Hi all,
I recently encountered a case, the prompt is super simple: A local supermarket sees a decline in Beverage section revenue, and we are hired to help them reverse this trend.
Let's say after 2 clarification questions, I immediately noticed that this case simply wants candidates to segment and find the key driver segmentation / SKU of beverage that yielding to the revenue decline.
Then how could I set up the framework?
I can break it down into Revenue = sum of all different beverage segmentations Unit $ * # of units sold, but this looks too trivial and cannot further break down;
I can also break it down into Price / Product / Customer / Place, but this seems a late-phase recommendation/brainstorming section, and breaking it into these buckets might be too generic, not case-specific.
Really appreciate it a lot if anyone can input how to open this framework. Thanks team.
Thanks Calvin, my question is actually for the first 3 bullet points you listed, I have already crossed them out in the clarifying question part. Then what should I put in the framework on the paper to be shown to interviewer? Thank you
How you later prioritize or deep-dive depends on the answers given to the "clarifying" questions you asked. If you're looking for a general framework, you can further split price and quantity into the drivers for their change. Let's take quantity to start with: 1. Customers - Any shift in preferences/ demand? 2. Competition - Any major moves from competitors leading to shift in market share? 3. Client company - Any changes the company has made to affect sales? 4. Regulations - Any change in laws/ rules that affect sales? (e.g., increased restrictions on alcohol) 5. Supply chain - Any changes in supply chain landscape (e.g., shortage in raw materials) to affect production? And for price, similar exercise to identify drivers. You can think in terms of supply and demand drivers. On top of this, I would also consider inter-dependencies between beverage segments. For example, increase in sales of one beverage might cannibalize another. If the price of the beverage with fall by X quantity is greater than the price of beverage with increase in the same X quantity, you will have an overall decline in revenues. When you draw an issue tree, you can either put this element separately (visually perhaps with arrows between the product segments)