopping
good quality audio brands charging high prices experience, easy servicing etc and that for the
and receiving poor quality with affordable company management and investors would be
audio brands, thus currently having a market healthy decision making and increased returns.
share of 32%.
Boat’s products are sold through online and Physical Evidence would include the packaging,
offline modes. Boat products are available at covers, branding of the product. For example,
its own website, most online marketplaces and the marketing and branding of the popular
are now expanding their offline presence as campaign by boat - “DoWhatFloatsYourBoat”.
well. They have also opted corporate gifting Boat’s promotion strategies include digital
and q-commerce routes to expand their campaigns - content, collaborations with digital
presence. influencers, celebrities etc. Additionally, they
have undertaken personalized SMS and video
messaging campaigns.

179
ANSOFF MATRIX
RAMJAS
SOCIETY
Framework
Ansoff Matrix or the Product/Market Expansion Grid is 2 X 2 framework used by company managements to assess, plan and evaluate growth initiatives. It helps
stakeholders conceptualize the level of risk associated with different growth strategies.
Existing New A business that firmly has the ears of a

Market Penetration is least risky, in particular market or target audience
1 may look to expand its share of wallet
relative terms. When employing a market
1 3 from that customer base. Product 3
penetration strategy, management seeks
Development may be done by
Existing
to sell more of its existing products into
markets that they’re familiar with and investing in R&D to develop an
Market Penetration Product Development altogether new product(s) or acquiring
where they have existing relationships.
For this, selling efforts are increased, the rights to produce and sell another
prices are decreased. firm’s product(s) or creating a new
offering by branding a white-label
MARKETS product that’s actually produced by a
third party.
Market Development strategy is the

next least risky because it does not
2 require significant investment in R&D 2 4 A diversification strategy is generally
or product development. Rather, it the highest risk endeavour as both 4
allows a management team to leverage product development and market
existing products and take them to a Market Development Diversification development are required. While it is
New
different market. This approach the highest risk strategy, it can reap
includes catering to a different huge rewards – either by achieving
customer segment or target altogether new revenue opportunities
demographic or entering a new or by reducing a firm’s reliance on a
domestic or international market. single product/market fit
PRODUCTS
180
ANSOFF MATRIX
RAMJAS
SOCIETY
Example
Using the Ansoff Matrix to understand the Growth strategy taken by Nestle – A leading FMCG company.
Product development is executed by

Nestle had opted an aggressive Existing New Nestle when it launches new products
marketing strategy to penetrate the in its existing markets. Nestle has done
larger markets. This is done by using a
1 this numerous times. Snickers and 3
larger number of distribution channels. 1 3 Mars are chocolates sold by Nestle.
Altering the packaging in a way that However, as a part of its product
Existing
multiple sizes are available for diverse development strategy, it launched ice
users. Nestle also motivates its users to Market Penetration Product Development
cream in Snickers and Mars flavours
consume more of its products. E.g. in that went hit. The company also
the case of baby food, it encourages creates new products such as new
that more the baby eats, the quicker he baby food lines, breakfast cereal lines,
or she will grow MARKETS different beverages
Whenever entering a new market, Horizontal diversification is often the

Nestle ensures that its prices are approach used by Nestle. It diversifies
affordable and its products are readily the current products it sells and
2 available through the efficient use of 2 4 launches new products related to 4
distribution channels. Nestle also them. For example, in addition to
aggressively markets its presence and Market Development Diversification Gillette shaving foam, the company
New
the various products it sells through launched various other grooming

various advertisements sources. It also products related to shaving.. The
modifies is products to suit the local company sells baby food and formula
market. These modifications can be in milk for infants. It can also expand into
terms of product packaging or product diapers and other baby grooming
variants – like flavours. products
PRODUCTS
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SWOT ANALYSIS
RAMJAS
SOCIETY
Framework
SWOT (strengths, weaknesses, opportunities, and threats) analysis is a method for identifying and analyzing internal strengths and weaknesses and external opportunities and threats
that shape current and future operations and help develop strategic goals.
Weakness
Strengths Weaknesses stop an organization from performing
Strengths describe what an organization excels at at its optimum level. They are areas where the
and what separates it from the competition: a
strong brand, loyal customer base, a strong
balance sheet, unique technology, and so on. S W
business needs to improve to remain competitive:
a weak brand, higher-than-average turnover, high
levels of debt, an inadequate supply chain, or lack
of capital.
Opportunities Threats
Opportunities refer to favorable external factors
O
Threats refer to factors that have the potential to
that could give an organization a competitive
advantage. For example, if a country cuts tariffs, a
car manufacturer can export its cars into a new
T harm an organization. For example, a drought is a
threat to a wheat-producing company, as it may
destroy or reduce the crop yield.
market, increasing sales and market share.

182
SWOT ANALYSIS
RAMJAS
SOCIETY
Example
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, United States. Apple is the largest technology company by revenue
(totaling US$365.8 billion in 2021) and, as of June 2022, is the world's biggest company by market capitalization
Strengths Weakness
➢ Research & Development ➢ Limited Advertisement & Promotions
Apple puts dedication into its product designs. Apple’s marketing relies heavily on its flagship retail
extensive research is performed to stores, it does not spend on advertisement in
understand customer needs and market trends. Apple
spends about 7% of its revenue in R&D.
➢ Brand Of Choice
S W comparison to other big brands.
➢ Entering into Area of Non-Competency
It is rapidly expanding into new services such as video
It is a favorable brand, especially among creative content streaming, game streaming, payment services
professionals. It offers top-quality technology solutions
for every corporation’s needs
Opportunity Threats
➢ Expanding into Chip Manufacturing ➢ No Effective Countermeasure for Air Tags
While Apple’s AirTags are meant to help people find
O T
Apple is going to start manufacturing its chips and
semiconductors going forward, competing frequently misplaced items using Bluetooth, the
with Intel Broadcom etc. technology is also being used with malicious intent.
➢ Expansive Distribution Network ➢ Counterfeits
It can generate higher revenue if it focuses on creating It has become vulnerable to third-world countries
an expansive distribution network. Furthermore, the illegally utilizing the brand image to sell counterfeit
company can benefit from diligent marketing and products.
promotions.

183
BCG GROWTH MATRIX
RAMJAS
SOCIETY
Framework
A BCG matrix is a model used to analyze a business's products to aid with long-term strategic planning. The matrix helps companies identify new growth opportunities and
decide how they should invest in the future. Most companies offer a wide variety of products, but some deliver greater returns than others.
STAR QUESTION MARK

These products category are well established due This category’s products have high growth
to their high growth rate as well as their high potential but low market share. Question marks
market share. They have a high potential for
High
are the most managerially intensive products and
growth and profitability. Products in the stars require extensive investment and resources to
quadrant are market-leading products. increase their market share
COMPETITIVE
RIVALRY
GROWTH RATE
Star Question Mark
CASH COW DOG

These are well-established products but have The products in this category have a very weak
limited opportunities due to low growth potential. market presence due to their low market share
Cash flows generated by cash cows are high and and little to no growth. Firms typically phase out
Low
are generally used to finance stars and question products in the dog’s quadrant unless the
marks. products are complementary to existing products
or are used for a competitive purpose.
Cash Cow Dog
High Low
RELATIVE MARKET SHARE
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BCG GROWTH MATRIX
RAMJAS
SOCIETY
Example
Nestlé S.A. is a Swiss multinational food and drink processing conglomerate corporation headquartered in Switzerland. It is the largest publicly held food company in the
world, measured by revenue. Nestlé has 447 factories, operates in 189 countries, and employs around 339,000 people.
STAR
In Nestle’s case, Nestle’s Nescafe coffee fall into the star quadrant of Nestle’s BCG matrix.
Nescafe today,have an almost equal 35 percent share each of the market for coffee in the
country.
High
QUESTION MARK
COMPETITIVE RIVALRY
Although the confectioneries and chocolates offered by Nestle are popular in India, they’ve
GROWTH RATE
failed to capture the market due to the presence of competitors like Cadbury. The market share
of Nestle confectionery chocolates is around 15%, and KitKat has only around 5.6%.
Star Question Mark
CASH COW
For Nestle, there is one product that is undoubtedly a cash cow and that is Nestle’s Maggi
Noddles. With a market share of 80-85%, Maggi Noodles has a very strong position in the market
and has high customer loyalty. The product requires very little investment to maintain its market
share and fend off competition.
Low
DOG
Nestle’s Milo was launched as a chocolate and malt powder for milk and water. However, the
Cash Cow Dog product did not have a significant impact on the business and is placed in the dog quadrant of
Nestle’s BCG matrix.
High Low
RELATIVE MARKET SHARE

185
MCKINSEY 7S FRAMEWORK
RAMJAS
SOCIETY
Framework
The McKinsey 7S model is a management framework that identifies seven interconnected elements (Strategy, Structure, Systems, Shared Values, Skills, Style, and Staff) to
analyze organizational effectiveness and alignment.
Structure
Refers to the organizational hierarchy and defines the authority and
Structure responsibility divide. It is the hierarchy system in a company
System
It is the protocol for the conduct, which refers to the business and
operational procedures followed within organizations
Strategy COMPETITIVE
System RIVALRY
Style
Style defines the culture of the organization and the conduct with which the
business is managed.
Shared Values
Shared Governs a company and coordinates all crucial components. They are the
Values core values of a company, its mission, vision, and goals
Staff
The capability of the employees. Refers to the recruitment process, training,
Skills and development, and efforts are made to upskill them
Style
Skills
The core competencies and proficiencies of a company ensure the smooth
conduct of business and lead it to achieve its goals.
Staff Strategy
It is the business plan adopted to get a competitive advantage. Governed by
the company’s vision and mission

186
MCKINSEY 7S FRAMEWORK
RAMJAS
SOCIETY
Example
Application of the McKinsey 7s framework has been illustrated by taking an example of an Indian confectionary company having its operations across the globe. The brand is
popular for its snacks and eateries and has become a household name.
Shared Values Providing perfect taste and quality in best packaging. Maintaining transparency, trust, authenticity, Indian heritage and hospitality
Fostering a family and not just a business. Ensuring fair treatment and respect of the associate. Recognizes joint efforts of the organization and its suppliers.
Style Engages in community outreach by supporting local causes
Product strategy: Authentic taste and high quality, product packages of various sizes, increase volume per customer, attractive packaging for impulse buying
COMPETITIVE
Pricing strategy: competitive pricing strategy, charging RIVALRY
nominal premium price, keeping prices slightly lower than other branded competitors like Balaji, Lehar,
Strategy Bikano
Market strategy: Constant analysis of market trends
It has different manufacturing facilities specializing in different products. The company has appointed heads across product lines and regions. Such a structure
Structure has worked out well for the company as they have been rewarded for their operational efficiency.
Its core competency is providing Indian taste. The focus is on innovation- a wide range of traditional namkeens, western snacks, Indian Sweets, cookies, etc.
Skills The vision is to be the trendsetter and strengthen leadership in the industry
The focus is on creating a work environment in which employees are motivated to learn and grow. They are encouraged to attend training programs on
Staff effective teamwork and personal development regularly. Safety measures are taken. hiring professionals from the industry to play a bigger role in the company
which had otherwise been a family-owned business
It has manufacturing units with retail. It introduced 100 % process automation in the manufacturing of traditional snacks.
System Process System:
Local farms→ Sourcing of finest raw materials→ traditional recipes→ standards and quality testing-dispatched

187
PORTERS 5 FORCES
RAMJAS
SOCIETY
Framework
Porter's Five Forces is a framework for analyzing a company's competitive environment. It was created by Harvard Business School professor Michael E. Porter in 1979 and has
since become an important tool for managers.
• Barriers to entry • Number of

• Economies of • Price Sensitivity competitors
scale • Buyer's ability to • Diversity of
• Brand loyalty substitute competitors
• Capital • Buyer's • Industry
requirements information concentration
• Cumulative availability • Industry
experience • Switching costs Growth
THREAT OF SUPPLIER BUYER THREAT OF COMPETITIVE

NEW ENTRY POWER POWER SUBSTITUTION RIVALRY
• Number and size • Number of

of suppliers substitute
• Uniqueness of products available
each supplier's • Buyer propensity
product to substitute
• Focal company's • Relative price
ability to performance of
substitute substitute

188
PORTERS 5 FORCES
RAMJAS
SOCIETY
Example
For the application of Porters 5 framework, we are going to look at the airline industry. It encompasses a wide range of businesses, called airlines, which offer air transport
services for paying customers or business partners.
Supplier Power Buyer Power

➢ The bargaining power of suppliers can be ➢ The threat of new entrants in the airline
considered very high. When looking at the industry can be considered as a medium. It
major inputs that airline companies need, takes upfront investments to start an airline
we see that they are especially dependent company. Moreover, new entrants need
on fuel and aircraft. These inputs however licenses, distribution channels & other
are much affected by the external Competitive Rivalry qualifications. Customers nowadays are likely to
environment over which the airline fly with different carriers to and from their
companies themselves have little control. ➢ Airline space is highly competitive. There destination if that would lower the costs
are nearly 15 airline operators in India, a
combination of large and small regional
players. These large players include Threat of Substitution
Threat of New Entry SpiceJet, Air India, Indigo, and Go Air.
➢ The threat of new entrants in the airline ➢ It can be said that the general need of its
industry can be considered medium. It customers is traveling. It may be clear that
takes upfront investments to start an there are many alternatives for traveling
airline company. Moreover, new entrants besides going by airplane. the threat of
need licenses, distribution channels, and substitutes in the airline industry can be
other qualifications considered at least medium to high.

189
MOST STRATEGY
RAMJAS
SOCIETY
Framework
MOST analysis is a useful strategic tool for analysing an organisation’s strategic plan. MOST analysis is used to analyse what the organisation has set out to achieve (the
mission and objectives) and how it aims to achieve this (strategy and tactics).
MISSION OBJECTIVE
Defines the overriding direction and purpose of They are the statements of specific outcomes that
the organisation and should position the are to be achieved by the organisation. Objectives
business to succeed. should be SMART– that is, Specific, Measurable.
Achievable, Realistic, and Timely.
MISSION OBJECTIVE
STRATEGY
Defines the direction and scope of an organisation STRATEGY TACTICS TACTICS
over the long term, which achieves an advantage in a The short-term, operational plans and projects that
changing environment to achieve organisational will implement the strategy.
objectives. Strategy contains options to help meet
the business objectives.

190
MOST STRATEGY
RAMJAS
SOCIETY
Example
For the application of Most Strategy Framework, we are going to look at Airtel . An India based telecom MNC which operates in 18+ countries and provides 5G, 4G and LTE
Advanced services
MISSION OBJECTIVE
Empowering individuals and businesses through Expand market presence by capturing a 15%
our seamless, innovative, and reliable share in emerging markets within the next two
telecommunications services years. Chasing 0 unfulfilled queries.
TACTICS
STRATEGY Subscribers cleaner initiative. Dropping the Rs. 90
Increasing average revenue per user an capturing the plan and switching to 150 Rs./Month. Opening
top of the pyramid. Quality first, speed always. stores in 700 high value districts.

191
CATWOE FRAMEWORK
RAMJAS
SOCIETY
Framework
C A T W O E
CUSTOMER ACTOR TRANSFORMATION WORLDVIEW OWNER ENVIRONMENT
• They are users and • All the stakeholders that • Transformation is the • This is about the ‘bigger • This usually refers to the • In contrast with World
stakeholders of a system. are involved in carrying change that a system or picture’ and considers owner, entrepreneur or view, this is about the
They will undoubtedly out the transformation. process leads to. It’s the the different stakeholders investor of an actual environmental
benefit if a change is to They’re responsible for process in which input and interested parties organisation, who wants elements that may
occur within the system carrying out work and are (including raw materials from the environment to make changes and influence the
or process or if a problem involved with the and man-hours) is and their influence. who decides whether a organisation and can limit
is solved. implementation of transformed by an • Stakeholders often have project should start or or restrict the system.
• The first step in the changes. organisation into output different approaches to stop. They are the factors
CATWOE Analysis is to • By knowing their (such as a final product the same issue, with • It involves considering outside the system’s
identify the customers qualities, abilities and or solution to a problem). conflicting interests. The the role played by them. direct control.
and understand how the interests, you get a clear • The immediate next steps goal of the analysis is to • As decision makers, they • Examples are ethical
process or system picture of their impact on also have to be make their different have the highest boundaries, regulations,
influences them. the process or system. considered. viewpoints explicit. authorities. financial constraints.

192
CATWOE FRAMEWORK
RAMJAS
SOCIETY
Example
The Coca-Cola Company (NYSE: KO) is a total beverage company with products sold in more than 200 countries and territories.
WORLD VIEW TRANSFORMATION

“Open Happiness” states Coca-Cola’s motto. Coca Cola’s World View is upbeat • Coca Cola Processes raw materials (water, sugar, flavours) into
and holistic. It has to be that way if your target market is the entire planet. Coca various Coca-Cola beverages. It involves activities such as sourcing,
Cola also holds a perspective of refreshment and unity. manufacturing, bottling, distribution, marketing.
•Coca-Cola has changed the way people think about sugary drinks. It’s
not just for kids; adults can enjoy it as well.
COMPETITIVE RIVALRY
ACTORS
•Coca Cola has various actors like management, employees, bottlers, OWNERS
distributors, retailers, government agencies, NGOs. The owners of Coca Cola are many shareholders. Berkshire
• The actors are involved in Product development, marketing, Hathaway, the super-profitable conglomerate controlled and
production, distribution, sales, regulation, advocacy. owned (in part) by Warren Buffet, has a significant number of
• One of the most important actors is the Marketing Manager. The Coca-Cola shares and is one of the largest shareholders of Coca
reputation and brand image plays an important role in Coca Cola’s Cola.
success
ENVIRONMENT
CUSTOMERS Coca-Cola bottles and cans are made from recycled materials
•They have global consumers of all ages and demographics. (aluminium is commonly recycled). Coca Cola needs to consider the
• Coca Cola aims to fulfil various needs including Refreshment, thirst environmental impacts it has on water scarcity, health concerns and
quenching, enjoyment, association with happiness and lifestyle. obesity. They can consider innovative packaging, healthier drinks like
coke zero/ diet coke.

193
CASING MATH
CASING MATH
RAMJAS
CONSULTING
SOCIETY
Cash
CashBurn Rate
Burn Rate Free
FreeCash Flow
Cash Flow
𝑇𝑜𝑡𝑎𝑙 𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑐𝑎𝑠ℎ 𝑏𝑎𝑎𝑛𝑐𝑒 Cash from Operations – Capital Expenditure

𝑇𝑖𝑚𝑒 𝑃𝑒𝑟𝑖𝑜𝑑𝑠 𝑑𝑢𝑟𝑖𝑛𝑔 𝑀𝑒𝑎𝑠𝑢𝑟𝑒𝑚𝑒𝑛𝑡
Churn Rate
Churn Rate
Return on Investment
Return on Investment
𝐶𝑢𝑠𝑡𝑜𝑚𝑒𝑟𝑠 𝑙𝑜𝑠𝑡 𝑖𝑛 𝑎 𝑝𝑒𝑟𝑖𝑜𝑑 𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝑏𝑒𝑓𝑜𝑟𝑒 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡, 𝑡𝑎𝑥, 𝑑𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛 & 𝑎𝑚𝑜𝑟𝑡𝑖𝑠𝑎𝑡𝑖𝑜𝑛
𝑇𝑜𝑡𝑎𝑙 𝑐𝑢𝑠𝑡𝑜𝑚𝑒𝑟𝑠 𝑎𝑡 𝑡ℎ𝑒 𝑏𝑒𝑔𝑖𝑛𝑛𝑖𝑛𝑔 𝑜𝑓 𝑡ℎ𝑒 𝑝𝑒𝑟𝑖𝑜𝑑 𝑇𝑜𝑡𝑎𝑙 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑑
Market Share
Market Share Operating CashFlow
Operating Cash Flow
𝐶𝑜𝑚𝑝𝑎𝑛𝑦 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝐼𝑛𝑐𝑜𝑚𝑒 + 𝑁𝑜𝑛 − 𝐶𝑎𝑠ℎ 𝑐ℎ𝑎𝑟𝑔𝑒𝑠

𝑇𝑜𝑡𝑎𝑙 𝑀𝑎𝑟𝑘𝑒𝑡 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 − 𝐶ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑤𝑜𝑟𝑘𝑖𝑛𝑔 𝑐𝑎𝑝𝑖𝑡𝑎𝑙 − 𝑇𝑎𝑥𝑒𝑠

CASING MATH
RAMJAS
CONSULTING
SOCIETY
Weighted Average
Weighted AverageCost ofCapital
Cost of Capital (WACC)
(WACC) Net
NetPresent Value
Present Value
𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝 𝑀𝑎𝑟𝑘𝑒𝑡 𝑉𝑎𝑙𝑢𝑒 𝑜𝑓 𝐷𝑒𝑏𝑡 𝑛

× 𝐶𝑜𝑠𝑡 𝑜𝑓 𝐸𝑞𝑢𝑖𝑡𝑦 + × 𝐶𝑜𝑠𝑡 𝑜𝑓 𝐷𝑒𝑏𝑡 𝑅𝑡
𝑇𝑜𝑡𝑎𝑙 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝑇𝑜𝑡𝑎𝑙 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 ෍
(1 + 𝑖)𝑡
× 1 − 𝑇𝑎𝑥 𝑅𝑎𝑡𝑒 𝑡=0
𝑅𝑡 = Net cash inflow-outflows during a single period t

𝐸 𝐷 i = Discount Rate
× 𝑅𝑒 + × 𝑅𝑑 × 1 − 𝑇
𝑉 𝑉 t = Number of time periods
Discounted CashFlow
Discounted Cash Flow Internal
InternalRate ofReturn
Rate of Return
𝑵
𝐶𝐹 𝐶𝐹 𝐶𝐹 𝐶𝐹
𝑪𝑭𝒏
DCF = + + + ⋯+ 𝟎 = 𝑵𝑷𝑽 = ෍
(1+𝑟)1 1+𝑟 2 1+𝑟 3 1+𝑟 𝑛 (𝟏 + 𝑰𝑹𝑹)𝒏
𝒏=𝟎
n = Each Period
CF = Cash Flow in the period N = Holding Period
r = Interest Rate/Discount Rate NPV = Net Present Value
n = The period number IRR = Internal Rate of Return
Future Value
Future Value
Break-Even Point
Break-Even Point
𝐹𝑉 = 𝑃𝑉 (1 + 𝑖)𝑛
FV = Future Value
𝐹𝑖𝑥𝑒𝑑 𝐶𝑜𝑠𝑡𝑠
PV = Present Value 𝑆𝑎𝑙𝑒 𝑃𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑈𝑛𝑖𝑡 − 𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝐶𝑜𝑠𝑡 𝑝𝑒𝑟 𝑈𝑛𝑖𝑡
i = interest/discount rate
n = Period Number

CASING MATH
RAMJAS
CONSULTING
SOCIETY
Margins
Margins Customer
CustomerLifetime Value
Lifetime Value
𝑅𝑒𝑣𝑒𝑛𝑢𝑒 − 𝐶𝑂𝐺𝑆 𝐺𝑟𝑜𝑠𝑠 𝑃𝑟𝑜𝑓𝑖𝑡 𝑇𝑜𝑡𝑎𝑙 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑃𝑢𝑟𝑐ℎ𝑎𝑠𝑒𝑠

𝐺𝑟𝑜𝑠𝑠 𝑀𝑎𝑟𝑔𝑖𝑛 = = ×
𝑅𝑒𝑣𝑒𝑛𝑢𝑒 𝑅𝑒𝑣𝑒𝑛𝑢𝑒
𝑇𝑜𝑡𝑎𝑙 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑃𝑢𝑟𝑐ℎ𝑎𝑠𝑒𝑠 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑈𝑛𝑖𝑞𝑢𝑒 𝐶𝑢𝑠𝑡𝑜𝑚𝑒𝑟𝑠
𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑃𝑟𝑜𝑓𝑖𝑡
𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑀𝑎𝑟𝑔𝑖𝑛 =
𝑅𝑒𝑣𝑒𝑛𝑢𝑒 𝑆𝑢𝑚 𝑜𝑓 𝐶𝑢𝑠𝑡𝑜𝑚𝑒𝑟 𝐿𝑖𝑓𝑒𝑠𝑝𝑎𝑛𝑠
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 ×
𝑁𝑒𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 = 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐶𝑢𝑠𝑡𝑜𝑚𝑒𝑟𝑠
𝑅𝑒𝑣𝑒𝑛𝑢𝑒
Customer
CustomerAcquisition Cost
Acquisition Cost
Numbers to know
• Multiplication Tables up to 20 * 20 𝐶𝑜𝑠𝑡 𝑜𝑓 𝑆𝑎𝑙𝑒𝑠 + 𝐶𝑜𝑠𝑡 𝑜𝑓 𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔
• Familiarity with perfect squares 𝑁𝑒𝑤 𝐶𝑢𝑠𝑡𝑜𝑚𝑒𝑟𝑠 𝐴𝑐𝑞𝑢𝑖𝑟𝑒𝑑
• Division rules
• Be comfortable working with percentages
• Fractions as decimals:
1/6 .1667
1/7 .1428
1/9 .1111 Cost
Cost per mile
Per Mille
1/11 .0909
1/12 .0833
1/13 .0769 𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 𝑝𝑒𝑟 𝑐𝑎𝑚𝑝𝑎𝑖𝑔𝑛
1/14 .0714 × 1000
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐼𝑚𝑝𝑟𝑒𝑠𝑠𝑖𝑜𝑛𝑠
1/15 .0667
1/16 .0625
1/18 .0555
1/19 .0526

BRAIN TEASERS
BRAIN TEASERS
RAMJAS
CONSULTING
SOCIETY
BRAIN TEASER - 1 BRAIN TEASER - 2

Fruit Basket Bright Light
Question. Question.
You have 3 boxes. One is with apples, one is with oranges and one has a combination You are in a room that has three switches and a closed door. The switches control three
of apples and oranges. All boxes are incorrectly labelled. In other words the light bulbs on the other side of the door. Once you open the door, you may never touch
label identifies incorrect content of the box. You can only open 1 box and without the switches again. How can you definitively tell which switch is connected to each of the
looking at the box you can take out 1 fruit and look at it. How can you label all the light bulbs?
boxes correctly?
Solution : Solution :
• Let’s call 3 labels Os (all oranges), As (all apples), OA (a combination of orange and Turn on the first two switches. Leave them on for five minutes. Once five minutes has
apple. passed, turn off the second switch, leaving one switch on. Now go through the door. The
• Since all boxes are incorrectly labelled, possible fruits with each box are: OA (all light that is still on is connected to the first switch. Whichever of the other two is warm to
oranges, all apples), As (all apples, combination of both), Os (all oranges, the touch is connected to the second switch. The bulb that is cold is connected to the
combination of both). switch that was never turned on.
• Next, take out 1 fruit from one having label OA. Scenario 1: if it’s orange, then the
box is with all oranges, the correct label must be Os. Then the one with the As label
must have a combination of both fruits, correct label OA. The last box, correct label
As. Scenario 2: if it’s an apple, similar logic.

BRAIN TEASERS
RAMJAS
CONSULTING
SOCIETY

Grandmaster? Rise or Fall
Question. Question.
We all know that a chess board has 64 squares. This can be completely covered by 32 A man is throwing rocks off a boat floating in the middle of a lake. The rocks sink quickly
cardboard rectangles, each cardboard covering just 2 squares. Supposing we remove 2 to the bottom of the lake.
squares of the chess board at diagonally opposite corners, can we cover the modified Does the water level in the lake rise, fall, or stay the same after the rocks are thrown off
board with 31 rectangles? If it can be done, how can we do it? And if it cannot be done, the boat and sink to the bottom of the lake?
prove it impossible.
The water level in the lake falls.
When an object is floating in water, like a rock in the boat, it displaces an amount of
water with weight equal to the object’s weight. This is Archimedes’ principle.
When an object is submerged in water, like a rock at the bottom of a lake, it displaces
an amount of water with volume equal to the object’s volume.
Since the rocks sank to the bottom of the lake, they must be denser than water, and
No. It cannot be done. Each rectangle covers 1 white square and one black square, thus they must displace more water when floating in the boat than when submerged.
because on a chess board the white and black squares are always adjacent. The two This means the water level was higher when the rocks were floating in the boat than
squares which we remove from the chess board are of the same colour, and so the when the rocks sank to the bottom of the lake.
remaining board has two more boxes of one colour than the other. And after the
rectangles have covered 60 boxes, there will be left two squares of the same colour.
Obviously the remaining rectangle cannot cover these two squares.

BRAIN TEASERS
RAMJAS
CONSULTING
SOCIETY

Pricey Pair Paradox Timber Tree
Question. Question.
The cost of a racket and a ball together is 1.10 euros. If you know that the racket costs A heavy tree trunk can be sawed into a piece 12 ft long in one minute. How long will it
one euro more than the ball, how much does the ball cost? take to saw it into twelve equal pieces?
The price of the ball is actually 5 cents, and the price of the racket is 1.05 euros, which
Eleven minutes. The twelfth piece does not require sawing
makes the difference exactly 1 euro.

Perfect Numbers Pick and Peek
Question. Question.
What is unique about the following sequence of numbers? A box contains 12 marbles of three different colors green, yellow, and blue—4 each. If
{8, 11, 5, 4, 9, 1, 7, 6, 10, 3, 12, 2, 0} you were to close your eyes and pick them at random, how many marbles must you take
out to be sure that there are at least two of one color among the marbles picked out?
The numbers are in alphabetical order. (Eight, eleven, five, four, nine, one, seven, six, In the first three pickings you may get 1 of each color, on the 4th pick, there must be at
ten, three, twelve, two, zero)
least two of one color. Therefore the answer is 4.

BRAIN TEASERS
RAMJAS
CONSULTING
SOCIETY

Barrel Problem Parallel Tracks
Question. Question.
Two friends look into a rain barrel. One claims that it is at least half full while the other Two trains, a passenger train and a goods train are running in the same direction on
claims that it is less than half full. How can you determine who is right? parallel railway tracks. The passenger train takes three times as long to pass the goods—
even when they are going in the opposite directions.
If the trains run at uniform speeds, how many times faster than the freight train is the
passenger train moving?
Step 1: Diagonal Tipping: Tip the rain barrel diagonally. When the trains are moving in opposite direction, they are passing each other with the
combined speeds of the two trains. Hence when going in the same direction, the
Step 2: Water Pouring Indicator 'passing speed' is the speed of the passenger speed minus t he speed of the freight
• Scenario 1: If water pours out before the bottom is visible train.
• Conclusion: The barrel is more than half full. If the passenger goes twice as fast as the freight train, then the passing speed when
going in the opposite directions will be 2 plus 1 or 3 compared with 2 minus 1 or 1
• Scenario 2: If no water pours out during the tipping, when the trains are going in the same directions Therefore, the answer is twice as fast.
• Conclusion: The barrel is exactly half full.
• Scenario 3: If the bottom becomes visible before water flows out,

• Conclusion: The barrel is less than half full.
This method will determine which friend is right

BRAIN TEASERS
RAMJAS
CONSULTING
SOCIETY

Feathered Dilemma Infinite Doors
Question. Question.
I am the owner of a pet store. If I put in one canary per cage, I have one bird too many. There are 100 closed doors. You pass by the doors 100 times. The first pass, you stop at
if I put in two canaries per cage, I have one cage too many. how many cages and every door and toggle it (if it’s open, you close it; if it’s closed, you open it). The second
canaries do I have? pass you stop at every 2nd door and toggle it, the third pass you stop at every 3rd door
and toggle it, and so on until the 100th pass you stop only at the 100th door and toggle
it. How many doors are open at the end of all 100 passes?
Four canaries and three cages. If you put one canary in each cage, you have an extra Notice that the n-th door will be toggled on the passes that are a factor of n. For
bird without a cage. However, if you put two canaries in each cage then you have two example, the 6th door will be toggled on the 1st pass, 2nd pass, 3rd pass, and 6th pass
canaries in the first cage, two canaries in the second cage and an extra cage. – all the factors of 6.
By definition, each factor of a number must be multiplied by another factor to get to
the number, so the factors are paired. This means for every flip by a factor there is a
corresponding flip by another factor – with the exception of perfect squares. For
perfect squares, one of the factors is the corresponding factor to itself, so there is no
corresponding flip. That means every door will be toggled an even number of times,
except perfect squares which will be toggled an odd number of times. Therefore, the 10
perfect square doors (1, 4, 9, 16, 25, 36, 49, 64, 81, 100) are the only ones that will be
open at the end.

BRAIN TEASERS
RAMJAS
CONSULTING
SOCIETY

Hundred Point Hunt Kiwis on the scale
Question. Question.
You and a friend play “first to 100”, a game in which you start with 0, and you each take Nine kiwis look identical except the one which is lighter. How can you weigh only 2 times
turns adding an integer between 1 and 10 to the sum. Whoever makes the sum reach on a balance scale to find out which one is lighter?
100 is the winner. Is there a winning strategy? If so, what is it?
Yes, the first player should add 1, then after each of the second player’s turns, add the If we give a number for each kiwi, say from 1 to 9. We put kiwi 1, 2, and 3 on the left
integer that will bring the sum to exactly 12, 23, 34, 45, 56, 67, 78, and 89. In other and kiwi 4, 5 and 6 on the right and weight them. If they are balanced then we know
words, if the second player adds x, the first player should add 11 – x. kiwi 1 to 6 is OK. We just need to put kiwi 7 on one side and kiwi 8 on the other side
and weight them. Now weighing them if one side is lighter, we get our lightest one.
To figure out this strategy, work backwards from 100: Otherwise, the one kiwi left aside will be lighter.
• Leaving the sum at 90-99 means you lose, because the other player can
immediately reach 100.
• But this means leaving the sum at 89 guarantees a win, because the other play will
be forced to leave the sum at 90-99 afterward.
• Using this same logic, 78 also guarantees a win, and any number of the form
• 11n + 1.

GUESSTIMATE
HYGIENE SHEET
GUESSTIMATE HYGIENE SHEET
RAMJAS
CONSULTING
SOCIETY
Indian Data Important Splits

Nominal GDP of India USD 3 Lakh crores Male Female
Gender Divide
Population of India 140 Crores 60% 40%
Urban Rural Overall Male Female
Population divide based on Urban & rural Literacy Rate
30% 70% 75% 80% 70%
Average family size 4 5 India Urban Rural
Access to water 70% 100% 50%
% as of Smartphone Penetration 55% 70% 30%
Age % as of Population Age
Population Internet Users 60% 70% 50%
Population divided 0-18 25% 0-15 20%
based on age group 18-24 15% 15-25 30% State wise Data
24-60 50% 25-50 30%
60+ 10% 50+ 20% Delhi Mumbai Chennai Bangalore
State wise Population
3 Crores 2 Crores 5-7 Crores 10-12 Crores
Population divided as per Working Non Working
working & Delhi Mumbai Rajasthan Goa
non-working 60% 40% Area of States/Cities 1500 600 ~3,00,00 ~4000
Lower Middle High Crores Crores (Largest) (Smallest)
Income Divide Tier 1 Tier 2 Tier 3
50% 40% 10% Types of Cities
8 100 40
Consumption Saving
Income Use Market Trends
75% 25%
Product Growth Rate Average price
Road Rail Cars 10% 10,00,000
Transportation Network
60,00,000 70,000 Two Wheelers 5% 50,000
Daily trains Stations Air Conditioners 15% 30,000
Trains
15,000 7000 Washing Machines 5% 20,000
150 Refrigirators 10% 25,000
Airports International Domestic Custom Mobile Phone 8% 15,000
30 110 10 Televeision 15% 40,000
Number of Highways 600 Laptop 5% 50,000

203
GLOSSARY
GLOSSARY
RAMJAS
CONSULTING
SOCIETY
WORD MEANING
A business transaction in which one firm buys all or part of another company's stock or assets. The acquisition commonly happens to gain control of and
Acquisition
expand on the target company's strengths while also capturing energies.
Asset Management Company An asset management company is a firm that invests a pooled fund of capital on behalf of its clients.
Aggregator An aggregator renders the service of collecting, compiling and providing similar as well as a relevant informant on a particular website.
AOV An ecommerce metric that measures the average total of every order placed with a merchant over a defined period of time.
A form of vertical integration in which a company acquires or merges with other businesses that supply raw materials needed in the production of its finished
Backward Integration
product.
Beta Beta is the measure of an asset's risk in relation to the market (for example, the S&P500) or to an alternative benchmark or factors.
Blue Ocean Strategy is referred to a market for a product where there is no competition or very less competition. This strategy revolves around searching for
Blue Ocean Strategy
a business in which very few firms operate and where there is no pricing pressure.
Bulge Bracket Investment Bank A multinational, brand-name banks that regularly handle billion-dollar transactions and employ thousands of people in financial centers around the world.
Buyout An investment transaction by which the ownership equity of a company, or a majority share of the stock of the company is acquired.
CAC Customer acquisition cost is the resources and costs incurred to acquire an additional or new customer.
Compound Annual Growth Rate is the mean annual growth rate of an investment over a specified period of time longer than one year with the effect of
CAGR
compounding considered.

204
GLOSSARY
RAMJAS
CONSULTING
SOCIETY
WORD MEANING
Capital expenditures (Capex) are funds used by a company to acquire, upgrade, and maintain physical assets such as property, plants, buildings, technology,
Capex
or equipment.
Ceiling Price Also called price cap, it is the mandated maximum amount a seller is allowed to charge for a product or service.
Competitive Pricing Pricing method of selecting strategic price points to best take advantage of a product or service based market relative to competition.
Conversion Rate Conversion rate refers to the percentage of visitors to a website who end up buying something, filling a form, or some other desired action.
Cost Per Lead (CPL) A digital marketing pricing model whereby the advertiser pays a pre-established price for each lead generated.
Cost Table A database providing information about the impact on product costs of using different input resources, manufacturing processes, and design specifications
DCF Discounted cash flow (DCF) refers to a valuation method that estimates the value of an investment using its expected future cash flows.
Delta Delta expresses the amount of price change a derivative will see based on the price of the underlying security (e.g., stock).
Downsize The permanent reduction of a company's labor force through the elimination of unproductive workers or divisions.
Due Diligence The exercise of reasonable care in the course of business such as through investigation, audit, or review.
EBITDA Earnings Before Interest, Taxes, Depreciation, and Amortization, or EBITDA, is a statistic used to assess a company's operating performance.

205
GLOSSARY
RAMJAS
CONSULTING
SOCIETY
WORD MEANING
EPS Earnings per share is the monetary value of earnings per outstanding share of common stock for a company.
FDI Foreign direct investment (FDI) is an ownership stake in a foreign company or project made by an investor, company, or government from another country.
Footfall The number of consumers entering a store or shopping area measured against time, such as per hour, day, week, or month.
A green-field investment is a type of foreign direct investment (FDI) in which a parent company creates a subsidiary in a different country, building its
Greenfield operations from the ground up. In addition to the construction of new production facilities, these projects can also include the building of new distribution
hubs, offices, and living quarters.
Inflation Adjusted Growth Rate The inflation-adjusted return is the measure of return that takes into account the time period's inflation rate.
IRR The internal rate of return (IRR) is the annual rate of growth that an investment is expected to generate.
Mergers and acquisitions (M&A) are transactions wherein two companies combine in some way. Although the terms mergers and acquisitions (M&A) are
used interchangeably, they have distinct legal implications.
M&A
A merger is the joining of two firms of equal size to establish a new single business entity. An acquisition, on the other hand, occurs when a larger corporation
acquires a smaller company, absorbing the smaller company's business.
Market penetration indicates the extent to which a product or service is consumed by customers in relation to the overall expected market for that product or
Market Penetration
service.
Market penetration indicates the extent to which a product or service is consumed by customers in relation to the overall expected market for that product or
Market Penetration
service.
Market Positioning Market Positioning refers to the ability to influence consumer perception regarding a brand or product relative to competitors.

206
GLOSSARY
RAMJAS
CONSULTING
SOCIETY
WORD MEANING
In a financial market, market value is typically used to quantify how much an asset or company is worth. It is mutually determined by market participants and
Market Value (of company)
is interchangeably used for a company’s market capitalization.
NPV Net Present Value (NPV) is the value discounted to date of all future cash flows (positive and negative) over the life of an investment.
Market penetration rate is the percentage of a company's target market that is currently using its product or service. It is calculated by:
Penetration Rate
Market Penetration Rate = (No. of Customers / Target Market Size) x 100
The perpetual growth rate, in finance, is the constant rate at which a variable, such as earnings or dividends, is expected to grow indefinitely. It is a crucial
Perpetual Growth Rate
factor in financial models, aiding in the evaluation of long-term sustainability and value.
It is a measure of a company's revenue (or profit) relative to sales. The profit margin, expressed as a percentage, tells you how much you've earned for every
Profit margin
rupee of sales.
The project cycle refers to the stages and steps involved in the planning, implementation, monitoring, and evaluation of a project. It typically includes phases
Project cycle such as identification, preparation, appraisal, execution, monitoring, and completion. The project cycle provides a structured framework for managing and
assessing projects from initiation to closure.
Recapitalization Recapitalization is the process of restructuring a company's debt and equity structure in order to stabilize the company's capital structure.
ROCE indicates the amount of profit a company is generating per ₹1 of capital employed. It is calculated by:
Return on Capital Employed
ROCE = Earnings before Interest and Tax / Capital Employed
A risk-adjusted return is the return, or potential return, of an investment calculated by considering the level of risk that must be accepted in order to achieve
Risk Adjusted Return
it. Risk is measured relative to a substantially risk-free investment.
The risk-free rate of return represents the interest on an investor's money that would be expected from an absolutely risk-free investment over a specified
Risk Free Rate
period of time.
Return on ad spend refers to the amount of revenue generated for each Rupee spent on a campaign. It is calculated by: ROAS = (Revenue attributed to Ads /
ROAS
Cost of Ads) x 100

207
GLOSSARY
RAMJAS
CONSULTING
SOCIETY
WORD MEANING
A Stock Keeping Unit (SKU) is a scannable barcode most commonly printed on product labels at retail stores. This tag allows suppliers to automatically track
SKUs
inventory movements.
SOP A standard operating procedure (SOP) is a step-by-step, repeatable process for any routine task.
Synergy is the concept that the combined value and performance of two companies will be greater than the sum of the separate individual parts. Synergy is a
Synergy
term that is most commonly used in the context of mergers and acquisitions (M&A).
Tiered pricing, also known as price tiering, serves as a model for selling products within a specific price range. As a user fills up a tier, they progress to the next
Tier - Based Pricing
tier and are billed based on the number of purchases made in those respective tiers.
USP A Unique Selling Proposition (USP) is a feature or perceived advantage of a product that differentiates it from other competing brands in the market.
Valuation Valuation is the analytical process of determining the present(or projected) value(worth) of an asset or enterprise.
Value Based Pricing Value-based pricing is customer-centric, wherein companies base their pricing on how much customers value their products(perceived value).
A firm’s Weighted Average Cost of Capital (WACC) represents its blended cost of capital across all sources, including common shares, preferred shares, and
WACC
debt. The cost of each type of capital is weighted by its percentage of total capital and then are all added together.
YoY Year-over-year growth compares a company's recent financial performance with its numbers for the same month, one year earlier.

208
TESTIMONIALS
RAMJAS
CONSULTING
SOCIETY
Mohit Geat Madhurr A. Sheetal Kakkar

McKinsey & Company | ISB Rank-1 BCG | IIMK Dean's List| Management Consulting McKinsey & Company | MBA IIFT Delhi'24
This casebook stands out as a comprehensive and Had the opportunity to release and provide inputs If you're an undergrad student and confused about
insightful resource in shaping your preparation to on Ramjas Consulting Society’s annual consulting how to start your Management Consulting journey
crack a consulting role. I also believe that this casebook. I must say, it is a great effort by the then this resource is for you!
casebook will serve as a valuable guide for aspiring entire Ramjas Consulting Society team and Ramjas Consulting Society has diligently worked on
consultants and offer them a glimpse into the students. a one-stop-solution for all aspiring consulting and
intricacies of the consulting world. finance enthusiasts.
It is one of the most comprehensive consulting
The meticulous research and dedication evident in casebooks out there and thus, beneficial even for The second edition of their casebook is out and is a
the compilation of this casebook reflect the high MBA/ PG management consulting enthusiasts. comprehensive amalgamation of diverse topics
standards upheld by the Ramjas Consulting Society. from segmented case transcripts, guesstimates to
the exhaustive industry overviews, casing math
and much more. This is an excellent resource for
the ones struggling with their case interviews and
those who wish to delve deep into the domain!

209
OUR TEAM
RAMJAS
CONSULTING
SOCIETY
Hardik Bedi, Priyal, Diya Sehgal, Shagun Jain, Hrishi Pasricha, Arnav Mohapatra, Harsh Goel, Prakhar Goel, Paarth Jaitly, Manan Sood, Suhana Abrol, Nitya Gupta, Khushi
Kukreja, Kartik Jain
Riya Jain, Shruti Jain, Shreshtha, Kusum Lata, Rahul Gupta, Yajur Mahajan, Arjun Rastogi, Eakansh Goel, Shreya Gupta, Aastika Ratti, Manreen K. Mahon, Kajal Singhal
Sahil Sah, Anshuman Mahajan, Harshit Kumar, Vrinda Chadha, Sujal Mittal, Arnav Mittal, Shourya Gupta, Dev Raj Garg, Vanshika Gourisaria, Bhavya Khurana, Vedansh
Agrawal, Shreya Singh
Not Present in Picture: Udit Goyal, Arav Agrawal, Daksh Mittal, Harsh Saini, Pragun Kumar, Suryansh Arora

210
RAMJAS
CONSULTING
SOCIETY
www.ramjasconsultingsociety.org

Ramjas Consulting 2023-24

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CASEBOOK

© 2024 by Ramjas Consulting Society - Ramjas College All Rights Reserved.

Second Edition: February 2024

© 2024 by Ramjas Consulting Society 2023-24

With Best Wishes

Prof. Hardeep Kaur

© 2024 by Ramjas Consulting Society 2023-24 01

From the Convenor

Ms. Nidhi Arora Dhingra

From the Presidents

I wish the best of luck to all readers!

Vrinda Chadha, President

© 2024 by Ramjas Consulting Society 2023-24 02

© 2024 by Ramjas Consulting Society 2023-24 03

Batch of 2024 Batch of 2025

© 2024 by Ramjas Consulting Society 2023-24 04

Shourya Gupta, Director Sujal Mittal, Head

Kajal Singhal, Associate Shagun Jain, Associate Yajur Mahajan, Associate

© 2024 by Ramjas Consulting Society 2023-24 05

© 2024 by Ramjas Consulting Society 2023-24 06

S.No Topics Page No: S.No Topics Page No:

2. Case Interview Guide 10 ix) Aviation 29

5. Industry Overviews 7. Case Competition Guide 164

Growth 26. VR from Texas Social Media Challenging 145

© 2024 by Ramjas Consulting Society 2023-24

© 2024 by Ramjas Consulting Society 2023-24 07

Guides: Case Interviews & Case Competitions

Business Analysis Models Brain Teasers

Casing Math Guesstimate Cheat Sheet

© 2024 by Ramjas Consulting Society 2023-24 08

5 Brownie Points 6 Framework 7 QR Code

ANALYSE Synthesis & Elucidating

Tips for cracking a consulting interview

© 2024 by Ramjas Consulting Society 2023-24 11

Tips for Brainstorming Ideas

Example for Brainstorming Frameworks:

2. Financial vs Non Financial

3. Long-term vs. Short-term

Useful for devising strategies and making decisions.

4. The Supply Chain

© 2024 by Ramjas Consulting Society 2023-24 12

Roles & Processes

© 2024 by Ramjas Consulting Society 2023-24 113

Selling Price per Product Mix

Value Chain Number of Average Order

Primary Activities Supportive Activities

Manufacturing Infrastructure & IT Firm Level Industry Level Macro (PESTEL)

Distribution Human Capital

Post Sales Service

© 2024 by Ramjas Consulting Society 2023-2024 114

Human Capital (Capacity x Selling, General &

© 2024 by Ramjas Consulting Society 2023-2024 115

Ques. 4: Who are the customers?

Ques. 5: What part of value chain does - Segments - Product Mix

Greenfield Joint Venture

Ques. 1: Clarify objective, Core Activities Non-Core

Existing Geographical Portfolio Inorganic Business

© 2024 by Ramjas Consulting Society 2023-2024 117

Step 1: Understand the Pricing

Step 2: Apply the Cost Based Benchmarking Value Based

© 2024 by Ramjas Consulting Society 2023-2024 118

1. Understand client’s company

© 2024 by Ramjas Consulting Society 2023-2024 119

Overview Business Segments Market Key Drivers