AAKASH BOOK STORE

DEFINING A CATCHMENT AREA

STEP 1- Competitor analysis Proximity analysis Positioning analysis

STEP 2- Segmentation check To understand where your customers reside To help design specific promotions

STEP 3- Turnover Prediction

TURNOVER AND CATCHMENT AREA

T = CA x AI x C x AS x RP

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

SATELLITE (10000 SQ FT)

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

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

GURUKUL (8000 SQ FT)

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

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

BOPAL (2000 SQ FT)

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

T= 200000 x 10% x 60% x 250 x 2 = 60,00,000

ANALYSIS

Particulars Satellite Gurukul Bopal

Expected T/O 3,60,00,000 2,88,00,000 72,00,000

Actual T/O 2,29,50,000 37,50,000 60,00,000

Percentage 63.75% 13.02% 83.33%

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

Do not consider Keep more of educational books and concentrate more on the merchandise than the ambience.

LIMITATIONS

Guesstimated figures for all parameters based on data given in the case and available over the internet.

Does not consider the impact of promotional activities on sales.

Assumed that the real estate costs are same in all the areas.

Model uses optimization of sales as the only parameter for success.

Assumes sales to be bound by geographical area.

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