1. MARKETING MANAGEMENT
ASSIGNMENT I-1
BUSINESS PERSON 1: PAAN SHOP KEEPER
(PAANWALA)
Business Name : Udipi paan shop
Name : Narshima Prabhu
Age : 41 years
Education : 5th class
Address : Udipi paan shop, near Udipi‟s khanna Khazanna
restaurant, Siddhi manora bldg., Agashi road, Virar (w).
2. I_1_Pratik Kishore Jain
(A) BUSINESS MIX
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.
PRESENT: In this two varieties there are some variance which are charged
differently.
These rates are as follows:
Calcutta paan Cost Selling Banarasi paan Cost Selling
price price price price
Meetha Rs. 3 Rs. 8 Meetha Rs. 2 Rs. 7
Sadha Rs. 2 Rs. 5 Sadha Rs. 1.5 Rs. 3
Zarda(tobacco) Rs. 2.5 Rs.6 Zarda(tobacco) Rs. 2 Rs. 4
Mawa costs at Rs. 4 and so sold at Rs. 10/-
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.
PRESENT: He sells his products directly and sometimes through channels
distributors but on a very small scale.
FUTURE: He is planning to increase sale through distributors.
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3. I_1_Pratik Kishore Jain
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.
PRESENT: Already he had made a good image on the mindsets of the
customers thus helping him to make sales and profits.
FUTURE: customer lifetime value will increase goodwill and results in more
customers.
ANS 5) PAST: He use to provide good quality of paan so people use to promote
their products through interactions with others.
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.
FUTURE: Word-of-mouth publicity will enhance more number of customers.
(B) 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/-
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/-
FUTURE: income and profit depends on the demand of products and price of
resources.
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4. I_1_Pratik Kishore Jain
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.
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.
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.
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.
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.
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.
(C) BUSINESS AND IT’S IMPACT
ANS 1) PAST: Customers of Udipi bar was the main reason for his existence.
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.
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5. I_1_Pratik Kishore Jain
ANS 2) PAST: only elder population was addicted to paan and cigarettes.
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.
FUTURE: Addiction of paan and cigarettes will not stop adversely affecting
country‟s people.
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.
ANS 4) PAST: one famous bar and restaurant and no other competitor influenced
his business.
PRESENT: Factors that influence the business are:
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
business.
ANS 5) Customers-
PAST: People who are coming very frequently in Udipi bar are his regular
customers.
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6. I_1_Pratik Kishore Jain
PRESENT: Trespassers also use to have his paan because of its quality,
variety and same taste from last 15 years.
There are around 120 customers who comes specially to eat paan from
different places just for his taste, habits and quality preference.
FUTURE: Prospective customers-
Since a new veg. family restaurant, Radha Krishna opened, families coming
in this place use to have paan for a better taste after having their food.
Teenagers are also prospective customers who are very eager to taste and
smoke the cigarettes thus making themselves addictive to a bad sign.
(D) MARKET
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.
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7. I_1_Pratik Kishore Jain
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.
(E) BUSINESS DIFFERENTIATOR AND CREATORS
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.
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.
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.
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.
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8. I_1_Pratik Kishore Jain
ANS 3) SWOT ANALYSIS IS AS FOLLOWS:
INTERNAL FACTORS EXTERNAL FACTORS
STRENGTHS OPPORTUNITIES
1. High liquidity. 1. New restaurants are opened.
2. Low rates compare to others in city. 2. Nearby area is gaining attraction for
3. Same delighted taste of paan. residence.
4. Varieties in paan. 3. New tea stall is open.
4. People now-a-days keep readymade
paans.
WEAKNESS THREATS
1. Low budget business restricts him to 1. New competitor can affect his sale.
keep staff. 2. Government may regulate on banning
2. Cannot keep stock of beetle leaves for of tobacco (gutkas) sachets.
longer period. 3. Change in a taste may reduce
3. Scope of his business is limited. consumer‟s satisfaction thus
decreasing value and customer.
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9. I_1_Pratik Kishore Jain
ANS 4) 2*2 TOWS matrix is represented as below which lead to achieve more
success in future:
OPPORTUNITIES THREATS
1. New restaurants are opened. 1. New competitor can affect
2. Nearby area is gaining his sale.
attraction for residence. 2. Government may regulate
FACTORS 3. New tea stall is open. on banning of tobacco
4. People now-a-days keep (gutkas) sachets.
readymade paans. 3. Change in a taste preference
5. Indians are price concerned may reduce consumer‟s
and conservative. satisfaction.
4. Purchase should be on cash
basis only.
STRENGTHS SO ST
1. High liquidity. 1. Prospective customers can 1. He rotates money in buying
2. Low rates compare to be made.(3,2) from suppliers from the
others in city. 2. Low rates and variety will generated income daily.(1,4)
3. Same delighted taste of attract customers.(2,5) 2. Varieties can help to beat
paan. competitor‟s sale.(4,1)
4. Varieties in paan.
WEAKNESS WO WT
1. Low budget business 1. Readily available customers 1. Due to limited scope he can
restricts him to keep staff. from restaurants can concentrate more on quality
2. Cannot keep stock of beetle influence his and satisfaction value so that
leaves for longer period. business.(3,1&4) he can achieve customers
3. Scope of his business is 2. He can increase sale of lifetime value.(3,3)
limited. readymade paans leading to 2. He can buy limited stock of
overcome staff beetle leaves on daily cash
problem.(1,4) basis to prevent
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