Temple Shop

C: (Reiterates the statement) I would like to ask a few clarifying questions to understand a bit more about the client: Where is the temple located? Is it a tourist spot? How long has the client been in this business? 

I: The temple is a small tourist spot located in a village. Our client is a small business located there for the last 7 years. 

C: Ok great. To gain more clarity on the business space of the client could you help me understand the following: What are products sold by us and are there presence of competitors? Also, what is the price band of our competition? Is this decline a persistent issue?

I: Sure. There are competitors present selling the same products as ours. There are predominantly two product categories. The first is a standalone item and the second is a combo basket. The client is maintaining competitive pricing but is facing declining profits from the last 2 months

C: That surely helps. Further, would like to know if all competitors face the same problem or if is it specific to our client.  Also, do we have any specific information on the combos given by the client? 

I: The issue is client specific and the combos sold are as follows: 

Basket 1- Flowers+ Sweet packs; 

Basket 2: Flowers+ Sweet packs+ coconut+ cloth; 

Basket 3: Flowers+1/2 kg sweets+ coconut+ cloth+ diyas

C: Thanks for the comprehensive information. (Asked for time). As we know Profits can be thought of as the difference between revenue & costs. So it could be either a cost-side problem like there is an increase in the cost of items or a revenue side like pricing or sales issues. Do we have details along these lines?

I: The costs of materials and across the supply chain have remained the same. Think of it through revenue terms.

C: So, focusing on revenue aspects. Revenue can be thought of as the selling price multiplied by no of customers, which can be further explored in all three baskets in order to pinpoint the issue. Do you want me to focus on anything particular out of these going ahead?

I: There is no change in selling prices but the no. of customers coming to the shop has been reduced. Also, great to think of baskets, do look over the product mix too.

C: Since the no of customers has shrunk, we can explore the possibilities along the issues in the product line – changes in need and availability; Location of sale – accessibility and availability concerns; issues with promotional techniques and their impact.

I: Great to lay out the possibilities at once. Now try to make the approach specific to the context given in the case.

C: Coming to the product mix and specific baskets we have the problems that can arise related to product baskets – such as cannibalization, lagging sales, product component shortages and procurement inefficiencies as well as ancillary services being offered at the shops.

I:  Interesting. What are the ancillary services you mention? Let’s discuss more on that.

C: Sure. By ancillary services, I mean to refer to services such as footwear stands, storage lockers, paid prayer services, etc. that are offered by the stalls often near most temples

I: Excellent observation. It has been found that competitors have started keeping a free footwear service which is drawing all the footfall towards them. Would like to know from you how exactly can we tackle this

C: I have come up with the following strategies:

Can follow the suit of a competitor as the advantage is not defendable and hence can install water services and footwear stall.

Can expand product offerings– VIP darshan, VIP Thaali, Souvenirs, etc.

Can expand target segment to cater to needs of special child/disabled

Can offer tourist assistance- hired tour guides and village packages

I: Excellent suggestions. Thank you for your time