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Guide’21.
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Disclaimer
All the content and concepts used in this deck are accurate to best of our knowledge.
Any data, definitions or inspiration from the Internet have been acknowledged, wherever possible.
This guide was prepared by the undergraduate student team at Consulting & Analytics Club, IIT Guwahati.
If you find some discrepancy in the material, feel free to contact us at [e-mail]
Or reach out to us at:

From the Team
The Consulting & Analytics Club, IIT Guwahati proudly presents our 2021 edition of the “Krack the Case” Consulting G
We’ve aimed to make this an all-in-one guide to cater to all skill levels, and aid your induction into this omnipresent s
We hope that the material we’ve created and curated aids you in your journey to ace consulting and PM interviews!
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from the grassroots to more complex fundamentals, to make the content accessible to a wide range of skill-levels. W
ensured our curated material is up to industry standards, and included the names of our sources at the end – in case
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(click on the topic headings to jump to the respective t
I. A Peek into Consulting
II. Issue Trees and MECE Approach
III. Guesstimates
IV. Strategic Tools
– SWOT
– PESTEL
– Porter’s 5 Forces
– Task Environment
– Value Chain Analysis
– BCG Growth Matrix
Contents
V. Case Frameworks
– Pricing Strategy
– Market Entry
– Profitability
VI. Making Amazing Slide Decks
VII. Glossary of Useful Terms
VIII.A Glimpse of the PM World
IX. User Personas and Research
X. Case Examples
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A Peek into
Consulting

Identify Challenges of the Company and Define all
complex problems
Role of a Management Consultant
Create and implement a structured approach
towards solving the problems
Understand the condition of the market and position
of the company and address problems accordingly
Recommend a proper elaborate action plan to solve
the problem and fight the challenges
Continuous Evaluation of the proposed solution and
modifying it according to newer scenarios

Case Interview Mindset
1.
2.
3.
4.
Understand the
case properly and
ask clarifying
questions to get a
better look into the
actual problem at
hand.
Analyse the case
problem and
construct a
structured
approach towards
solving it.
Generate relevant
insights from
existing
knowledge, initial
clarifications and
related concepts
and frameworks.
Communicate the
assumptions,
insights and
recommendations
in a structured
form.

General Tips
• Be prepared with different frameworks. Practice a few cases beforehand and stay updated on industry
news.
• Communication skills would be of utmost importance. While solving the case, think out loud!
• Do not get stuck on calculations! Round off numbers, and use them quickly and efficiently.
• Ask clarifying questions in the beginning. Asking the right questions increases chance to come up with
an accurate solution.
• Do not make any assumptions unless necessary, even if you do make sure to communicate with the
interviewer to get them validated.
• Whenever a framework is used, communicate the approach of solving the case rather than mentioning
the exact framework.
• Keep communicating with the interviewer to let them know of your thought process. In most cases, the
interviewers will help you get back on track if they see you going in the wrong direction.
• Be calm, confident and patient with your approach.

Issue Trees &
MECE Approach

• Making an issue tree is essentially
“Mapping” the problem
• Helps in clear and structured thinking for
problem solving
• Aids in categorizing ideas which covers
all possibilities without going deep into
minute details
• The issue tree and each of the sub-trees
are a MECE structure
Problem
Sub-Issue 2
(2)
Sub-Issue 1
(1)
Issue 2
Issue 1
Sub-Issue 1
(2)
Sub-Issue 2
(1)
Issue Tree

• MECE stands for Mutually Exclusive and Collectively Exhaustive.
• Mutually Exclusive part means that the smaller pieces of the issue tree cannot overlap, thus creating
more efficiency as no two parts overlap. Hence there is no repetition.
• Collectively Exhaustive means creating an issue tree such that when all sub-classes are taken
together it sums up the entire possibilities. This ensures that it does not miss any new ideas or
possibility.
• While creating MECE, one should also ensure that the sub-objects that the issue is divided into belong
to the same class and one should not use too many sub-objects to make the division.
• Ideally up to 3 sub-objects are desirable for each problem.
MECE Approach

Identify Root
cause reason.
Not the
symptoms
Find all root
cause and
reasons
Identify causes
efficiently
using
hypothesis
and data given
in the case.
Using MECE to make Issue Tree
1. Divide and Conquer
Start with the root cause of problem and divide it into sub-problems keeping in mind the MECE approach.
2. Add mini MECE layers to each subsequent layers
This will help to solve the problem efficiently at each layer.
3. Continue until you solve the problem

Clarifying Questions:
What is the current ad revenue structure?
We include full page ads in our magazine and get paid for it by the company whose
ad it is. Today, we sell 1M copies. Each magazine has 100 ads. Each ad costs $50 per
1000 copies.
What exactly do you mean by targeted ads?
We have data on our customers based on which we would send relevant ads to
them.
Broadly, what are the categories based on which you want to target
ads?
We have premium brand ads and non-premium brand ads today. The proposal talks
about sending
Premium brands ads → upper class/ premium customers
Non-premium brand ads → economy customers
New Ad
Revenue
News stand
Subscription
Creating Issue Trees
Estimate if the new targeted ad structure yields more revenue than the current one of a fashion magazine which sells m
magazine in India.

New Ad
Revenue
News
stand
Subscription
Economy
Customers
Premium
Customers
• Considering basic division of News Ad revenue as:
- Subscription Based
- News Stand
• Further division can be constructed on basis of:
- Premium Customers
- Economy Customers
• Assuming:
- Percentage of subscription = 80%
- Percentage of News stand = 20%
- Percentage Premium Customers = 75%
- Percentage Economy Customers = 25%
Creating Issue Trees

New Ad
Revenue
News
stand
Subscription
Economy
Customers
Premium
Customers
Cost of ads
# of ads per
magazine
# of magazine
Cost of ads
# of ads per
magazine
# of magazine
Creating Issue Trees
Now for calculating cost
Cost = no of magazines * no of ads per magazine * cost of ads
Hence final issue tree will look like:

Guesstimates

Guesstimates in a Practical Context:
Give an excellent rule-of-thumb
A well-performed guesstimate gives a great ballpark of commodities/metrics, which
may then be used to influence administrative-level decisions.
Great way to perform sanity checks
They may be used to verify and cross-check projections made based on real data.
This introduces a layer of useful redundancy that aids in identifying invalid data, or in
reinforcing the feasibility of predictions.
Cheaper and quicker than surveys/censuses
Gathering, cleaning and processing data is often costly in terms of money and time.
While market research is essential, making educated guesstimations is the better way
out in cases where time is significantly more essential than factual correctness.
Fast
Definition and Scope
The term “guesstimate” is a portmanteau of the words “guess” and “estimate”. As such, a guesstimate question aims t
candidate’s qualitative and quantitative skills, as well as capacity for thinking on-their-feet.
Versatile
Practical

General Approach (1/2)
Identify the scope
Clarify ambiguities
Pinpoint users/uses
Spot constraints
Demand-side
approaches assume
an indefinite supply.
(eg: mobile phone
market in India)
Supply-side
assumes the supply
is at full/adjusted
capacity to meet the
demand. (eg: how
many COVID
vaccines can be
supplied)
Does the answer
need to be short?
Or does it require a
more granular
approach?
This is evident by
the style of the
question – whether
it is asked as part of
a larger case
problem or
separately.
Ask questions!
Smart questions
show that you have
an eye for detail.
Definitions, specific
details and queries
about the final result
can be asked here.
For market sizing
cases, one must
find the segments
the question is
relevant to.
Divisions like rural-
urban, residential-
commercial,
large/small-scale
can be made here.
These steps should ideally be done relatively quickly. These are essential
for the structure of the solution but are erroneously missed by candidates.

General Approach (2/2)
Develop a structure
Assume/ask
Math & sanity checks
Before getting down
to numbers, plot a
skeleton of how you
want to approach the
issue.
Make an issue tree
with a depth suitable
to the scope of the
problem.
Don’t overcomplicate!
This represents the meat of the solution. This calls for an above-average
business sense and quantitative aptitude, so practice is key!
Calculate, then test
the answer against
practical values.
Making sure your
answer is realistic
shows that you are
methodical in your
approach. It also
addresses some of
the queries the
interviewer might
have.
It is a good practice to
confirm with the
interviewer if they
have any values
they’d like you to use.
If not, make informed
assumptions about
the same.
Remember: rounding
off numbers is a neat
way to save both time
and effort.

Pre-Structuring Checklist:
Ambiguities
• Does market size here refer to volume or value? (Ans: INR value of sofas sold in a year.)
• Are single-seated armchairs included here? (Ans: By definition, no.)
• Sofas sold or produced? (Ans: Consider only the sofas sold in India.)
Users/uses
Sofas are, of course, needed in homes. Other possible uses are – in offices, airports, waiting lounges, cafeterias, hotels.
Since India is a country with lots of households, the lion’s share of sofas is for residential purposes.
(An adjustment may be applied to the final answer to account for the rest of the possible users – say 30%).
Demand or Supply?
Since the problem requires the value of sofas sold in a year, it is useful to assume that there is no bottleneck on supply. Thus,
an approach from the demand side would be the most useful.
Sample Guesstimate #1
What is the market size of sofas in India?

Structure:
Sample Guesstimate #1
What is the market size of sofas in India?
Sofa market
size in India
# of sofas sold/year
Sofas replaced
Total # of sofas # of households
Indian population
People/household
Sofas/household
Penetration rate
Average sofa
lifespan
Market growth
Total # of sofas
Growth rate
Average price/sofa
Standard sofas
Average cost/sofa
% of market vol
Premium sofas
Average cost/sofa
% of market vol
+
x
x
x
+
x
x
x
÷
÷

Assumptions:
We start backwards from the last level of the tree.
Level 5
• Population: ~125 crores, population of India
• People/household: An average of 5 people per household seems like a fair estimate.
• Sofas per household: Higher income households may have more than one sofa. On average, assume 2 sofas/household.
• Penetration rate: Consider the 30:70 split of urban:rural populations in India. Let’s say this applies to households too.
Assume 30% urban and 1% of rural households buy sofas. This amounts to approximately 10% penetration.
Level 3
• Average sofa lifespan: Assume sofas get replaced every 10 years on average.
• Growth rate: Assume the sofa market grows parallel to population growth. Thus, 1% market growth.
• Sofa pricing: Standard sofas may cost INR 20k, with a 75% market volume. Premium sofas may cost 5 times as much.
Sample Guesstimate #1
What is the market size of sofas in India?

Calculations:
Sample Guesstimate #1
What is the market size of sofas in India?
INR 22000 crore
(~USD 3 Bn)
0.55 crore/year
0.5 crore/year
5 crore sofas 25 crore h.h.
125 crore
5 people/h.h
2 sofas/h.h.
10%
10 years
0.05 crore/year
5 crore sofas
1%/year
INR 40,000
INR 15,000
INR 20,000
75%
INR 25,000
INR 1,00,000
25%
+
x
x
x
+
x
x
÷
÷
x
Sanity Check:
Dividing the total market size by
the number of households yields
a spend of INR 880 per
household per year (~70/month).
This is reasonable, as each
household would on average only
spend a little on sofas (a fairly
long-term purchase).
The value USD 3 Bn is also
reasonable for a market this size.

Pre-Structuring Checklist:
Ambiguities
• Is any other beverage served? (Ans: Assume only coffee is served at this point.)
• How is the coffee made? In a coffee maker or vending machine? (Ans: A coffee maker. Everyone makes their own cup.)
Users/uses
Some people are staunchly opposed to the idea of coffee. Thus some of the employees consume only tea, and the others are
okay with coffee. We also note that since the coffee takes some time to prepare, the employees need to be on a break.
Demand or Supply?
This isn’t relevant here, however, we assume supply of coffee is limitless. This by default merits a demand-side approach.
Baseline Assumptions
We assume that the office building contains offices on all floors. For the sake of efficiency and cost reduction, architects will
seek to make every floor uniform and thus equal numbers of employees sit on each of the floors.
Additionally, each floor has a coffee maker, and employees get an hour of lunch break.
Sample Guesstimate #2
Estimate the number of cups of coffee consumed in a MNC office in Mumbai on a typ

Structure:
Sample Guesstimate #2
Estimate the number of cups of coffee consumed in a MNC office in Mumbai on a typ
Cups of
coffee
consumed
Coffees per floor
# of breaks
Breaks in 1st half
# of hours
Probability of
break/hour
High productivity
Medium productivity
Low productivity
Breaks in 2nd half
# of hours
Probability of
break/hour
Fatigue factor
# of employees/floor
Coffee penetration %
Number of floors
+
x
x
x
x
+
x

Assumptions:
Level 5
• Productivity: Assume that the office has a 3:2:1 proportion of high, medium, and low productivity workers respectively. Also
assume that they take breaks with probabilities of 0.1, 0.25, and 0.4 respectively.
• Fatigue factor: As the end of the working day comes closer, employees are likely to get fatigued and thus be more likely to
take breaks. We assume this factor to be 2 – i.e. they are twice as likely to take a break in a given hour in the 2nd half.
• Employees per floor: 20 is a fair guess for this, as this includes both full-time employees and support staff.
• Coffee penetration %: The problem talks about an office environment. It is fair to assume around ~50% drink coffee.
• # of floors: For a MNC in Mumbai, as a conservative estimate, 10 floors is a reasonable assumption.
Sample Guesstimate #2
Estimate the number of cups of coffee consumed in a MNC office in Mumbai on a typ

Calculations:
Sample Guesstimate #2
Estimate the number of cups of coffee consumed in a MNC office in Mumbai on a typ
220
coffees
consumed
22 coffees/floor
2.2 breaks/employee
0.6 breaks
3 hours
0.2 breaks/hour
3
6 × 0.1
2
6 × 0.25
1
6 × 0.4
1.6 breaks
4 hours
0.2 breaks/hour
2
20 employees/floor
50%
10 floors
+
x
x
x
x
+
x
Sanity Check:
Assuming the cost of a cup is INR 10,
the office spends INR 2200/day on
coffees, or ~INR 8 lakh/year. In an
office of this scale, this is reasonable.

Pre-Structuring Checklist:
Ambiguities
• Does market size refer to number of users or value?
• Are matrimonial sites to be included?
• What is the time period for which market size is to be considered?
Users/uses
Almost entirely urban folk. Cheap internet access precludes certain barriers, but we are interested with users who purchase
premium services.
Demand or Supply?
There are no constraints on the sale of premium virtual services. A demand-side approach is the obvious choice.
Possible Approaches
The population can be divided into buckets as per their age, gender, income situation etc. Conversion rates from free to
premium accounts will likely differ according to those factors. There are multiple apps to consider, and the distribution of users
across them can be analysed. It might also be worthwhile to explore the average lifetime of users on the app(s).
Practice Guesstimate
Estimate the size of the online dating market in India.

Previous Year Guesstimates
BCG Interviews
• How many Pay-phones are there on the Island of
Manhattan?
• How many hotel-sized mini bottles of shampoo and
conditioner are produced each year around the world?
• How many people in Uganda have no access to
Electricity?
• How Many Mazda Dealers Are There in the U.S.?
• How to Estimate the Size of Chewing Gum Market in
the U.S.?
• Describe how you measure the average time taken to
queue at an airport check-in counter?
Bain & Co.
• Guesstimate the number of laptops in working
condition in Delhi right now.
• Calculate the number of watches that people currently
own in Delhi region alone.
• How many cups of tea are sold in all of India every
week?
• Estimate the number of flying cars that would be sold
in 2025!
• How Many Penguins Can Live in Antarctica?

Previous Year Guesstimates
McKinsey Interviews
• Estimate the colored TV sales for Flipkart during
Diwali season (in India).
• Estimate toll collection outside Bangalore airport (in
a week on average).
• Estimate the annual logistics cost for Flipkart (in
India).
• How much change would you find on the floor of an
average mall (today)?
• How many second hand wedding dresses are sold
in the UK each year?
Wall Street Firms
• If I were to fill this room with pennies, how many
pennies would fit in?
• What is the size of the market for disposable diapers
in China?
• How many Delta Airlines planes will take off in the next
hour in United States?
• How many gas stations are in North America?
• Estimate the annual revenue of Tropicana's orange
juice division in the U.S.?

Previous Year Guesstimates
Software Companies
• How Many Beer Bottles Are in Circulation in the U.S.?
(IBM)
• In the United States, how many people are in the air
right now? (IBM)
• How Many Golf Balls Can Fit into a School Bus?
(Google)
• How Many Dogs Are There in the United States?
(Google)
• What Is Annual Demand for Sugar in the United States?
(Applied Predictive Technologies)
• Can you guess the size of the grocery market in India?
(Flipkart)
ZS Associates
• Estimate the size of diaper market in India.
• Estimate the number of traffic lights in Patiala.
• How many kilograms of chicken is sold in your city per
annum?
• How many cricket bats are produced (in India annually)?
• What is the number of mobile phones used in the world?
• What is the market size of blue car in your native city?
• How many cricket balls will fit into a Boeing 747?
• Estimate the revenues of any outlet of Haldirams in 1 day.
•
• Estimate the number of ATM machines in Delhi.

Previous Year Guesstimates
Other Consulting Firms
• Estimate the average revenue of DTC buses in a day. (KPMG)
• How many gallons of ice cream are sold in the United States each year? (PwC)
• How Many Basketballs are Purchased by NBA Each Year? (Accenture)
• How Much to Pay for the World’s Only Dinosaur? (Accenture)
• Estimate the number of customers Flipkart gained due to the Big Billion Day sale. (Accenture)
• How Much Paint Does It Take to Paint United Airlines’ Fleet? (Capital One)
• Number of Medium size industries in Mumbai? (Deloitte)
• How Many Piercings Are Done in India in a Year? (Capgemini Consulting)
• What Is Market Size of Hand Knitting Yarn in the U.S.? (E.Y. Advisory)
• What is Annual Demand for Natural Gas in India? (A.T. Kearney)

Strategic Tools

SWOT

SWOT Analysis
Strength Weakness
Opportunity Threat
Internal
External
Helpful Harmful

SWOT Analysis
SWOT is a great tool to capture the current state of your organization, it helps in setting of objectives for strategic planning
and identifying core competencies of the firm. It analyses whether or not to embark on a strategy.
• Strength:
1. What is our competitive advantage?
2. What resources do we have?
3. What products are performing well?
• Weakness:
1. Where can we improve?
2. What products are underperforming?
3. Where are we lacking resources?
• Opportunities:
1. What technology can we use to improve operations?
2. Can we expand our core operations?
3. What new market segments can we explore?
• Threats:
1. What new regulations threaten operations?
2. What do our competitors do well?
3. What consumer trends threaten business?

SWOT Analysis Example - Apple
1. Apple has established itself as a trustable brand
over time, and it’s the world’s most valuable
company by market value.
2. Innovation: Apple keeps to deliver a set of
products that provide a better UX.
3. Apple has always identified itself as a brand
that focusses on Privacy as its key value.
4. Loyal Consumer Base.
Strength Weakness
Opportunity Threat
1. Expensive Product Range which acts a barrier
for expanding in developing countries.
2. Closed-source components that prevents
cross-device compatibility.
3. Apple Products are always known for blocking
third-party repairs.
1. Expansion in AR, autonomous technologies.
2. Providing extensive streaming options for price
sensitive markets.
3. Globalisation to reduce prices and escape
higher tax regimes in countries.
1. Governments requesting Apple to open
backdoors.
2. A number of pending lawsuits- including that
against its anti-competitive practices.
3. Apple, usually known for its late-moving
policies, could experience disruptions in sales
due to better technologies/ products being
sold by its competitors.

PESTEL

PESTEL Analysis
PESTEL
POLITICAL
Political factors such as Govt.
policy, Foreign trade policy, Tax
Policy, Labor Law
ECONOMY
Factors such as economic
growth, interest rates,
inflation, exchange rates,
employment and how they
affect your business i.e. how
profitable they are.
SOCIAL
Keep up with the changing family
demographics, cultural trends and
lifestyle changes, age distribution,
career attitudes, Health
Consciousness
TECHNOLOGICAL
Includes changes in digital
transformation, automation and
R&D, innovation, technological
awareness
LEGAL
Employment legislation,
consumer laws, health and
safety, trade regulations,
copyright & patent laws
ENVIRONMENT
Climate, recycling procedures,
carbon footprint, waste disposal,
sustainability
P
E
S
T
E
L

Why PESTEL?
• When is it best of use?
• Starting a new business
• Entering a new market
• Entering a business with an existing company.
• PESTEL Analysis helps us identify the EXTERNAL factors
that affect a company or organization such as Macro-
environmental factors of a general environment.
• These factors affect your business and operations but the
effect cannot be seen the other way round. These are
generally climate, industry trends, inflation, etc.
• The company has no say on these factors. But conducting a
PESTEL Analysis on them gives us a better insight of the
industry.

PESTEL Analysis of
POLITICAL
• Need to make its stand clear
about driver’s Insurance
• Have to follow minimum
wage rules
• Have to deal with bans in
many countries
ECONOMICAL
• Easily accessible
• Affordable fare charges
• Offers job opportunities,
but pay may not be
convincing
SOCIAL
• User friendly
• Quick pick up
• Gives better ride
experience than taxis.
TECHNOLOGICAL
• Excellent mobile app for
users
• Using social media and
other electronic media
well for promotion
LEGAL
• Need to prevent ban in
many countries.
• Need to follow labor and
employee safety laws
• Copyright laws need to be
looked at.
ENVIRONMENTAL
• Fuel usage may
increase
• Traffic congestion is a
concern.

Porter’s 5 Forces

Why do we need Porter’s 5 Analysis ?
• Understand your industry of interest.
• Identify attractive vs less attractive
industries/markets.
• Identify opportunities and risks
• How profits within an industry will be distributed
• Extrapolate industry trends & anticipate
changing trends
Porter’s 5 Forces
Points To Remember
• Use this model where there are at least three
competitors in the market.
• Consider the impact that government has or may
have on the industry.
• Consider the industry lifecycle stage-earlier
stages will be more turbulent.
• Consider the dynamic/changing characteristics of
the industry.
• Avoid using the model for an individual firm; it is
designed for use on an industry basis

Porter’s
Five Forces
Internal
Competition
Threat of
New Entrants
Threat of Substitutes Customer
Bargaining Power
Supplier
Bargaining Power
❖ Industry growth
❖ Quality differences
❖ Brand loyalty
❖ Barriers to exit
❖ Number of competitors
❖ Diversity of competitors
❖ Switching costs
❖ Barriers to entry
❖ Capital requirements
❖ Cumulative
experience
❖ Access of
distribution channels
❖ Number and size
of suppliers
❖ Uniqueness of each
supplier’s product
❖ Ability to substitute
❖ Price sensitivity
❖ Number of Customers
❖ Buyer’s ability to substitute
❖ Size of each customer order
❖ Buyer’s information availability
❖ Difference between
competitors
❖ Number of substitute products
❖ Buyer propensity to substitute
❖ Relative price performance of
substitute
❖ Perceived level of product
differentiation
❖ Switching costs

The Task
Environment

The TASK Environment
Internal
Environment
• Employees
• Culture
• Management
General
Environment
• Technological
• Natural
• Sociocultural
• Economics
• Legal/Political
• International
Task
Environment
• Customers
• Competitors
• Suppliers
• Labour Market

• The Task environment includes all the things that effect a firm’s business model including forces that
come from within the company as well as from outside the company.
• These depend heavily on the competitive positioning of the firm, its leadership and its goals. These
factors are how the firm interacts with the external factors and are somewhat in the firm’s control.
• These can be analyzed better using Porter’s 5 Forces Analysis.
• The Internal Environment is the firm . To evaluate it we consider the properties directly under its
control like employees, culture and the management.
• The General Environment can be analyzed using the PESTEL Analysis which shows us the factors
which are a part of the external environment.
• There is not much which the internal environment can do to change the PESTEL analysis as most
factors are beyond the firm’s control.
The TASK Environment

Value Chain
Analysis

SUPPORT
ACTIVITIES
PRIMARY ACTIVITIES
Firm Infrastructure
Procurement
Human Resource Management
Technology
Inbound
Logistics
Operations Outbound
Logistics
Marketing
&
Sales
Service
Value Chain Analysis

Value Chain Analysis - Example
INFRASTRUCTURE
PROCUREMENT
TECHNOLOGY
HUMAN RESOURCES
Handles all of the procurement for its own coffee beans,
which is one of its competitive advantages.
Corporate Business managers & store managers help to
oversee well-designed and pleasing customer service
Benefits ,incentives & training programs to keep
its staff motivated & efficient
Free & unlimited WIFI , use of Apple’s iBeaon system
apart from efficient coffee-related processes
INBOUND LOGISTICS OPERATIONS OUTBOUND
LOGISTICS MARKETING SERVICES
Finest quality coffee
beans from producers
in Latin America,
Africa, and Asia.
In more than 80
markets - in the form
of direct company-
owned or licensed
stores
Very little or no
presence of
intermediaries in
product selling
Superior quality
products and a
high level of
customer service
Signature retail
objective of building
customer loyalty
through its in-store
customer service

BCG Growth
Matrix

What is the BCG Matrix and how is it
helpful ?
• The BCG matrix helps the company allocate
resources and is used as an analytical tool in
brand marketing, product management,
strategic management, and portfolio analysis.
• In this matrix we take the market share of the
company on the horizontal axis and plot it
against the growth rate of the industry of
which the company is a part.
• It helps the company to have a balanced
portfolio of Question Marks, Stars and Cash
Cows.
Question
Marks
Cash
Cows
Stars
Dogs
Relative Market Share
Market Growth Rate
High
High
Low
Low
BCG Matrix

• Low relative market share but high
market growth rate.
• Startups generally lie in this region.
• Have scope for further R&D.
• It not handled well may turn into Dogs.
• High market share in fast growing
industry, generating large cash flows.
• Have maximum profitability for
company
• Once growth rate declines, might
change into Cash Cows
• Low market share and low market
growth, typically produce no economic
profits.
• Firms want to eliminate dogs.
• The money spent here can be used for
other businesses or divested.
• High market share in a stagnant market,
thus, high profits.
• Low market growth means low R&D so
less investment.
• Excess cash to be “MILKED.”
• Displays balance and stability
BCG Matrix
Question Marks Stars
Dogs Cash Cows

Market Growth Rate
• Amul bread is a
new product with a
huge possible
market.
• Amul Pizza Base
also has a growing
market
• Amul Ice creams, Lassi
and Amul Kool are well
known in the market
and have growing
market as well.
• Amul Frozen Pizza
is not a much-
desired product,
due to better
alternatives.
• Amul Cookies is
also another such
product.
• Amul Milk is one of the
most popular brands of
milk.
• Amul Ghee and Butter
have large market share
but low market growth.
BCG Matrix on
BCG
Matrix
Question
Marks Stars
Cash
Cows
Dogs
Relative Market Share

Case Frameworks

Pricing Strategy
Framework

What is the product’s
unique selling point?
Step -1
How much does it
cost to produce the
product?
Step -2
How much have the
competitors priced
their product at?
Step -3
What are the benefits
of this product to the
customer?
Step -4
The framework mainly involves an in-depth look into the company and its products. Different cases will involve
different pricing strategies.
It is usually an eliminative process, wherein we can eliminate the cost, competitive and value based branches
depending on our understanding of the case.
A basic approach to pricing cases consists of the following questions:
USP Cost Price Competitive Analysis Value
Pricing Strategy Framework

PRICING STRATEGY
Company/
Product
Company
Market position/size Growth
Company’s position
Company’s goal
Market
shares/maximize
profits etc.
Product
Comparison of product
with other substitutes
Product USP
Supply and demand
Pricing
frameworks
Cost
based
Cost price/R&D Expense
Profit Margin
Competition
based
Substitutes in the
market
Difference in
features
Difference in
pricing
Competitors' pricing
Customer inclinations Price elasticity
Consumer loyalty
Value
based
Benefits of the product
Value of the product Willingness of
customers to pay
Execution ApproachPricing Strategy Framework

Business Situation
Our client, a global MedTech company, has recently developed drugs for
COVID patients. The company needs your help in making strategic pricing
decisions given the evolving clinical and competitor landscape.

Approach & Preliminary Questions
Approach
We will first analyze the company, and its goals,
and then make a pricing decision. For pricing, we
will perform a cost-based and value-based
analysis
Pre-case Clarifications
o What is the economic/demographic value of
our product to the customer?
Keep in mind that different customer segments will
have different willingness to pay.
o Is maximizing profits our primary goal?
o What are the core competencies of the
company?
o Who are our main competitors and what are
their strengths?
Approach and Prelim Questions

Company
Market Position Growth Increased growth rate
during COVID pandemic
Company Position Established Multi billion
dollar company
Company Goals Maximizing profits
Product
Substitutes in the
Market
Production Use of older lab
technologies
Features
Priced Lower
Brand Image
Product USP
Fast-tracked
production
Innovative Lab
technologies
Limited COVID
related drugs in the
market
Product supply
and demand
Increased Demand
during the Pandemic
Proposed SolutionProposed Solution

Cost
based
Cost price/ R&D Expense R&D, Trials, Testing,
Market research
Profit Margin
Competition
based
Substitutes/Alternatives in
the market
Difference in features
Less intensive
testing of products
Obsolete-
production
Similar brand
image
Difference in pricing Priced lowerCompetitors' pricing
Customer inclinations
Price elasticity Customers want to
pay- Lower
Consumer habits Tend to migrate
towards lower costs
Value
based
Benefits of our product
Better accessibility
Limited variety of
COVID drugs available
in the market.
Innovative lab
technologies, intensive
testing.
Value of our product Willingness of
customers to pay
Geography
(demand per region)
Greater in cities with
more number of cases.
Relevance of
Product
High requirement during
pandemic
Proposed solutionProposed Solution

ADDITIONAL PRICING FACTORS
Don’t overlook opportunities for cross-selling, or up-selling, and factors such
as different customer segments.
QUANTITATIVE DATA
Try gaining as much quantitative data as possible from the interviewer.
THE COMPANY
Make sure to understand the goal or objective of the company.
ANTICIPATE
Always anticipate the consequences of the price point you set, with respect to the
market and your competitors.
ASK THE RIGHT QUESTIONS
As this is a very qualitative framework, aligning yourself with the interviewer is key.
FINAL LOOK AT PRICING CASESFinal Look

Market Entry
Framework

• The magnitude and importance
of entry decisions - encompass
everything from geographic
expansion to new products to
diversification efforts - this calls
to prompt a detailed analysis.
• How do you decide what
innovation to lead with, what
products to offer, and what your
market entry strategy should be?
• Before one firm can enter a market, it
is important to perform an estimate
on the economical and operational
feasibility of the business in that
market.
• To remove any bias from our
analysis of entry decision, we should
target the five core issues - value
proposition and capabilities, the
market size, competition, market
share and revenue, and costs
involved.
Market Entry Framework

New Market Entry
Vision
Goals
Objectives
Customer
Segments
Needs
Profiling
Product
Customer
Expectation
Current
Portfolio
Potential
Market
Company
Core Assets
Capabilities
Resources
Product
Offerings
Industry
Competitors &
Share
SWOT
Analysis
Barriers (
including
Regulatory )
Estimate of
Market-Share
RevenueCosts
InputDistribution Shared
Entering Strategy
Yes No
From Scratch
Acquisitions
Alliances & JVs
Market Entry Framework

Predictor Description
Size of Entry relative to
Minimum Efficient Scale
( MES )
Companies that are closer to an industry’s MES upon entry are more likely to succeed.
Entering below MES and then quickly scaling up is more viable when testing a market.
Relatedness of the Market
Entered
The more related the market is to a company’s current portfolio of products / services,
the greater the chance of success, but properly measuring how related is crucial. One
should examine the difference between the current portfolio and the potential market.
Complementary Assets
Complementary assets such as marketing and distribution, are often more important
factors for success, than core assets. One should perform a value chain analysis to
understand the problems and risks involved at each step of the chain.
Order of Entry While first movers have the advantage over others in some settings, this may change
upon the time of entry chosen in most cases.
Industry-life-cycle stage
The life cycle stage of an industry is easily determined and greatly influences
opportunities for success. Companies entering early in an industry’s life cycle have
greater odds for success than those entering near the shakeout
Degree of Technological
Innovation
When a high level of superior information is necessary to innovate, incumbents have
a major advantage over new entrants. Innovative entrants are likely to succeed by
staying small in niches that dominant players ignore rather than by expecting to
compete with them as equals.
Predictors Of Success

Business Situation
Our client, Paccar, is a Dutch technology company and a premier commercial vehicle
manufacturer in Europe. Paccar is a worldwide quality leader in the design and manufacturing of
premium light, medium and heavy-duty commercial vehicles.
The company, in wake of Government of India’s newly announced Production Linked Initiative
and reduced tax schemes for EVs, plans to introduce its range of electric trucks and buses in India.
You have been hired to find out if they should introduce these vehicles in India.

Approach
We will analyse each of the core values and then present a solution in line with the company’s motives.
More about the PLI announced by GoI
• Provides an incentive of Rs. 26,058 crores, which will be provided over a period of five years, starting 2021.
Manufacturers would have to commit to set up a manufacturing facility of minimum capacity of 5GWh and
ensure a minimum 60% domestic value addition within five years.
• Subsequently the battery or cell manufacturer will have to achieve a domestic value addition of 25% and will
have to show a minimum investment of 225 crore per GWh within two years and raise it to 60% domestic value₹
addition within 5 years
Market Entry Example

Customer Expected to be receptive towards vehicles owing to incentives announced by the government.
Product
Company
Net. Annual Revenue : $ 18.7 Bn.
Paccar has substantial market presence in Europe and current portfolio include a broad range with a range of
200-300 km mileage on a single charge.
Net. Annual Income : $ 1.4 Bn. Total Assets : $ 28.4 Bn.
The company enjoys consistent profitability, a strong balance sheet, and excellent cash flow.
Offers a wide product range consistent with global R&D divisions
Industry
CAGR of 48% 3 Major / Existing Players, 4-5 Potential Entrants
The central government has assigned 35.45 billion INR ($486 million) as incentives for the deployment of
7,090 electric buses, with support of subsidies amounting to 5 million
INR ($69,000) per bus. Presently, 5,595 electric buses have been allocated to 64 cities and State
Transport Unions, analysed to run over 3 billion kM without emissions from tailpipe.
Initial Investments as high as INR 13,500 Crores Proper infrastructure for support is missing
High Exit Costs
Market Entry Example

Strengths Weaknesses Opportunities Threats
Technical Expertise Lack of Infrastructure
(Requires installation of ACC
manufacturing capacity
across India)
High Dependency on Public
Transport Existing players are Locally
Grown and established
within the sector-
less operating costsEnvironmentally Sustainable Rapidly progressing
urbanisation across India
Production Linked Incentives High Price of EVs
(30 - 60% extra) GOI’s newly announced
scheme to install charging
infrastructure worth INR
20000 Cr.
High use of
fossil fuels
Less Competitors Cannot be used for Long
Distance Transport
High sunk costs and Low
Demand
SWOT Analysis

Verdict
• It is recommended for the company to look for possibilities to enter into a JV with existing players / potential
entrants, so that the company would be able to utilise existing infrastructure / share costs. They shouldn’t
enter the market on its own immediately, given the existing conditions - low demand / sales for EVs and high
sunk costs.
Key Questions to Ask Yourselves
1. What is my distinctive value proposition, and do I have the necessary capabilities and competencies
(including talent and experience in other related markets) to succeed?
2. What geographic area will I serve, what are the existing conditions, and how much demand will be
there in the market?
3. What costs and economies of scale / scope will I face?
4. What sales do I expect to see for my offering?
Market Entry Example

Profitability
Framework

Profitability Framework
• Profitability is a ratio while profit is an absolute amount
• Profit is simply the difference between revenues and costs
• Profitability refers to multiple ratios like the EBIDTA Margin, Net Profit Margin, Gross Profit Margin
• In essence, profitability is a measure of the efficiency of a company
• Profit Margins provide a better picture of the business performance of the company
Profit = Revenue - Costs
*PAT = Profit After Tax

Profitability Framework
Pricing Strategy:
Competitive, Cost Based,
Value based
Customer Segmentation,
Market Share, New Markets,
New Products,
Fixed Cost = SG & A, Rent,
R&D, Depreciation, Labor(fix
contracts), Marketing,
Interest
Variable Cost = COGS: Raw
Materials, Transport, Energy,
Labor
SG&A : selling, general & administrative expenses
COGS : cost of goods sold R&D : Research and development

Profitability Framework
Fixed Cost
SG & A, Rent, R&D,
Depreciation,
Labor(fix contracts),
Marketing, Interest
Variable Cost
COGS: Raw
Materials, Transport,
Energy, Labor
SG&A : selling, general & administrative expenses
COGS : cost of goods sold R&D : Research and development
Profit
Revenue
Costs
Price per
unit
Number of
units sold
Fixed Cost
Variable
Cost
Cost Per Unit
Units Produced
-
+
X
X

Profitability Framework
Our client is consumer good electronics’ manufacturer (mainly kitchen appliances). Their profits have dec
the last year and they want you to figure out the cause and suggest suitable remedies.
Pre - case Clarifications
The approach to solve any Profitability case should be:
• Clarify the problem properly to understand the scope of
issue, sectors it has been affecting, time duration etc.
• Prepare a structure and workflow to reach a specific
branch
• Analyse Revenue Side and Cost side, to understand
effect on net profit.
• Go deeper into analysis, considering all factors affecting
the specific change.
• Switch Branch if it is not a big factor and try to identify
root cause.
Approach
How much is the decline?
20% in profits
Is it visible in revenue or costs?
Only in revenue
What are the major products company deals with?
About 90% of our revenue comes from toasters.
Has the price of a toaster been increased?
No, its exactly same.
So can I assume that the volume sold must have
decreased?
Yes, it would be fair. Due to one of our competitors
decreasing there toaster price many middle class family
shifted to that company toaster and we have seen a 22%
decline in profits.

Profitability Framework
Profit
(20% Decline)
Revenue
(20% Decline)
Costs
(same)
Price
(same)
Volume sold
(20% decline)
Fixed Cost
(same)
Variable Cost
(same)
Government Tax
Raw Material
Retail Outlet
Transportation
Customer Service
Maintanence
Will revisit later
Our client is consumer good electronics’ manufacturer (mainly kitchen appliances). Their profits have dec
the last year and they want you to figure out the cause and suggest suitable remedies.

Profitability Framework
Revenue
Toasters
(90%)
Others
(10%)
Unit Sold
(-22%)
Price
(same)
Unit Sold
(same)
Price
(same)
Root Cause Found
Due to one of our
competitors decreasing their
toaster price many middle
class families have shifted
to that company.
Our client is consumer good electronics’ manufacturer (mainly kitchen appliances). Their profits have dec
the last year and they want you to figure out the cause and suggest suitable remedies.

Making Amazing
Slide Decks

Consistent Storyline
and flow
Extensive User and
Sector Research
Design and
Visual
appeal
Executive
Summary +
Appendix
Guide to Amazing Presentations

Guide to Amazing Presentations
• Story Telling is the foundation of a good slide
deck.
• Make the presentation into a cohesive unit,
where it ceases to be individual slides or
separate ideas.
• Viewing your presentation as a story that has
clear characters, conflict, and resolution will help
generate a through line in your presentation and
solidify it as a cohesive unit. On each slide,
consider how the information is moving the story
forward and figure out how one slide leads into
another.
• Try using specific tabs at the bottom or sides of
the slide to depict flow.
Consistent Storyline and flow Extensive User and Sector Research
• As a good Consultant or Product Manager, the
main aim should be to present an extensive report
on user as well as sector research. It can be
achieved as
• Identify the problem
• Correctly recognize the relevant factors
• Gather the right type of information, using
secondary research or surveys
• Analyze the information gathered and find out
insights
• Make the right conclusion

Guide to Amazing Presentations
• Maintain constant formatting and margins in the
entire deck.
• Keep it light on text!
• Try an use pictures/chart to express your data or
ideas. Graphics and charts explain the insights
better than words.
• Keep the content directional.
• Use Selective Bolding to stress upon an
important term and ensure to use clear
headlines for the readers’ convenience
Design And Visual Appeal Executive Summary and Appendix
• The executive summary slides should only be 5%
— 10% of the entire presentation's length. Make
the executive summary focused and simple by
using short paragraphs or bullets and subheadings
• Summarize the story by introducing the client and
it’s pain points. Summarize your solution and the
flow of the presentation
• Highlight the key results, including 1 or 2 statistics
that drive home the takeaway message.
• Mention the source in the footnotes and include
Appendix to show all the research, calculations
and basis of insights.

Glossary of
Useful Terms

Time Value of Money
A sum of money today is worth more than
the same sum in the future, as it can earn
interest in the meantime. An investment
delayed, is a lost opportunity.
Compounded Annual Growth
Rate(CAGR)
Given the amount invested today and its
expected value in the future, CAGR is the
rate of interest at which the investment will
have to be compounded to give the expected
future value
Suppose an initial investment
of $100 is expected to grow to
$150 in 5 years. Then the
CAGR is calculated as
Useful Terms

Due to the concept of time value, any cash flows in the future need to be discounted to determine their
present value.
Net Present Value(NPV)
NPV is simply the difference between the present value
of cash inflows and outflows. It is a metric used to
determine whether an investment is profitable.
Investments with negative NPVs are avoided.
Internal Rate of Return(IRR)
The internal rate of return is the discount rate
which would make the NPV equal to zero. It
helps to identify the annual growth rate. A
high IRR is desirable for an investment.
Useful Terms

Net Profit Margin
It is the ratio of net profits to revenue
expressed as a percentage. It represents
how much of each dollar collected in revenue
translates into a profit.
Return on Investment(ROI)
ROI indicates the total growth of an
investment over a set time period. The net
profit expressed as a percentage of the initial
investment is the ROI.
Break Even Point
In accounting, it refers to the production
quantity where production costs are
compensated by the total production
revenue
Useful Terms

A Glimpse of
the PM World

A Product Manager’s role is user and product-focused. It is easy to find questions, criticism, or feedback about a product.
Users are usually very vocal about issues or shortcomings they find within the product. The million-dollar question here is:
how will you improve the product?
A PM makes around 20-25 calls per week to identify with and fully understand the problems faced. Once they reach a deeper
understanding of the issues, they work on strategising a solution to the problem.
What does a PM do?
A Product Manager, put simply, is responsible for the development of products for a company.
User
Experience
BusinessTech
As a PM, you fall at
the intersection of
the 3.

What does a PM do?
Source: Catherine Shy

How does one get shortlisted?
*Check out our section on building amazing slide decks h
A meld of inter-personal, business, and technical skills, and an ability to think on one’s toes.
The Pre-requisites:
• Ability to pitch to and influence people
• Clear written and verbal communication
• Technical and business/sales acumen
• Eye-for-detail and quick-thinking
• Can assume ‘ownership’ of the product
Additionally, a prior PM intern, or projects showcasing your problem-solving abilities, or even managerial or decision-making
experience is a plus.
The Process:
Resume Slide decks/aptitude test* Interviews

Acing PM Interviews
*Find our in-depth section on guesstimates + examples,
General layout:
• Guesstimate*
• Product/Business case study
• Strategy based problem (Pertaining to a new product/market, or growth)
• Metrics-based questions
• Product Critique
• Technical round (occasionally)
- SQL-related question
- Techstacks of projects on your CV

Metrics Matrix
Q. What metrics will you use to track the success of your new ad campaign
Basic Metrics:
For measuring the success of any product are:
1. Awareness (Discovery)
2. Acquisition
3. Conversion
4. Engagement
5. Retention
6. Monetization
• Lead time before discovery
• Net Promoter Score (NPS)
• App Installs
• Bounce rate
• Click-through rate (CTR)
• Traffic (organic/ads)
• Click-through rate (CTR)
• Retention rate
• Churn rate/app uninstalls
• Lifetime value (LTV)
• Return on ad spending (ROAS)
A.

Product Critique
Q. What would you change/improve in your favourite app (e.g. LinkedIn)?
First Principles:
Clarify. Don’t rush off into solving the problem without gaining some context.
• What are the metrics to measure or quantify this improvement?
• Are the changes restricted to the app or applicable for the website as well?
• Are there any constraints to keep in mind?
• Any business goals for the improvement?
• Based on the metrics, is there any data available to corroborate our findings on what aspects to improve?
Let’s assume the task is to improve engagement on the LinkedIn mobile app by 5% over the quarter (Here, engagement
refers to average # of posts created in a unit span of time).
• Draft user personas of the major LinkedIn users. Prioritise 1 persona and their story.
• Utilise the job-to-be-done (JTBD) framework, i.e. retrace the consumer’s thought-process in selecting the given product to
fulfil their intended job.

Product Critique
*For more on the RICE framework, click h
Q. What would you change/improve in your favourite app (e.g. LinkedIn)?
Solutions:
Let’s say your focus group is college students.
• What do college students use LinkedIn for?
• What are the challenges that they might face?
• What additional opportunities can be created for them on the platform?
Finally, the solution(s). College students wish to share their upskilling experiences with their network. To enable them:
• Set-up campus-wide communities on LinkedIn, allowing students to showcase their talents and experiences.
• Create a featured editorial every week/month, featuring a selection of these communities and giving them exposure.
If there are multiple solutions, prioritise them.
• The RICE framework* (Reach, Impact, Confidence, Effort) helps achieve this.

User Personas
and Research

1. Define your “Research Objectives”.
2. Decide the “User Base and Demographics.”
- Interview for User Persona (ask everyone the same kind of questions)
- Google Doc for User Research (should be user and product focused)
• User personas are archetypical users whose goals and characteristics represent the needs of a larger
group of users.
• User research is the methodic study of target users—including their needs and pain points.
How to build effective User Personas and conduct User Research?
User Persona User Research
• Create 3-5 unique and detailed
personas with consistent
layouts.
• Emphasize user’s motivation
and pain points.
• Gather Data and make sense out
of it to fill in the gaps of knowledge.
• Try to answer the questions in
our Objectives.
User Personas and Research

User Persona Categories
B2B or Business-to-Business Buyer Persona.
• In this case, you are selling to other
Businesses which further sell the
product to customers.
• Like B2C examples, the B2B buyer
persona examples also focus heavily on
the individual customer.
The examples include more specifics like:
- Where the ideal customer works,
- What they do.
- How they interact with their organization.

B2C or Business-to-customer buyer persona
• In this case, you are selling directly to a
customer in the market without any notice
worthy intermediate.
• You should include work details in a B2C
buyer persona, you don’t have to share as
much information about their roles and
responsibilities.
Instead, you can focus more on:
- Who the person is in their day-to-day life.
- How they make individual purchasing decisions.
User Persona Categories

User research focuses on
understanding:
- User behaviors.
- Needs.
- Motivations.
Methods to Analyse
- Observation techniques
- Task analysis
- Feedback methodologies
- Experiments
- Surveys
- Questionnaires
- Interviews
- Case studies
Example showing User Survey on Before and After pandemic Purchasing.
User Research

Case Examples

Case #1
Revenue Decline (Profitability Framework)
Your client is an Air Conditioner manufacturer
who is facing a decline in profits. He wants you
figure out the reason for the same

Clarifying Questions (1/2)
Questions by Interviewee Answers by Interviewer
Profits is a function of revenue and cost. I would like to understand
which part of the function is causing a problem.
We have seen decline in revenues only
It would be good to know about the Company position in the market,
product mix and the customer segment it targets. Do we have data on this?
Yes. Company is a market leader in the AC segment. It targets upper middle
class consumer.
I would like to know the trend for revenues and profits for the past 2 years Revenue and profits have seen an overall decline of 10%
I would like to break the revenue into volume and price to understand the
decline in revenues
That seems fair. The decline in revenues is due to fall in volumes. What will
you do next?
Having known this, I would like to know the geographical segments, the
company is operating in. Also, is the issue company specific or industry wide
The company operates primarily in Western India. The issue is specific only
to the company
Okay. Is our product differentiable from the products offered by the
competitors in terms of features and price?
The company’s product is superior in terms of quality as compared to
competitors, but the price is almost comparable to them
If the product is superior in quality and yet affordable and there is no
industry wide issue, it should be in demand amongst the consumers. Can I
therefore assume that product is unavailable in sufficient quantity ?
Yes. That’s correct.
In that case, company’s distribution channel needs to be analysed. Do we
have data on the distribution channel of the company?
Company sells its products through distributors, who then sell them to
retailers and is thereby made available to consumers.
I would like to assume that company is facing some problems with its
distributors. Is my assumption correct?
Correct. Distributors feel that the margins offered by the Company is less as
compared to competitors. Hence, they distributors have gradually reduced
Do we have details on the margins offered by us and by the competitors? Yes. We offer 4% margin whereas competitors offer 7% margins. How will
you solve this problem

Clarifying Questions (2/2)
Questions by Interviewee Answers by Interviewer
Can we consider increasing the margin for distributors and absorbing the
increased expense in our income statement?
Consider the following data and then decide: Assume that the number of
units sold will be back to original levels if margin is made comparable to
competitors
Based on the numbers, Company made a profit of INR 40 Crs in FY 2017 and
INR 36 Crs in FY 2019. In case, the price is reduced by offering margin of 7%,
the revised price shall be approximately INR 17,400. The resultant profit
shall be INR 34 Crs. That would mean we would be worse-off than current
situation if margins are increased
Yes. That would be a fair assumption.
Do we have data on the number of distributors and their geographical
spread along with the approximate number of retailers and their
geographical spread?
Currently, Company has 5 distributors. 2 distributors handle Gujarat region
while remaining 3 handle Maharashtra region. There are 200 retailers in the
Western region, with 50 in Gujarat and 150 in Maharashtra. All the retailers
are widely spread across the two states
Also, is the Company exploring any other distribution channels such as e-
commerce?
Company itself has minimal presence on e-commerce portals. The products
are often sold by distributors on such portals
Particulars FY2017 FY2019
Units Sold 100,000 90,000
Price to dealer 18,000 18,000
Expense per unit 14,000 14,000

Approach (1/2)
Interviewee Notes
• Decline is because of lesser
demand from distributors on
account of lower margins
• Profits will decline further if
comparable margins are offered to
distributors
• Retailers are widespread across
the western region
• The problem is in the lower
availability of the product
Case Facts
• Targets upper middle class
customer
• Market leader in the segment
• Revenue and profits have seen a
decline of 10% over 2 years
• Company product superior to
competitors and pricing at par
• Sale through distributor and
retailers
Observations / Suggestions
• It is important to think
about distribution channels
which often goes unnoticed
in profitability framework
• It is important to
understand how long the
problem has been going on.
In this case the problem
started around 2 years ago
which means that
something must have
changed during this period
which has led to a decline in
profits
Your client is an Air Conditioner manufacturer who is facing a decline in profits. He wants you to figure out the reason
for the same

Approach (2/2)
Recommendations
• Start direct transactions
with retailers by on-
boarding a factoring agent
to handle invoicing and
collection
• Start selling on
Ecommerce portals directly
from company.
Profits
Revenue Cost
Price Quantity
Need Awareness Accessibility Affordability Customer
Experience
Distributor
Channel Margins
Your client is an Air Conditioner manufacturer who is facing a decline in profits. He wants you to figure ou
reason for the same

Case #2
Revenue Decline (Profitability Framework)
Your client is a cafeteria owner who is facing a
decline in profits. It wants you to figure out the
reason for the same.

Clarifying Questions (1/3)
Questions by Interviewee Answers by Interviewer
Since when has the client been seeing decline in its profits? Also, do
we have the magnitude of decline?
The client has been seeing decline is profits for the past one year, but
there has been a significant decline for the past three months.
Is it only the client’s cafeteria which has seen the decline in profits or
other cafeterias in the area have also seen a declines?
Other cafeterias have also seen some dip in their profits but the client
has been significantly impacted.
Now I’d like to understand more about our client. What type of a
cafeteria is it? And where exactly is it located?
The client has one high-end multi-cuisine cafeteria located in a high
footfall area of Agra.
Due to the Taj Mahal, Agra attracts a lot tourists. I’d like to understand
the type of customers that visit the cafeteria. Locals or tourists?
This is a fair observation. The customers are mainly tourists and you
can consider them to be international tourists.
The decline in profits could be due to increase in costs or decrease in
revenue or both. Do we have an idea which side the problem lies?
The revenues have declined significantly, while the costs have
declined marginally
Since, revenues have seen a major decline, let’s first understand the
reasons for its decline and then explore the cost side. A cafeteria can
have multiple revenue streams including dine-in, take-away and
delivery. It can offer both food and beverages including alcoholic and
non-alcoholic. Is our client into all of these services. Has any one of
these services observed a greater decline than others?
The client only has dine-in cafeteria services and does not provide
alcoholic beverages
Has the average number of customers being served at the cafeteria in
a day or the average amount spent per customer decreased?
The average amount spent per customer has not changed but the
number of customers visiting the cafeteria has decreased.
Do we know if this decrease is because the client has not been able
to cater to the customers willing to visit the cafeteria or the demand
for the cafeteria has declined?
The client has been able to cater to all the customers who have
visited its cafeteria.

Clarifying Questions (2/3)
Questions by Interviewee Answers by Interviewer
This implies that the customers visiting the cafeteria have decreased.
The problem could lie in any of these parts, number of tourists visiting
India or visiting Agra or visiting the client’s cafeteria
The total number of tourist visiting India and % of those who visited
the client’s cafeteria, both have declined.
This is interesting. Let’s first look at why tourist visiting India have
decreased. This decrease could be either due to a change in the
International perception about India, increase in processing or their
country’s economic reasons or increased availability of alterative
options.
With the current slowdown internationally, the international tourism
market has seen a decline and India has been affected by it too. Now
can you look at why the % of tourists visiting the client’s cafeteria has
decreased?
To understand this, I would look at the journey of the consumer from
the time when it decides on which cafeteria to eat, to actually eating
the meal at the cafeteria.I would like to divide the journey into three
parts comprising the decision to eat food till reaching the cafeteria, the
experience inside the cafeteria and the journey after leaving.
Sure, please go ahead.
To finalize the client’s cafeteria to eat, the customer needs to be
‘aware’ about the cafeteria. Many tourists check reviews on websites
such Tripadvisor or niche food bloggers. The promotion done by
cafeteria through posters and hoardings also helps. Many ask for
recommendations from their friends, travel agents and from the tourist
guides. The tourist will then ensure ‘affordability’. The cafeteria should
be ‘accessible’. Mismatch in location from google maps, change in
routes or blocks due to construction activities, difficulty in parking
spaces etc. could negatively impact the tourist's decision to visit the
cafeteria. Do we know is there any problem here?
Yes. A few months back, the cafeteria decided to reduce the
commission of the tourist guides because of which these guides have
now started recommending our competitor's cafeterias to the tourists.
You can now move to the next phase of the journey.

Clarifying Questions (3/3)
Questions by Interviewee Answers by Interviewer
Interesting. This can potentially explain why the costs also decreased,
but we’ll look into it later. Once, the customers reach the cafeteria,
they may have to wait before their turn comes. Then they enter the
cafeteria and take a seat. The seating arrangement, presentation of
cutlery and other amenities will effect the overall perception. The
customer places an order using a menu, where the presentation in the
menu is important. Having placed the order, the waiting time, waiter’s
hospitality and food quality and quantity will be important. Finally, the
ambience also adds to the experience. Has there been changes in
any of these?
Can you look at the ambience part in more detail? What all would it
entail?
Sure. The ambience to a cafeteria is aided by the features inside the
cafeteria like the music, fragrance, visual appeals of the paintings, the
overall décor etc. The view from a cafeteria also adds to the
ambience, used by roof-top cafes, sea-facing cafeterias etc. Here, a
view of Taj Mahal can be an added experience to the customers.
That’s great. A building construction started three months back which
has blocked the view of Taj Mahal from the client's cafeteria. This has
deterred many customers. Can you quickly also look at the last part of
your journey?
Once the customer has exited the cafeteria, she may avail a service
from near the cafeteria including local shopping or visiting a sweet
shop. She may have to take a transport mode to visit another place.
The cafeteria may engage in loyalty programs as well. However, since
tourist visits are generally a one-time visit, loyalty program doesn’t
seem to be important here. Can you suggest if any of these has had
any changes in recent times?
Outside the cafeteria was a famous paanwaala shop which got closed
due to the sad demise of its owner. This has also impacted few
customers. Can you give some recommendations now?

Approach (1/2)
Interviewee Notes
• Since the competition is also
facing decline in profits, it is likely
to be an industry wide issue. But
higher decline with the client
suggests client specific issues as
well.
• Before proceeding ahead with the
decrease in revenue, it is
important to understand if it is a
demand or supply side issue.
• Specifics about the Agra city
should be kept in mind to
customize the arguments.
Observations / Suggestions
• While moving from one phase
of the customer journey to
another (say from pre phase to
the during phase), one should
confirm from the interviewer if
she has covered all the
aspects. This ensures that one
doesn’t move back and forth
the phases of the customer
journey.
• Structure the recommendation
and do not give a laundry list of
suggestions.
Your client is a cafeteria owner who is facing a decline in profits. It wants you to figure out the reason for
Recommendations
• Since the Taj Mahal has been
obstructed from view, the hotel can
provide differentiated ambience with
local Agra’s feel, value added
services and open a paan counter
to try replacing the paan shop
experience.
• Since there has been a decrease in
offline advertising through agents,
we can look at our increase in
offline advertising through tie ups
with hotels, maintaining good rating
on food apps etc. We can have
strategic ads near prominent areas
in Agra.

Approach (2/2)
Your client is a cafeteria owner who is facing a decline in profits. It wants you to figure out the reason for

Case #3
Market Entry
Our client is a Telecom operator. They are lookin
to diversify their presence in India and wish to
enter the electronic home security market. The
want you to estimate potential profits and wan
you to suggest how to capture a significant
market share.

Clarifying Questions (1/2)
Questions by Interviewee Answers by Interviewer
What market share is significant enough for the company? In how much
time they wish to achieve this target?
About 5% in the first year.
So our objective is to estimate potential profits along with having a strategy
to achieve a 5% market share at least
Correct.
What are the products we’re talking of in the home security business? There is essentially one product. It’s an alarm system which is installed in
the home along with sensors. Whenever someone is trying to burgle the
house, the alarm goes off
What part of the value chain are we looking to enter? We have not decided but generally industry players manufacture and use
third parties to distribute and retail
What geography are we looking to sell in? Anywhere in India where there is a market
We will have to do a guesstimate to find the market size currently Good let’s say we do this analysis and find that the market size is 15mn
household. Let’s move on from there.
Just to put this number in perspective what is the market share of the
largest player?
The industry is highly fragmented with mainly local players. The largest
player has a market share of about 5%
I want to understand what drives local dominance? Well, the industry is such that majority of costs are concentrated in
transportation of the fragile equipment. Lesser the distance from factory
lower the cost. Since manufacturing is cheap and transportation is not,
factories are set up close to markets.
And, what is the growth rate of the industry? It is about 10%.

Clarifying Questions (2/2)
Questions by Interviewee Answers by Interviewer
There are two ways to enter the market, displacing existing players or taking
a slice of the growing market. However, because of the fragmented nature
of the industry, if we have to capture a significant market share through
either path, we will need to have a competitive edge in our product. I would
like to benchmark our product with competitors to see if we have an
advantage. I’d like to do it on basis of price and other product parameters.
We don’t have a product of our own. We plan to enter with the same type
of products that already exist at the same prices.
If our product is going to be the physically the same, then to capture a
significant share in such a fragmented industry, can we get an edge on
a) Production front leading to lowered cost and hence lower prices
b) Distribution front leading to lower transportation cost and distributors
favoring to push our products over competitors
c) Marketing
a) We don’t even have internal ability to produce this type of equipment
b) Lowering transportation cost has been looked into and is difficult. Also
because the market is very competitive we cannot afford to pay higher
margins to distributors
c) Consumers are price sensitive, do not care much about product brand.
This means independently we cannot have a significant share. Then the only
remaining options to capture a 5% market share are through a Joint Venture
or by Acquiring existing players. For that however we would need enough
capital, do we have that?
Yes, we do
I would like to know the price of existing products since that would be our
price as well
They are generally priced between Rs. 5,000-15,000. The margin earned is
10% of the revenue. There is a servicing package which is bundled. Usually
Rs. 200 per month is charged, and a margin of 25% is earned in servicing.
Why is there a range in price of the product? Is it due to difference in
quality of product or brand?
No there is no difference in quality. Each product has a main alarm system
along with sensors placed in different parts of the rooms. The price
increases as the no. of sensors required are more.

Approach (1/2)
Our client is a Telecom operator. They are looking to diversify their presence in India and wish to enter th
electronic home security market. They want you to estimate potential profits and want you to suggest how
capture a significant market share.
Market Size Estimation
We can begin by first estimating profits.
Profits = (Market Size) x (Market Share) x (Profit per unit) - (Investment)
While analyzing market share we can see how to ensure a minimum 5% share.
We’ve assumed a 70-30 Rural-Urban divide. Avg family size is take as 5 and 4
respectively for Rural and Urban families.)
Next we will have to see
a) How many families can afford to purchase the home safety units?
b) How many families would buy them given some of them live in “high risk”
and “low risk” areas
A smaller % of rural families would be able to afford the equipment compared to
urbanites. We will have to also see how many families in each segment need
the equipment depending on degree of criminal activity and available security
measures (police enforcement, building security, CCTVs)
Population
1 billion
Rural
700 million
Urban
300 million
Rural Families
140 million
Urban Families
75 million

Approach (2/2)
Our client is a Telecom operator. They are looking to diversify their presence in India and wish to enter th
electronic home security market. They want you to estimate potential profits and want you to suggest how
capture a significant market share.
Profit Per Unit Estimation
We can divide the 15mn households into 33% small houses requiring a unit
priced at 5,000 33% medium houses requiring a unit priced at 10,000 33%
large houses requiring a unit priced at 15,000 Okay.
Let’s go ahead with that assumption. The average price is Rs. 10,000. We
know we earn a 10% margin which will result in a Rs. 1000 profit. Apart from
that we know that Rs. 200 per month is charged with a margin of 25%.
What is the life of any unit? One year. Then for every unit sold we earn 200x12
= Rs.2400. At a 25% margin this means an additional Rs. 600 of profit.
Hence total profit on a product is 1000+600 = 1600. Hence our expected profit
= (Market size) x (Market share) x (Avg Profit per unit)
= 15mn x 5% x Rs. 1600 = Rs. 120 crore
Case Observations
Joint venture would make sense if there is
some part of the value chain where we can
complement existing players, either in
production, distribution or marketing/retailing
so that together with our partner we have an
edge. However we’ve already seen that we
cannot manufacture and cannot provide any
edge on distribution or marketing front.

Case #4
Market Entry
The client is in the business of making anti smoking
the way we have those patches and lozenges in the
to curb the urge to smoke. The client wants to sell
premium price. You have been hired to find out if
product can be introduced in a country like Indi

Clarifying Questions (1/3)
Questions by Interviewee Answers by Interviewer
I would like to confirm if I have understood all the critical aspects of
the client’s situation. Our client is in the business of making anti-
smoking pills that reduce the urge to smoke for smokers. We need to
do see if the product is feasible to be launched in India and evaluate
the market characteristics such as size and client’s share based on
the price
That’s right. Now that you’ve understood the situation well, how do
you propose going about the solution?
Since this is a new product launch, I would like to structure my
discussion around the product characteristics (development and
customization) for the Indian market and then move on to the launch
(competition, distribution and promotion) part of the case
This sounds fine to me. Also, please note that this product is not
entirely new; it has been introduced in other countries already
Ok, that experience should definitely help us. To start with, can you
tell me something more about the product? How is it different?
Unlike the lozenges or patches, this product is completely nicotine
free - it is 5 times more effective as proved by lab results and 50% of
the test results responded to the pill (which in this industry is an
extremely high number thus indicating success). Moreover, it is a drug
that cannot be sold over the counter – it requires a prescribed dosage
given by the doctor. It is to be taken for 3 months daily, 3 times a day
That is good. It gives us the advantage to position our product as
superior due to the higher efficacy of treatment. I would like to know
take up the competitive scenario next so that we can decide the price
before determining the overall market size.
That’s a fair point. So, there is no similar product in the market.
Cheaper products like lozenges exist but they contain nicotine and
sell for Re. 1 per unit.
What are the other countries where the product has been introduced?
How receptive have the customers been in those countries?
The other countries have smokers who are quite similar to the Indian
consumers. The product has been quite a success.

Clarifying Questions (2/3)
Questions by Interviewee Answers by Interviewer
Ok, this means that the target audience will be receptive to the product and
we can assume that there is a strong market for the same. I will now
proceed with the estimation of the price and market size. There are two
ways that we can price a new product in a non-competitive market: Cost
based and ‘willingness-to-pay’ based. In the first, I would calculate the cost
to company and charge a margin on the same while in the second case; I
would calculate the propensity of the consumer to pay for this drug. This
would vary with my target segment chosen. Ideally, we should be able to
calculate the optimal profit case by considering the trade-off in sales
volume vs. price for various price points. The solution will also be
influenced to an extent by the growth rates of the different target segments
overall, say movement of people to upper-class from lower-middle class.
Hmm… that is good. In our case, let us assume we did this and
came up with Rs. 8 per unit. You think that sounds reasonable?
I think a price of Rs. 8 per pill is feasible because of the lab results - people
will be convinced that it is a medically prescribed drug and since it is a pre-
scheduled dosage for 3 months, results are guaranteed.
Ok, let’s estimate the market size assuming we decide to price it
at Rs. 5 per unit.
Let’s take Delhi as a base case. Population: 150 lakh. Target segment: 40%
of them smoke * 20% of them would want to quit smoking * 75% can afford
(Rs. 8 * 3 * 90 = Rs. 2160 drug to quit) = 9 lakh people or INR 9 * 2160 ~
INR 200 crores. Assume that this drug will reach out to 25% of the
population across India (urban + rural since its effective and one-time
payment to quit smoking), which means the total market is 200/150 * 0.25 *
10,000 lakh = INR 3,333 crores.
Very interesting. What will drive the market growth our market
share?

Clarifying Questions (3/3)
Questions by Interviewee Answers by Interviewer
The market growth rate will be affected by the sales and distribution coverage,
willingness of people to quit smoking and addition of new smokers who would
want to quit after sometime. We can look to capture about 80% of this market
eventually, assuming no major competitor enters the market, which can be
prevented by IPR support. Since this is a prescription drug, the bulk of the
promotion costs in this industry are in targeting the doctors and chemists via
direct sales agents or Medical Representative to convey the pros and cons for
them to a) prescribe the drug and b) keep it in their pharmacies. This will drive
our market share from the potential market size
Good. What about the other 20%?
I am assuming that the remaining 20% will comprise of smokers who are
unwilling to quit smoking (10%), perceive the price to be high (5%) or are not
aware of the product (5%). This percentage can decrease as we move further
in the product life cycle and the product becomes well established through
marketing and promotion efforts.
Good. Any other costs/concerns that you would like to
address?
The training costs for the direct sales agents will also be critical as this is a
new product and local agents would need an in-depth understanding of the
product. No. of sales people can be calculated by total workload method:
Assuming Doctor/Population ratio and say 3 doctors per day and repeat visits
every 2 months; and Chemist/Population ratio and 3 chemists per day and
repeat visits every 15 days. The supply chain will have to be considered - the
warehousing, distribution network, retail chains etc. We can perform the cost
benefit analysis for using middle distributors v/s direct distribution
Good, I think we have covered the different aspects of the
case. Thank You.

Approach (1/2)
The client is in the business of making anti smoking pills - the way we have those patches and lozenges in the m
curb the urge to smoke. The client wants to sell it at a premium price. You have been hired to find out if the pro
introduced in a country like India
Introduce Anti
Smoking Pills in
India
Initial Investment Value Chain Profit and break
even point
Distribution Marketing Potential
Revenue Cost
Target
Market Price
The drug cannot be sold as OTC and
would require prescription. Medical
representative and direct sales agents
need to be hired who can push the
product to the doctors who in turn will
prescribe it to the patients. Client needs
to invest in training of its sales reps so
that they can convince doctors with
product’s value proposition
Category Number
Projection
Population Base in Delhi 150 Lakhs
% population who smoke
% smokers to quit
% quitters who can afford product
40%
20%
75%
Potential Consumer Base 150*0.4*0.2*
0.75 = 9 lacs

Approach (2/2)
Interviewee Notes
• New product launch – Anti
smoking pills
• Country – India
• Premium product requires
premium price
• Product characteristics (suitability
for Indian market) & Product
launch (competition, distribution
and promotion)
• How is the product different from
existing products?
• What is the competitive scenario
in the market
• Product has already been
introduced in some countries
Observations / Suggestions
• Client is in the business of
making anti-smoking pills and
wants premium price for its
product
• Marketing of the product can
be briefly discussed since the
product charges a premium
price to its customers
• Long term product goals and
ways to improve product
penetration across its lifecycle
could have been discussed
• Remember to use comparable
from similar launches by same
company or competitors
Recommendations
• Price point should consider both
customer’s willingness to pay and
product’s incremental value
proposition over existing products in
the market
• IPR/ Patenting the drug can prevent
competitors to enter market and
facilitate capture of market share
• Spend more on training the medical
representatives and direct sales
agents to push the product to the
doctors who in turn will prescribe it
to the patients
The client is in the business of making anti smoking pills - the way we have those patches and lozenges in the m
curb the urge to smoke. The client wants to sell it at a premium price. You have been hired to find out if the pro
introduced in a country like India

References
• Case Interview Secrets – Victor Cheng
• Case In Point – Marc P. Cosentino
• Guesstimation 2.0
• IIM A Case Book

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