PROFIT PATHWAYS:

A Deep Dive into stationary metrics

A Proposal report for the BDM capstone Project

Submitted by
Name: Shreya B
Roll number:22f3000651

IITM BS Degree Program,

Indian Institute of Technology, Madras,
Chennai, Tamil Nadu, India, 600036

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Contents

1 Executive Summary

2 Organization Background

3 Problem Statements
3.1 Problem Statement-1: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.2 Problem Statement-2: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.3 Problem Statement-3: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4 Background of Problem:
4.1 Major cause of problem-1: . . . . . . . . . . . . . . . . . . . . . . . . . .
4.2 Major cause of problem-2 . . . . . . . . . . . . . . . . . . . . . . . . . .
4.3 Major cause of problem-3 . . . . . . . . . . . . . . . . . . . . . . . . . .

5 Problem Solving Approach:

5.1 Problem solving strategy for problem-1: . . . . . . . . . . . . . . . . .
5.2 Problem solving strategy for problem-2: . . . . . . . . . . . . . . . . .
5.3 Problem solving strategy for problem-3: . . . . . . . . . . . . . . . . .

6 Expected Timeline
6.1 Work Breakdown Structure . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.2 Gantt Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7 Expected Outcome:
7.1 Outcome 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7.2 Outcome 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7.3 Outcome 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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 Declaration Statement

I am working on a Project titled “Profit Pathways: A deep dive into stationary metrics”. I
extend my appreciation to Surya Enterprises, for providing the necessary resources that
enabled me to conduct my project.

I hereby assert that the data presented and assessed in this project report is genuine and
precise to the utmost extent of my knowledge and capabilities. The data has been gathered
from primary sources and carefully analysed to assure its reliability.

Additionally, I affirm that all procedures employed for the purpose of data collection and
analysis have been duly explained in this report. The outcomes and inferences derived from
the data are an accurate depiction of the findings acquired through thorough analytical
procedures.

I am dedicated to adhering to the principles of academic honesty and integrity, and I am

receptive to any additional examination or validation of the data contained in this project
report.

I understand that the execution of this project is intended for individual completion and is not
to be undertaken collectively. I thus affirm that I am not engaged in any form of collaboration
with other individuals, and that all the work undertaken has been solely conducted by me. In
the event that plagiarism is detected in the report at any stage of the project's completion, I
am fully aware and prepared to accept disciplinary measures imposed by the relevant
authority.

I understand that all recommendations made in this project report are within the context of
the academic project taken up towards course fulfilment in the BS Degree Program offered
by IIT Madras. The institution does not endorse any of the claims or comments.

Signature of Candidate

Name: Shreya B

Date: 1-03-2024

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1 Executive Summary – Profit Pathways: A Deep Dive into Stationary
Metrics
1.1 Details about the organization
The project focuses on a small retail store named Surya Enterprises situated in Chennai,
Tamil Nadu. This business deals in the segment of paper and non-paper products. It comes
under B2C category.
1.2 About the problem
The major business issues that the organization is facing are:
 Less customer availability due to product shortage
 Diminished customer patience due to inventory inadequacies
 Effect of branded and non-branded products
The first problem is customer’s dissatisfaction at the shop due to shortage in stock that is
delivered. This shortage in stock has in turn led to shortage in the specific product that the
customer wants.
The second dissatisfaction from customer’s side is limited store size. So, search time of
product is more. These provokes customer to lose patience and move on to another stationary
shop.
The third problem is customer inclination towards branded products over non-branded
options presents a diminishing sale in non-branded items. This preference influences
purchasing decisions, impacting dynamics and consumer behaviour. Hence the shop owner
can only sale minimum non branded compared to branded though he buys both equally from
distributors.
1.3 Possible approach and solution
These problems can be analysed using approaches such as store layout analysis, seasonal
trend analysis, taking surveys, inventory analysis and data visualization using graphs and
charts. This can be taken as measures for enhancing requirements. Combined, these
approaches enable comprehensive sales analysis, informed decision-making, and effective
sales optimization strategies. The expected result offers a holistic strategy aimed at facing the
organization's sales, expanding its footprint, and cultivating a robust customer base. As a
result, the organization is poised to achieve enduring growth, profitability, and solidify its
standing.

2 Organization Background

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The retail company I’m working with is a stationary store, named Surya Enterprises. Surya
Enterprises, first opened its doors in 2012, marking the entrepreneurial journey of its owner.
Named after his daughter, the store began as a modest venture, initially requiring financial
support from bank loans to stock its shelves. The owner's background in a printing press
shaped his vision for the business, having decided to embark on this endeavour after facing
challenges with workplace dynamics. Driven by determination and a commitment to
independence, he transitioned from his previous job to establish Surya Enterprises, a family-
led enterprise. Despite its humble beginnings, the store gradually gained traction among
customers, evolving from a non-profit entity to a thriving retail establishment. The owner's
daughter and son, both MBA graduates, contribute their expertise part-time, further enriching
the customer experience.

3 Problem Statements

3.1 Problem Statement-1:

Less availability of customers- Surya enterprises face a big challenge in dissatisfaction of

customers mainly due to the shortage of stock items delivered. So, the customers don’t get
products being asked on time.
3.2 Problem Statement-2:

Diminished Customer endurance - Increased search time of product due to lesser layout of
store has been a prominent reason for customers to change shop so that they can quickly
purchase. This provokes patrons to lose endurance.
3.3 Problem Statement-3:

Effect of branded and non-branded products: Many consumers strongly prefer branded
products over non-branded options, creating challenges for business. Understanding why
consumers prefer brands and finding ways to address this preference is essential for Surya
Enterprises to succeed in the market.
4 Background of Problem:

4.1 Major cause of problem-1:

Internal problems:
Inadequate inventory management -Includes processes such as purchasing the products in
less scheduled manner. This could also happen when the owner doesn’t maintain any track
of items which are about to get over soon and needs to be replaced. This leads to purchase
shortages and unfilled customer demands.
External Problems:

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Supply Chain Distribution-External factors such as supply chain disruptions, including delays
in stock delivery contributes a loss to the stationary store, affecting its sales.
4.2 Major cause of problem-2:

Internal problems:
Store size limitations-The physical constraints of the store size contribute to challenges like
limitation in capacity to stock a wide variety of products in a shelf. This creates congestion in
space and may appear less attractive to customers. Also, the time to search for a product
asked by customer increases.
External Problems:
Competition from nearby stores- Increased competition from other stationary shops may
exacerbate the issue, as customers have alternative options readily available if they cannot
find what they need in a timely manner.
4.3 Major cause of problem-3:

Internal problems:
Low Attire- The non-branded stationaries like pencil or scale are packed in a normal
transparent sheet which is less attractive for school students to buy them.
Pricing Strategy- Sometimes both branded and non-branded are being sold in same price or
they vary by 10-20 rupees for earning a business profit. Hence pricing strategy could result in
perceived sales.
External Problems:

Competitive Landscape- Intense competition from other retailers or online platforms or

advertisements offering diverse collection of non-branded products inclusive of offers can
further diminish the attire of non- branded products in Surya Enterprises.

5 Problem Solving Approach:

5.1 Problem solving strategy for problem-1:

 Inventory Management- Implementing robust inventory management systems to

track stock levels accurately and anticipate demand trends. Also, setting up automatic
reorder points for popular products will be efficient.
 Efficient Layout- Maximize the use of available space by organizing products
efficiently and making them easily accessible to customers. Consider rearranging
shelves or displays to create a more open atmosphere.
 Pre-ordering requirements- Reserve products in advance, ensuring availability upon
their visit. It reduces the likelihood of product shortages and minimizes wait times,
enhancing customer satisfaction.
 Digital Solutions- Develop a website or app to order products online with real-time
inventory tracking and multiple delivery options. Since manual calculation with bill

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 analysis is difficult to keep track of goods delivered and goods not delivered, a system
calculation can be quicker and easier to manage.
 Click-and Collect service- Implement an online system for customers to order and
pick up products, reducing wait times in the small store.

5.3 Problem Solving Strategy for problem-3

 Educate customers on value- Provide detailed information about the benefits,

features, and quality of non-branded items compared to branded ones. This can
include highlighting the materials used, manufacturing processes, and any
certifications or accolades the products have received. By educating customers, you
help them make informed purchasing decisions based on value rather than just brand
recognition.
 Bundling discounts- Offer discounts or special pricing when customers purchase
multiple non-branded items together as part of a bundle. This strategy encourages
customers to explore and try different products within the non-branded category while
also incentivizing larger purchases.
 Product placement and promotion- Consider featuring non-branded items in
promotional materials, advertisements, or social media posts to increase visibility and
drive sales. Give them prominent placement on shelves or displays. Use attractive
signage, shelf-talkers, or end-cap displays to draw attention to non-branded products
and highlight their unique selling points.
 Diverse selections of non-branded items- Offer a wide variety of non-branded
products across different categories and price points to cater to diverse customer
preferences and needs. Ensure that your selection includes options for various
demographics and lifestyle choices. By providing a diverse range of non-branded
items, you increase the likelihood of capturing the interest of different customer
segments and encourage exploration within the category.

6 Expected Timeline

6.1 Work Breakdown Structure

i Collecting Data: Start Date: Feb 10 2024, End Date: Feb 12 2024, Duration: 2 days
ii Data Cleaning: Start Date: Feb 13 2024, End Date: Feb 19 2024, Duration: 6 days
iii Finding insights: Start Date: Feb 21 2024, End Date: Feb 28 2024, Duration: 8 days
iv Preparing mid-term submission: Start Date: March 5 2024, End Date: March 15
2024 Duration: 10 days
v Waiting for approval: Start Date March 15 2024, End Date: March 22 2024,
Duration: 7 days
vi Finding more insights: Start Date March 16 2024, End Date: March 17 2024,
Duration: 1 days
vii Mid Term Approval: Start Date: March 21 2024, End Date: March 22 2024,
Duration: 1 days

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viii Finding Problem’s Solution: Start Date: March 25 2024, End Date: April 5 2024,
Duration: 10 days
ix Preparing Final Submission: Start Date: April 6 2024, End Date: April 15 2024,
Duration: 9 days
x Final Approval: Start Date: April 20 2024, End Date: April 20 2024, Duration: 0 days
6.2 Gantt Chart

12/20/2023 1/9/2024 1/29/2024 2/18/2024 3/9/2024 3/29/2024 4/18/2024 5/8/2024

Collecting Data
Data Cleaning
Finding insights
Preparing mid term submission
Waiting for approval
Finding more insights
Mid Term Approval
Finding Problem’s Solution
Preparing Final Submission
Final Approval

7 Expected Outcome:

7.1 Outcome 1

Addressing product shortages not only facilitates completing sales transactions but also
contributes to customer satisfaction, loyalty, and overall success. By effectively managing
inventory levels and ensuring that products are consistently available, sales can highly
increase. Hence, increased availability of stock also develops likelihood of completing sales
transactions.

7.2 Outcome 2

Improvising layout of the stationary store for enhancing customer satisfaction. Thus, when
layout is good, it reduces search times of products asked and in turn reduce customer
retention rates. Increased availability of stock also develops likelihood of completing sales
transactions. Thus, efficiency of sales increases through reduced search times and customer
can have a healthy visit to the store.

7.3 Outcome 3

An increase in overall sales of the shop by encouraging purchase of non-branded products

more alongside branded products thereby increasing profit through diverse offerings of non -
branded offerings.Successfully addressing this consumer inclination can lead to increased
market share and success of non-branded products