Revenue-Cost Forecast

with Sales Channel

Analytics
Computational Methods in Civil Engineering Project

Opus Raven
An aggregator of Libraries- Bridge between Physical
book users and Libraries in a locality
Hyper Local Business Model: Location-Dependent
In-house Logistics and Supply Chain Team
A delivery system similar to Grofers: Fixed-time,
Everyday Delivery
Nil Ownership of Inventory
Revenue on the basis of Commission from private tiedup libraries
Sales through Website, Mobile App and Toll-free call
booking.

Revenue- Cost Model

This project involves the forecast of revenue and cost
numbers
Cost divided into four Main Categories:

Employee Costs
Marketing Costs
One-Time Costs
Other Costs

Revenue through Four Channels:

Customer Call/ Website Booking

Monthly Pack Sales
Half Yearly Pack Sales
Student Pack Sales

General Costs: Market Research

FY17

FY18-FY21

Employee Costs

5,820,000

Marketing Costs

3,480,000

One-Time Costs

646,500

Other Costs

930,000

Total Costs

10,876,500

Employee Costs

5,820,000

Marketing Costs

3,480,000

Other Costs

930,000

Total Costs

10,230,000

One-Time costs need to be spent only at the beginning of the first fiscal year
Total Costs from FY18 to FY21 is almost the same excluding factors such as
inflation and exchange rates.
Data was obtained after detailed market research regarding marketing
costs(digital marketing, newspaper ads) and employee costs. Prices might
change from market to market.

Costs: Spending Mediums FY17

The distribution of
costs is displayed in
the pie chart
It helps in decreasing
costs from specific
cost types
Suggests the most
efficient spending
channels and return
from each cost
category
One-time costs spent
only at the start of
first Fiscal Year

Costs: Spending Mediums FY18 to

FY21

Depicts the
change in cost
distribution from
FY17 to FY18
The costs are
calculated from
market research
and effects of
inflation and
exchange costs
are not considered

Revenue and Sales Mediums

The code is based on user inputs
User Inputs include first month of FY17 sales, first three month
increment in sales, following six month increment in sales, last
three month increment in sales and Sales multiplication factor
between two consecutive fiscal years
The function for sales Calculation from user inputs:
function [ z1 ] = sales( strt_value1,k1,k2,k3,k4 )

Strt_value1: First month sales from FY17

k1: First Three month increment in sales
k2: Fourth to Ninth Month increment in sales
K3: Last three month increment in sales
K4: Sales multiplication factor between two consecutive fiscal years
z1: Matrix with the sales of Every month of FY17 and Total sales of FY17 to FY21

Different User Input Values

Case 1

Cust_call

Monthly Pack

Half Year Pack

Student Pack

First Month sales (FY17)

600

100

75

150

1-3 month increment

250

50

50

50

4-9 month increment

300

50

50

50

10-12 month increment

400

50

50

50

Yearly Multiplier

1.2

1.2

1.2

1.2

Case 2

Cust_call

Monthly Pack

Half Year Pack

Student Pack

First Month sales (FY17)

500

75

100

100

1-3 month increment

150

25

25

50

4-9 month increment

200

25

25

50

10-12 month increment

250

25

25

50

Yearly Multiplier

1.2

1.2

1.2

1.2

Case 3

Cust_call

Monthly Pack

Half Year Pack

Student Pack

First Month sales (FY17)

400

100

75

100

1-3 month increment

100

25

25

25

4-9 month increment

150

25

25

25

10-12 month increment

200

25

25

25

Yearly Multiplier

1.2

1.2

1.2

1.2

Revenue Case1

Revenue- Case2

Revenue- Case3

The three
different sales
combinations
allows us to
compare which
sales channel
gives maximum
revenue
It gives the
analytics of which
sales channel is
more efficient
and revenuepulling

Revenue-Case Comparisons (Bar

Charts)

Revenue Case1- Cost Comparison

(Bar Chart)

The comparison of revenue and cost for the first fiscal years for case 1 values.

Revenue Case2- Cost Comparison

(Bar Chart)

The comparison of revenue and cost for the first fiscal years for case 2
values.

Revenue Case3- Cost Comparison

(Bar Chart)

The comparison of revenue and cost for the first fiscal years for case 2
values.

Customer Analytics- Case 1

The distribution of
customers from different
sales packages is
depicted in this pie
chart
This analytics helps in
understanding which
sales medium is lacking
behind and which sales
medium gives maximum
returns

Customer Analytics- Case 2

Customer Analytics for Case2 Sales.

Customer Analytics- Case 3

Customer Analytics for Case3

Sales.

Break-Even Estimation
Break-Even is the point where the revenue and cost curves
meet on the axis of time
It is very important in knowing the time of occurrence of
break-even to run a business successfully
Break-Even occurrence time gives an estimation of the
funding required for all the costs incurred
It is calculated by drawing the graph of revenue(starts
from origin) and cost in the same plot against time
The point where revenue exceeds cost is the break-even
point and the business starts to earn profits from this point

Break-Even Point Estimation Plot

costfy17=cost_fy17();
costfyrest=cost_fyrest();
sales_cust1=sales(600,250,300,400,1.2);
sales_mon1=sales(100,50,50,50,1.2);
sales_half1=sales(75,50,50,50,1.2);
sales_stud1=sales(150,50,50,50,1.2);
cust_call1=revenue(sales_cust1,40);
mon_pack1=revenue(sales_mon1,200);
half_pack1=revenue(sales_half1,500);
stud_pack1=revenue(sales_stud1,150);
sales_cust2=sales(500,150,200,250,1.2);
sales_mon2=sales(75,25,25,25,1.2);
sales_half2=sales(100,25,25,25,1.2);
sales_stud2=sales(100,50,50,50,1.2);
cust_call2=revenue(sales_cust2,40);
mon_pack2=revenue(sales_mon2,200);
half_pack2=revenue(sales_half2,500);
stud_pack2=revenue(sales_stud2,150);
sales_cust3=sales(400,100,150,200,1.2);
sales_mon3=sales(100,25,25,25,1.2);
sales_half3=sales(75,25,25,25,1.2);
sales_stud3=sales(150,25,25,25,1.2);
cust_call3=revenue(sales_cust3,40);
mon_pack3=revenue(sales_mon3,200);
half_pack3=revenue(sales_half3,500);
stud_pack3=revenue(sales_stud3,150);
rev_cost_compare1=Revcost_bar(cust_call1,mon_pack1,half_pack1,stud_pack1);
rev_cost_compare2=Revcost_bar(cust_call2,mon_pack2,half_pack2,stud_pack2);
rev_cost_compare3=Revcost_bar(cust_call3,mon_pack3,half_pack3,stud_pack3);
revenue_distribution1=revenue_distribution(cust_call1,mon_pack1,half_pack1,stud_pack1);
revenue_distribution2=revenue_distribution(cust_call2,mon_pack2,half_pack2,stud_pack2);
revenue_distribution3=revenue_distribution(cust_call3,mon_pack3,half_pack3,stud_pack3);
combined_revenue=revenue_comparison1(cust_call1,mon_pack1,half_pack1,stud_pack1,cust_call2,mon_pack2,half_pack2,stud_pack2,cust_call3,mon
_pack3,half_pack3,stud_pack3);
revenue_bar(combined_revenue);
revenue_cost_plot(cust_call1,mon_pack1,half_pack1,stud_pack1,cust_call2,mon_pack2,half_pack2,stud_pack2,cust_call3,mon_pack3,half_pack3,stud_
pack3);
sales_channel_distribution=cust_analytics(sales_cust1,sales_mon1,sales_half1,sales_stud1);
sales_channel_distribution=cust_analytics(sales_cust2,sales_mon2,sales_half2,sales_stud2);
sales_channel_distribution=cust_analytics(sales_cust3,sales_mon3,sales_half3,sales_stud3);

Thank You
Project by:
- Goutham (ce12b1018)
- Mayank (ce12b1013)