Case Study 1: Big Bazaar’s Sales Performance Analysis
Case Study:
Big Bazaar, one of India’s largest retail chains, noticed a decline in sales during certain
months. To understand the reasons, they analyzed sales trends, customer footfall, product
demand, and discount effectiveness using historical sales data.
Key observations included:
Sales dropped by 15% in non-festival months.
Discounted products attracted higher sales but reduced profit margins.
Weekend footfall was 30% higher than weekdays, but conversion rates were lower.
Based on the insights, the company decided to introduce weekday promotional offers and
optimize pricing strategies to maintain profitability.
Questions:
1. What key metrics should Big Bazaar analyze to improve sales?
2. How can Big Bazaar increase weekday sales without significantly impacting profits?
3. What additional data sources could help Big Bazaar understand customer buying
behavior?
4. What role does seasonality play in retail sales, and how can businesses plan for it?
Answers:
1. Metrics include monthly sales trends, customer footfall, conversion rates, discount
impact, and product-wise sales performance.
2. By introducing weekday-exclusive combo offers, personalized promotions, and
targeted email campaigns to regular customers.
3. Additional data sources include customer feedback, loyalty card usage, competitor
pricing, and online reviews.
4. Seasonality impacts sales patterns (e.g., high sales during Diwali and New Year).
Businesses can prepare by stocking up inventory, offering festival discounts, and
launching seasonal marketing campaigns.
Case Study 2: SBI Bank’s Loan Default Analysis
Case Study:
State Bank of India (SBI) observed an increase in loan defaults among small business
owners. To minimize risk, SBI analyzed past data on loan repayments, customer credit
scores, and business types.
Findings:
High default rates among businesses in seasonal industries (e.g., tourism,
agriculture).
Customers with low credit scores had a 20% higher chance of defaulting.
Loans issued without collateral had a higher default rate than secured loans.
Based on these insights, SBI decided to:
1. Offer flexible repayment plans for seasonal businesses.
2. Tighten loan approval criteria based on credit history.
3. Encourage borrowers to provide collateral-based loans to reduce risk.
Questions:
1. What factors contribute to loan defaults in banks?
2. How can SBI use data analytics to reduce loan default rates?
3. What additional customer data could help SBI assess loan risk more accurately?
4. Discuss the advantages and disadvantages of collateral-based loans.
Answers:
1. Factors include low credit scores, seasonal income fluctuations, high debt-to-
income ratios, and lack of financial planning.
2. By using credit scoring models, analyzing repayment history, segmenting borrowers
based on risk, and offering customized repayment solutions.
3. Additional data includes business cash flow, industry performance trends, existing
debts, and transaction history.
4. Advantages of collateral-based loans: Lower interest rates, reduced risk for banks.
Disadvantages: Harder for borrowers without assets, risk of losing property in case of
default.
Case Study 3: Apollo Pharmacy’s Inventory Management Optimization
Case Study:
Apollo Pharmacy operates multiple stores across India and faced frequent stockouts of
essential medicines while overstocking low-demand items. They conducted a demand
analysis to optimize inventory.
Key insights:
Cold & flu medicines had high demand during monsoons but low during summers.
Painkillers and first-aid products had consistent demand throughout the year.
Some high-cost specialty medicines remained unsold for months, increasing storage
costs.
Based on these insights, Apollo adjusted procurement strategies:
1. Stocking seasonal medicines in higher quantities before demand peaks.
2. Automating reorders for consistently high-demand medicines.
3. Reducing stock of slow-moving medicines and offering discounts to clear inventory.
Questions:
1. How can demand forecasting help in pharmacy inventory management?
2. What risks does overstocking and understocking pose to a business?
3. How can Apollo Pharmacy improve sales of slow-moving medicines?
4. What external factors might affect demand for medicines?
Answers:
1. Demand forecasting ensures adequate stock levels, reduces wastage, and improves
customer satisfaction.
2. Overstocking: Leads to increased storage costs and expiry of medicines.
Understocking: Results in lost sales and customer dissatisfaction.
3. Strategies include offering discounts, bundling slow-moving medicines with high-
demand products, and running targeted promotions.
4. Factors include seasonal diseases, government regulations, competitor pricing, and
public health emergencies (e.g., COVID-19).
Case Study 4: Amazon India’s Return Rate Analysis
Case Study:
Amazon India noticed increasing return rates for electronic products. The analytics team
examined return reasons, product categories, and customer reviews.
Findings:
25% of returns were due to wrong product delivery.
40% of returns were from customers dissatisfied with product quality.
Frequent returners were mostly new users with no purchase history.
To reduce returns, Amazon:
1. Improved quality checks before dispatching orders.
2. Implemented detailed product descriptions and customer review highlights.
3. Introduced a stricter return policy for customers with excessive returns.
Questions:
1. What key insights helped Amazon reduce return rates?
2. How can customer feedback be used to minimize product returns?
3. What challenges might Amazon face in implementing a stricter return policy?
4. Suggest an additional strategy to improve customer satisfaction while reducing
returns.
Answers:
1. Common return reasons, customer behavior patterns, and product quality concerns
were analyzed.
2. Feedback helps identify common complaints, improve product descriptions, and
enhance supplier quality control.
3. Challenges include potential customer dissatisfaction, legal compliance issues, and
negative brand perception.
4. Offering virtual product demos or customer Q&A sections to set clear expectations
before purchase.
Case Study 5: Tata Steel’s Cost Analysis for Raw Materials
Case Study:
Tata Steel noticed rising production costs and analyzed raw material procurement data,
supplier pricing trends, and waste management costs.
Findings:
Raw material prices fluctuated significantly due to international demand.
High wastage in steel cutting increased production costs.
Certain suppliers offered better bulk discounts, reducing procurement costs by 10%.
Based on the insights, Tata Steel:
1. Entered long-term contracts with reliable suppliers to stabilize prices.
2. Implemented waste reduction techniques to improve efficiency.
3. Started bulk purchasing during low-demand periods to reduce costs.
Questions:
1. How can data analytics help in reducing manufacturing costs?
2. Why is supplier selection critical for cost optimization?
3. What role does waste management play in cost control?
4. Suggest one additional strategy Tata Steel can use to reduce costs.
Answers:
1. By analyzing supplier costs, production efficiency, and waste management,
companies can reduce unnecessary expenses.
2. A good supplier ensures consistent quality, lower prices, and timely deliveries,
impacting overall costs.
3. Waste management helps by minimizing material wastage, reusing scrap, and
reducing disposal costs.
4. Using energy-efficient machinery to lower electricity consumption and maintenance
costs.
