Consult Core Group

Caselet 2023
Consult Core Group, Consult Club IIT Bombay

1
About Us Consult Core Group

Welcome to the Consulting Core Group's (CCG) Caselet, created by a team of students from the Consult Club
IIT Bombay. Our casebook is designed to help you excel in consulting interviews, providing insights and
knowledge based on real case studies from previous year's interviews.

Our Purpose:
Our goal is to empower you with the tools, frameworks, and insights needed to succeed in consulting
interviews. The casebook offers a diverse range of relevant case studies, along with comprehensive solution
guides, to enhance your problem-solving abilities.
What to Expect:
Explore our collection of real case studies that cover various industries, business problems, and strategic
challenges. Each case has been carefully designed to simulate real-world consulting scenarios. Supporting
materials such as frameworks and analytical techniques are included to assist you in structuring your analysis
and formulating recommendations.

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Acknowledgements Consult Core Group

We would like to express our heartfelt gratitude to all the individuals who contributed their time, knowledge, and support to make
this consulting casebook a reality. We are immensely thankful to:

CCG Team'23 Editorial Khyati Jain Other Contributors

Kartikey Kawale Aryaman Mihir Seth Dhawal Singh Abhijit Jha
Jai Shah Aum Samel Bhavit Gupta Ashish Tripathy
Disha Pandey Kaivaly Daga and many more... Harshit Porwal
Lakshay Garg Namra Shah Aparna Ramesh
Previous Team
Aditya Mahesh Meenal Agarwal Harshini Sreeram
Ali Asgar Saifee
Ananya Srivastava Divij Goyal Gehna Gudhainia
Hrishikesh Bhaviskar
Ruchir Parekh Pinkesh Raghuvanshi Aman T
Ishan Gupta
Mahek Virwani Samiksha Patel
Design Aditya Rajpurohit
Shreedhar Malpani Naman Jain
Unnati Agarwal Sujas Jain
Aditya Wankhade Tushaar Jhamtani
Rahul Gupta Kanchi Agarwal
Prem Kavathiya Yogesh Ramteke
Veda Raju Arvind Murali
Sarthak Jain Chandrika Agarwal
Yash Toshniwal Arnaov Jamini
Siddhant Osatwal Nayanshree Sonawal
Sanjay Motwani and many more...
Aditya Maheshwari

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Preface Consult Core Group

Welcome to the Consult Core Group's Caselet! This collection of case studies has been meticulously curated
by a dedicated team of third-year students from the Consult Club IIT Bombay. Our goal is to provide you with a
resource that will empower you to excel in consulting interviews and navigate the internship and placement
processes.
The cases in this book have been generously shared by our senior counterparts, offering a realistic and
relevant picture of the selection landscape. Each case has been carefully designed to challenge your problem-
solving abilities and enhance your strategic thinking. We believe that by engaging with these cases, you will
sharpen your analytical skills and gain valuable insights into effective consulting methodologies.
Complementing the case studies, comprehensive solution guides have been included to provide multiple
perspectives and insights into the decision-making process. These guides aim to help you evaluate your
approach, refine your thinking, and broaden your strategic mindset.
As you embark on your consulting journey, we hope that this casebook serves as a trusted companion, offering
guidance and fostering your professional growth. Approach each case with an open mind and a thirst for
knowledge, and let this resource empower you to reach new heights in your consulting career.
Best of luck in your internship and placement processes!

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How to Use This Book? Consult Core Group

01
Familiarize Yourself with the Casebook
Begin by familiarizing yourself with the structure and contents of the casebook. Take a
quick overview of the case topics, solution guides, and any supporting materials provided.
This will give you a sense of the breadth and depth of the resource.

02
Understand the Objective
Understand the objective of using the casebook: to enhance your problem-solving abilities
and strategic thinking. Approach each case with the mindset of learning and growth, rather
than focusing solely on finding the "right" answer. Embrace the opportunity to develop your
analytical skills and gain exposure to real-world consulting scenarios.

03
Engage Actively with the Case Studies
When tackling a case study, engage actively with the provided information. Take the time
to thoroughly analyze the background, data, and exhibits. Identify key issues and consider
various factors that may impact the problem at hand. Structure your analysis in a logical
manner, applying relevant frameworks or analytical techniques from the casebook or your
own knowledge

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04
Formulate Recommendations
Consult Core Group

Based on your analysis, formulate well-supported recommendations or strategic actions.

Consider the potential risks, benefits, and trade-offs of different approaches. Focus on
clarity, feasibility, and the underlying rationale behind your recommendations. Be prepared
to articulate and defend your decisions during interviews.

Compare Your Solutions with Solution Guides

05 After completing your analysis and recommendations, compare your solutions with the
provided solution guides. Assess the similarities and differences, seeking to understand
alternative perspectives and insights. Pay attention to the decision-making process outlined
in the guide and reflect on how it aligns with your own approach.

06
Learn from Each Case
View each case study as a learning opportunity. Reflect on the challenges you
encountered, the insights gained, and the areas where you can further improve. Consider
the feedback or discussion points provided in the solution guides to deepen your
understanding of effective consulting methodologies.

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 Consult Core Group

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Step 7: Practice, Iterate, and Collaborate
To enhance your preparation, practice solving cases from the casebook individually or in
study groups. Engage in active discussions, share different viewpoints, and challenge each
other's assumptions. Iteratively refine your approach based on feedback and continue to
deepen your understanding of the consulting problem-solving process.

08
Seek Additional Resources and Feedback
While the casebook is a valuable resource, don't limit yourself to just one source. Explore
other case studies, consulting frameworks, and interview preparation materials to broaden
your knowledge base. Seek feedback from mentors, peers, or professionals who can provide
valuable insights and help sharpen your skills.

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 Knowing and applying the right do's and don'ts during an interview is essential for success in

Interview
securing a job opportunity. The interview is your chance to showcase your skills, experiences,
and potential as a candidate. Understanding these guidelines provides you with valuable
insights on how to present yourself effectively and make a positive impression on the

Instructions interviewer.
Dos:
Understand the consulting role and highlight relevant experiences: Familiarize yourself
with the responsibilities and expectations of a consultant. Highlight experiences that
showcase your problem-solving, analytical, and communication skills, emphasizing their
relevance to the role.
Practice case interviews to develop analytical skills: Case interviews are common in
consulting. Practice solving case studies to enhance your analytical thinking and problem-
solving abilities. Focus on structuring your analysis, asking clarifying questions, and
communicating recommendations effectively.
Showcase leadership abilities and collaboration skills: Consulting firms value candidates
with strong leadership potential. Highlight experiences where you demonstrated
leadership, such as leading a team or managing projects. Emphasize your ability to
collaborate, influence, and drive results.
Demonstrate business acumen and industry knowledge: Show a solid understanding of
business concepts, industry trends, and current events. Be prepared to discuss relevant
business cases or industry challenges, demonstrating your ability to think strategically.
Ask thoughtful questions to show interest and engagement: Prepare insightful questions
For the Interviewee to ask the interviewer. This demonstrates your genuine interest in the firm and the role. Ask
about problem-solving approaches, training programs, project opportunities, and company
culture.
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Interview Donts:

Instructions
Don't oversell yourself or exaggerate your abilities: Be confident but honest about your
skills and experiences. Avoid overstating your capabilities. Focus on highlighting relevant
strengths that make you a strong candidate.
Avoid using excessive jargon or technical terms: Effective communication is vital in
consulting. Use clear and concise language, avoiding excessive jargon that the interviewer
may not be familiar with. Adapt your communication style to ensure clarity and
understanding.
Don't appear disengaged or disinterested during the interview: Show enthusiasm and
engagement throughout the interview. Maintain eye contact, use positive body language,
and actively participate in the conversation. Demonstrate your genuine interest in the
discussion.
Don't overlook the importance of cultural fit: Consulting firms value candidates who align
with their values and teamwork approach. Showcase your fit with the firm's culture,
emphasizing your ability to work collaboratively and adapt in a fast-paced environment.
Remember, these tips provide general guidance, and it's essential to adapt them based on
the specific interview context. Preparation, authenticity, and a problem-solving mindset will
greatly enhance your chances of success in a consulting interview.

For the Interviewee

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 Interviewers play a crucial role in identifying the best candidates for a job opportunity.

Interview
Conducting effective interviews requires interviewers to be knowledgeable, prepared, and
skilled in evaluating candidates. Understanding the do's and don'ts for interviewers is vital to
ensure a fair and successful selection process.

Instructions Dos:
Prepare thoroughly: Familiarize yourself with the case material. This will allow you to ask
relevant and insightful questions during the interview.
Actively listen: Pay attention to the candidate's responses and actively listen to what they
have to say. Take notes when necessary to ensure accurate assessment and evaluation.
Ask open-ended questions: Pose open-ended questions that encourage candidates to
provide detailed responses, showcasing their skills, experiences, and problem-solving
abilities.
Provide clear information: Clearly communicate the details of the case and any answers
the candidate raises. This helps candidates make informed decisions.
Maintain professionalism and respect: Treat all candidates with professionalism, respect,
and fairness throughout the interview process. Avoid any form of discrimination or bias.

Don'ts
Don't dominate the conversation: Give the candidate ample opportunity to speak and
share their thoughts. Avoid monopolizing the conversation or interrupting excessively.
Avoid leading or biased questions: Refrain from asking leading questions that steer the
candidate towards a particular answer. Maintain objectivity and fairness in your questioning.
Don't rush through the interview: Allow sufficient time for the interview and avoid rushing
For the Interviewer through the process. This ensures a thorough assessment of the candidate's qualifications
and fit for the role.
Avoid distractions: Minimize distractions during the interview, such as interruptions from
phone calls or excessive noise. Give the candidate your full attention. 10
 INDEX
S.NO Case Type Problem Statement Page No.

1.1 Golf Balls in the air in USA 13

1.2 Guesstimate Estimate number of CPEs sold in a year 16

1.3 Number of bullets fired in India 20

2.1 GMAT vs GRE 24

Profitability
2.2 Restaurant Owner in Agra 28

3.1 Gold Medals for India in the next Olympics 33

3.2 Unconventional Rebuilding Ukraine 35

3.3 Municipal Corporation of a City 39

4.1 Chemical Manufacturing Company 42

Market Entry
4.2 Online Ticketing Platform. 46

5.1 Paint Company launching new paint variant 52

Pricing
5.2 Launch of new drug by Pfizer 57
 Consult Core Group

Guesstimates
Casebook 2023

12
Problem Consult Core Group

Statement
Estimate the number of Golf balls in
the USA in the air right now

Similar cases/ Case sources: Bain

Topics Tested: Guesstimate

13
 Estimate the number of Golf balls in the USA in the air right now The probability in this 10 minute slot would be (average air time per ball* number
of shots for this hole) divided by the Time taken to complete a hole .To get the
Sure just to understand by right now we mean the time right now which is number of 10 minute holes being played at I’d find this as (number of holes per
7.00 pm IST? course) * (%occupancy based on the time there)* (number of golf courses in the
USA).
Consult Core Group Yes, you’re correct
Okay sure
Okay also another clarification so while counting golf balls in the air right
now we only consider those golf balls which are being played golf with? Right so I already have the number of holes per course, do we have any data on
Interview Transcript

the number of golf courses in the USA?

Yes only those golf balls that are being played at in golf courses.
Yeah so you can assume there are 15 golf courses in the Eastern Half and the
Okay, so I don’t have that much of an idea of how golf works, I know there Western Half.
are multiple holes in a course and people move from one hole to another
on completing them. Okay also to find the occupancy right now I think it would be useful to know the
time difference between India and the USA, can I assume that even though the
Sure so in a game of golf you can assume that it takes 10 minutes to complete USA has many time zones we can take one on average?
a hole. There are 18 holes per golf course and an average game lasts 3 hours.
Right actually that wouldn’t work. It would be better if you take the Eastern half to
Alright just following up on that, how many shots does it take to complete a be 10 hours behind India and the Western half to be 14 hours behind.
hole and what is the time that a shot stays in the air for?
Sure okay, so considering 7 PM right now in India it would be about 9.00 AM in
Right it takes about 5 shots on average to complete a hole. You can assume the
the Eastern half and 5.00 AM in the Western half. Would it be fair to say
first shot stays in the air for 10s but on average it is about 4s. Could you think of
occupancy is 0% for the western half and about 60% in the Eastern half.
why that could be?

Could it be because the later shots in golf once they get closer to the hole are Yeah sure, I think you can proceed with the calculations and give me the final
mainly ground shots. answer.

Correct! Sure okay so I am getting about 5.4 golf balls in the air in the USA right now so
rounding off to 5.
Okay proceeding on then, I believe I can find the total number of golf balls in
the air right now by finding the probability of a ball being in the air in a 10 min Good work! Thanks.
slot for a hole multiplied by the number of such 10 minute holes being played
at right now.

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 Golf balls in the air in
USA now
Consult Core Group

Probability in 10 mins Number of holes being

per hole played at right now

Average time in air per shot * Number of shots per hole

Time taken per hole
Number of
Number of holes Percentage
per course * Occupancy * courses in
USA

Eastern
18 60% 15
Half

Western
18 0% 15
Half
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Problem Consult Core Group

Statement
Estimate the number of CPEs
(customer premise equipment) sold in
a single year.

Similar cases/ Case sources: MBB

Topics Tested: Guesstimate

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 Estimate the number of CPEs (customer premise equipment) sold in a single
year.
Can you please elaborate more on CPE , because based on my knowledge, CPE
includes telephone headsets, wifi routers, set-top boxes etc.. Are we looking at
all of those or any specific equipment?
Consult Core Group
For the time being you can look at estimating wifi routers sold in a single
year.
Interview Transcript
I would like to look at the demand side rather than on the supply side
because to look at the supply side I should include all potential
manufacturers of these equipment and would be hard to find and
approximate their production.
Okay, go ahead with the demand side.
Demand side, I would like to look at the population division of India and
estimate customers having requirements to buy a wifi router.
Sounds like a plan.
I would like to divide the problem into Residential consumers and
Commercial consumers as requirements for the two segments are wildly
distinct.
Understandable, continue solving.
Can I assume the Total population of India to be 1.3 billion?
Sure, and what do you plan to do with it?
I will break this down further to get an estimate distribution based on
incomes. I propose this distribution
Rural areas - 60% of the population
Small towns & developing cities - 30% of the population
Metropolitan cities - 10% of the population
Does this seem fair?
Sounds alright, you can continue.
With this information I can make some assumptions on the wifi usage of
the population. There is very less chance of using routers in rural areas
since most of them don't have good internet infrastructure. Instead, many
rural areas rely on Mobile Data to access the internet.
That’s a good insight, it would be a fair estimate.
Furthermore, small town areas can be further segmented on the basis of
income.
Small towns - Upper middle - 10% of the Small town population
Small towns- Middle - 50% of the Small town population
Small towns - Lower middle & BPL - 40% of the Small town population
In small towns we can look at the upper middle class. Usage of remaining
people is most unlikely.
It would be a fair assumption to assume 10% of that population is going to
use the routers. That means on an average assuming 5 people per family.
One router per family would be a fair assumption.
Small town usage = 1.3 X 10^9 X 0.3 X 0.1 X 0.1 X 0.2 = 780,000
Seems like a fair estimate, please finish the residential estimate for India.
Definitely, for metropolitan cities we can distribute the population into:
Upper middle - 20%
Middle - 50%
Lower and BPL - 30%
Neglecting the lower section and assuming that 30% of the middle would be
using a router , since affordability of router and data charges as well needed to
be taken into account. And 100% of the upper middle will be using a router
would be a good assumption.
Assuming 5 people in a family => needed to divide the population by 5 to
estimate the number of routers.
Metropolitan city usage = 1.3 X 10^9 X 0.1 X ( (0.5X0.3X0.2) + (0.2X1X0.2) )
= 9.1 million
Total usage = 10.1 million (approx)
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 Good Job, is that all?

This was just the residential usage and to calculate the exact number, we
need to also look at B2B companies using wireless routers.
Consult Core Group That requires, to what range a router can cover and number of companies
that will actually need these and the area in which they spread out. I
would like to give a formula for that.
#Number of companies X #Avg Number of storeys each building have X
Interview Transcript

#Area of each storey

—----------------------------------------------------------------------------------------------------
pi*( 10)*10
A router can reach out to a radius of 10 m

Alternate solution
Or estimate are covered using area of house you know of

1 router/ 1000 sqft

Assuming house is 2000 sqft and you use just 1 but offices have more
serious requirements and must use 2 for the same space.

This formula gives us the average number of routers used in companies

and even here we can assume that most of the companies are in
metropolitan cities. If there is more information about aspects mentioned
above, it would have been easier to calculate the appropriate number.
For the time, 4 million routers are being used for domestic purposes in
India.

Can you synthesize the case?

We had to estimate the number of CPEs (customer premise equipment) sold in

a single year in India. We attacked the demand side since it had a bottleneck
unlike the supply side. We then divided the population of India into rural,
metropolitan and urban population and divided further based on income to get
a more precise estimation. The final number of CPEs estimated was
approximately 6.6 million.
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Consult Core Group

19
Problem Consult Core Group

Statement
Calculate the number of bullets that
are fired in India per year.

Level Of Difficulty: Medium

Similar cases/ Case sources: Bain
Topics Tested: Guesstimate

20
 The
A problem
company statement
wants is to
to set up ancalculate the number
online ticketing of bullets
platform. that your
They want are fired
help That is a fair assumption. Please continue.
in India
with theper year.
setup.
I know that the land border of India is around 7600 km. Dividing this by 4
we get 1900 km of boundary for every region. Assuming this border
I’ll start by asking you some clarifying questions. Considering that activity
division, I’ll take a minute to structure my thoughts.
Consult Core Group would be pretty high if the setting is in a war, is it a war year?
Sure, you can go ahead with the border assumption.
No, it is not a war year.
Can we ignore the number of bullets used by the underworld mafia and Okay assuming there’s no activity going on at the borders and its peaceful
right now, I will assume that in the Northern region for every 2 km there are
Interview Transcript

such as that is something which is an unorganised sector, and we do not

have a track of activity in that end?
Yes you can ignore the illegal usage of bullets.
Is the bullet consumption happening only on the boundaries or is it
elsewhere too?
Think a bit about this.
Okay, there are also bullets that are consumed at army training centers
and camps within the country. Can I consider those as well
Yes you can consider those and the consumption at the boundaries. You
can ignore the bullets consumed by police officers in cities.
Okay, also to clarify we are only referring to bullets consumed by people
and not by tanks, ships etc?
Yes, only the bullets used by the people.
Okay I will start by dividing the boundary of the country in five parts : the
Northern Region consisting of borders in Kashmir, Dehradun and Punjab,
Northwestern Region consisting of Gujarat and Rajasthan, Northeastern
states and the Southern states. I’ll go ahead and ignore the southern
states as the bullets fired in these regions would be less as compared to
the rest because there is no border here and so there would also be less
training camps.
15 soldiers taking care of the border. Approximately they fire 1 or 2 bullets
per day. I can also suppose that in summers the activity in these regions
will be lesser than in winters when activities like smuggling or invasion
might occur more frequently. Taking 1 bullet per day for 8 months and 2 for
4 months, I can take a weighted average and see that 1.3 bullets per day
are being fired per soldier. So we can get that approximately 11 bullets are
being fired per day per km. So in a range of 1900 km, 1900*11 = 20900
bullets are fired per day in the Northern Region.
Seems fair, go ahead for the other regions.
Moving to the Northwestern region, this region has lesser activity in
comparison so I’ll assume 5 soldiers per km who are firing 1 bullet in 2
days. This would bring us to 2.5 bullets times 1900 km which is 4750
bullets in the Northwestern region. I’ll assume the same number in the
North eastern region. So from the border regions we get a net of 30400
bullets per day and 30400*365 = 11.1 million
Okay move on to the contribution from the training centers now.
I’ll start with an assumption that 60% of the Indian states will have 1 training
center and 40% will have 2 training centers. This gives a weighted average
of 1.4 training center per state. Most of the activities in the training center
would be categorised as the fitness exercises and army training exercises
and bullets would be used only in the latter case. Assuming training hours
of 10 hours per day (12 with a break of 2), I’ll take 4 hours to be devoted to
army training. Of these, let’s say that 2 hours are the bullet intensive
training.
 Sounds like a correct assumption. Please proceed.

Let me assume that there are 1500 students per training center and
each barrel consists of 6 bullets. Every student is using those 6 bullets
Consult Core Group in the 2 hours. Due to a large batch size there could be possible rotation
so I’ll consider 9000 bullets to be consumed in every 2 days per training
Interview Transcript
center. This leads to 1.4 * 29 * 4500 * 365 = 66.7 million. So we have a
net bullet consumption per year as 66.7 million + 11.1 million = 77.8
million bullets.

That number seems to be good enough. Thank you for interacting with
us.

22
Consult Core Group

23
 Consult Core Group

Profitability
Casebook 2023

24
Problem Consult Core Group

Statement Your client is GMAT, which is an

entrance exam for getting admission
into international
colleges offering a business program.
They have been facing losses in the
past, and losing
it's customers/applicants to GRE.

Similar cases/ Case sources: LEK

Topics Tested: Profitability

25
 Your client is GMAT, which is an entrance exam for getting admission into Okay. I can think of various factors causing the number of applicants to
A company wants to set up an online ticketing platform. They want your
international colleges offering a business program. They have been decline. The eligibility criteria to appear for the exam, exam applicable to
help with the setup.
facing losses in the past, and losing it's customers/applicants to GRE. which programs/colleges, modes in which the exam is conducted,
frequency of the exam in a year, difficulty of the test and also the brand
Alright, just to confirm, both the exams provide admissions into the same
value. Could you please give details on all these factors with respect to
program and do they also offer the same colleges or is there a difference,
Consult Core Group
your competitor.
if yes then what.

We offer admission into only business programs in colleges in the USA, The eligibility criteria is applicant must have completed UG program which is
Interview Transcript

GRE offers admission into all programs in the same geography.
Okay. Can you tell me the time period of this decline, and also any
quantifiable value associated with this decline.
The time period of decline is not important. The quantity of decline is
significant but let's not get into numbers.
same for our competitor. Our exam offers only business programs in colleges in
the USA, GRE offers all programs in colleges in the USA including business
programs. Exam is conducted in an online mode, which is same for GRE. GMAT
occurs once a year whereas GRE occurs twice a year. We have observed over
the years from student review that the GMAT paper is more difficult compared
to GRE. We feel that our sales and marketing efforts are effective and is well
advertised throughout the year.

Alright. Which segment of students are our primary target. These were the major factors I thought should be analyzed to deduce the root
cause of this decline in profitability. Would you like me to go deeper into any of
Our primary target are students that have completed their Undergraduate
these points.
Programs and are hoping to move abroad for MBA.
I think you have identified most of our problems, no need to go deeper into
Okay. Since our competition is facing an increase of applicants, we can
these factors. We would like you to just conclude the case for us.
conclude that the issue is company specific and not industry wide. I would
like to divide the profitability into cost and revenue streams. This seems Okay. We identified revenue stream as the issue for this decline in
like an issue in revenue, is that a fair assumption. profitability which in turn was caused due to the registration cost being
higher for this exam compared to the competition. The issues identified for
Yes, you should focus on revenue streams. What do you think are the the decline in number of applicants are as follows, GMAT offering only
various revenue streams. admission into business programs, it being more difficult compared to
GRE, occurring less frequently in a year compared to GRE. Due to all these
The only revenue stream must be the registration of the examination,
factors, we can conclude that from a customer's perspective, they prefer
which will include the Number of applicants and the Registration Cost per
GRE over GMAT.
examination. What is your registration cost compared to your competitors
and is there a change in the number of applicants. Okay. Thank you.
The number of students applying for the examination has gone down and
Athe
company wants
registration to set
cost up an
of our online
exam ticketing
is more platform.
compared to ourThey want your
competitors
GRE.with
help Couldtheyou please go deeper into why the number of applicants
setup.
have reduced for the exam. 26
 Profitability

Consult Core Group

Revenue
Cost

Registration

Variable Fixed

Number of Registration
Applicants Fees

Centre
Rent
Booking
Printing/
Computer
Offering systems
Difficulty
college/progr- Brand Value
am
Eligibility
Criteria
Invigilators
Frequency in a
Mode
year 27
Problem Consult Core Group

Statement Your client is a restaurant owner in a

high footfall area in Agra. He has been
facing a decline in profitability recently.
He wants you to analyze why?

Similar cases/ Case sources: BCG

Topics Tested: Profitability

28
 AYour
company
client wants to set upowner
is a restaurant an online
in aticketing platform.
high footfall They
area in want
Agra. He your help
has been A customer can come to know about the restaurant via word of mouth and
facing
with thea setup.
decline in profitability recently. He wants you to analyze why? marketing by the company. Other factors would include location and ease of
reaching the restaurant.
Before we start I would like to ask some preliminary questions. What type of a
restaurant does the client own ? How many restaurants are there? Are the other There hasn’t been a problem in any of these. Are you sure these are the
Consult Core Group restaurants facing the same problem ? Duration of the decline ? only ways a person can know about the restaurant? Think along the lines of
the majority of the customers.
The company would
Multi-cuisine like for
restaurant, you1 to
only decide onthere
restaurant, the target segments.
aren’t As of
many restaurants
near let’s
now, the area
focusso weoncan’t
only comment
ticket and we
selling. Also, have beenis facing
the company this
involved issue
in online Oh ok! Since Agra is a tourist-driven economy, the majority of customers
would be tourists. They can come to know about the restaurants through
Interview Transcript

sincedelivery
food the lastand
6 months.
is a major player in that sector.
maps, tour guides and locals.
Also you said that it is a high footfall area. Why is it so?
Problem seems to be with tour guides
The restaurant is located near Taj Mahal and one can see it from the
restaurant. Do we have any tie-ups with the tour guides? Do we give them any
commission to publicize the restaurant? Has it changed?
Do we provide some extra services apart from food and is the decline
specific to an item? Yes! We have cut down the commissions of tour guides to do some cost cutting.
No not really and the decline is not specific to an item.
This seems to be a problem as they play a major role in bringing tourists to
I would now like to divide profits into revenue and costs. Do we have any the restaurants. Now I would like to proceed to the dining experience which
data about how they have changed respectively? can be broken down into quality of food, service, hygiene, price and
ambience. Has any of these changed recently?
Both revenues and costs have gone down but revenue has been affected
by a larger factor. What would come under ambience?

Ok. I would like to analyze the revenue part first. Revenue can be split into
Price per item, No. of items ordered per customer and No. of Customers.
Has any of the above changed ?
No. of customers have gone down
Ambience would include everything a person would see, hear, smell and
feel from inside and outside a restaurant. One by one I would like to analyze
all of them. Has the design of the restaurant and the view outside changed?
Is there any unpleasant noise or odor from the outside? Any temperature
fluctuations?

Alright. I would like to break down a Customer's journey. Firstly I would
look into how the customer would get to know about the restaurant then
the experience in the restaurant.
Ok. Go ahead
The view has indeed changed. There has been construction outside the
restaurant which blocks the sight of Taj Mahal from the inside
That seems a problem as it was a big part of the aesthetic of the restaurant.
29
 This is enough. You can synthesize.

The decline in profitability of the client's multi-cuisine restaurant in a high

footfall area near Taj Mahal, Agra, is primarily due to a decrease in the
Consult Core Group number of customers. The problem lies with tour guides, as the
restaurant cut down their commissions, affecting their role in bringing
tourists to the establishment. Additionally, the view of Taj Mahal from the
restaurant has been obstructed by nearby construction, impacting the
Interview Transcript

overall dining experience.

Solutions :
Increase commission rates for tour guides to incentivize them to bring
more tourists to the restaurant.
Renovate the restaurant's interior, improving the overall ambience and
customer experience

30
 Profits

Consult Core Group

Revenue Cost

No. of No, of Price

Items per customers
customer

Pre During
Customer Customer
Journey Journey

Marketing Tourists Location

Food Service Ambience Incentives
+
Guides

Observation
% of of SEE HEAR FEEL SMELL
Commission Taj Mahal
 Consult Core Group

Unconventional
Casebook 2023

32
Problem Consult Core Group

Statement
How can the Sports Authority of India
increase the number of Gold Medals
won by India in the next olympics?

Similar cases/ Case sources: Bain

Topics Tested: Unconventional

33
 AHow
company
can thewants to set
Sports up an online
Authority of Indiaticketing
increaseplatform. Theyofwant
the number Goldyour help
Medals Good suggestions, but can you re-read the problem statement and sanity
with
wonthe
by setup.
India in the next olympics? check on your suggestions? Take some time to re-evaluate your statement.

Interesting, can I take some time to formalize my approach? Having re-read the problem statement I realized the critical error I made of
not suggesting strategies that would directly impact the next Olympics,
Consult Core Group Sure, you can take a few minutes.
instead my suggestions were general to improving the sporting culture in
Are we considering total medals won in both Paralympics and able-bodied India.
Olympics?
Good catch, do you have any new suggestions then?
Interview Transcript

Let’s only consider able-bodied summer Olympics

Can I get some information on our achievements from the last olympics?
Sure, India won a total of 7 medals- 1 Gold, 2 Silver and 4 Bronze. And you
can assume we had candidates in the top 20 positions in 10 sports.
How many sports did we participate in and how many were contested in
the olympics?
There were 33 sports divisions out of which we participated in 20.
Right so what I was thinking was that here too what we could do was we
could look at-
1. Benchmark athletes internally in other international competitions to help
the best players rise through the ranks
2. Target weak competitions where medals can be easily won without much
competition and minimal training and investment in any new infrastructure
required
3. Invest in mental health, dietary, recovery and medical professionals to
ensure athletes are in their best form

Okay, are there any constraints of any kind? Monetary or otherwise?
No, you assume all resources at your disposal.
Sure, so having understood our current situation in the Olympics I would
like to take some time to formalize the strategy.
Sure, go on.
To improve our sporting prowess, there are 4 strategies we could explore
1. Sports Centers to train younger aspirants
2. Scholarships to help promote sports culture
3. Upgrading Current equipment
4. Benchmarking training plans and coaches against direct international
competitors
Okay alright and how would you go about increasing conversion rates from
medals to gold medals
Couple of things we could try out -
1. Using international benchmarking for training of the athletes as well as
using the best in class equipment
2. Increasing the motivation of athletes by sponsoring their family to go to
support them in the Olympics which would help in boosting their morale
and hence their performance as well
3. Marketing strategies to garner support from fans can help increase
motivation
4. Benchmarking training plans and coaches against direct international
competitors
I think that is sufficient, let’s end it here.
Problem Consult Core Group

Statement Your goal is to rebuild the country of

Ukraine from scratch after the
damages it has suffered due to the
Ukraine-Russia war and come up with a
strategy.

Similar cases/ Case sources: Mckinsey

Topics Tested: Unconventional

35
 Your goal is to rebuild the country of Ukraine from scratch after the damages
A company wants to set up an online ticketing platform. They want your help
it has suffered due to the Ukraine-Russia war. Assume you have a fair amount for 1) the infrastructure of the power plant,2) Generating electricity 3)
with the setup.
of resources at your disposal. supplying electricity steadily.

As our goal is to rebuild the country from the ground up, I would like to This flow seems correct. What timeline would you propose for this project?
Consult Core Group know the status of basic resources for the functioning of the country.
Where do we stand in terms of food, water, and electricity for the people The first step would be to assimilate resources. This would take nearly 2
months. This time period would also include gathering the required manpower.
currently in the country?
Accounting 1 month for setting up working conditions and then 6 months for
The company
Currently, would
groups oflike for you
people aretosheltered
decide oninthe target
safe segments.
zones. Food andAs water
of building the plant. The next 3 months would be taken for testing and fixing any
Interview Transcript

are rationed
now, but
let’s focus the
only onstock will subside
ticket selling. soon.
Also, the The electricity
company is involvedisin really
online bottlenecks to the electricity supply.
variable
food throughout
delivery and is athe day.player in that sector.
major
This timeline seems fair. What would be your next step after this?
Okay, and on the infrastructure front what is the status of buildings,
industries, bridges, and transportation? I will next focus on the infrastructure. This would include building ports, roads,
and bridges so that goods can be imported and transported easily. The first
The
Most company wants to start
of the infrastructure with
was Metro and
destroyed Tier-I the
during cities initially
attack. Onlyanda then
dam and priority would be to arrange food and drinking water and then raw materials for
an electricity
expand powerhouse
to other regions of thewere possible
country. Yes,toweset
doup quickly
have a majorafter the war.
competitor industries. Once we are through with basic needs, we should focus on building
Transportation facilities are in
very housing with essential facilities. This would make rationing of food, water, and
with over 90% market share theless in number.business in India.
ticket-selling
electricity more systematic and make for better living conditions for the
population.
I get the picture. Also does the government state any priority for
rebuilding the country or I can propose a solution as I see fit?
Okay. How will you proceed now?
The company
A very good wants to start
question. The with Metro and
government Tier-I cities
suggests thatinitially and focus
you first then on
Power to
expand generation, Infrastructure
other regions (Bridges
of the country. Yes, wefor
do connectivity, industries,
have a major competitor Now, to ensure the smooth running of systems, rebuilding of banks for
housing), and also water supply. cash flow, and police departments and courts for law and order is
with over 90% market share in the ticket-selling business in India.
necessary.
Okay. This makes sense. Industries and power plants give strength to the
country’s backbone. A power plant with a stable source and storage is You diverted a bit after starting from infrastructure. Since you want to build
necessary. I will first focus on that. Should I continue? houses and provide basic facilities such as water and electricity shouldn’t you
estimate their production from the plants that you set up? That will help you
gauge the scale of the power plant you require. Won’t it?
Sure. What do you propose for the new power plant?

Generating electricity through non-renewable resources right now will be Yes, that’s a fair point. To do that, can I get an estimate of the population or
easier since renewable resources require advanced machinery. A team of the number of families present in the country as of now?
Engineers, with a mix of specialties, should now be employed on the job
36
 Indeed. Based on our survey, the current population is close to 4 crores.

Okay, assuming an average family of 4, we have 1 crore families. So, we

would require at least 1 crore 1BHK apartments. In such a house the
Consult Core Group average electricity consumption per day can be taken to be 10KWatt.
So, the plant should be capable of producing 1013-Watt units of
electricity every day to sustain consumption. (The extra 100 multiplier is
taken for industrial applications)
Interview Transcript

Okay. These calculations seem fair. What is the final timeline you
propose for this project?

We are talking about rebuilding a country here. Swift actions are

necessary to get the country running again. According to the solution I
proposed, the power plant and its grid should be a 1-year project. Ports
should be ready in the next 6 months and the roads along with it should
take a year. Work simultaneously should begin on residential spaces
and industrial applications. This will take about the next two years.
During this period, steady rationing of food and supplies should be
tracked. This should be completed in a 2.5 to 3-year timeline accounting
for any delays and diversion.

The plan seems substantial. We can end the case here. Thanks for your
input.

37
Solution Framework Rebuilding Consult Core Group

Ukraine

Target/
Objective

Power Plant & Food and

Infrastructure
Industries rations

Rebuilding Ukraine

Sufficient Banks and

Housing = 1
Ports, Roads Law
Non Renewable Productivity crore 1BHK
and Bridges enforcement
Renewable houses
units

10^13W per Population = 4

day: Housing + crores, avg
Industrial family size = 4
Supplying
Infrastructure Generating
electricity to
of the plant electricity
houses

38
Problem Consult Core Group

Statement You are part of the Municipal

Corporation of a city. You have been
assigned a piece of land and you have
to decide what is the best way to
make use of this land.

Level Of Difficulty: Medium

Similar cases/ Case sources: BCG
Topics Tested: Unconventional

39
 You are part of the Municipal Corporation of a city. You have been assigned a
A company wants to set up an online ticketing platform. They want your help It can also increase the brand value of the area, however the people living
piece of land and you have to decide what is the best way to make use of this
with in the residential areas would be disturbed due to high traffic and inflow of
land.the setup.
people.
All right. To clarify, I have to make the best use of this land. I’d like to start
with a few preliminary questions. What is the size of the land? Could you explore building rehabilitation for slums instead then?
Consult Core Group

The size is approximately that of 2 football fields Socially it would be a better option to go with this, as it would benefit the
people being rehabilitated, giving them access to a better area with low
Okay, and how big is the city we’re in? Could you also tell me any crime rates and access to facilities like good schools, etc. An issue could
Interview Transcript

information about the geographical location the land is in and what it is be that the newly shifted residents might not get along with the existing
surrounded by? upper and middle class residents and this can lead to some tension.
The company
Assume would
that we are like
in afor youmetropolitan
major to decide on city,
the target segments.
like Mumbai and As
theofland Alright, based on these factors what would your final recommendations
now, let’s focus
is surrounded byonly
a mixonofticket selling.and
residential Also, the company
commercial is involved in online
areas and ideas be?
food delivery and is a major player in that sector.
I would say that there are a few strategies that can be adopted to utilise
Okay and what is the demographic of the people living in the nearby
the land:
places, economically speaking?
1. Social rehabilitation for people living in slums, and appointing a
The residents are of middle to upper class. neighbourhood council for hosting events and community bonding
exercises for easing any tension between residents. Also ensuring that
After taking a minute to structure my thoughts I can say that as the the number of people rehabilitated is in accordance with the resources
Municipal Corporation, there are two broad ways to making use of the land available in nearby areas
- the first being revenue and retail generating and second being non 2. Lease the land to a corporation for construction of a mall or an office
revenue and retail generating. Going one level deeper under revenue and workspace ensuring that the entries and exits of the building(s) are
retail, we could either make the land a paid parking lot of lease the land to localised to non residential surroundings to avoid excess traffic in the
a corporation to build a mall or shopping complex. On the other hand under regions
non revenue and retail, we can use the land for beautification like adding a These would be my recommendations to utilising the land.
park, or rehabilitation programmes for slums etc. An option could also be
to make office spaces for corporations.

Sounds
The like there
company wantsare
to astart
lot of options,
with Metro could you cities
and Tier-I examine some
initially of then
and the pros
and cons
expand of a revenue
to other regionsand retail
of the optionYes,
country. and we
a non
do revenue and retail
have a major option
competitor
andover
with think90%
about whichshare
market would in be
theaticket-selling
better decision.
business in India.

If we were to go ahead with building a mall or shopping complex on the

land, we would be able to generate more revenue for the corporation
40
 Consult Core Group

Market Entry
Casebook 2023

41
Problem Consult Core Group

Statement The client is a chemical manufacturing

company, wanting to expand their
business to electronic manufacturing.
Assess the market and help the make
their decision.

Level Of Difficulty: Medium

Similar cases/ Case sources: BCG
Topics Tested: Market entry strategy, Calculations

42
 The client is a chemical manufacturing company. They want to expand their
A company wants to set up an online ticketing platform. They want your help
business to electronic manufacturing. Assess the market and help the make
with thedecision.
their setup.
I want to confirm my understanding, so the client is already engaging in
Consult Core Group chemical manufacturing and has a share in the market, it now wants to
expand and also engage in electronics manufacturing. I have to help them
understand if this is a good decision. Is this correct?
That is correct. You have understood the situation, how will you proceed?
Interview Transcript
Firstly what are the client's expectations from the new market?
The client wishes to expand the supply chain, engage more customers
through a new customer segment and leverage their existing expertise
Since we are looking to enhance customer reach I'd first like to know a bit
about the current market, what are our biggest competitors in electronic
manufacturing and what is their market share?
The biggest competitors are Company A, B and C with market shares of
respectively 12%, 5% and 1%.
Okay so I can deduce that the market is not saturated and so there is room
for entry. Seeing that the largest market share is 12%, is there a reason for
the market being fragmented? Also, what would the growth rate for this
market be?
Most of our competitors are local producers and their distribution
channels only extend to smaller radii. The growth rate is 20-25%.
Okay so I can say that it is viable to get a sizeable share in this market,
and are there any constraints with respect to capital or labour?
No but you are required to use it optimally.
So let me begin with dividing the customer base into segments, namely the
Business to Business and Business to Customer segments. What is the
clients primary target of these segments?
Also, what are the major products that are sold by the client to the Customer
segment?
The client's target is B2B. They wish to manufacture and sell 3 major
products namely wireless routers, PCBs and chargers.
Okay and what is the volume and margin of these products across the
industry?
This timeline seems fair. What would be your next step after this?
Since our major target is to expand the customer base, I'd like to target
wireless routers and figure out the capturable customers. I want to examine
the following key metrics - the size of the market for P, the elasticity of the
product and the competitor benchmark. I'll make a guesstimate of the market
size seeing the total population. I'll cut this into urban and rural, and assuming
only urban households can afford wireless routers. Of the urban households
if I were to divide this into lower class(30%) lower middle class(30%), upper
middle class(30%) and upper class(10%), I'll assume only the highest 3
categories will be buying your product. So making these calculations I can
estimate your market size to be around 15 million households, is that a fair
assumption?
Yes you can proceed with this assumption.
I'd also like to know about the elasticity of wireless routers?
Around 6-7% of the market is owned by a trusted brand and the rest of the
market is elastic.
Okay, I'd like to now move on to the competitor benchmark. we can break
this down to pricing, distribution and product differentiation. What is the
client's pricing for the product as compared to its competitors and is there
any differentiating factor in the product itself?
43
 Assume that the pricing model is almost similar to its competitors and
there is no product differentiation either

Okay, this may work either in the clients favour or not, the client
Consult Core Group mightwant to consider providing any discount or developing a USP for
their product, apart from this I'd like to further analyse the distribution
channels available. The first could be a partnership with other
companies. SInce our aim is to reach out to more customer segments
Interview Transcript

and not profitability I'd reject this case. This leaves us with distribution
through online platforms. Does the client engage in this medium?

No the client does not distribute over online platforms. What is your final
analysis and recommendation then?

To summarise, the client is a well established chemical manufacturing

company whose objective is to enter a new market of electronic
manufacturing and engage more customers. Since the market is
currently not saturated there is room for entry for the client. The clients
target is B2B and the major product they manufacture is wireless
routers. Since the market size for wireless routers is large enough and is
profitable and elastic the client should focus on developing a favourable
pricing model and a USP for their product to differentiate them from
their competitors. The most efficient and useful method of distribution is
to make use of existing distributors of their chemical manufacturing
system. This can help in reducing distribution costs and as a result the
client could opt for lower prices that would be attractive to a larger
section of the population. Discounts and offers can also help bring in
more revenues and customers. This will be an optimal use of resources.
My final recommendation would be that the company should go ahead
with expansion to the electronic manufacturing industry using their
distribution channels as chemical manufacturing as it would increase
their revenue and with a USP the market is in their favour.

This seems substantial. We can end the case here. Thanks for your
input.
44
Solution Framework Customer Company Competition Product Strategy

Chemical Shares of major

Segments - B2B, B2C manufacturing USP Enter Market
competitors

Objectives
Profiling Resources: Capital, Available products in Recommended
Technology, Labour, Product
the market improvements
Distribution Differentiation

New Customer Channels

Segment
Customer Needs
Do not enter
Our Esitmated Share Pricing and customer market
Strategy and expectation
Expertise of B2B and
Increase Profitability B2C sales

Barriers to Entry

Market Share

Interviewee notes :
market not saturated- room for entry- main objective is to engage new customer segment
growth rate is good enough to pursue- estimate market size in terms of customers and not revenue as thats our target

45
B2B can help enhance customer base- industry is not very price sensitive and selling to another business can idirectky reah more customers
focus on wireless routers as it has maximum volume - no partnership for distribution as we want to target customers and not profitability
Problem Consult Core Group

Statement Your client is a company that wants to

set up an online ticketing platform.
They want your help with the setup
and want to know if it is favourable for
them to enter the market.

Level Of Difficulty: Medium

Similar cases/ Case sources: Bain
Topics Tested: Market entry strategy, Profitability,
Calculations

46
 AAcompany
companywants
wantsto to
setset
up up
an an
online ticketing
online platform.
ticketing TheyThey
platform. wantwant
your your
help Each of the Tier-I cities has a stadium. Taking an average occupancy of
with
helpthe setup.
with the setup. about 40,000 and the average price of each ticket to be 2,500 on which
we would be charging an 8% convenience fee, this gives us 80 Lakhs per
I would like to ask some preliminary questions. Which all segments does
stadium. Assuming we can initially acquire 15% percent of the total
the company want to target with ticket booking such as sports, movies,
occupancy which would require the help of schemes and discounted
Consult Core Group
shows etc? Does the company want to pursue only ticket selling or
prices we would be making 12 Lakhs per match.
something else as well? Does the company have any existing ventures?
This working seems fine. Although why did you choose an 8% percent
Interview Transcript

The
Thecompany
companywould
wouldlike
likefor
foryou
youtoto
decide
decideononthethe
target segments.
target segments. As of
As of
convenience fee and not 10%?
now,let’s
now, let’sfocus
focusonly
only
onon ticket
ticket selling.
selling. Also,
Also, the company
the company is involved
is involved in
in online
online
food food delivery
delivery and is aand is aplayer
major major in
player in that sector.
that sector. This was done keeping in mind the customer acquisition strategy which I
will be explaining to you and to offer competitive prices.
That helps us. Also, does the company want to focus PAN-India or some
specific geographical locations? Do we have any major competitors? Okay. Explain the schemes that you propose for customer acquisition.
The company wants to start with Metro and Tier-I cities initially and then It is my general observation that food at stadiums, or even movie theatres
The company wants to start with Metro and Tier-I cities initially and then
expand to other regions of the country. Yes, we do have a major costs a lot more than it costs normally. Since the average duration of each
expand to other regions of the country. Yes, we do have a major competitor
competitor with over 90% market share in the ticket-selling business in such activity is nearly 2-3 hrs and having food and drinks adds to the
with over 90% market share in the ticket-selling business in India.
India. experience. Since we already have a good setup in the food delivery
sector, we can give offers on meals along with ticket booking. The volume
Is the competitor also involved in any separate ventures? Also, a final
of customers here helps us to even out our expenses. This will act as our
question to clarify objectives – What are the company’s targets for this
USP against our competitors.
new venture? Profits, Revenue, or some other metric?
This seems like a good idea. Anything more you would like to add?
The
No, company wants toonly
the competitor startacts
with as
Metro and Tier-Iplatform.
a ticketing cities initially
The and
goalthen
of the
expand
company to other regions of profits
is to maximize the country. Yes, we
and would doyou
like havetoa proceed
major competitor
with the Just to complete my profit calculation, fixed investments would be highly
same.
with over 90% market share in the ticket-selling business in India. reduced since we already have knowledge of building an online
marketplace. Second, I could also provide a guesstimate of the profits we
So, the major segments in India in my opinion are Cricket Matches
would be making from the movie theatres.
and Movie shows. Is that a fair assumption?

Seems like a valid assumption. Go on.

So, profits can be calculated as Market Size*Market Share*Profit per unit –

Fixed Investments. I would like to start with the market size and market
share. I would first calculate these numbers for the matches and perform
a similar calculation for movie shows afterward. 47
 Assuming each city has 15 theatre houses and each theatre on average
has 5 screens.Each screen fills at least 200 people out of the average
300 (66% occupancy) and an average price of a ticket is 300 Rs. Each
screen generally runs 4 shows a day. Do these numbers seem
Consult Core Group appropriate?

The numbers seem okay. Proceed.

Interview Transcript

Sure. Let’s assume that we can partner with at least 5 theatre houses
initially to host on our platform and 50 % of tickets are booked on our
platform, charging a convenience fee of 8% as before, in a day we will
be making (15*5*4 shows a day * 150*300*0.08) about 10.8 lakhs.
Rounding that off to 11 Lakhs profit a day.

The profits seem reasonable. You can conclude your solutions.

Sure. To summarize,
• I would suggest the company to first start with movie shows since both
ventures gave nearly equal amounts of profit and new movies air
regularly.
• Our USP is to use our existing business to gain a fair market share
versus a competitor who owns a majority of the market as of now.
• The company can further expand to other segments and geographical
locations as well.

Thanks! It was great interacting with you.

48
Consult Core Group

49
Consult Core Group
 Consult Core Group

Pricing
Casebook 2023

51
Problem Consult Core Group

Statement
A paint company wants to introduce a
new paint variant and they wish to
decide on an appropriate launch price
for the same.

Similar cases/ Case sources: MBB

Topics Tested: Pricing

52
 A company wants to
A paint company set up
wants to an online ticketing
introduce platform.
a new paint They
variant and want
they your
wish help
to decide Okay, to find the Market size what I would do is look at the population of
onthe
with an setup.
appropriate launch price for the same. India take a divide based on rural-urban(65%,35%), look at the people living
in each household(5,4 respectively) and then based on income slab place
Can you describe the product in detail? How is it different from the other average house size.
conventional products in the market?
Consult Core Group
Okay looks good so far.
Is your company established in this market? What are your pre-existing
products? Next what i would do is take a factor of multiplication to account for the
walls in house as perhaps 3, is that fair to assume?
Is your company established in this market? What are your pre-existing
Interview Transcript

products? Yes

Yes, we are already established as a common segment paint company in
India. Our pre-existing products are conventional painting solutions.
What is the purpose of launching a new product?
The main purpose would be to establish the product in the market 1st and
then profit may follow.
Okay, proceeding from there I would take the factor of other buildings apart
from houses to be 2 ie, industrial, restaurants, publicly owned buildings etc,
And my final calculation would be total area of painted space divided by
average square feet covered per litre of paint multiplied by average number
of times painted per year.
Sure that sounds good.

Do you have any knowledge regarding your competitors which have a Assumed that on an average 1/2rd of the total infrastructure
similar kind of product already existing in the market? is painted every year

We don’t have any competitors for this new technology/variant, but a few Market Size = (11.3 + 9.6)/2 = 20/2 = 10 Bn Litres per year
established companies would follow the trail. What would your overall
approach be? Okay that sounds good, this is an attractive enough number.

We will first estimate the market size and then price the product. For the What is the goal we are seeking to achieve when pricing the product?
market size, we will look at the group of people who would need the Maximizing profits?
product. For pricing the product we will look at things like the cost of the
product, competitor prices and try to quantify the value to the customer. Yes, you can go ahead with the pricing of the paint now

Sure that sounds good. Sure, Sure.

There are three ways we can look to price the product :
Can I go ahead with determining the size of the market
1] Cost-based pricing: We will see what the variable cost of our product is.
Yes sure, please proceed Our price needs to be greater than the variable cost, else it would not be
profitable. We will also see the fixed costs, mainly manufacturing operations.
Cost-based pricing gives us a lower cap for price.
 2] Competitor-based pricing: Our product price must be competitive, or
we will lose market share. We can charge a premium over competitors if
our product has an advantage. However, we will also have to discount it,
if there are disadvantages. But in this case, we can ignore this part as
we don’t have any initial competitors.
Consult Core Group
3] Value (to-customer) based pricing: Here, we try and gauge the value
created for the customer to price our product. For this, we can look at
Interview Transcript
similar products in the paint industry to gauge how much customers
value durability.
Any specific profit margin that we are targeting?
No
Any specific market share that we are targeting?
No
What will be our variable cost per litre paint?
The cost of manufacturing 1 litre of paint considering just the material,
process and packing are somewhere around 250 Rs/Litre.
Considering the market size, the amount required to be recovered per
litre is 0.01 Rs/litre, this cost is negligible and hence we can say that our
sale volume is enough that recovery of the setup cost is not an issue.
A rise of 50% in the price would happen owing to all the other stuff
required after manufacturing, and 10% owing to the marketing and
implementation by the company hence an end user would get 1 litre of
paint for Rs 400 at the minimum.
So, the minimum price of our product should be 400 Rs/litre.
Okay you can now proceed to the next type of pricing
Here we will price the product according to the value generated for the
customer.
The question we need to answer is how much would someone be willing to
pay, to buy better quality paint.
The main advantage of the new product over the pre-existing ones is that the
durability is increased to 3 times. So, anyone would be willing to pay more to
paint the walls once in 3 yrs rather than paying thrice in the same period of
time. So, the value generated here is huge for a person with an average
income in India.
The selling price of other arbitrary paint available in the market is 300 Rs/Litre
In comparison a person would use 3 times of this paint than ours hence 900
Rs/litre
So, our price could range between 400 (our minimum based on cost of
production) to 900 ( value of our paint in terms of other paints)
Now, a price near to 400 Rs/litre won’t add much to our profits, as we need to
recover the fixed costs of setting up the manufacturing unit as well in a
reasonable period of time. Also, the customers won’t build trust in the quality
of the product if the price of the product is too less in comparison to its value.
On the other hand, we cannot go very close to 900 Rs/litre as it won’t give
any benefits to the customer. Hence, the price of the product should be
somewhere in the middle, let’s say 600 Rs/litre.
Thus, the ultimate profit generated by this product would be 210 Rs/litre, so if
we are able to grab even 5% of the market share, our profits can go upto
Profit = Profit per unit*Market share*Market size = 210*0.05*10 Bn = Rs 105 Bn
Note : This profit would be shared by all the involved people right from
manufacturing to selling and thus, we could safely say that it’s a reasonable
value
 Okay you can conclude the case and provide a synthesis.

Interviewee: So according to our analysis, the reasonable price for the

new paint variant should be 600 Rs/litre. This would benefit both the
Consult Core Group manufacturer and the customers.

Thank you that was quite satisfactory

Interview Transcript

55
 Population of India - 1.3 Bn

Urban - 35 % Rural - 65 %
Consult Core Group

People living in concrete houses - 80% People living in concrete houses - 60%

Number of people per household - 4 Number of people per household - 5

Income slab Area (in sq ft) Income slab Area (in sq ft)

1 - 10% 2,500 1 - 5% 2,500

2 -30% 1,500 2 - 20% 1,000

3 - 40% 700 3 - 35% 750

4 - 20% 300 4 - 40% 500

Factor of multiplication (to take into account the Factor of multiplication (to take into account the
wall area) = 3 wall area) = 3

Factor of other buildings = 2 Factor of other buildings = 2

Amount of paint required per Amount of paint required per
unit area
50 sq ft per litres unit area 50 sq ft per litres
56
Problem Consult Core Group

Statement

Launch of a new drug by Pfizer

Level Of Difficulty: Medium

Similar cases/ Case sources: Eversana
Topics Tested: Pricing, Market Entry
 Pfizer wants to launch a new drug in the market that taken regularly
A company wants to set up an online ticketing platform. They want your help
reduces the chances of heart attacks by 70%. The company wants you to
with the setup.
figure out a pricing strategy for the drug.
I would like to ask some preliminary questions to gain some information
Consult Core Group about the drug and its existing competitors.
Since the drug is new and hasn’t made its way to the market yet I have
opted for a cost-based approach. I will carry out the estimation of market
metrics for Mumbai and then extrapolate it to other cities and parts of the
country. Does that sound like a fair approach?
Yes, you may proceed.

Sure, Go on. Mumbai’s current population is nearly 2.2 crores. Assuming an average
family of 4, that gives us 55 lakh households in Mumbai. Dividing these
As we know Pfizer is a major player in the medicine industry worldwide.
households into 4 income classes:
Interview Transcript

What are the motives of the company to launch the drug and what
Rich Upper Middle-class Middle-class Poor
geographies does the company plan to launch this new drug?
10% 20% 40% 30%
The company wants to maximize profits on this new drug. Pfizer plans to (5.5 lakh) (11 lakh) (22 lakh) (16.5 lakhs)
launch the drug in India pretty soon. (4 LPM) (1 LPM) (30 KPM) (5 KPM)
Let’s say that we price the medicine at 150 rupees per group. This gives
Alright. India is seeing an increase in the heart attack rate and this drug will us a 50% profit margin. The medicine amounts to 900 rupees per month.
help the country. What is the competitive landscape? Are there any other For a poor family, that is nearly 20% of their income and hence is a tough
companies that already produce a similar drug? buy to sustain. We can divert our attention to the rich and middle class.
We should currently target the middle class due to the larger population.
So, there are currently no other companies that produce the same drug but
there are other players whose drugs have a lower success rate. The Go on.
composition of this drug is a trade secret, so this medicine cannot be
easily replicated. Assuming that 5% of families (1 out of 20) are affected due to heart attacks,
this may include people of all age groups we get 1.65 lakh families as the
Okay. Since the company’s goal is to maximize profits and profits can be total market size. Since there are no competitors to the drug, we can
divided into revenue–(fixed investments) or costs what are the current assume that we capture 60% of the market share initially i.e., 1 lakh
costs that the company incurs for the manufacture of the drug? approximately.
So, our profits per month would be profit * market demand = Rs. (10*30) * 1
AThe
company
drug is wants to set upinan
manufactured onlineof
groups ticketing
5. Eachplatform. They100
group costs want your to
rupees help
lakh = 300 lakhs per month i.e., 3 crores
make.
with the setup.
That’s a fair estimate. Anything else you would like to add?
Oh, so how often is the drug prescribed to be consumed?
Now, since the company wants to maximize profits, the company can
It’s one pill a day. steadily increase prices after first gaining a customer base and increasing
it through ad campaigns and hospital tie-ups. Also, if possible, the
I see. I think I have enough background to formulate a pricing strategy.
company can find ways to reduce manufacturing costs.
Please give me a minute to lay down my approach.
(After a min) I think that’s good. We can end the case here.
 Alternate approach and calculations suggested by the
interviewer:
The interviewer suggested that instead of tapping into the middle-class
Consult Core Group
market the candidate could also have targeted the rich population and
priced the drug higher. Since the rich can afford the drug easily, and are
more concerned the market share would also be higher. (Case of
monopoly since no major competitors were present)
Interview Transcript

(The drug in this scenario is priced at 400 rupees – 300% profit margin)

Assuming that 5% of families (1 out of 20) are affected due to heart

attacks, this may include people of all age groups we get roughly 30
thousand families as the total market size. Since there are no
competitors to the drug, we can assume that we capture 80% of the
market share initially i.e. 24 thousand approximately.
So, our profits per month would be profit * market demand = Rs. (60*30) *
24 thousand = 432 lakhs per month i.e., 4.32 crores.
That is nearly a 36 % increase from the earlier profits. Also, the hassle or
work for the company is lesser in this scenario since the company
doesn’t have to cut costs or expend resources on advertising.

59
Solution Framework 3C 1 P
Pricing Strategy
Consult Core Group

Target/
Objective

Population Age Based

Based
Profitability :
Convenience fee

Senior Middle Age Children and

New customer Upper Citizens (20%) Teenagers(30
(50%) -
segment Middle - Affected = %) - Affected =
Rich (10%) Middle Poor (30%) Affected = 5%
Class(40%) 10% 2%
Class(20%)

Not affected Affected by Not affected

Affected by by heart attack
by heart attack heart attack
heart attack

60