Hi Anonymous,
I always recommend to use a logic tree for structures. Candidates are very rarely able to do it (given how cases are tought in the usual guide books), but it is by far the best way to visualize a crystal clear logic and to avoid "getting lost" in between.
So I would first clarify what exactly is meant with "Sales" here. Is it (a) Sold units (quantity) or is it (b) Revenue?
If it is (b) Revenue, then an uplift means that during a promotion the quantity effect (+x%) is overcompensating the price effect (-y%). So in my logic tree, I would just decompose revenue into its sub-components: quantity and price. The reason for a lower uplift than competitors is either a stronger price drop or a weaker quantity junkp. The former can probably be excluded, given the basic information given in the case description. So it must be about the QUANTITY.
Hence, the core question to answer is:
"What drives the additional quantity sold during promotions, and how can we maximize it?"
From here on, you can explore the ususal "Business situation" dimensions (drivers) that influence the quantity (customer segments, preferences etc. / our product features / our brand perception / consumption patterns / etc....). Since we know that there is a difference to our competitors, compare each dimension and distill where the deviation stems from.
Cheers, Sidi
Hi Anonymous,
I always recommend to use a logic tree for structures. Candidates are very rarely able to do it (given how cases are tought in the usual guide books), but it is by far the best way to visualize a crystal clear logic and to avoid "getting lost" in between.
So I would first clarify what exactly is meant with "Sales" here. Is it (a) Sold units (quantity) or is it (b) Revenue?
If it is (b) Revenue, then an uplift means that during a promotion the quantity effect (+x%) is overcompensating the price effect (-y%). So in my logic tree, I would just decompose revenue into its sub-components: quantity and price. The reason for a lower uplift than competitors is either a stronger price drop or a weaker quantity junkp. The former can probably be excluded, given the basic information given in the case description. So it must be about the QUANTITY.
Hence, the core question to answer is:
"What drives the additional quantity sold during promotions, and how can we maximize it?"
From here on, you can explore the ususal "Business situation" dimensions (drivers) that influence the quantity (customer segments, preferences etc. / our product features / our brand perception / consumption patterns / etc....). Since we know that there is a difference to our competitors, compare each dimension and distill where the deviation stems from.
Cheers, Sidi
