3 Interview Transcript Case 1: Reduce Costs of Energy using Energy Device Sure, go on I will determine the potential profits the company could generate in the Indian market by employing a mathematical breakdown. Profit = Revenue - Cost (Fixed investment and running costs). Cost is already given, i.e. INR 700 crore. Revenue = market size (in volume) * market share * price per product. To estimate the market size for energy-saving devices, I plan to make an educated guess. Considering the device's requirement for mild to strong wind exposure, I intend to perform a segmentation based on geography. Could you kindly furnish me with relevant information for this segmentation? That's a sound strategy. While the entire country experiences strong winds, they are seasonal. Regions like Leh -Ladakh, parts of Rajasthan, Gujarat, Maharashtra, Karnataka, and Kerala consistently have strong winds throughout the year. Given the significant investment required by households, our target market would be regions with sustained strong winds. These areas also happen to be among the most densely populated states, so I will consider 35% of the total population in those regions. Target market population = 35% of 1200 M = 420 M Also, there are, on an average, 4 members in a household Target market household = 420 M / 4 = 105 M Does this seem reasonable to you? Yes, it is reasonable. Continue. I will introduce a filter based on the affordability of the device, categorizing households into those that can afford the device without incentives, those that can afford it with government incentives, and those that cannot afford it at all. The first segment, comprising households that can afford the device without incentives, is economically more affluent than the other regions. Therefore, the affordable group, constituting 3% of the population, has an income exceeding 10 lakhs per annum. The might-be-affordable segment, encompassing individuals with an annual income between 6 lakhs and 8 lakhs, will make up 17% of the population. The remaining population falls into the non-affordable segment. Does this breakdown of percentages and reasoning align with your expectations? Affordable segment = 3% of 105 M = 3.15 M Might-be-affordable segment = 17% of 105 M = 17.8 M