Candy and Toffee Manufacturer

C: Sure, to reiterate the problem our client is a candy and toffee manufacturer who is facing a decline in sales for past 2 months. Is it correct?

I: Yes, that is correct.

C: Okay, to understand the situation better, I would like to ask whether our client is only manufacturing the product, or is it present across the value chain? Also, is it dealing in the domestic markets only or international markets too?

I: It is present across the value chain and consider domestic markets for now.

C: And I assume that the products that we are offering are 1 to 2-rupee candies and toffee available in the convenience stores, am I right there?

I: Yes, that is correct.

C: Okay, so is the decline in sales an industry wide phenomenon or client specific?

I: Good Question, it is an industry wide phenomenon.

C: Interesting, and by decline in sales we mean decline in volume or decline in value?

I: It is decline in volume of sales.

C: Okay, I would like to structure my thoughts here for 10 seconds before continuing with the analysis.

I: Sure, go ahead.

C: Okay, keeping in mind that it is an industry wide phenomenon, I would like to analyze the situation across value chain made up of procurement, manufacturing, and distribution

I: Please, go ahead.

C: So, is there any barrier in procuring the raw material for manufacturing our product like government regulations or transportation barriers?

I: No everything is fine on that end.

C: Sure, to reiterate the problem our client is a candy and toffee manufacturer who is facing a decline in sales for past 2 months. Is it correct?

I: Yes, that is correct.

C: Okay, to understand the situation better, I would like to ask whether our client is only manufacturing the product, or is it present across the value chain? Also, is it dealing in the domestic markets only or international markets too?

I: It is present across the value chain and consider domestic markets for now.

C: And I assume that the products that we are offering are 1 to 2-rupee candies and toffee available in the convenience stores, am I right there?

I: Yes, that is correct.

C: Okay, so is the decline in sales an industry wide phenomenon or client specific?

I: Good Question, it is an industry wide phenomenon.

C: Interesting, and by decline in sales we mean decline in volume or decline in value?

I: It is decline in volume of sales.

C: Okay, I would like to structure my thoughts here for 10 seconds before continuing with the analysis.

I: Sure, go ahead.

C: Okay, keeping in mind that it is an industry wide phenomenon, I would like to analyze the situation across value chain made up of procurement, manufacturing, and distribution

I: Please, go ahead.

C: So, is there any barrier in procuring the raw material for manufacturing our product like government regulations or transportation barriers?

I: No everything is fine on that end.

I: That is a good observation, the awareness has increased but we haven’t lost any sale because of that and the number of customers visiting the shop are same. Yes, candies bought per customer have seen a decline over the period.

C: Okay, since the number of candies per person has declined it can be due to the impact on complimentary or supplementary goods available in the market. So, is there any substitute available now that was not present before that people are preferring over candies?

I: No there is no substitute to candies that has been introduce in past 2 months.

C: Okay, so looking from a consumer perspective here, most of the people visit panwadi to smoke and thus buy candies or toffies as mouth fresheners. It seems like a complimentary good problem where there can be an issue with the cigarette sales. 

I: Yes, what about them?

C: What I can think of either their price has changed, or their distribution has been hindered. Should I investigate any of these?

I: Yes, there is an issue with the price of cigarettes. Can you tell me the reason how can that impact our sales?

C: Yes, so most of the time, in exchange of change, shopkeepers give toffees to the customer. It might be a reason that the price of cigarette has been converted to a multiple of 10 so no change is required. Also, it might be that the flavor of cigarettes has been changed and they contain mint flavor in them only.

I: Great! Although the first reason is correct that the price of cigarettes has changed from 8 to 10 rupees per piece and that is why there is a decline in sales, but I like the second reason too. We can end the case here.