Could someone please explain the math behind the calculation for the additional revenue through market share increase? Why wouldn't be enough just doing 33% * 4,3 which is the market size? Thanks in advance!
Get Active in Our Amazing Community of Over 452,000 Peers!
Schedule mock interviews on the Meeting Board, join the latest community discussions in our Consulting Q&A and find like-minded Case Partners to connect and practice with!
Additional revenue through market share increase
Overview of answers
Upvotes
Best answer
Hi there,
I would be happy to provide the solution:
- Given that BabyformulaCo will be provided more shelf space, their market share increases from 30% to 33%. However, out of those 5.16m additional cans of baby formula, they sell 3.00m cans via the WIC.
- As such, in order to avoid double counting, you need to subtract the WIC cans from the total additional cans sold to arrive at the additional cans through market share increase (see also here).
Best,
Hagen
Was this answer helpful?
Hi there,
that's because you'd be double-counting the WIC sales. Need to subtract those 3m that from the total additional cans sold.
Regards, Andi
Was this answer helpful?
Hi there!
With your current approach you'd be double counting the WIC sales.
You need to remove those and you'll get the same answer as in the interviewer notes.
Sharing with you a few more cases based on recent real MBB interviews. They contain detailed interviewer notes so they should come in handy:
Best,
Cristian
Was this answer helpful?
Related Cases
Expert case by Hagen
Style:
BabyformulaCo is a leading producer of baby formula with a 30% market share in the US that is looking for ways to increase their market share without significantly lowering profitability. Recently, a Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) for low-income women a
...
BabyformulaCo is a leading producer of baby formula with a 30% market share in the US that is looking for ways to increase their market share without significantly lowering profitability. Re
...
(Open whole case)
16.4k
Times solved
Intermediate
Difficulty
CoachingPlus Expert
Premium + Coaching Expert
Content Creator
#1 Bain coach | >95% success rate | interviewer for 8+ years | mentor and coach for 7+ years
489
Meetings
15,878
Q&A Upvotes
88
Awards
415 Reviews
