Which one would result in more revenue this year?

Question

Dear community member

I have a question regarding a case study mentioned in Bain&company website, here is the link

https://www.bain.com/careers/interview-prep/case-library/fashioco-case-study/

my Q is about the second part: Which one would result in more revenue this year?

in this part, I got confused about the calculation of intermittent sales. why in the calculation, we have 10 million people in both 40$ and 75$ purchase...

to me, it should be

2.5 mil person * 40$ AND

7.5 mil person * 75$

look forward to having your opinion.

Thank you

Answer 1

Hi Mehrasa,

Very important lesson here in casing: The details matter!

The case is indeed correct.

Option A (Rewards Program):

# of customers: 10M (assume flat)

Estimated number of customers participating in Y1: 25%

------------------------------------------------

Option B (Intermittent Sales):

Customers (flat): 10M

See the difference? Intermittent sales says nothing about customer breakdown changing, while the rewards program does.

Answer 2

Hi! It depends very much on the industry. In some cases (Growth strategy) I will use a broad structure, in others (... (read entire answer)

Hi! It depends very much on the industry. In some cases (Growth strategy) I will use a broad structure, in others (e.g. “how to increase the excessive luggage revenues for an... (read entire answer)

Answer 3

First let me state that for MBB interviews, this kind of behavior is VERY uncommon! I can say that during my time as... (read entire answer)

First let me state that for MBB interviews, this kind of behavior is VERY uncommon! I can say that during my time as interviewer for both McKinsey and BCG, we were actively trai... (read entire answer)

Answer 4

Hi Anonymous, assuming that for opening you mean how to start the case after having presented the structure, it is... (read entire answer)

Hi Anonymous, assuming that for opening you mean how to start the case after having presented the structure, it is always safe to start from the first point in your structure.... (read entire answer)