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IBS Case Studies

IBS Mumbai
Date: 29/06/2012 Time: 22:00:08

QM0001

IBS Case Development Center

College Canteens Decreasing Sales: Analysis Dilemmas

This case study was written by Thalluri Prashnath Vidya Sagar ,under the direction of R Muthukumar, IBS, Hyderabad, IBS, Hyderabad. It is intended to be used as the basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. The case was written from published sources and generalised experiences.

License to use for IBS Mumbai Sem-I, Class of 2014

2009, IBS Case Development Center. All rights reserved. To order copies, call +91-08417-236667 or write to IBS Case Development Center (IBSCDC), IFHE Campus, Donthanapally, Sankarapally Road, Hyderabad 501 504, Andhra Pradesh, India or email: info@ibscdc.org

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College Canteens Decreasing Sales: Analysis Dilemmas

One fine morning, Raghu, the owner-manager of the college canteen, was thinking seriously about his canteen business. He sells a variety of fast food items and beverages. One of his friend and also a supplier, Ramesh, came to meet him to discuss about the pending payment and further supplies. As the canteen was not doing well over the past few months, he wanted to identify the reasons for the same. His friend suggested him to conduct a survey about the sales of beverages. So he randomly selected a sample of 60 students comprising of 38male and 22 female students. The students were asked to fill in a comment/feedback form. Raghu believed that this survey would help him to better understand its customers needs, and help in serving them better. He decided to take up some statistical measures to assess the following information obtained through the survey: Name, age, gender and phone number Impressions on the service offered by canteen employees Preference of beverages Amount spent on beverages.

After he collected the data through feedback forms, he computed simple statistical measures for analysing the data. First, he divided the entire sample into two broad categories based on gender, i.e. Male & Female and assigned numeral 1 for male numeral 2 for female (Exhibit I). To find out the actual interests of the students with respect to the beverages (Pepsi and Coke) and brewed beverages (Coffee and Tea), the students were asked to rank the four beverages based on their preferences. Respondents had to rank the most preferred beverage as 1 and the least preferred as 4. The reasults are given in Exhibits II (a) and II (b). Exhibit I

Coding of Broad Categories of Students

Prepared by the author

Exhibit II (a)

Ranking of Preferences of Beverages by Students

Student 1 Pepsi Coke Coffee Tea
Prepared by the author

Student 2 3 4 2 1

Student 3 1 3 4 2

Student 4 3 2 1 4

Student 5 1 1 3 2

Student 6 1 4 3 2

Student 7 1 3 4 2

..

1 2 4 3

Exhibit II (b)

Students First Preferences of the Beverages

Rank 1
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Beverages Pepsi Coke

Frequency 18 12

% 30.0 20.0
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4 2 2
Prepared by the author

IBS Case Studies

Coke Tea

12 15 15 60

20.0 25.0 25.0 100.0

Coffee Total

Raghu analysed his percentage of profits with the sales of the beverages, including Pepsi, Coke, Coffee and Tea. He also observed that most of the students prefer the cold beverages particularly Pepsi. He has tabulated his observations (Exhibit III). Exhibit III

Students First Preferences of the Beverages

Beverages Sales Pepsi Coke Coffee Tea Total
Prepared by the author

Gender Male (1) 10 8 9 11 38 Female (2) 8 4 6 4 22

% Profit Margin

18 12 15 15

He came to understand that most of the students like Pepsi to any other beverage. He also wanted to find out the service quality of his staff as he believed that it would help himto improve the quality of service. Respondents were asked to state their degree of agreement or disagreement with the statement - Quality of service is good - by selecting a response from the following: l. Agree very strongly, 2. Agree fairly strongly, 3. Agree, 4. Undecided, 5. Disagree, 6. Disagree fairly strongly, and 7. Disagree very strongly (Exhibits (IV (a) and IV (b)). With all his observations, Raghu wants to implement certain measures later on to increase the sales by improving his product mix and marketing mix to get better profit without investing into new ventures. Exhibit IV (a)

Students Response towards Quality of Service

Student 1 Quality of Service
Prepared by the author

Student 2 3

Student 3 1

Student 4 5

Student 5 2

Student 6 3

Student 7 2

Student 8 4

Student 9 3

Student 10 3 -

Student..

Exhibit IV (b)

Students Preferences of the Quality of Service

Assigned Codes for Quality of Service 1 Agree very strongly 2Agree fairly strongly 3 Agree 4 Undecided 5 Disagree 6 Disagree fairly strongly 7 Disagree very strongly Total
Prepared by the author

Frequency 10 15 17 15 3 0 0 60

% 16.7 25.0 28.3 25.0 5.0 0 0 100

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