Ans 1. When the product was launched it was very well accepted by the market.

As it is referred in the case that acceptance dropped after initial good response which means people some where may have got dissatisfied with the quality (taste) of the product and .The business has done very well in bringing product awareness in the market but it could be that they have chosen the wrong target segment. Issue could be with the target segmentation. There is a probability that automated machine produced chapattis were not at par with home made chapatti. Product can do a good business in a market where availability is rated higher than its taste. The business should shift towards the right target group i.e. it should move from targeting completely household families to consumer where alternative of cooking chapatti at home is less i.e. should target consumer like which working male employees, students living in pg and hostels etc Ans 2. As it is mentioned in the case that there are no greeting card and book store in the complex, therefore keeping the book store along with greeting cards and posters can result in better returns on investment .This could led Sunita to start her business without any competition. Choosing both the products will also result in diversifying the risk and benefit of targeting large consumer base Ans 3. Case 1- outright purchase Area 10*15 =150 sq ft Cost per sq ft =4000 Total cost of shop = 150*4000 = 750000 Yearly society charges =12*500=6000 Interior decoration = 50000 Inventory = 100000 Total expenses = 756000 Case 2 on lease for 3 years Deposit = 100000 Monthly rent = 3000 Yearly rent = 12*3000 = 36000 Yearly society charges = 12*500=6000 Interior decoration = 50000 Inventory = 100000 Total expenses excluding the deposit = 192000 if Sunita chooses option 2 i.e. at lease for 3 years, she need to recover 192000 by selling product worth of Rs. 100000 .Sunita has to sell the product at a profit greater than 42% to recover at least

yearly fixed charges of 42000 (36000+6000) but it seems infeasible to have such a huge margin in the chosen product line If Sunita chooses option 1,She need to recover yearly expense of Rs 6000 and total fixed expense of 750000 by selling product worth of Rs 100000.If goods are sold at a profit of 25%,19000 out of 25000 would be used to recover the fixed expense of 750000.This will approximately take 39.5 years. The breakeven volume=100000*39.5= Rs. 39.5 lack Assumption: Money value remains same across the years Every year the Sunita buys an inventory of 1 Lack and there is a 100% sale Ans 4 . To make success from this retail outlet she need to sell high volumes by improving the marketing strategy. She needs to cover the large volume of target population so to achieve the breakeven volume in less time.