ANS 1) PAST: He use to sell only paan, tobaccos, bidis and cigarettes.
PRESENT: But from 10 years and at present, besides above products he also sell chocolates, fennels sachets, playing cards, biscuits, chewing gums, condoms, incenses, candle, pencil cells, etc.
FUTURE: He is panning to sell costly chocolates like cadbury’s dairy milk in nearby future.
ANS 2) PAST: He has two major varieties in paan: Calcutta paan and Banarasi paan. In Calcutta paan, meetha charged at Rs. 2, sadhaa Rs. 1 and zarda at Rs. 1.5. In Banarasi paan, meetha charged at Rs. 1, sadhaa Rs. 1 and zarda at Rs. 1.5.<br />
PRESENT: In this two varieties there are some variance which are charged differently.
Remaining products are sold at MRP rates by this business person. On ‘paan’ products his profit margin is more because on other products he cannot charge more than the market rates. His rates are same from last 5 years.
FUTURE: if rates of ingredients of increase then the sale price will increase.
ANS 3) PAST: He use to sell his products directly only.<br />PRESENT: He sells his products directly and sometimes through channels distributors but on a very small scale.<br />FUTURE: He is planning to increase sale through distributors.<br />ANS 4) PAST: First he was to sit outside Desai Hospital but municipal corporation has forced him to shift his stall so he opened in this area. Outside Udipi restaurant there was not a single competitor was available and thus he grab this opportunity and after taking permission he opened his shop.<br />PRESENT: Already he had made a good image on the mindsets of the customers thus helping him to make sales and profits.<br />FUTURE: customer lifetime value will increase goodwill and results in more customers.<br />ANS 5) PAST: He use to provide good quality of paan so people use to promote their products through interactions with others.<br />PRESENT: He provides good quality of paan and other products. So customers use to publicize his taste of product and thus increasing sales through word-of-mouth publicity from many years.<br />FUTURE: Word-of-mouth publicity will enhance more number of customers.<br />
DAILY LIFE OF BUSINESS PERSON
ANS 1) PAST: before 5 years, daily and monthly income was Rs. 1500 and Rs. 45000 respectively. Monthly net profit was Rs. 6000/-<br />PRESENT: His daily income is Rs. 2000/- and monthly revenue is Rs. 60,000/-. Profits were, are and will be calculated on monthly basis. At present his monthly net profit is Rs. 8000/-<br />FUTURE: income and profit depends on the demand of products and price of resources.<br />ANS 2) PAST: First everything whatever he sales except the beetle (paan) leaves can be kept for longer duration so no question of loss arise.<br />PRESENT: Experiencing loss of beetle leaves, he made strategy to buy only 200 leaves on a mould in a day which he could sell the same on same day.<br />FUTURE: He keeps limited stock so his sales are so good that majority products are sold and he has to order the same in every week.<br />ANS 3) PAST/PRESENT/FUTURE: He invest 1/3rd of his money again in purchasing products. Paan leaves, cigarettes, tobacco sachets are bought on daily basis while ingredients of paan, fennel, chocolates, incenses, biscuits, etc are on weekly basis.<br />ANS 4) PAST/PRESENT/FUTURE: It depends on past experience and the sale in a day; it forecast which stock, how many units he should buy and keep for another day. If stock remains after a day then he manage the same for another day by buying less stock.<br />ANS 5) PAST: shop was opened from 9:30am to 2:00pm and 4:00pm to 10:30pm. PRESENT/FUTURE: He opens his shop at sharp 9:00am and close at 2:00pm and again opens at 6:00 pm to 11:00 pm. He work for all 7 days of week and also keeps open on public holidays too.<br />
BUSINESS AND IT’S IMPACT
ANS 1) PAST: Customers of Udipi bar was the main reason for his existence.<br />PRESENT/FUTURE: Now-a-days, addiction is increased among teenagers and adults at a very high pace. His paan shop is located at most famous restaurant and bar, Udipi and also one more family restaurant is opened which proved a booster to his sale.<br />ANS 2) PAST: only elder population was addicted to paan and cigarettes.<br />PRESENT: In this modern era, teenagers are easily getting these addicted materials such as cigarettes and tobacco sachets because government regulations are not strict and even paan walas are interested in making their products sale. So this is adversely affecting country’s youth. Also the elder population of society is more responsible than the government regulations as they had already mentioned on cigarettes cover and tobacco sachets that smoking/ chewing is injurious to health.<br />FUTURE: Addiction of paan and cigarettes will not stop adversely affecting country’s people.<br /> ANS 3) PAST/PRESENT/FUTURE: Daily cash tally of his sales with supplier’s bill helps him set targets and goals and thus leads to achieve success in business. From past 17 years he is doing business so he had made a high goodwill in the market.<br />ANS 4) PAST: one famous bar and restaurant and no other competitor influenced his business.<br /> PRESENT: Factors that influence the business are:<br />
There are two restaurants besides this paan shop.
In front of it there is a tea stall. So people use to smoke while having tea.
There is not even a single competitor in his region.
He is existed in this business market from 17 years.
FUTURE: it cannot be easily predictable regarding factors influencing in
ANS 1) PAST/PRESENT/FUTURE: Supply of products comes from wholesellers located in same region and the main distributor for ingredients of paan is Hiralal paanwala, virar(w).
ANS 2) PAST/PRESENT: There is no competitor in his nearby within the area.
FUTURE: If competitor comes in his area then it will be threat for his business.
ANS 3) PRESENT/FUTURE: More and more restaurants and bars will influence his business. If new supplier comes and provide resources used in paan at low cost will effect his business operations and increase his margin.
ANS 4) PAST: Many people like to have ’mawa’ rather than paan which could help to restructure the market if betle leaves are not available.
PRESENT/FUTURE: Many customers refer readymade paan which is best for use upto 3 months can be substitute product for paan.
ANS 5) PAST/PRESENT/FUTURE: To neutralize the market threat he had/has/ will take following measures:
He maintains the tastes of varieties of paan which he has already maintained from 17 years and that’s what customers says.
He provides home deliveries of paan to some regular customers.
He also started to sell readymade paans which he buys from suppliers as per the customer demands.
ANS 1) The product “paan” of this person has such a good quality and taste that consumers gets delighted and always make buy from him.<br />Another positive approach is that in this locality there is no other paan shop and people who like to have paan, go to nearby shop.<br />One customer itself has told us that from last 12-15 years this paan wala is providing the same delicious taste of paan which has created a good reputation and thus value.<br />ANS 2) Consumers experience satisfaction in taste and thus becoming lifetime value customers impose a lifetime impact on increment of income and goodwill in the market.<br />ANS 3) SWOT ANALYSIS IS AS FOLLOWS:<br />
INTERNAL FACTORSEXTERNAL FACTORSSTRENGTHSHigh liquidity.Low rates compare to others in city.Same delighted taste of paan.Varieties in paan.OPPORTUNITIESNew restaurants are opened.Nearby area is gaining attraction for residence.New tea stall is open.People now-a-days keep readymade paans.WEAKNESSLow budget business restricts him to keep staff.Cannot keep stock of beetle leaves for longer period.Scope of his business is limited.THREATSNew competitor can affect his sale.Government may regulate on banning of tobacco (gutkas) sachets.Change in a taste may reduce consumer’s satisfaction thus decreasing value and customer.
ANS 4) 2*2 TOWS matrix is represented as below which lead to achieve more success in future:<br />
FACTORSOPPORTUNITIESNew restaurants are opened.Nearby area is gaining attraction for residence.New tea stall is open.People now-a-days keep readymade paans.Indians are price concerned and conservative.THREATSNew competitor can affect his sale.Government may regulate on banning of tobacco (gutkas) sachets.Change in a taste preference may reduce consumer’s satisfaction.Purchase should be on cash basis only.STRENGTHSHigh liquidity.Low rates compare to others in city.Same delighted taste of paan.Varieties in paan.SOProspective customers can be made.(3,2)Low rates and variety will attract customers.(2,5)STHe rotates money in buying from suppliers from the generated income daily.(1,4)Varieties can help to beat competitor’s sale.(4,1)WEAKNESSLow budget business restricts him to keep staff.Cannot keep stock of beetle leaves for longer period.Scope of his business is limited.WOReadily available customers from restaurants can influence his business.(3,1&4)He can increase sale of readymade paans leading to overcome staff problem.(1,4)WTDue to limited scope he can concentrate more on quality and satisfaction value so that he can achieve customers lifetime value.(3,3)He can buy limited stock of beetle leaves on daily cash basis to prevent