Expert with best answer


97% Recommendation Rate

365 Meetings

5,412 Q&A Upvotes

USD 229 / Coaching

Product launching case

Carlos asked on Apr 08, 2018 - 2 answers

Hello everyone:

How would you proceed for a product launching case?

Company X is thinking in launching a new product they developed. Should they do it or not?

What do you thinkg about the following structure:

1. Product: characteristics (advantages, disadvantages), purpose, economics (price/unit, fixed costs (R&D, operation fees, marketing), variable cost/unit (production, distribution, commision), dependency on suppliers.

2. Potential market: size, growth, products (commodity or differentiation, prices), customers (segments, preferences,willingness to pay), competitors (share, response), distribution channels, barriers to entry (regulation, switching costs, access to distribution channels), company (capability to access customers considering competition, channels and barriers).

3. Strategies: where (regions, countries), how (distribution channels, marketing, pricing: gain market share, maximize profitability,...). Cost-benefit analysis for each option: reveneus, costs, cannibalization of current business, risks.



2 answers

  • Upvotes
  • Date ascending
  • Date descending
Best Answer
replied on Apr 08, 2018
McKinsey / Accenture / Got all BIG3 offers / More than 300 real MBB cases / Harvard Business School
Book a coaching with Vlad

97% Recommendation Rate

365 Meetings

5,412 Q&A Upvotes

USD 229 / Coaching


I recommend starting with clarifying the objective - Which metrics you need to achieve with the product? Then I will follow up with the structure:

Analyze the market:

  • Size and growth rates
  • Segments (geographical, customer, product)
  • Distributors / Suppliers
  • Regulation
  • Key market trends

Analyze our product:

  • The value proposition of a product (Core / non-core features),
  • Different use cases for the product (Business / private / government, etc)
  • Unit economics (Current unit costs and costs in relation to scale, Investments, ROI targets, Competitor / substitutes pricing)
  • Key capabilities to compete (Patent, distribution, etc)

Analyze the competitors:

  • Market shares, growth rates, profits
  • Product / customer / geographical mix
  • Products (Value proposition)
  • Unit economics (Value proposition vs. price vs. costs)
  • Key capabilities (Distribution, supply, assets, knowledge, etc)

Go-to-market strategy:

  • Channels
  • Time to market
  • Costs, benefits, and investments


updated his answer on Apr 08, 2018
McKinsey Engagement Manager & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 100+ candidates secure MBB offers
Book a coaching with Sidi

99% Recommendation Rate

338 Meetings

1,805 Q&A Upvotes

USD 319 / Coaching

Hi Carlos,

This kind of question oftentimes gets terribly overcomplicatedby candidates. A couple of quick thoughts:

If profitability is the main objective, this is, in essence, an investment decision. You need to assess whether launching the new product will generate attractive returns (absolute AND relative to alternative ways to spend the capital!).

So roughly speaking:

1. Find out what the required return on investment of the client is (and under which time horizon)

2. Do the financial analysis and determine how much surplus needs to be generated in the target time frame to recoup the investment at the required rate (important to understand the investment need! R&D might be surprisingly low if the product is already developed, as you wrote).

3. Then do the business due dilligence to assess whether the product can realistically generate the required surplus. (this could be tackeld with a "classical" business situation framework)

Cheers, Sidi


Related BootCamp article(s)

Focusing on The Core: Mock Interviews

It is to practice as many cases as possible - both as interviewee and as interviewee. Here are a couple of guidelines to help you get started

Case Studies

The case study is the most important element of the case interview, which you'll have to nail in order to get into strategic consulting. Here you can learn the specific skills and concepts necessary to solve them.

Related case(s)

A car park and parking lot operator pursues the strategic goal of exploiting new sources of income via digital business models. As part of this initiative, a MVP (Minimal Viable Product) was developed for a parking app that enables users to search and pay for paid parking spaces. The managing direc ... Open whole case

Children vaccine

Solved 49.2k times
4.4 5 1675
| Rating: (4.4 / 5.0) |

Beyer, one of the biggest pharmaceutical companies in the world, just invented a very reliable vaccine against Chickenpox, a disease that affects children in the age from 2 to 16 years. Beyer came to you wondering what their potential sales in Europe in the first year would be if they launched this ... Open whole case

Toothbrush disruption

Solved 10.4k times
4.5 5 960
| Rating: (4.5 / 5.0)

We are a global toothbrush producing company. Our portfolio consists of two kinds of toothbrushes - 'manual' that sells for $5 and an electric 'rechargeable' that sells for $60. Last year, a competitor introduced a battery-powered electric “spinbrush” that sells for $8.5 and now has 2% of the toothb ... Open whole case

Perpetual motion

Solved 9.5k times
4.1 5 249
| Rating: (4.1 / 5.0) |

After a congress about general science in which you took part out of personal interest, a renowned scientist comes to talk to you. He swears he invented the world’s first perpetual motion apparatus. It requires no energy source and keeps running forever. It can even turn a small fan with its motion. ... Open whole case

Bodybuilding Made Easy

Solved 7.9k times
4.1 5 164
| Rating: (4.1 / 5.0)

Your client is a newly founded protein company. Its owners are two brothers. One of them is a chemist and the other one is a very famous fitness model and personal trainer on YouTube. They intend to enter the nutrition supplements industry where they want to focus on protein supplementation for body ... Open whole case