aerator IIMB Casebook and Industry Reports 2022-23 Volume 12 (a) 7 ICON — Consulting Club IIM Bangalore© 2022, ICON = Consul 1g Club, IIM Bangalore. All rights reserved. This book or parts thereof may not be reproduced in ony form, stored in any retrieval system, or transmitted in any form by any means ~ electronic, mechanical, photocopy, recording, or otherwise — without prior written permission of ICON — Consulting Club, IM Bangalore. For permission requests, write to ICON at [email protected].Foreword This casebook documents the interview experiences of the students of IM Bangalore. The aim of sharing these experiences is to inform students about the case interview experiences of past batch and to help them prepare for their placements accordingly. The experiences listed below are not necessarily the best or the only way to handle case interviews. They only serve to give students an idea of what to expect when they walk into a case interview. Every ividual could have his/her unique way of tackling consulting interviews, each of which could be correct. ‘This document has contributions from students who appeared for campus interviews conducted by consulting firms during the summer and the final placement process over the last year (2021-22). The interview experiences have been sorted based on the type of case, consulting firm, difficulty and the round in the selection process. Special thanks to all the contributors! In this edition, to provide holistic preparation for the case interviews, we have included 20 industry reports as well. The im of these reports is to provide a basic understanding of the industry's value chain, key performance metrics, current market trends and major drivers for cost, revenue and growth. Even though having industry-specific knowledge is not mandatory for case solving, having basic industry understanding helps tackle case interviews better. ‘Team ICON wishes you the very best for your summer placements!Contents - | y as Moderate Aeentre 13, 2. ‘estauran Online Venture fay in 6 3. Insurance Company Moderte Bain 19. “4 Packaging Motel Menulacurer —Moderte Bun 5. Logis Company fy a . Saerories Comey Modena BCG 25 7 Global Tools Manufacturer Moderte CG a7 ‘8 Footusac Manufacture Dimes 80330 9. Stationary Shop fay Keamey 38 10. Anisnosquta Produc Sele fasy — Keamey 35 11. Por Opeatar Moderate Keamey 37 12. ChemalZo0 Moderate Keamey 39 13. Telecom Tower Company Moderate Keamey 42 14. M6 Company Moderate MeKiney 45 ee 15. ‘Twoarheler EV fary centre 51 16. Global OEM = KA Motors fasy centre 53 17. Domsstc Aine Serica Proider Dies Auchs 5 eso Modente Bain 60 20. Jem 5 fey OR 21, Semi Lusuy Car Manatee oe ee 22, Sugneane Yield Eohaner Modente 0S 23, ERP Vendor Modente 8S 9 24, Coffin Manufacturer Dieu Er-Pathenon 71 25. SaaS Fem Easy Melinay 73 SE ee oe 26. Airplane Comsany Moderate Accenture 77 27. TaLGaitection ey 2 79 en Eee Moderte CG Dieu Mekiaey ce 2 a SS 32, Meal Device Manufacturer Moderte Bain 93 33, Food Tech Patfom Moderte Bain 96 34. Packaged Foods Company Moderte CG 98 35. Gass Bota Manufacture Difak Bee 100Contents - Il y a oe = ‘Automatic Vacuum Cleaner ‘Sugar Consumption itcut Moderate Moderate ney Keamey Mekinsey Mekinsey Strategy 149 151 153 asa Reco 2 er oo cs | a) aoe SS 2 cee a 7 ae EY comer arama To “43. Increasing Dairy Farmer's Income Moderate BCG 119 7 ‘44, Automobile Manufacturer — Exit Moderate BCG 121 = +45. Declining Population of Lions Moderate BOS 123 = 46, Masterchef Season 14: Bidding Difficult BOS 126 * 47. Nike market Share Issue Moderate ey 128 = 48, Indian Telecom Tower Company Difficult ‘Keamey, 130 « 49, PE Fund Moderate McKinsey 133 - 50. Talent Management Moderate MekKinsey 135 = es ° a aaa ioe BE feta ae ees oe 2a oo A a ce a ‘Aiding Industry ‘Automobile Industry Cement Industry E-commerce Indust Financial Senvices = Aset Management Finacial Senices = Banking MCE Industry Food Processing Industry Healthcare Series Ineistry Hospital Industy Insurance ndusty non Stel Indust, Bes ndusty 156 17 158 159 161 162 163 168 165 166 167 168Contents - Ill = <= 14 Legis Industry 169 18, OiL& Gx industry 470 16. Pharmaceutical industry an 17. ‘Reta wm 48, Telecom industry 173Introduction — Case Intervi Case Interviews Business Case Why Case Interview? Personality based ques. (5 min); Case discussion (20-30 min}; Closing ques. for interviewer (2 min) Know your CV well-+ personality ques are based on CV to break ice and getting to know you Case discussions don't have a predetermined answer. Evaluation is based on approach, ‘exercising judgements and steering through the problem statement Real life consulting project, that the interviewer was involved in —> basis of case discussion Consult projects can vary from 2-3 months to even a year —> condensed into minutes for interviews Provided as a 3-5 statement caselet introducing the client and problem faced by them Can be number based or strategy driven; guesstimates can be a part as well Test the ability to perform on the job in a similar setup as the case-interview (consult-fit) Understand thought process of the candidate and capability to make decisions/ prioritize Put you under same pressure, like any consult project, to assess your poise, self confidence and communication skills (interpersonal skills) Drawing on personal experiences, if any, can come very handy ~ appreciated by interviewerIntroduction — Case Inter w Process Interview Stage What to expect? Skills Tested eeu Cer hy Dern Set TT ret) Ce Lag ei ‘Interviewer tells about the business problem and objective Ask clarifying questions; ensure you heard the question correctly ‘Ask for time to structure the problem at hand CCome-up with a structured MECE approach quickly ee Use a hypothesis driven approach for case solving ‘Ask relevant questions, use 80-20 rule appropriately Case can get number intensive eee Summarize the case with recommendations backed up by insights discovered in the case Opportunity to show enthusiasm towards consulting ‘Ask relevant, non-generic question ee * ee eee Ability to listen and synthesize Structured thinking ‘Communication Problem solving Analytical skills ‘Communication Creativity oncision Communication Consulting ftIIMB Casebook 2022-23IIMB Profitability Cases 2022-23Profitability Framework - Revenue Y Preliminary Questions + clay objective, quantum of change in proft and umelin + Geography Location of the frm its branches + snes Model where dots he fi le Inthe vale chan? What ares revenue ‘reams and tribution channel? + Understand customer segments + Whats the pedct mix? ay new “derentaion/ change mn products? + _whatisthe competitive landscape? ‘Aéverisemen, Parking, VAS, (vio rest nthe anf: apy 8/20) en Poe ‘Yreevat, use ndustry vlue chan Number of J Av ‘amount 2 Foro manfoctariog firm, ase Need Awareness Accessibilty, ‘Afordainy, Cstomer ExzerienceProfitability Framework - Cost erandng + Cort of aw materts ‘Transporation & Packaging 1 4Suppliers xContact + ale apse opportunity Waste, wear and sor = setuptime cost 1 Numberof latibutors 2 order amount frequency oforders 1 Number of customers» Frequency of sere x cost incorred ‘Transport 8 Pacaging Space parts tums, tnermedioe storage sierinutors x Ave Datance Fromhub Cost er km‘Before devine dee into te problem, | woul ke to ak afew clvne qertions about four clent. What geographical lcaton docs te bak operate nt What al services does Sure. For how lng have the profs boen decrening? Is his decrease in prof specie to the ATM department of the bank? lit vested to a parla geographical region? ‘And thi decreas in peo in Mumbai has Baen seen only for our cent or other banks are ao witnessing the same ? ‘Sur. Let me just reterat the eae once to make sure Ihave understood i deny, Our ‘lent 2 major ret bak in Inda which hasbeen seine decreasing profs for he past or inthe ATM depatment. This decrease I speieto ou ent ads festa to the "Mumba eon, We want to alae the reaton behind the decreae In prot and come wit recommendations forthe cent Do we have ay other objective? decning profs ue to devining revenues or increasing ost? | Moderate | Accenture ‘ha costs forthe ATM divson can be brokan down lato fod costs and variable costs In fd costs we wl Have operating costs i sect ad wien sorry gard and sa salares ad rent for ATM machine spaces. Variable costs Include costs for value added es. Another major east forthe ATM dision canbe interbank cash withdrawal, When 2 ‘istomer with aezount in Bank A withdraws money from ATM of Sank , he/she hs to pay {ome transaction foe to Bank Forte fee -¢trancacton th interbank wthdraval leew forthe customers and Bank A pays on behalf of the cstomars. Has there Been ah inerear inthis interbank transaction fee tht out cen hast pay to other bank? efor | can think of reason, Ihave a ew mae questions. Can ask them? Hasthere been an increas inthe numberof ard customers for orca over the past one yea ys, has the numberof our ATMS nrensd in same eoportion? This might be the reason of increased costs of interbank rancaton. New customers of he bark are using ATMs of banks other than ous to withdraw money Sie our cent has 0 ‘with he increasing customer base. New customers are using other bank ATMS because of 3 locavons of therbank. Third, ess ATMs four len| Moderate | Accenture ee er nner The one malor reason in decreated reve ofthe ATM department could be sine our clan’ customer base Is Increasing the customers must be salting fom ather barks to ‘ur. This wou decrease the number af intesankrantaction ther bn’ customers are Going nur ATMS ths decreasing our revenues fom wansacton fe fom customers of other bani We can dhide the recommendations into short term and long term. short term recommendation that seas to implement i to do nothing. since the sudden increase in Curtomer tar is transen an after te fist 2 foe wanton the bank wil nt be ble to pay the fe, the core wil go down. Shor term recommendation tat i ail to Implement is providing incentives to customers to use” our ‘ATMS. Long. tem recommendations include opeingmere ATMS in beter leationsRetail Bank ATM Case Statement | Moderate | Accenture + eclne in profitability 2 ATM ison of etal bank ‘+ analye reasons or decine and prouderecommentions to improve profits Interviewee Notes + Improve proabity wth 2 focus on cote + sting down a posse cost ie, both fad and variable involved na ATM banking sewn Structure/ Framework ——— «teas + teines + sear + Foxwonsimnaont conan pone downto teats Key Takeaways + tnaesetne porte nohed by erences fomyouromn Me xeep lookout fo any hints thatthe interviewer may gv to lend you tothe desired answerRestaurant Online Venture "would ite to know mare about this lent. So, frm which location operas, n wha whether ts sted on some kind af agaregatr platform os having ts on platform. ‘Okay and now i | woul ke to know more about the probe since when ti facing this problem andwhat the quantum ofthe problem? Ta et down the problem of prot into revenue and the cort.Rovenue is nothing but rurnber of customers * revenue per customer = purchase Trequency while cost wil nove Several ether facts. So, 40 you have any lnormation on whether the revenue i going ‘down rm the anne busines or the cor is increasing? For the revenue part ether the numberof cstomers ae nat enough or the bate se per tahich parti reducing "would the to breakiown this into mainly four part which ls awareness, acesslty sHfordabity ana the customer experince Profitability | Easy | Bain ‘ofr the awareness part we can look atthe diferent tnd of markting or communication ‘that thas entered nt about actually bu if we can know whether tis applieaton i serving ike some area ofthe cy or the fll area about affordobly we can see that whether the dries ofthe fod ers are siiar to tems which ae onthe mend Hf somcone opt "0 Ging and the customer experience we can spitinto tee parts which pe aes, autng tale ae pot ales what we can do it we can looks the sesren par, food ordering part and ‘vera apofwebshe experience, n th sles we can aes the dcourt, payment mods, Gelvery charge and delivery time in postales we can lk int the fod exprence and delvery experience Fist start with awareness art ist look atthe internal actors 50 there can be two ‘ype fees, cashback or partner oft, do we have ary information on type of discounts ‘ao ae offering? To nal the offer thee canbe rover condone such as bast, ‘asa deposited into wallet or some ue wih lity of offers or app exptience ‘Coming to the exteral part, there canbe competitors proving beter ofers due to whieh wear aig chur ate [As mentioned eae, we can leak atthe customer experince in tree pats, do we have Ether there can be owned or outsourced dlivery feeRestaurant Online Venture Delvery time can be Ngher due to Internal factors such as adress mapping, route ‘optimization, improper raining tothe employees, order assignment or number of delivery fleet Whlefor exeral factors there canbe sues with weather, afl vehicles a ee ee ees We cn ee four cats using thd party map service provider Ike google ors Inhouse ‘developed, nated on that, we can improve out adress as we increase clverie. Wo can ‘leo use advance analyte o optimize the routes and orders aegnment. To handle manpower ise, we can design capac based onthe average and peak capacty ofthe orders and base on that we can have fen manpower to edie the cot. We con fs explore outsourcing delivery service 25 hed pot player have beter experience with respect to allhe problems mentioned above, Preteaeeneier sentient ood. Can you sso te how wil you pietize your recmmendations? ey eer Pes er ee ee er eer ey ‘kay, we can now close the ate, bility | Easy | BainRestaurant Online Venture + Clients medium sed restaurant ventured into online food ordering busines Case Statement 1 Revenues doesnot match forecast. Need to Wenty reston. + Need to devise proftabiltystatey Interviewee Notes Structure/ Framework Platform Newly venturedin ening elvery busines. operatingia tery, Dining. banquet and online elvery busines. Key Takeaways ‘Understanding the consumer journey sth ey to arving at slution. srealing down the customer experience to get down to delivery te the Inpotantstep Problems contaminating in howe deliver fet and outsource dlver eet shouldbe evaluated carefulInsurance Company Profitability| Moderate | Bain y ‘That sounds ntresting Sut dn'thave any such exposure yt Se Sure sic (Confirmed the case statement). think that would depend onthe objective her. Is Flair assume that it would bes cost reduction? In that ese | woud ry to estimate the cost savings such automation would bring in or *npa branes a — = | eee | imvlve inthe value cin + Recommend solutions by breaking ina logical form such as shor tem longterm, oe Ro Se een Key Takeaways “Be interviewer buyin at every step Be exhaustive ad pinpoint the geography where the problem ies. Inter ewer was plated with the industry specicknowledge freak down the recommendations int short term and longterm,Global Tools Manufacturer Profitability | Moderate| BCG vy ee en AMMIRMRMIIRIRE 50, Pott 2 function of Revenue and Cost here ary data aualable on how are our revenue an cont structures area compared t0 our competitor? Before presenting my aproae, I ould ike to clay few things ‘an you tl how big is our Payer and | assume we have not been able to be prfable So revenue rvolume * ece per piece. How do your pie ana quailty of your product sine or beginning fare wth tat of the compettors? er a ee ee ee Peieeeeee Premiere re ‘can you tell me more about he produc offering, our product mix and who ae our Target then think tis safe to say we ae notable to sll as many quanti as expected and the Ccaomers 7 problem es there SS Ss ira nc ree to hounehald fo have a $0, 1 would the to lok int the value chal to erty the problem, Theft paris the Can outell me more about wheres the company located, manufacturing? manufacturing, then are the ietrbution push ne the cstomer ul Understood! Can you tell me how do we reach our eastomes? Is it though local The problem canbe on ay ofthe following parameters. The product sal, ie, place and rribvtorsor any other way? promotion But looking 3 that not mich fo area. | woul fecur on promotional ‘an you tll me more about he competition? Are they lo facing slr isues ori fr {think of marketing fo the eal fools man with TV ads some local Wade shows, nd siniar ieee an assume that problem is not specie to one product and preset my approach? EER DR aseletoGlobal Tools Manufacturer ‘kay. 50, the only reason | think this could as we par onal wuld be on Brand Perception wth ter, Sure, eve mea momentlet me conolidte my thovshts "coud thinkof two ways todos + Secraae price or provide counts but thi would nots feasible and might nat werk in the ong un + Aeqie/partnefoul celaonship with song intermelatry dstbutor with local Airribstorand pus or products to customers on tal basso they prefer our podoct Thank youl That was good. We can Wrapup the interview here ity | Moderate] BCGGlobal Tools Manufacturer Profitability | Moderate| BCG oo + Gent slot toos manufacturer anda not been potable sine inception + aentitytereasn fr nt bee ofa na sogget posible ways tomorow t Interviewee Notes ‘Structure/ Framework * [atte maaan one of ther sfeing potty + Vale chan asi needed followed by 4 anal Value chain a anal oe 22D ==» Key Takeaways ‘he candidat could have reached fstr tothe conclusion thatthe ellen i not have enough ty ‘Since the dent has nt been proftablesnc Inception, we need to analyse whether the lent shoul have entered the Indlan market the fest place ‘or would it have made sence to acqie existing player.Footwear Manufacturer Profitability | Difficult | BCG y Just oat» high sence ofthe bine landscape, can | a few raiinary questions before we delve deeper it the problem ‘Could you please help me understand a) what are the geographies that we operate in, wear €] who are ou primary customers Le, male/lemae hefaduts et and] whats he competitive landscape? “rus, have far understanding of the busines operations. To dszect the problem statement since there hasbeen a sharp decineretum of shareholder's egy and ROE is equity base or Both, dedine? could be going up or both estveto the competitor Considering ou cles lig mart stare wil te arto hypothesc thatthe eres are decing rst and then maybe Ine we can nave ook at he cot ide ofthe cet. ‘The revenues canbe further spit into 3s Le, vlumes, alu and varity. so, ether the ‘volumes might be going down, or the price or here oul be problem with the product tn Do you want me to focson any ofthese fst ‘Sr, 8¢ YoU mentionad earler that we manufacture al types of products |, busines, ‘aval, partywear ete. and row been winesing sudden dace in revens from the pam ‘ne yar One ofthe potential reasons relating to product mix could be chang neustomer preferences towards cas footwear ove business wear expeily ring the cows times [As most of the wocking population has bean wortng from home recat, and while ‘woring fom home one would prefer casual wear Ike Sipprs, sets ete and hus laser ‘demane for business shoes and senda,Footwear Manufacturer Profitability | Difficult | BCG y Sure, the decline a vlumes speci the cent can be ether dueto fallin demand ora ‘uppy sie consent. either the elon not geting enough demand fort produ ot the cant notable to mate the demand wth supply. ‘Considering here isa bottleneck in the supply side, woul ike toy down the val chain for’ footwear manufacrurerto aes there's a problem in any of the nda Canin ifthe cent’ valve chain ook ihe For footwear manufacturer hevaluecaia would Beg with souring of aw mater in-bound legs, manvlatring, ackaging, warehousing, dstbuto, sales aftersales support. ‘So the distribution chanel fra footwear manufacturer ould be ether physical or onine (or an omn very useful in scoping Value Chains for various industries to understand ‘nuances of market entry and objective metricsMarket Entry Framework (contd.) Preliminary Questions ra) targetedtimeline + Geography - ware we looking nt this or eogapny? Wave they aunched the producin nother market? pee) Inthe vale chan? cond ‘Addressable market Market Price nancial constrains one Growthrate” sructure Product, Copiitesesouces nr capabilities and expertise ofthe fn? ProftMargn - Reactonto Plce, Suppliers EEL entry Promation —~- Govt Rapuations + Wo are the target customers? Maret Seyments Patents, Economic Feasibility: Mt Sze x Mk Share x (Pie — Variable cost) — Fined Cast eee + pays of product BSS soivethecuessimstetocakculte markt si, qualitatively id achievable mark share 1+ ring iven or required askfor — ul rperionce Cure | Local Capertee ise lol expertise eet “eos rend mage High Seale and Scope “Produce syneray High Commtment ‘rand Dilution Rick Threat to Brand Valuefwo-wheeler EV Market Entry | Easy | Accenture v Belore delving into the case, | would Ike to asa few questions to understand the problem better Fst of al, what exact isthe cent’ target? Do they want to focus on ‘apturine certain marketshare, or profitability, or something ee. (Ok, and ke to know the company better to go about this analysls. Where sour cient located and where does sel? What kind of automobiles does manufacture? How does it compare tos competitors? [Ok thank. Can assume thatthe clients targeting the 2-wheeler EV segment and not the d-whecler? Alo iit targeting only the Indian marke oc has global pans s wel? ‘ay. would analyze this problem in two aspects. Fist, analyze the attractiveness of ‘the twor wheeler EV industry in nia based on potetil market size we ean capture and compare it with our current business ice also look at the industry scenario ‘surrey and inthe future in terms of competitors, suppliers ans outside frees, followed by any market rss, and then would analyze the firm's resources and ‘capabilities to enter the industry. ths ok? 1 would look atthe curent scenario ofthe EV two-wheeler market nina | would lok at the market penetration oftwo-whesler Eventing playersin the Industry, the Infrastructure situation including charging stations, the expected CAGR of the nex S| years, also accounting for government support to EVs and increasing environmental awareness boosting EV adoption for estimating total addressable market that we could ‘capture, For Es, Lon batteries are a major source of ost, of we don intend to ‘manufacture them in-house, would also look int is supers. "es The charging nfrastructut is almost non-exstent in india. We ae nowhere cose {35 compared to European countries, China and the US, Government has been pushing for the development of charging infrastructure, and there are some private players 38 wel India doesnot manufacture Lon batteries for EV ad al of them are imported “This adds tothe aleady high costs of EV batters. I would compare the opportunity from the markt sing wth the firm's current {inancal strength to decide the attractiveness and also ratily source of funds forthe new venture would aso lok at the capabilities the firm has in terms of RED and manufacturing capabiites for an EV. t would also need to analye the supplier network {or new components required for EV. The distribution network and ales & marketing of the current 2-wheeer canbe leveraged “Te organizational structure For launching 2 new product, departments Ike RAD, manufacturing and marketing would have to workin tandem leading toa potential change if the firm i currenty in a functional set-up. The firms resources would bets RAD, relationship wth supplies, manufacturing capablitis, and its brand. RAD and manufacturing capable would need to analyzed should i proceed via acquisition or i-house capabilty development or2.V, fnew plants need to setup or the existing ones need 1o updated fr EY fnew equipment reed tbe purchased. A geod relationship with suppliers woul help the fm a procuring EV components ta competitive price. A good brand rare would help the frmin launching a new €V vehicle and capturing markt shareTwo-wheeler EV Market Entry | Easy | Accenture WY Your clients an automobile manufacturer and wants to enter the EV industry. You havea meeting withthe CEO ofthe frm. How Case Statement would you advise them? Interviewee Notes Structure/ Framework +The focus was on analysis offactors and how are they eelevant ta the EV Industry + The interviewer focused con the approach and Skipped past the numbers prices | eee co Key TakeawaysGlobal OEM - KIA Motors Market Entry | Easy | Accenture y ‘Thanks, | would lke to start by asking if thee i any specific objective that Kia is ooking to achieve in india, and wits the timeframe theyre aiming for the sme? Since | know it's an OEM, I am assuming that they produce all the components required and assemble it The sales would happen through dealership networks. | wilfocus an this part ofthe value chain for this cases that okay? ‘You mentioned that Ki sa sister enterprise of Hyundal. Can you give me an idea of the exsting Indian market scenario in terms of competition, share incl for Hyundai? ‘Aight, so now for analyzing the opportunity, will start with the economic feasibility and then the operational easibity 1s that okay? Firstly, | would lok at the entire population of India. | would divide it into rural and Urban areas. Since a significant pat ofthe road infrastructure and regular commute pattems are concentrated to urban, | wl focus on this segment, Als, 4W can be {sed for both commercial, that Is tans & for personal use. | would keto focus on the private usage. Are these two assumptions, okay? | would determine the number of households, and then divide i into low, medium ‘nd high income. Assuming a certain numberof cars per household for medium and high‘income households, I would divide urban regions into metros, which alteady have good public transport and non-metos andlogk at the numbers for thse, There's one thing | missed out on earler, that Is, are the market shares of competitors mentioned earlier forthe economy or premiums segment? Also, does Kia have 3 competence in ether economy or premium? Considering that the economy market seems ta be quite concentrated it might be difieut for Kia to make an impact quel. Furthermore, considering the grow of {sposable income in India and the trend towards preference towards luxury Vehicles, Kia can look at the premium segment. Moreover, it already has 2 reputation 2s trusted brand, which s important inthis segment In my opinion, Kia can leverage the favorable policies of the Govt. towards domestic manufacturing and cheap labor avalable in India to setup ther mfg. plant In India. 1 can leverage the exiting synergies ithas with Hyundal fr manufacturing ‘6 wel asthe distributor network thas. On the marketing side, ft can focus onthe premium customers and postion it san international unuty brandGlobal OEM — KIA Motors Market Entry | Easy | Accenture y + Kia Motors wants to enter india Case Statement + le want o attain reasonable market share and achieve proftablty within 3-4 years + Isa sistr enterprise of Hyundal, whichis already presen in india Interviewee Notes Structure/ Framework + Multiple segments forenty Market Entry + Have a partner enterprise already present. = concentated Economie Attractiveness fil Operational Feasility market overall split ood Population ‘Ask allelevant clarifying questions upfront. De not assume parts tobe excluded. E: Barriers of entry, Mode of entry Understanding who will use the products erucial for market sizing ~one level deep ater income spt Structure the “how to proceed” par, Instead of drecty vig nto answer. Interviewee dé not MECE adequately Key TakeawaysDomestic Airline Service Provider ‘Before ving into the case, can | know about existing fights on mentioned route? (Ok great. Can | know more about this fight, as in how many seater planes, what is the timing, occupancy ofthe plane? ‘0k, Can know about our cient’ plane (how many seater?) (After asking for few minutes to structure thoughts) would lke to ask afew more questions. Why have the other operators not started operating on this route? ‘Oz So with 95% average occupancy ft seems tobe a great route to run a flight. So ‘our concern should be to decide at what slot do we plan to run the fight upon and lat frequency do we plan to operate, | want t0 know more about the cost structure of operating a fight on a route? Tra te airports, parking charges (f they are cheaper at Goa then we park the plane there or Kola). Is the same plane used for other routes as Wel? De | aso ‘eed to size the market on ths route? Market Entry (Unconventional) | Difficult] Auctus v (Ok, how are the slats decided atthe airport for an operator? The route is attractive. So fist, we have to decide on the slots at which we operate, We azo need to check what diferentiatng services can we offer to poach customers rom competitors who also operates an the route? Well, achieve operational effilency, allow faster checkin/checkout, increased frequency for seasonal demand (as Goa has more tourists during winters and Christmas) and perhaps use data for some personalized services and even provide more luggage faites. Tourists who travel with less luggage. Uight traveling is the norm, so itis not a feasible suggestion. Can we operate indirect fights? Intersting! Then we can incude inde fights on this route which wil reduce ticket, cost inc occupancy. We can have 1stop fights w/halts at Mumba, Bengaluru‘As we have very high average occupancy it means there is demand on the route, | would operate the fight atthe same time or around the same time as. my competitor to take advantage of the demand. As our flight will be with ‘one-stop, we can lower our ticket prices as well. ifthe client lowers the eee will also lower the price os ita good idea? 'No, hence we can operate at the same price as competitor. And since our costs could be lower because of one-stop fight and higher occupancy we can make higher profits ree Market Entry (Unconventional) | Difficult] AuctusDomestic Airline Service Provider Market Entry (Unconventional) | Difficult] Auctus Case Statement + leading aitine sence provider considering to where cou they increase thee frequency and add new routes Interviewee Notes Structure/ Framework + Many competitors exist due thigh occupancy of the ute No need to focus on ‘Conventional amewerk ferentated| rg cor Key Takeaways ‘The interviewer was pushing o focus on methodology of implementation. One must be quickto adapt tis more Important to MECE and check things to focus on, with the interviewer when framework st conventional Preliminary questions need to be more comprehensive, Recommendatlons must be more unique ~g: Partner with travel agence, ete.Third Party Garages Market Entry | Easy | Bain IF would ke to understand the problem a bit more. Why do customers op for tid party garages than company service centers? What i hei revere model? Which Segments in auto does it cate to? In order to understand the reason fr their existence, how do they source the erginal spare parts asf must be a cancer? Also are we planning to implement the ext same model in nda, and what’ the current competitive scenario Inda? And what isthe objective behind replicating this? (Ok, | have good information to proceed with my analysis, Since this sa new industry, will begin by analysing the market atractiveness, and then move onto analyze the ‘operation aspect asin setting up ofthe value chain and potertial baer ary ‘Sure wil begin with the population approach. Apply fers of urban and rural We proceed with urban and apply iter of income (hig, medium & low). Divide, ths by 4 to get numberof famlies, wecanignre te low-income segment. Multiply medium and hgh income by numberof eats per family. Land 3 respectively "MI segment looks for vale for their money whereas HI loks for brand and convenience, Even though the Ml segment seems lucrative, the unorganized indian repair industry is fl edged and atracts the Ml with much cheaper ries with ‘upiate parts. Hence | think ur favorable segment would be high income. Raht Also, we can earn better margins from this segment. Do you want me move to pricing aso? Understood, Since we are focusing on high income cents, we willbe dealing with high end leary cars. We wil need strong supplier relationship with both domestic as ell as overseas suppliers. That shouldn't be a problem with the brand name Tata Next, we wil ned to setup stores, preferably in tier one and two cles. For marketing \we cn tie up with dealers for servicing programs and advertise direct in store. Lastly finding skiled workers might bea challenge for which we can setup a training fcity forthe same, Let me gather my thoughts. | think ideally, we should bein the vicinity of our cents But those areas must have very high renal cst, instead we ca locate ourselves ‘outside the city on major highways, with large stores. For convenience we can have pickup facilty for our cents, This wll help us exploit low rent cost high economies of scale and deliver convenience to our cients to,Party Garages Market Entry | Easy | Bain Ratan Tata visits Germany and is amazed by te tir party garages culture there, He wants to replicate them to India and has sted for your hep to understand how to approach this? Understand the business ‘model ofthese garages and ‘ny are they better compared {obrand owned stores dentifyng the issues related ‘to unorganized sector in india while asessng target segment was of kay importance here Remember toe up each decision to the ebjectve of Inereasng revenues and convenience ee roars toa Pr] Workers “+ Before jumping int the market entry framework, understané the business model. Try applying your own experiences to bring in ‘nsignts. “+ The Market atractiveness was more about identifying the attractive segment. Adapt your approach by taking feedback from Interviewer before moving onto the next steps.US Food Manufacturer Market Entry | Moderate | Bain y Before we go orwar, Ihave afew questions about the cent an the product. When we 3 rises, ae we aking about ozen dough or powdered mes? Als, what pats of tevalue chain do we operatein? Isthere an esting roductin the markt? Iclooking 32 ls, there any budget constant forthe same? thik haves far understanding ofthe problem a hand. woud breakdown my analy in ‘major buckets: Maret tractveness, Operational Vabity and Financial easy. n ‘markt attractiveness, I would look a the market sie and mart features uch ae the competitive response and capturble marketshare operational bly would look st reentry considerations and how to enter the market Finally nancial feasibly, would (cok at what are the varias cost and revenue seams to understand can we success, breakeven ‘Sure. Assuming pizs are bought for a family, wil cleat the numberof Pizzas sld yearly nd wil take a dlecount factor of 22 5% (10% share 25% growth) whch could be ueed to ‘aleulte te proportion of plaza mies out ofthe plazas consumed, Number of pitas sold ‘il epencon the US Population, urban rural pit average amily st, income css wise Split, average frequency f monthly purchases and a scount factor for organic plaza bases Sur, dased onthe calculations, we ae lootng at about 25 Mn early purenass {csleution done below in the chart] While this ook ke an atractive number we sould look atthe operational fealty nd nancial aby Given we already manufacture bead mbes, woud It be afar assumption that we have all the processing capblites or ‘the pa mic an that the only challenge weuld bein tems of soureng raw matrals and capacity utzon? Tl dently e beakeven quate require and benchmark it with he potential yey es togvre nether the pod iil, To breakeven, the fms profi eontibtion shoe at least be equal tothe hed cost With prfitper unt of $05 (3512-15-03, the cent reeds to sel 240,000 unt to breakeven, This number i aainable a5 we a6 looking at eri sales of 26 Mn and hence the product auch financial feasible oo Sure, Our cnt wanted advice ona new product aune fo organic lza mesh the US| Finaneil eat, We concluted tat he market was atactive with 30 Mn annua es ‘With no signa operational challenges, we ame up ith yearly sales of 240,000 to break launch with the esting capaci.US Food Manufacturer Market Entry | Moderate | Bain WY ‘Your cen is 2 US manufacturer of bread mixes with a $40M of yearly sales. ts planning on expanding Its product line to ptza ‘case Statement ‘mus and i asking for your advice Interviewee Notes Structure/ Framework + Food industry i growing at 25%. Organic mbes i 10% ‘ofthe food markt. Share In ‘estimations can be taken a5 42.5% accommodating 25% {growth in current 10% (Groveie Points) rrr + Client wants to launch only ls ‘organic pizza mix rome rrr EE + Guesstimate for market ze required (Marked io Orange) + Engute that the you lay out the structure fr your analysis tthe start. allowing MECE from the beginning to very end le ete! to caver an Key Takeaways exhaustive set of recommendations. + Askthe interviewer for relevant data instead of getting stuck in your analysisMotorcycle Manufacturer — Export Market Selection Market Entry | Easy | BCG y ‘Thank you forthe case, fore | proceed with structuring and zing th problem, | woul woul ike to unerstand if hae is any partcula reason to ena forein markets A, | want to understand the objective ofthe mart entry ~ whether iis to Increase prof, even or market sare or anyother specie purpors ‘tay woul as keto know the made of entey~ whether ts hough expor or setting up plant atthe respective revons? Alo, | want to kow ther seamen of expertise = economy, mid-ange or sport, Thank you. So, | would ke to proceed by looking atthe markt attractiveness, financial ‘aly and operational fssbity for eech of the dented potertial rons and then Dees the approach ok ne? the sports o” lxuy segment whichis usually over than 250 ce thet our client specializes ve the last preference " Now | woud Ike to evaluate the Chinese mare Do we have any data on the compete can thik of tree reasons forthe dominance of local payers inthe Chinese two-wheeler market Tis can be becaue of government regulations, compative prices ofeed by {Chinese companies which creates baer to ett fr fregn payers othe preferences of the customers ise In any ofthe above cases, wil be felt achieve» marina share Inthe maria Thas, China wilbe ath in the order of preference. kgwse, do we have any ta onthe ret ofthe markets? ‘The Afcan region requires neler investment nar any othe regulation compliance. The customers also prefer mi range two wheces So, ican be given fist preference. The ‘Second preference can be gvan to the Latin American repon bacawce ofa short lead tine for the modfiation. Te Southeast Asan regon wll be the thd preference because it icles ently designing a new type of vile. Regarding the made of entry inthe ran true, our chen con ect expert assed vetiies or assemble ther localy by Seng completly noche down CKD} ato components. They cn 30 t-up with aocMotorcycle Manufacturer — Export Market Selection Case Statement Indian metorye manufacturers ooking to export to fie iferent potenti regions Five reglons US & Europe, China Latin America, southeast Ala ane Aca What shouldbe the preference order among the fve regions? Interviewee Notes Cent species in 100 t0 250 cc segment 200% Chinese market held boca layers “Southeast Asa—Curtomer Preference cub ype vehicles Latin America ~ Government Fequlaton ques minor rmosieston ‘ie No epltions Structure/ Framework Key Takeaways Importance to be gen orth castomar preference and region Bares Start with top-down approach inthe Market entry cases and get a buyin from interviewer ‘Give recommendations on mode of entry and unique insights drawn frm personal experienceSemi Luxury Car Manufacturer Market Entry | Easy | BCG y ‘Before delving into the case, | would lke to know ate bit about the business contest of the client. Which geographies do the client primarily operate in? Whats the motivation for entering into the budget sedan segment? (0k so wil look atthe problem bucketing into 3 categories - Financial feasibility, (Operational feasibly, and the rss. Does the approach look ine. ‘ket me look atthe market sie and market share that we could achive, For Market siting do we have any information or should | prceed witha guesstimate, ‘Since they have been operating inthe budget segment 50 fr, when we upgrade toa ‘semi usury brand under the ame name consumers might be apprehensive about buying the product a compared tothe competitors’ product. First of al, they can try to position the product slightly diferently from the competitors as an everyday sedan. They could pict slighty lower than the competitors atleast intally unt the product gains tration among the consumers ‘Aso, they cou leverage on the esting customer base to increase sales ‘Yes, sure, Lean think of a coupe of ways to dot Firstly, we could upsell the product to our existing customers by providing attractive dscountsofferson their existing hatchbacks and sll them the sedan. Also, sine we have the information on when ‘ur eustomers have bought their cas, we could do targeted promatons to existing customers f thee cas ae old enough and canbe potential New car Buyers (0,20 | believe that we should price the product by benchmarking with ‘competitors and shoul price the product slightly lower than the competitor unt ‘ur product gains enough marketshare There ae two more ways that lean think of about how to rie it. Cost based and value based approach, Here we should try ta sll the preduet onthe basis ofits perceived value and the vlingness to pay ofthe customer.Semi Luxury Car Manufacturer Market Entry | Easy | BCG Case Statement Entry into upstream segment ofthe same product segment ‘Aims: Increase revenue and generate alternate sources of revenue Interviewee Notes Success Metric is increased profs Focus on potential iss to market entry Competitive pricing strategy to antrat customers Structure/ Framework Seed iil toes easily Cee Key Takeaways Understanding key factor for people buying a midale-segment product ‘Traitiona framework was not followed. Risks could have been MECE' better as internal extemal Pricing breakup could be clearer upfront. tart with breakup and then put your thoughts on what you thiak makes most sense In contextSugarcane Yield Enhancer Market Entry & Pricing | Moderate | BCG vy eee heel ee er ce rer ‘They have recently developed a chemical to enhance sugarcane production and are Cee eee ete oss eee | would ike to restate the case statement to make sure | got the It correct. Our client Isa pharmaceutical MNC and manufactures agrochemical, seeds and biotechnology products. Recently the client has developed a chemical which enhances sugarcane reduction and now needs our help to figure out ts launch that right? Before stating to analyse the case fd would lke to ask few dlarifving questions to understand the client and contest better Firstly, what i the let's objective behind launching this chemical product andthe time frame for achieving It? ee eee ad eet ee oreo iy has au client chosen the Indian market o launch its new chemical? orn ofthe with almost 17% of work's total sugarcane production, Sieber eeaoe sy ayer eer certs a ee eee ee eres Thanks. Does our client curently operate in India? What part ofthe value chain oes the cent curently operates in? On er er eT Breen ieee Next, can you tell me more about the new chemical, what are its Benefits and side cffects? How i itused? Azo, who at its potential customers? ee ne a ero eee ‘re there any competitrs present in the Indian market? If yes, how effective s our chemical product with respect to thelr products? Yes there ace 3 existing competitors in the Indian market, but our client's new ee ec ene Cooney the market. ‘oes our dient have a patent for this new technology? Ln ‘think | gota good idea to start the case, Can I take few seconds to structure my approach? Sore 1 wll start by analyzing the market barriers, then check the financial viailty and ‘thereafter look atthe operational feasibility. Lastly, wil look at mode of entry. Does this sound lke a good approach? SS For analyzing markt barriers, I woud lke to breakit down into internal and external barriers: Under Internal barirs, Td look at any financial or capability constraint hile launching, Is ifr to assume that there Is no capablity constraints as the lent already operates in same busines in several counties? Tanne ee has deep pocketsSugarcane Yield Enhancer ‘Do we have any extemal barrier, which are not under the direct control ofthe client lke bariers in procurement of raw material, tax, government regulations license, isrbution networ, legal, technology reaction of eating competitors, et? "Now, asits dear that there are no barriers to entry: | would ike to mave forward and evaluate the Financial viabilty. To evaluate ths, 1 would lke to look at profit and split tas a function of Market size (Ke) * Market share (* (Price-Cos)INA/KE Fined ost (IN®/Ke) and se the profit potential Pl fist tart with Inia’ total land area, multiply it with % cutvable and then with % of actively harvested land and thereafter with of sugarcane harvest. Ti wil {ve us total land on which sugarcane is harvested. Finally, multiply it of sugareane farmers wine use chemical enhancer and with chemical requires (Kg/m*3} ‘Do we have any information on the % of market share our clent Is expecting to capture? Considering that our chemical product is mace effective than other 3 competitors and have no side fects, would it be safe to assume that the client can capture a marketshare of greater than 1/4 of total marketshare? We can price our chemical product in 3 ways. Fst, look at the chemicas variable ‘cost to gure out minimum price celing to break even, then we can look atthe competitors’ prices and apply a premium given our superior quality. Lastly, we can look at the farmers’ wilingness to pay by evaluating the value crested and get 2 rice celing De we have any information about the total varable costs per unit? ‘Sure. The variable cost wil be incurred includes production, packaging, distribution, etc. The client has to charge a price of more than 30 INR per Kg to make profs. Nest, do we have any information regarding the price charged by the competitors? ‘Okay, Since our product s more elective, we can price our product at a premium Le. seater than 50 INR/ig. Next, | would ke to evaluate the value created fr farmers. We can split into monetary and non-monetary values Sure. Monetary benefits for farmers wil be through two ways, First because of increased yield and second because of labor cost saved wing to quicker growth, ‘So, by using our product, farmers wil earn extra 100 INR/m*3 due to yleldinreaee. It will nove take just 57 days to harvest, saving 3 days or 30 INR/m*3. Teta Benet is 130 INR/m?3. Since, 1 Kg i required per m3, total benefits wil be 130 INRKE, Hence the our chemical product shouldbe priced below 130 INK per Kg We can now calculate the profit as 2° 10%8 Kg * 30% * (100-70) INR/Kg 109 IN. Therefore, client's overall profit wil be 320 INR crore. Our client will be earning more than 3 times ofthe investment made,Sugarcane Yield Enhancer 7 + chet developed a nw sgn val entonce cei a + Client needs our help to figure out whether to launch in India or not Interviewee Notes Newly developed ‘hemical increases yield bby 20% and speeds up srowth by 5% Market Sizes 2 Lath tonnes, expected Market Share 30% Varable costs 30 INRUKE, competitors charge a price of SO INR/Kg elds SOD INR, srowth period is 60 days wthout chemical Labour costs 10 NR per 113 per day, tk chemical ISreuired perm*3 Structure/ Framework =a Market Entry Key Takeaways ‘Ask hort and rsp carving questions and look ou for cues bythe interviewer. Its important to take the buy-in ofthe Intervlewer and exlaln what you are doing during the analysis Carefully note down any igure which the Interviewer provides and Keep it at the back of your mind as to whert could be usedERP Vendor ‘Thank you forthe ease, So fist and foremost, | would ike to understand what racy does this software provide Right, 20 where ie the client located and any existing expertise ‘kay, and are there other such software avaliable in the market ‘Thank you, So, |wlltake afew seconds toot down my thoughts IF may ight, so given thatthe client is entering 2 new market, | would keto evaluate tis etision on the basis of Market attractiveness assessed by (almarket sie, (oleompetitors, (customers, (potential ss, Market Entry | Moderate | BCO—(7 Let’ consider city like Mumbai, | can take the ste ofthe city (in sq km) asthe base and calculate the number of gyms in a particular radius. | would take a greater umber of gymsin localities like South Bombay and lesser in certain other pats can fist make Ist of all the prominent gym chains in Mumbai. So assume there are 10-15 such branches ofa certain brand like Gold Gym and say 10 such chains. Now taking 8 metro cites, there would be approximately 800 gyms. Moving o ter 2etties, the numberof gyms wil be much lesser, so | would have to reduce the above ‘The fees canbe subsciption-based model ora one-time upfront fee. But thinka subscription models more feasible. can charge them a one-time fees for purchase ‘of software and then on the bass ofthe number of branches In which they implement the system. | could also charge onthe basis ofthe numberof modules implemented forthe client. The cent wl look atthe market sing and estimate the proportion of market that ‘thoy can capture. Apart from that, (Going back to the inal framework sinc there are no ready substitutes andthe tasks are generally performed manually t present, there i no eminent competitor. However, the cent would have to demonstrate the benefits ofthe product tothe gyms, salons and spas. This will create @ market for ‘the product, but along witht comes treat af new entrantsERP Vendor Market Entry | Moderate | BCG + International softwar solution (ERP) cllent and wantsto Implement the sim ays, sons and spas ia Case Statement + Factors to consider for helping them in expansion ‘+ Market sizing an revenue rom the Gyms Interviewee Notes Structure/ Framework International cent Implementation at Gyms, ‘lone and spa Provide software services thc ae cureny done rmanualy Market siting of Gyms "Number of gyms and sino sro Mr een tha he tr Key Takeaways + ovement som sth e aeCoffin Manufacturer Market Entry | Difficult | EY-Parthenon y {would tke to ask afew preliminary questions about the lent. Would itbe flr to assume thatthe customer segment they deal with is premium as they are a high-end manufacturer? ‘What do we know about the competitors in the space? What s the geography of operations and haw isthe competitive scenario? I the tech proprietary? ‘At the fist eve, the dent ean choose to stay lathe business or ext. they decide to sayin the business, they can either invest nthe new technology af continue cutrent operations. they ext the business, they can elther liquidate or sll toa third party ‘Okay wl stat with stayin business with no investment in new technology. | would ike to estimate the profitability rom this option. To estimate the revenue wll start by sang the market Markt size = Population / Avge span * (Coffin bearers). ur market slze would be 10% ofthe above This gives me a total market sizeof 437K coffins and our market size as ~8.4K cain. Toestimate the profits, can you tell me the revenue and cost structure ofthe business whats the seling pice of coffins, and what fxed & variable costs are irwolved in the busines. ‘The annual profits come out to around $180k. Assuming a 10% discount rate and perpetuity of business, eta valuation of $1.8M for the business. Sure, The reduction in variabe cost wilinerease our profits. However, since the technology is not proprietary, our competitors will also inves inthe technology. Ths willead toa price war and ultimately reduce each coffins price to its variable cost. Hence, this does not seem tobe a wiee move for us to take, However ifthe ‘competitor buy this technology, we can ether investigate entering this pice war or ‘extng the busines. In this case we should expect to get the same amount a the NPV of our busines, S1.8M For igudation, ike to know about the client’ assets and lables for ths 16 inflaton rate means tat twill “double every 12 years. Hence, In SO years will approximately be 16 times the cxginal value thats $2.4M. The value ofthe asses fs more than the valuation ofthe Business, However, this value is going to hep on increasing with time. | would recommend continuing the business til the time competitors introduce the new technology and a that te ext & liquidate the businessCoffin Manufacturer Market Entry | Difficult | EY-Parthenon YY toes Your lent high-end coffin manufacturer in Singapore. There isa new technology that helps make coffins ofthe same - . quality but at a lower cost. They have come to you for advice on how to proceed. Interviewee Notes Structure/ Framework Premium customers 10% marketshare with ‘one similar competitor + Market growth has been stagnant ee tovestn new busines or + opetesenyn panei ccnelogy at ‘Singapore which has population of SL, ‘average lfe 80 years and 70% a8 coffin bearers —— + Take buy-ins from the interviewer regulary. ‘+ Make the framework before jumping into the case, Remember to navigate the framework wel.Saas Firm Market Entry | Easy | McKinsey y Thank you forthe cae, Before I proceed with structuring and slving the problem, | would he to aska few preliminary questions. "would Ike to understand if there is any particular reason to enter foreign markets ‘so, want to understand the objective ofthe market entry ~ whether tit increase profit, revenue or markt share or anyother speci purpose. | would as lve to see the type of work we do as pat of SaaS and type of cientle Wile expanding in any specific series we offer or every services? Thank you. S| wl take afew seconds to jt down my thoughts if] may So, | woud ike to proceed by looking tthe industrial attractiveness, nail vabty ‘and operational feasibly for each of the identified potential gone and then ave at the preference and then gve recommendations on howto enter into each region will create a matrix with probable countries we can target as columns and factors we want to lok sta rows, Wil Broaly look ito external environment of county Using (Used peste) 1. Lil start with some Geopolitical actos, poll stably () 2. After-effect and return to Normaley forthe economy after COVID-19,nfation, currency ris, et (€) 3, Skilled resource avaiable tracy ate, et (8) 44 Technology edge ax we ae after alla S98 company (7) 5. Overall eect of Pander fe) 6. Government reguationsbariers o entry fora foreign company entering (L) Il als look a some operational factors: 2. Probable revenues 5 years down the ine 3. Probable cost f running aur operations eg abou os inf cos, te 4 corporat Taxsytem ‘Vil oan NPV t ook at which locaton it would make the most businass see, Alo, wil check the compettiv landscape of the location for similar player. Broadly considering the factors ve state, | think India would be an attractive option for our cent at has high revenue potential and lower costs involved. But defintely 3 much more detailed analysis required,Saas Firm Market Entry | Easy | McKinsey. y ‘+ USS frm looking to expand operations overseas Case Statement + Factors to consider for helping them in expansion + Which county ou woul ecommend based on the considered factors Interviewee Notes ef Framework Ea + usaased Growth, no toret + Provide hardwace and fc + Senvinghigh end cnt + Generic serves «| explain your approach in the Market entry cases and get a buy-in from itervewer Key Takeaways +] Dont forge to take external factors while considering market entry ‘ive final recommendation and back up with the reasonsIIMB Pricing Cases 2022-231g Framework Vibe to consumer Proto seer aan 3] ait, 5 notin 5 Newfound ty rected Comets ore) ped ee] ey ae nao, onetime costs -worup -strucure sssanateaunes eo rains ee Fed orate [M-sreateven Pod SEES, im ernst. Benes oo ack ered aoe‘ing | Moderate| Accenture vy Airplane Company Pr ar cent an ain Since this sa lgh value pice tkt, | would consider only special people suchas business \What reiting capably of the arine company war there an eter fant avaiable fm eer a Itc the tet technology and evry fat isthe total cost of hele (one way) per sea? ‘Whatis the amount of time rue Tight time] forthe it rom ND to NYP a er tS ee TY franca ata, depreciation ete eee ery — Se ‘What sthe amounthe would be saving for the company fhe goes there ‘Okay, the thd method would be value-based(value-use pric 2 Lakh would be the lower mit and 3,35 00 would be the upper ii (wlingness to pay at would be the pie? Coser to 2 Lakh or closer to WTP icone testing eve nem fod en, om Bevo ech staring ew the pc pee sou fo th apes (tay 50 forthe amount that you save in tems af tine (24:1) hrs. =23 br What woud be the valve per hour?Airplane Company Pri 1g | Moderate| Accenture + Centisan arin company it has bought2 new alanes thet would cover he dstance Between New Deh to New York and back Case Statement Forma pring strategy fot Interviewee Notes Structure/ Framework Apne company Has bought 2new planes Cover the sme dstance in 2 hour whichis covereain 28 hours normaly ‘Tofind value per tine, do Key Takeaways Ensue wheter there is an exiting capablty ‘Check about the value the new product/service offers Fellow the cast, competition & value-based pring tameworkToll Collection Pricing | Easy | BCG y Ie ‘That sounds interesting | woud lis to know 2 it more about the road which te company has but Where locate? Is tan altrmatve route or the repared version ofan oer Sees eee a eee "have a couple of questions about the diferences between the two routes fr potenti Uses before | best my ana. Does the new rose reduce the travel time Between the toes? the bul quai of the two roads diferent? ee eer es ‘Aight, great. There are three possible ways to choose a tol to charge. The fist by ehoosng a ime peted in which we want t enn back ut itil investment. Fe th, we vl eve our cost by the projected demand inthe even ime pero’ to get the minimum Fequired tol pric. The second method ito lok at theo pecs charged by other builders We can ecord the pies at tal plaas connecting the same listo ater paces, and then l2ven our advantages/asadvantages over them, adda premism or a dscount. The thes ‘methods to lok at he value whch we provide 1o our customers and charge ah equivalent oro a er Eee eerie convenience. We are ata disadvantage in the fist parameter. We can use the extra fuel charg 3s a po. So, we know thatthe time savings are 30 minutes. Diferent segments of consumers value ‘heir time siferenty. For example, lower income cases are perhaps not that affected By time Savings when compared to upper Income dass. We should conser mplemeting 2 price dactminaon mechan, such at charging diferent tll to diferent vehie xeporie ater doing ver, ee eae ay re eres Wel, there are a couple of creative way. We coud ook 2 the amount customers are ‘illg to pay ta sl queues for services which alow skipping then for 2 premium. Apart ‘tom this, we ca look atthe extra chorge that customers py on elvery apps to Bet 2 uarantoed deer tne,Toll Collection Case Statement Pricing | Easy | BCG ‘An infrastructure company is trying to set a poll charge for its new road, which has atime saving of 30 minutes. The road requires travelers to cover longer distance Interviewee Notes ‘The interviewer mentioned that he was Tooking for creativity. twas also explained that there would be no umber in the ound Structure/ Framework - = Key Takeaways The case was supposed tobe done without a pen and paper. The interviewer had mentioned that he was eokng fora conversation. Thus, twas important to be quick on my feet and not ask fora couple of minutes to tinkMedical Drug Manufacturer Pricing | Moderate | BCG y "would ke to ask afew preliminary questions before geting int the case to know mare products that our clan current sels Thank you, | would ako like to know more about tis product, What ithe frequency of consumption ofthe drug ad for how much duration should tbe taken? Ae the 257 Sidefects associated wth the drug? ‘Ai. And what gsoaraphies does te cnt currently operat in? Where are we intending (Olay. Ave we the fst company to develop this kind of product? D0 we have any competitors? And are there any regulations which could fet the sale ofthis vg in nda? (Cost-based pricing: This would be the minimum price thatthe client must charge the lent ‘Competitor base pricing: ine we do not have any competitor, tls type of ping would ‘Value based pring: Tiss the masimum pce thatthe customer would be wilng to pay Do you want me to look st any of them speccaly or shoul proceed with cost based pricing? ‘Alea. Can you tel me how much ests our cet to make the product? And what ithe marin that they ar expecting onthe produc. ‘ay. So we can consider 10°11 = INR 11 as out base price. For the value-based pricing, we would need to determine the value created by our prose. This woul depend onthe valve ‘thatthe pli eeating by reduing the sleep time by ¢ Nous. This produ ould aso eeate ‘elue to patents who ot unable leap forlnger durations. The customer base canbe dived int two malor segments: Working professionals eehng time value for the hours Saved, and paints seeking vedced sleep de to heath aso For woring professional, te value would be ceated in the frm a ext income that hey ‘oul earn in the saved tm. For patients, the vale could be estimated by he savings n medial expeses. Do we hee ary infomation teparding these facts? ‘Okay Since 1 ils required everyday, the value derived per ll would be! irkingprofesionat INR 20000 pe il MR 000 "«hous) Patient: NR 400 per pil WNR12000 30 dys per month]Medical Drug Manufacturer Pricing | Moderate | BCG y To decide that | woud aleulate the revenue earned per day fom each segmeat.Asume ‘he total population tobe 1.3 bilion an the percentage of working population 25 60% Fer tis case, lam assuming that worng professionals would be wllg to pay anything below approach? ‘tay $0, the value to working professionals woul be 20000 * 06 * 0° 2.3 = INR 2560 bition. For patients, te value woul be 400 °0.2* 1.3 = NR 104 bln, Hence, | would choose to target the working professionals and drop the patents segment 3 would be able to minimize the revere in that ae,al Drug Manufacturer Cent has developed » new rug which helps in reducing sleep Case Statement + Pricing ofthe drug needs to be decided + Objective isto maximize revenue an have atleast 10% margin onthe costs Interviewee Notes Structure/ Framework + Drug does net have any competitor: Ie needs tobe consumed once per day and has no side-effect. Drug costs NR 10 ana 10% margin expected ‘Two major segments can be targeted: Working professionals, and patents with heath Patients segment should bbe dropped, and focus should be on maiming Fevenue through working professionals Key Takeaways agate cooing ey Serr ad eotes ecg eed The interviewer appreciated the approach to quantity the benefits associated withthe usage ofthe drug co cea Peres INR 20000 per tod Pry eer’ cori ae eed cod Not all customer segments nee to be considered while pricing. Some segments can be dropped to maximize the benefitsCoal Mine Pricing | Difficult | McKinsey (7 ‘Morning Candidate how ae you doing today? Se ‘ood Morning Sam doing good eee pee ere ent nek ere eee eet eed the inst Sey es en ee es ee eT on woud fst eto know what ae the objectives to buy thiscoal mine? fe would ie to vie wealth There are no othe objectives So, we can value the project by calling the Feturs we get from the project by ‘dzcouting te csh ls we receive fom the project. In err to do that we need 12 whether the mine is operational eee we wil eed to approach the problem ferent The min i operational already So We can caleuate the revenue of coal in a year 2s the volume of coal mined in 2 year ulipeg by the pice. Do we have any ta about how much coal we produce annual? The prce of coal depends on 2 number of factors which affect Rs quay the moisture content carbon content & £0 on Fis, we need to ir cu the aly of our oa. Then foc a spate quality of coal, we can set prices smlar to our compettors. Aso there Is an setour pce nthat way ee Se eee ‘The returns soem les fora coal mine, As fa a | knw ot more volume is Eeneraly duced, Is there any feason why we ate producing just 60 ones? ee ey Sees Sorry, foe toconsier the fat that the cal reserves may at exhausted. S, to cles the number of years the operations can continue, we need to die the total tonnes af aa your anmial production Erte onisearoninns a ‘The toa amount of cal comes au tobe 756,000 tonnes. So, shoud at wall ver 1000 years at current levels of production, a eee ee ern ‘The nezease in annul production velumes by & ties wil lead to 4 times revenue each year Bu, our operations wl last fr oe fourth the previous timespan, which ls til overCoal Mine Case Statement + Determination of pring or oa mine in China Interviewee Notes Interewer knew about he ‘candidat profile beforehand Different typeof pricing ‘question Seig fst and accurate with bse mental math ata» sca Fane =a ~~~ sherds brownie pot onli pice per tonne Es ee rice Vale: 1700 per tonne ‘aleate by taking product flength breadth and height Key Takeaways : Interviewer was tasting technical soundness, ifs mportantto takes moment to pause and think when overwhelmed with such easesIIMB Growth Strategy Cases 2022-23Growth Strategy Framework Preliminary Questions Business Model - Where does ana detrinuton channels? Understand customer segments Watis the product mx? Ary dferentiting/ new features ia cee rereGrowth Strategy Framework (contd. y PRODUCTS Existing New Market grow rate lower expectations High market share wert slorest competitor Concentrated in small Demand in other markets Type Markt Entry Cast Market growth atin ine vith managements groneh ‘expectations ow market share wit Growth rate wrt competitor ‘derived profitability easel! MARKETS New, 1. Market Development Strategy ag ran) Seco) 2. Market Penetration/ Entry Strategy 4. Diversification Strategy 3. Product Development Strategy + Product- Market growth rate growth expectations + Managements abjectve High concentration in Single produc) category Dhvesfcation strategy call + Market growth rate lower than management's growth expectations Prodoct in maturation or ecine phase Prodvct Launch CallSocial Media Application Growth | Easy | Bain IF honoree hee, Ene became popular In the period after TikTok got banned in india. They have been ‘round fora year Now they want to focus on making revenue and have approached ees ‘Okay this seems realy interesting, but before I alve deeper into what we can do, ‘could you tell me a litie bt mare about the cent? Who are the targeted audience for our client? Could you tell me deals such as demographics, locaton, age, gender er eT as rere re ere pea tee ree et eras Seen ieee the left aoe eraser i audience, ‘Oh, that’s very nlc. So that glues us a nice niche that may be untapped by our competitors Can you tell me a ite bit more about our technologies capability? Are ‘we knowin for anything special, ike how Snapchat was focused on messages that disappear? ‘Okay, lad that you thought of that. We are partnered with Snapchat and are ee eee Ee ieee ad ponerse rete ‘ay, | think | have a far idea about our clent. Let me now look at our posible sources of revenue. | would like to broadly clasfy our sources as those that come from aur audience and those that come from others who are interested in our audience Piao Let me fist look at our audience. Since you mentioned our superiority, we can focus on afreemium model technological ‘Sure, that makes sense | se this domain ab one with alot of potential. A few things that we can focus on in this area Include revenue from our advertisers, use the audience fora product esearch by having surveys and post, similar to surveys that show up on youtube ads a ee re Rr een re ee ee ee en happy with the way you've approached itso far, and we can wrap up the case hereApplication ‘our cent Social Mesa Applstion, Growth | Easy | Bain Case Statement + emteredtne mart ost Tito ban nthe market 1 Need to deve growth strategy to ncreaae revenues. Interviewee Notes Structure/ Framework 1 Majrty audience fr tir2 coed ote “i Average astomer ages year ‘wo revenve streams are ftom audience and fom those who are inerestedin the sudence eee fee ers eee] eee Key Takeaways ‘Ask short and crisp darting question and lookout for cues by the interviewer is importantto ake the buyin ofthe ntervawer and explain what you ar ding during the analConstruction Company Growth | Moderate | Bain y ‘hanks forthe question. | would ke to atk a few preliminary questions. Whare Is the geography of operation of cent? ‘By excess cas, | assume thatthe company Is generating more profs. Can know the reasons forthe additional cash generated. is ther any key source of competitive advantage that i causing this higher profs? | would tke to start by spliting the possible business opportunities in the following ‘ways, The frm ean ether do Backward or forward integration inthe exiting value chain, the company can do geographical expansion, it can invest in other similar Industries where the company can leverage its core competences, it can invest in tently new industry, oF Ican invest in other alternative investment opportunities like equity markets. ‘Sure In the existing value chain, the company can do backward integration either through acquisition or investments in raw material and equipment providing companies. Since the company is towards the customer end of the value chain, forward integration might be tough forthe company. Backward iteration wil help reduce the company cut costs even further and gain higher profits. Sure, Since the client is a road construction company, | assume that road construction needs a lt of digging work. Industries like Railways construction, Powerplant manufacturing, Mining, Real estate developers et | would suggest to invest in powerplant manufacturing. The process of power plant construction require alot of digging work and mos of the equlpment used in road onstretin can be reused. The lien’s competences in road constuction can be leveraged and with same equipment being reused, we can also save on the machinery and equipment costs leveraging synerles between both the industries ‘Sure the reasons for attractiveness would be that ralways is currently operated by the government and client's expetie in working on govt. project, Another reacon could be the Inda-wide presence ofthe railways network and I allows the client ‘more opportunities to expand ts geographical operations. Aso, it allows the frm to Use ts expertise in road construction to complete the projets eicently generating higher profit marin. The problems | forese is that the nation-wide network of rallways might make it tent for company to operate efficient and aso since most of the ralvays network i already laid ou, it would be repair and maintenance work mastiy which right not be £0 profitable. Privatization ofthe rlays coud be another concer,Case Statement Growth | Moderate | Bain + Clent isa road construction company wth ash surplus. Find potetal investment opportunitis or them, Interviewee Notes + Glent sa road construction In anarashra region + Ghent has cath surplus duet hgh operationalefiency + Glent has ineination or always Structure/ Framework cay ery Reena Deere eed Peed Key Takeaways + Theinteriewer was impressed by the spl growth opportunites and industry valu chain + Thelntervewer was ken on denying and understanding ey ves ofeach business andevauating rade-ofsMedical Device Manufacturer ‘That isan intresting device. So, before we deep ave into the cae, jus like to know if the client has any specifi objective in mind, ike increasing revenues within any specitied time frame? ‘Aight! Next, | would like to know mare about our lent and the business context Which parts ofthe value chain does our chent operate in? Dae it only manufacture cor also distribute the product? also, do we have any data on which geographical locaton does our client operate in curenty? {Gott Next | would Ike to know a ithe more about the product self Do we have any data on what it does exactly and how iit priced current? Do we aso have any Similar products in the market? ‘Okay. think have most ofthe information | wouldneed to proceed with solving the ‘ease. Just one last_question ~ Are there any financial or operational constraints on ‘ur cent’ side to consider before exploring the growth options? Growth | Moderate | Bain y ‘Sure. ike to go ahead with analyzing the case now. The company can ether go for an organic or an Inorganic growth method. Do we have ary data on whether the company has any preference? The target hospitals in Bangalore and Chennai constitute forthe current markt. The lent can either penetrate futher in in Bangalore and Chennal or look to enter ‘other geographical areas. Within Bangalore and Chennai ean fous on expanding its istribution network, increase awareness in prescribing doctors through targeted promotions using sales representatives, webinars, conferences, medial journals and colleges, Collaborating with insurance companies to inciude the product in insurance plane would alo help increase the reach. "es, believe the quickest way would be to collaborate with large hospital chains ike ‘poll, Fortis, Narayana Heath Centre, This would help our dent ull a bigger networkin not just these two cities but abo to expand in ther geographical ares. think since the product is focused on patients wit eitcal surgeries, a metro city lke Mumbai would make the most sense since thas a large hospital network salable that also provides services like crcl surgeries for residents in Mumba and many remote area in Maharastra,Medical Device Manufacturer Growth | Moderate | Bain y ers Si, so the estimated numberof target hosptal | could reach was about 180. From experience, | know that Mumbal i vided Into about 40 smalertowns/etes. Each fof these roughly have 45 large or muithspecilty hospitals that have ICUs to accommodate patients after citcalsuraeres. err ny Peet eee ae reat er 1 believe US could be a great market to enter since It has a well-developed healthare system in place. The few factors to consider are possibile to callaborate with insurance companies since healthcare expenses are malory paid {through Insurance policies, any government regulations, competitors, pricing caps, export laws, and FDA or regulatory body approvals and patent policies, prehensh ‘Thank you, sin Since we've covered the dstibution network and geographical aspects of growth, 4 now tke to look atthe of patients per hospital. To increase ‘the total customer base, we could. plan on targeting anyother potential users ike Senior citizens, people suffering with mental health conditions lke depression or anwiety et. ‘Great suggestion, however, our client wants to foes only on the eurrent target ee et en ee eee Interaction here ‘Thank you so much si, have a great day!al Device Manufacturer Growth | Moderate | Bain Medial Deve Company want to devise 3 prot tategy for new product "Bear Hugger” Case Statement + Operate inna, sels products ony in Bangalore ad Chenna curently trough hess + lent needs help wih increasing revenues nthe nex one ear Interviewee Notes Structure/ Framework oy ces roe led at 20K ser, No drt compettors scepter Semmes owen peemcnrerstl Saran cata) Pe | ere fh New Market [existing Market I New Segments peers the product Dea eas Bundle with er products Der Key Takeaways Detal sbout product patents could be asedin the beginning. ‘Ask for interview buyin te your approach a every sep Dn'thedat to give creative solutions ort darv Insights fom your experienc, olage of he ndustrna labs sense helped the interviewee to answer the question gpg overseas expansion.Food Tech Platform Growth | Moderate | Bain y Thankyou forthe care, Can | ak ome caring question before been strong the cas? ‘Aight, fi-enough. 1 would Bk toknow ete more about the dent. it food debvery spp or ait wth dineinoriait something ee? ‘Could you alo help me wth the scale of operations an ifthe ellen looting teres this mevicin a particu acation? think have enough information to bepin the case. When lok at increasing the DAU, will begin wth he steps af Now an app stalled and then how a user bins to use the app Would that be afar approach? wil consider 3 major tps to gta user onthe pp 2 Siningup on theapp 3. Using ne opp ‘since we are looking to ineretethe time being span by area exiting urs, tse to assume that users wil at de food daly and we needto lok at adding more ways to ‘We cn conser tracing the user by push pull mechani, where pul efersto ‘rganialy enticing the users to open the pp and push iby using notations to ierese the vist and ata them to open the 2. To atwactthe ganic crowd, have two ses of recommendations 2. _tracterond based on adatonal eres Do you want meto conde anyting more? To attract coud Based on fod devery we can have some limited time deals which wl be ‘alee only on fst ome fest serve Bas. This wil make ou Users continuous oir {he app anineease the OAL ‘oan coud bared on ado savies we can create an ecosytem where the apps sot ust about fod delver: 1 Add ooking tutorials, 2. Write blogs about must ty laces and shes Edd grocery tothe app Asa door delivery of parcel services tothe 298Food Tech Platform Growth | Moderate | Bain WY + Ciena food delivery app Case Statement + Objective ito increase Dl Active Users onthe 9p Interviewee Notes Structure/ Framework + Operationsin tir ties + Day Active Users are toa umber of ind pening the app pe dy + Motive of increasing the AUIS to help merase warenese about the app + Gent eurtenty any deas ‘with food delivery —— + Toincrease DAU, consider the steps taken to now about the app and get them as your wer. + agular users to would notsurt the app dal to ode food, theres requirement for more beefs to order more foodPackaged Foods Company Growth | Moderate | BCG y Thankyou forthe ese Before we deep dive ito the ese, ke to give a srture to the case and askew preliminary questions. Can you gve me abe ea about the company? How has the compry postioned its produts in ira? Ia premiumyhigh quay player cor ares pices comparabet lea inn players? ‘Shee we ae talking about packaged foods, | amy asuming tat sre ofthe Inn layers are atrating cstomers beause of relatively lower prices with qualty rot beng & Fienicane deterrent to purchase, Does tis asvumption sound esronble? Is there a senficart ference between our cient’ products and the products of these new competion? Has our cen’ postion been tested by competitors inthe domain of chips!vaters? (Took minute to organize before responding) With the ke eve beng declining volumes, the cent has to look st was to age customer Segments other than premium product deep nto ths? think our ellen shoul focus on a twepronged approach for growth Fst, the lent cn look to leverage on ts economies of sale t expand to more points of sale and gain 2n ‘seurgatevlumes advantage ove smaller inn players. Secondly, the cant can launch ‘he new brand shouldbe associated with hgh aualty an should maltan the premium postion of marginaly higher pees than competitors The eatonsie behind th It 10 Imantain te premium qaity brand and eater to te segment buying Namleens/Bhvi Wie can probably do a detailed market study to identify favrs/forms that appeal olrge ‘ustomer stements ona inroduce an asoriment of products under 2 new Bran. ‘Ateratve, the client can look at acqustions of smaler players and bull an that leveraging parent compan scle/experise, can also look at 2 partnership model tds tel contained for rexources,Packaged Foods Company Case Statement Incernatina Packaged Foods company in ighly competitive market + ants o evaluate gronth option ganst domestic payers Interviewee Notes ‘ne of he biggest food ‘companies Longtime leaderhip ie recently thveatenedby mest layers Premium pringin compettivemanet ‘leballystancariced products with smal ic tweaks Structure/ Framework Key Takeaways +The nteriewersometines expects the ase tobe slved ina certain ay and gies hints to support the interviewee. + catty istening to the itesewers vty important Sometimes case might nt ft neal into a standard famewrkGlass Bottle Manufacturer Growth | Difficult | BCG y ‘Understood. This seems lke an interesting case. Could! begla by asking a coupe of preliminary questions to understand my cllent and business context better? Thanks So where Is the cient based out of and what are the product offerings? In my ‘experince, glass bottle manufacturers have contracts with beverage bottlers, 50 for itch bottlers is there a spike in demand for? Where are the customers located? Sati. Coming tothe case at hand, whats the quantum af the spike in demand? Do we have any utilization numbers forthe plant? Is there any indication from the Clents on what are the options that they are willing to consider and potential timelines for implementation? ‘Thank you for the Information. So, to evaluate these 3 options, | would consider the following: Fst, look at barriers to enter move onto evaluate economics, then look 2 operational fessiblty and finaly consider the capabilities and future prospect of ‘ny client. Does this seem ikea ood approach? Sure! woul ike to follow this outne: 43} Within barriers to enter, | would look at intemal factors suchas financial muscle, dnd externa actors such 35 government regulations. ») Iwould then break apart economics to look at Fired and Variable cost heads and ‘evaluate expected costs to Setup required capactes, ranspartation/export costs. {6} Within operational easily, | would evaluate ease of setting up/expanding business, labor aus, tax/expor laws, reliably, quality control and service eves 6) And finally in capabilities and future prospect, I would want look at inertia to {0 global, process challenges, cultural challenges and future market growth potenil/business development across regions. ‘That’ quite interesting, but not too surprising to know given how Indias emerging asalucrative country to setup operations. Looking at pure costs, manufacturing in Inala/Vietnam is cheaper, despite addtional ansportation and export cost. Possible reasons could be due tothe labo, tity cos diferental and cheaper raw material procurement. Combined with acceptable quality contro, this eliminates ‘Geemany. Knowing that India was picked over Vietnam despite a 30 cents atonal per unit cost could perhaps be due to better and reliable ocean routes to Europe, future growing Asian markets, FD norms and poltical tabi.Glass Bottle Manufacturer Growth | Difficult | BCG y + Glas ote manufactures sel a spike in demand Suggest steps. Case Statement * lust 3 countes/opon or expansion: 1) Germany 2} nda 3} Vietnam Later dcovered though preliminary questions] Interviewee Notes Structure/ Framework + customers curentiyin EU mart, contract-basad ‘demand, 1 product + No stop for process Sed noms improvement Need to __ Spt 3 options ern Financ Fed costs—Plantsetup, + Ease ofsettingup + races cages “ame sete, implement tmusde ieriatoexpand" foedabouy shipment bininess fechnogy, machinery soonads poste ovr fontainercontacts + Lyne tabour taxand Sndomertve wants + Per unit cost for options + External cove Soreee exper + Previous experince in errany $3, nda $25, rensatons + Varabiecosts-conract—+Rebiy and quality diversifying seoerephy Viena 52.2; went ahead Isbour i, ow cal + Gurl challenges within mateialsoucng aly. Saree ves andlead > Fatremarttpromth and heat ses tranet times oer tose export snd other «+ Eisner: development tines explore beyond £0 + Creating frameworks ruil. Though the partner std for factors, structuring ensures comprehensivenes and an earn some brownie oi. Key Takeaways + Reacting tothe nformation and proving real experiences/opinionsis the best way to engage Interewer + ing confortable in conversing with numbersisimprtant ing back oven information an easy way ta show thal information accounted