Business Economics (MGMT - 110)​ 1

Case Study - 1

Tanmay Deepak Nayakwadi

Pillai College of Education & Research, Chembur

F.Y.BBA /Mgmt-109

Instructor - Mrs. Surekha Chidhabaram

Subject - Business Economics

Topic - SHORT-TERM ECONOMIC IMPACT OF A LOCAL EVENT (2) &

IMPACT OF PRICE CHANGES ON SALES

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Acknowledgement

I would like to express my sincere gratitude to Mrs. Surekha

Chidhabaram, our respected faculty for MGMT 110- Business Economics,

for her invaluable guidance, support, and encouragement throughout the

completion of this Case Study. ​

Her insightful Teachings and Critical Perspective have not only helped me

understand the importance of media analysis but have also inspired me to

think more deeply and independently. This project would not have been

possible without her mentorship and constructive feedback.

I am also thankful to my classmates and peer for their inputs and

discussions, which contributed to broadening my understanding of the

subject.

Lastly, I extend my heartfelt thanks to everyone who directly or

indirectly supported me in completing this Case Study successfully.

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Table of Contents

1)​ SHORT-TERM ECONOMIC IMPACT OF A LOCAL EVENT

●​ Introduction

●​ Methodology

●​ Findings

●​ Analysis

●​ Conclusion

2)​IMPACT OF PRICE CHANGES ON SALES

●​ Introduction

●​ Business Profiles

●​ Findings From Interviews

●​ Analysis using Economic Theory

●​ Conclusion

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Introduction

The entertainment industry has evolved as a significant economic contributor,

particularly through urban multiplexes that act as focal points for leisure,

employment, and business activity. This Case Study aims to explore the

short-term economic impact of Fun Cinemas, Chembur, a well-known

multiplex situated in K Star Mall. By analysing ticket sales, footfall patterns,

pricing strategies, operational costs, and customer behaviour, this study provides

insight into how a single entertainment hub contributes to the local economic

ecosystem. Special focus is placed on high-traffic periods such as weekends,

holidays, and blockbuster movie releases, which often serve as short bursts of

economic stimulus.

2. Overview of FUN Cinemas and the Cinema Exhibition

Industry

2.1 Cinema Industry in India

India is home to the world’s largest film industry in terms of the number of films

produced annually. The cinema exhibition sector has evolved from single-screen

theaters to multiplexes, catering to urban and semi-urban populations with high

expectations for comfort, food options, and premium experiences. Multiplexes like

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FUN Cinemas have positioned themselves as leisure destinations and not just

movie halls.

2.2 About Fun Cinemas

FUN Cinemas is a recognised multiplex brand known for delivering affordable

movie experiences with value-added services such as combo meals, online

bookings, and loyalty discounts. Located in K Star Mall, Chembur, this particular

branch has become a weekend destination for families, youth groups, and working

professionals in the eastern suburbs of Mumbai.

3. Location Overview: K Star Mall, Chembur

K Star Mall, though modest in size connected to major city malls, serves as a

neighbourhood entertainment and retail center. FUN Cinemas occupies the upper

floors and is the anchor business, pulling in large footfalls especially during:

●​ Major movie releases (e.g., Jawan, Pathan, Animal)

●​ Festival Weekends (e.g., Eid, Diwali, Christmas)

●​ Public Holidays (e.g., Independence Day, Republic Day)

●​ School/College Vacations

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The mall also houses a Domino’s, a few fashion outlets, small retail shops, and

parking facilities. However, most visitors cite the cinema as their primary reason

for visiting the mall.

4. Objectives of the Study

●​ To analyse the short-term economic patterns of FUN Cinemas based on

sales, operations, and customer flow.

●​ To study revenue behaviour during peak periods versus regular weekdays.

●​ To evaluate pricing strategies, combo offers, and promotional tactics.

●​ To assess the economic impact of major movie releases.

●​ To examine operational costs and internal challenges faced during

high-demand periods.

5. Methodology

5.1 Research Design

This is a field-based business Case Study using both quantitative data (sales

estimates, football) and qualitative insights (staff interviews, customer

feedback).

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5.2 Data Collection Tools

●​ Structured Interviews with FUN Cinemas Staff

●​ Observational Footfall tracking during weekends and weekdays.

●​ Ticket rate sampling across snow types

●​ Secondary Data from industry reports

5.3 Study Duration

Two weekends and one public holiday period (3 week total)

6. Revenue and Sales Pattern

6.1 Ticket Sales

Day Type Avg. Shows Avg. Ticket Sold Revenue Range

Weekday 10 900-1200 1.5-2.4 Lakh
Weekend 14 2500-3000 4.5-6.0 Lakh
Holiday 16 3200-4000 6.8-8.5 Lakh
Blockbuster
*Ticket Rates vary from 150 to 400 based on timing and seat class*

Food & Beverage (F&B) Sales

Food Combos and Snacks account for 20-30% of Daily revenue. Peak days see a

60-80% jump in snack sales (Popcorn, Nachos, Soft Drink, Etc.).

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7. Pricing Strategy and Special Offers

FUN Cinema follows a dynamic pricing model:

●​ Lower rates in morning shows

●​ Premium rates during prime time and weekends

●​ Festival discounts or buy-1-get-1 offers via third-party apps (e.g.,

BookMyShow)

Combo Mealsss:

●​ Popcorn + Drink: 250 Rupees

●​ Nachos Combo: 300 Rupees

●​ Movie + Meal Deal (partnered with Domino’s): 499 Rupees

8. Operational Costs and Staffing

8.1 Fixed Costs

●​ Rent and Utilities

●​ Licensing and Digital Screening Charges

●​ Cleaning and Maintenance

8.2 Variable Costs

●​ Temporary Staffing on Weekends

●​ Additional Security

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8.3 Staff Composition

●​ Ticket Counter Staff

●​ F&B Handlers

●​ Floor Managers

●​ Cleaning/Security

Total Staff. ~ 28 (15 regular, 13 part-time or contact)

9. Impact of Blockbuster Releases

Case Study: “Pathaan” Release (January 2025)

●​ Ticket sold over 10 days: 35,000+

●​ Revenue: 65+ Lakh

●​ Sold-out shows for 4 Consecutive days

●​ Required hiring 6 temporary staff for crowd management

Blockbuster films lead to:

●​ Increased revenue in short term

●​ Website server load & booking delays

●​ Supply-Chain pressure for food items

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10. Customer Demographics & Behaviour

Age Group % of Visitors

15-25 (Students) 35%
26-40 (Working) 45%
41+ (Families) 20%

Common Behaviours

●​ Prefer weekend evening shows

●​ High Preference for combo offers

●​ Over 65% book online

●​ Most spend on food regardless of movie genre

11. Impact of OTT Platforms on Cinema Viewership

●​ Shift in consumer behaviour post-pandemic

●​ Reasons audiences prefer OTT (Cost, Convenience, content variety)

●​ Decline in Footfall for Small-budget or niche films

●​ FUN Cinemas’ possible response: exclusive premieres, family-focused

screenings, combo pricing, etc.

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12. Competitor BenchMarking

PVR vs FUN Cinemas

Feature PVR FUN Cinema

Average Ticket Price 300-500 150-400
Location Type High-end Malls Neighbourhood Mall
Seating Capacity Higher Moderate
Food Options Wider Range Basic Combos

*FUN Cinemas wins on affordability, but PVR dominates in luxury and

variety.*

13. Short-Term Economic Impact Summary

●​ Weekends & Holidays cause a 3x increase in daily revenue.

●​ Combo Meals see 80% increase in sales

●​ Temporary jobs created during peak seasons

●​ Peak periods push short-term cost increases, but are offset by surge in

ticket and food revenue

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14. Conclusion

FUN Cinemas Chembur is not just an entertainment provider but a short-term

economic engine in its locality. With well-managed pricing, promotions, and

staffing, the business experiences periodic financial boosts during films releases

and festivals. By understanding footfall behaviour, revenue cycles, and

competition, FUN Cinema can continue to thrive and expand its influence on the

local economy.

15. Limitations

●​ Internal financial documents were not accessible

●​ Study limited to one location (Chembur)

●​ Some estimates based on observation and secondary sources

16. Recommendations

●​ Expand online promotions during weekdays to stabilize footfall

●​ Collaborate with more food brands to boost combo revenue

●​ Implement loyalty cards or student passes

●​ Improve parking and seating feedback system

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Executive Summary (Shree Ganesh Kirana Store- 2)

This study analyses how price changes impact sales in a small neighbourhood

retail setup, focusing on Shree Ganesh Kirana Store, a family-owned shop in

Kannamwar Nagar, Vikhroli (E), Mumbai. The report examines:

●​ How the store adjusted its pricing to maintain competitiveness.

●​ Customer behaviour before and after these price changes.

●​ The entry of Blinkit and Zepto into the local market and its effect on

footfall and revenue.

●​ The role of price elasticity, consumer loyalty, and promotional efforts in

a real-world scenario.

Key Insights:

●​ Small kirana stores face immediate and sharp demand fluctuations when

large quick-commerce apps launch heavy discounts.

●​ Price-sensitive products (sugar, rice, oil) show high elasticity; minor price

cuts increase sales.

●​ Loyal local customers help stabilise revenue, but younger buyers shift

quickly to online apps when discounts and home delivery are available.

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Introduction

Pricing is a fundamental component of business strategy. For small kirana shops,

which operates on thin margins, even a slight change in price can influence:

●​ Daily Consumer Footfall

●​ Total Sales Volume

●​ Customer Loyalty and Competitive positioning.

In Mumbai’s urban environment, especially in Vikhroli, traditional Kirana stores

coexist with modern e-commerce and quick-commerce platforms. This study

explores realistic scenarios showing how a local kirana store’s pricing decisions

affected its sales performance in an increasingly competitive marketplace.

Objectives of Study

●​ To examine the effect of price decreases and increases on a kirana store’s

daily sales.

●​ To assess how Blinkit and Zepto’s entry changed local customer

preferences.

●​ To apply economic concepts (demand curve, elasticity, utility) to

real-world retail operations.

●​ To recommend strategies for small kirana shops to sustain sales in the era

of quick commerce.
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Research Methodology

●​ Primary Data: ​

- Mock interviews with the store owner and customers (10 families). ​

- Observation of sales records before and after price adjustments.

●​ Secondary Data: ​

- Industry reports on FMCG retail and quick-commerce in India. ​

- Articles on consumer behavior in Mumbai.

●​ Analytical Tools: ​

- Price Elasticity calculations. ​

- Comparative Tables (Kirana prices vs. Blinkit/Zepto) ​

- Graphs showing Price vs. Quantity Sold.

Profile of Vikhroli - Local Market Overview

Vikhroli, located in Mumbai’s eastern suburbs, is a mixed residential commercial

area:

●​ Population: Largely middle-income families, working professionals, and

some industrial workers.

●​ Consumption Pattern: ​

- High demand for daily groceries (grains, vegetables, packaged foods.)​

- Price-sensitive buyers, most compare prices before purchasing.

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Market Characteristics:

●​ Heavy competition among local kirana stores in narrow lanes.

●​ Growing presence of quick-commence apps promising 10-15 min delivery.

●​ Seasonal spikes during festivals like Diwali, Ganesh Chaturthi, and Gudi

Padwa.

Business Profile: Shree Ganesh Kirana Store

●​ Name: Shree Ganesh Kirana Store

●​ Location: Kannamwar Nagar, Vikhroli East, Mumbai

●​ Owner: Mr. Mahesh Pawar

●​ Established: 2008

●​ Type: Traditional Kirana (Neighbourhood grocery shop)

●​ Customer Base: 70-100 regular families, walk-in customers from nearby

buildings.

●​ Key Products: ​

​ - Rice, Wheat, Pulses​

​ - Cooking Oil, Sugar, Tea​

​ - Packaged Snacks and Beverages​

​ - Toiletries and household cleaners.

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Key Features of the Store:

●​ Cash-based and UPI payments

●​ Home delivery within 1 km (Phone/Whatsapp orders)

●​ Small Storage space → limited bulk discounts from suppliers

Nature of Price Changes Implemented by the Store

In early 2024, the store made several strategic price adjustments: ​

1. Price Reductions:

●​ 2-5 cuts on essential items (sugar, rice, edible oil).

●​ “Combo deals”: 5kg rice + 1 litre oil at a bundled price lower than individual

purchase.

2. Temporary Discounts:

●​ Festival Season offers.

●​ Buy-2-get-1 on snacks and soaps.

3. Price Increases:

●​ Due to supplier cost hikes (milk product, packaged goods).

●​ Minor mark-ups (1-2 per item) for premium brands.

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Customer Behaviour Before and After Price Changes

Before Price Cuts:

●​ Footfall: ~60-70 daily customers.

●​ Average basket value: 250 Rupees.

●​ Regular families purchase them once every 3-4 days.

●​ Some customers are already experimenting with Blinkit for monthly

essentials.

After Price Cuts:

●​ Footfall increased by ~15-20%

●​ Price-sensitive customers shifted back for basic groceries.

●​ Younger buyers still preferred Blinkit for last-minute needs.

●​ Older loyal customers appreciated bulk discounts.

Sales Data Analysis

Product Avg. Price Avg. Price Monthly Monthly

Category (Before) (After) Units sold Units Sold
(Before ) (After)
Rice (5 kg) 250 240 300 36
Sugar (1 kg) 42 39 450 55
Edible Oil - 1l 160 150 200 26
Packed Snack 20 18 700 75

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Impact of Blinkit & Zepto Entry

When Blinkit and Zepto expanded into Vikhroli:

1.​ Initial Effects:

●​ Sales dropped by ~25% in premium packaged items (biscuits, juices,

noodles).

●​ Younger tech-savvy households shifted to app-based ordering.

2.​ Key Reasons Customers Moved to Apps:

●​ Attractive introductory discounts (e.g., 1 delivery fee, 20% off).

●​ Convenience of home delivery within 10 minutes.

●​ Cashbacks rewards and UPI offers.

3.​ Kirana Store’s Counteractions:

●​ Offer phone/Whatsapp Delivery (but slower: 1-2 hours).

●​ Introduction handwritten discount boards.

●​ Allowed monthly credit tabs—a trust-based advantage no app

provides.

4.​ Long-Term Change:

●​ Essential groceries remained with the kirana due to trust and quality

checks.

●​ Impulse/snack purchases shifted online, reducing per-customer

basket size.

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Demand Curve Theory - Application to Shree Ganesh

Kirana Store

The Law of Demand states that when the price of a product decreases (all else

constant), its quantity demanded increases.

For Shree Ganesh Kirana Store:

●​ Rice Example: ​

- Price reduced from 250 to 240. ​

- Quantity sold increased from 300 units → 360 units (20% increase).

This represents a movement along the demand curve (not a shift), confirming the

basic demand principle.

Graph (described):

●​ Y-axis = Price

●​ X-axis = Quantity Sold

●​ Curve slopes downward.

●​ Point moves from ( 250, 300 units) to (240, 360 units).

Price Elasticity of Demand (PED) Calculations

Formula:

​ PED = %Change in Quantity Demanded / %Change in Price

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Example for Sugar (1 kg):

●​ Price Drop: 42 → 39 → 7.14% decrease

●​ Quantity sold: 450 → 550 → 22.22% increase

PED = 22.22 / 7.14 = 3.11

Interpretation:

●​ Highly elastic: Small price cuts lead to large increases in demand.

●​ Products like sugar, rice, and oil are price-sensitive.

Competitor Comparison (Local Kirana bs. Quick Commerce

Apps)

Product Kirana Price Blinkit Price Zepto Price

Rice (5 kg) 240 235 238
Sugar (1 kg) 39 37 36
Edible Oil ( 1 L) 150 145 148
Chips Packet 18 16 15

*Prices reflect promotional phases. Kirana cannot always match app-level

discounts.

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Seasonal Factors Affecting Sales

1.​ Festivals:

●​ Ganesh Chaturthi → Huge demand for sugar, jaggery, dry fruits.

●​ Diwali → High sales of snacks, sweets, and ghee.

2.​ Rainy Season:

●​ Drop in soft drink and snacks sales; rise in tea, coffee, and packaged

foods.

3.​ Year-End Weddings:

●​ Bulk orders for rice, wheat, and oil.

Customer Loyalty and Retention Strategies

Shree Ganesh Kirana Stores uses:

●​ Personal Trust: Customers often buy on credit (“udhari”)---apps don't offer

this.

●​ Relationships Factor: Knows families by name; offers extra (e.g., “free

coriander with vegetables”).

●​ Customised Delivery: Calls elderly customers when milk arrives early.

●​ Credit Accounts: End-of-month payment system builds long-term retention.

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Challenges Faced by the Kirana Store

●​ Price Competition: Apps offer discounts due to investor funding.

●​ Technology Gap: No sophisticated inventory or digital promotions.

●​ Speed of Service: Cannot match “10-minute delivery.”

●​ Customer Migration: Younger customers prefer the convenience of apps.

●​ Thin Margins: Aggressive discounting reduces profit per unit.

Mock Consumer Interviews & Survey Results.

Sample Size: 10 Regular families + 5 occasional buyers in Kannamwar Nagar.

a)​ Customer Profile - Regular Buyer (Mrs. Joshi, 52 Years Old):

●​ Question: Why do you still buy from the kirana store despite

Blinkit/Zepto offers?

●​ Answer: “I trust Mahesh-Bhai. He gives me credit when needed and

delivers good quality. Apps don’t do that.”

b)​ Customer Profile - Young Professional ( Mr. Arjun, 27 Years Old):

●​ Question: Do you prefer kirana stores or apps?

●​ Answer: “For bulk groceries, kirana is cheaper and trustworthy. But

for snacks or last-minute milk, I use Zepto—it’s faster.”

c)​ Key Surveys Results:

●​ 60%: Prefer kirana for quality, trust, and credit.

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●​ 30%: Split purchases between kirana and apps.

●​ 10%: Switched mostly to Blinkit/Zepto for convenience and

discounts.

Economic Theory Interpretation

1.​ Law of Demand: Confirmed–price reduction increases quantity sold.

2.​ Price Elasticity: Essentials like sugar, rice = elastic; branded items = less

elastic.

3.​ Consumer Surplus: Local buyers benefit when kirana reduces prices,

improving perceived value.

4.​ Oligopoly Market Behaviour: Quick–commerce apps and kiranas compete

in a mixed structure–apps engage in predatory pricing, while kiranas rely

on relationships.

Recommendations for Kirana Stores

1.​ Adopt Simple Digital Tools: Whatsapp ordering, basic QR-based

promotions.

2.​ Group Buying: Partner with other kiranas to purchase in bulk for better

wholesale rates.

3.​ Hybrid Model: Use Swiggy Genie/Dunzo to deliver faster.

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4.​ Loyalty Programs: Small Cashbacks, discounts for regulars.

5.​ Community Marketing: Posters, local events, festive giveaways.

6.​ Focus on Trust and Credit: Keep this as a competitive edge.

Conclusion

The case of Shree Ganesh Kirana Store illustrates that:

●​ Price changes directly affect sales volumes–reducing prices on essential

goods increases demand.

●​ Blinkit and Zepto’s entry disputed customer patterns, but kiranas still

hold strong ground with older, trust-based customers.

●​ To remain competitive, kiranas must adapt partially to digital trends, offer

small discounts, and maintain their relationships advantage.

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References

●​ Kotler & Keller, Marketing Management (2016)

●​ Deloitte India Retail Report (2024)

●​ Economic Times articles on quick commerce (2023)

●​ Mock surveys and interviews (Vikhroli, 2024)

●​ Statista – Indian FMCG retail trends.

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