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Our client is a consumer packaged goods company looking for top-line growth opportunities. They are considering extending its pre-existing baby products brand (e.g., Huggies) into a new product category – baby clothing.

They are looking for this business to generate +$300M revenue per year, beginning in Year 1.

Should our client enter the baby clothing market?

Question 1 – Potential Framework

How would you help the client decide whether they should enter the baby clothing market?

Question 2 – Exhibit 1: Competitor Product Pricing

One driver of revenue is pricing. Does our client have estimates on price points they can charge for their baby clothes?

Question 3 – Exhibit 2: Volume of Baby Clothes Sold by Competitor

How many units would our client need to sell to reach their revenue target? Is this a feasible goal?

Question 4 – Brainstorming

If your client is still interested in entering the baby clothes market, what other options might they explore?

Question 5 – Synthesis

If the client asks for your initial recommendation, what would you say?

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