Italian Beauty Company

Since this is a very open question, there are a number of ways to approach it.

A good interviewee will mention the following aspects:

1. Product

• Attributes
• Ease of use
• Value proposition
• Price
• Benchmark the product against competitor’s products
• Trends

2. Customer

• Target market segments
• Brand loyalty
• Price sensitivity
• Important attributes
• Customer preferences
• Buying habits

3. Distribution channel

• Distribution network
• Shelf space and product position relative to competitors
• Share of distribution network relative to competitors

Some suggestions:

• Market research to investigate brand awareness
• Benchmarking against competitor products

Suggested case structure:

Information that can be shared on the interviewee’s inquiry:

• Market shares have been declining or stagnating in the last two years:
  • 10% p.a. for the women’s segment
  • 5% p.a. for the men’s segment
  • ± 0% for the teenagers’ segment

Key insights

• IBC’s market share in the men’s segment is quite low.
• The company’s market shares are declining.

The interviewee should calculate the current and future market share.

If we assume the current market share trends hold for women, men and teeneagers, the following sales will be the result:

Information that can be shared on the interviewee’s inquiry:

• IBC and Cosmetica INT. have the highest brand awareness in the market.
• IBC and Cosmetica INT. are perceived as having high quality products.

Key insights

• Compared to IBC, Cosmetica INT. has higher brand awareness amongst customers and non-customers.
• IBC should improve its brand awareness via advertising.
• IBC should improve its perceived quality by investing in promotions and partnering with retailers to launch marketing campaigns.

A good recommendation will include the following statements:

• Market information shows that compared to Cosmetica INC., IBC has lower brand awareness and perceived quality. This is one of the reasons for IBC’s declining market share.
• If this trend holds, the company will lose a lot of market share.
• To regain market share, the company should focus on advertising and marketing.
• The company has low market share in the men’s segment. The company should target this segment because the women’s segment seems to be maturing,
• The company’s market share in the teenagers’ segment seems to be very low. The company could increase their market share by producing innovative products and increasing acceptance and usage of hair color products.