Week 2. Revenue growth Case #7. Inspired by McKinsey. 2021.

North Sun

Q1. What do you need to think about to build

recommendations for the client?

Global B2B e-car Revenue Market share

North Sun
market analysis growth strategies

• Growth rate • Target corporate • Current level, • Marketing

client groups growth rate and strategy
• Top e-car brands market share
with their market • Key differentiation • Distribution
• Break-down by
shares in B2B points of e-car channels
region and model
models
• Recent market • Pricing strategy • Pricing strategy
trends (e.g. • Sales force and
government other distribution • Client journey
polices to channels and value
electricity car proposition
fleets)

Note: This is just one of many potential ways to structure your approach. Please treat this example only as a reference point and develop your own style.

© 2021 Peter K. More at Peter-K.org See e-course: “Structuring”, Lecture 3. “Sales growth cases” (7 min) | 109
Week 2. Revenue growth Case #7. Inspired by McKinsey. 2021. North Sun

Q1. Make sure the candidate follows these steps

Step 1. Do The best practice is to start with a 15-second big-picture overview, e.g. “I’d like to
horizontal assess this problem through the lens of four areas – first, …; secondly, …; thirdly, …;
presentation and finally …”

Check if the candidate covers all key points typical for a revenue growth case
structure:
Revenue analysis Business model External factors
Step 2. Hit
• Revenue analysis • Client segments • Growth rate
key points
• Product portfolio • Competition

To avoid cookie-cutter/generic approach, the candidates can incorporate 2-3 stories

into their structure presentation, e.g.:
• “The space should be exponentially growing given strengthening demand for
zero-emission commuting, governments supporting electric vehicles through
Step 3. Add subsidies and tax rebates and rapidly increasing customer awareness”
stories • “Rapidly expanding market likely attracts lots of newcomers, and competitive
(optionally) pressure is on the rise which makes our client’s task even more challenging”
• “Key success factor in B2B sales is usually a high-quality salesforce that is well
trained and incentivized, so I’d like to double-click on it later”

At the end of the structure presentation, it is helpful for candidate to show that they
Step 4. Finish can drive team forward and prioritize, e.g. “If this approach makes sense, I’d like to
with a explore financials first. Do we have any revenue data?”
question

© 2021 Peter K. More at Peter-K.org | 110

Week 2. Revenue growth
Q2. Reasons of low market share
What are your thoughts on the reasons behind the client’s low market share in the B2B
02 segment?
Poor
marketing
strategy
[Given a wide variety of e-
vehicles nowadays, the market
might become more and more
commoditized, and marketing
might be key to differentiate.]
§ Low brand awareness
among corporate clients
(e.g. rental car companies,
corporations, government
agencies)
§ Limited marketing budgets
allocated to B2B events, ads
and promotions
§ Lack of focus in marketing
messages on needs and
pain points of the corporate
clients
§ PR issues in the past (e.g.
high accident rate)
Note: This is just one of many potential ways to brainstorm. Please treat this example only as a reference point and develop your own style. [The candi-
date is usually expected to generate at least 4 ideas. The best practice is 7-8 ideas, structured approach, and on-the-fly delivery without taking notes]
© 2021 Peter K. More at Peter-K.org
Inadequate
pricing
[B2B clients usually demand
volume discounts and do
proper benchmarking analysis
to put a car producer under
high price pressure.]
§ Too high base prices
§ Uncompetitive discount
policy
§ Inflexible payment terms
§ Too high total cost of
ownership (e.g.
maintenance, insurance)
§ Less-than-average useful
life of a car
See e-course: “Brainstorming”, Lecture 3. “Revenue growth ideas” (10 min)
Case #7. Inspired by McKinsey. 2021. North Sun
Low
efficiency
of distribution
[Corporate sales are usually
relationship-based and are
driven by salesforce which
identifies and develops leads.]
§ Low quality salesforce due
to weak selection process
and poor training system
§ Rare sales team result
assessments
§ Discouraging incentives
(e.g. low sales commission)
for salesforce and
dealerships
§ Limited network of car
dealerships
§ Undeveloped online
channel (vs strong at
Tesla)
Sub-optimal
value
proposition
[With high R&D investment
and constantly upgrading
technology of electric vehicles,
it’s easy to be left behind with
an inferior product]
Product issues
§ Lack of features in the
base model of e-car
§ Limited range
§ Long charging times
Service issues
§ Low-quality of service
§ Limited network of service
centers and lack of spare
parts
§ Lack of mechanics to hire
for in-house e-car
maintenance
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