An excellent candidate would ask for information on the size of the segments and the expected market share to be achieved.
LOGIC TO FOLLOW
A great candidate would identify that the optimal process involves calculating the new size for the South market.
This is a relatively complex math problem and it is critical that the candidate correctly verbalizes what he/she wants to do.
An excellent candidate would clearly present the theory of the math before performing the actual math.
A possible verbal explanation is the following:
"I understand the client would reach the average market share of 25% in the South, where we are currently below that level.
I also understand each region has the same market potential. So I think that we may first calculate the sum of the market potential in all regions, then divide it by 4 to find the market potential in the South, and then find the additional revenues that could be made with a 25% market share.
Now, to calculate the total market potential - let me see - well we know what the client is doing which is $1.2B, and we can calculate what market share that represents out of the total - that would be the sum of the market share in the 4 different regions divided by 4, because, as mentioned, the 4 markets are of the same size..
So that's how I would propose to proceed:
- We can calculate what is the cumulated market share of the client
- We find the proportion of that out of the total market. We can assume the total market would be 4, given that each market has the same weight, so each market would be equal to 1
- We can derive from that the total size of the market by dividing the client’s total revenues by their overall market share
- We calculate the market size potential in the South by dividing the total market potential by 4
- We calculate the additional revenues assuming a 25% market share instead of 15%"
The different components to calculate the result are the following:
1. We can calculate what is the cumulated market share of the client
⮕ Sum of market share of BlissOttica: Sum of the current market share in the different markets
2. We find the proportion of that out of the total market
⮕ Overall market share of BlissOttica: Sum of market share of BlissOttica /Total possible market share
3. We can derive from that the total size of the market
⮕ Total market potential: Current revenues of BlissOttica/ Overall market share of BlissOttica
4. We calculate the market size potential in the South
⮕ South market: Total market potential / Number of markets
5. We calculate the additional revenues assuming a 25% market share instead of 15%
⮕ New revenues: South Market*(New market share-Old market share)
A great candidate would perform the math correctly, aligning with the interviewer and avoiding computations for options not feasible. Following the previous formula, the math computation is the following:
This case is a variation of a Bain 1st round case.
The case aims to test the ability of the candidate to:
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To keep a structured approach in assessing the performance of the candidate, it is recommended that the interviewer uses a scoring system to evaluate the 5 parts of the case presented below. This will help the candidate to understand his/her level of readiness for the actual interview.
A possible grading system for each part is the following:
A possible evaluation grid is the following:
You can adapt the grading system and the evaluation grid according to your needs.
The text presents the questions to ask, the proposed optimal answer and the suggestions to score a candidate performance in each area.