Firm: . Kearney
Ca Number:
Ca tup facts offered by inte经典七字春联
rviewer:
Your client is a . bad manufacturer of branded cookies cookies that carry the name of the manufacturer
Recently private label cookies tho carrying the name of the retailer have emerged and threatened branded cookies
Private label cookies emerged five years ago
Two and one-half years ago they made up 10% of the overall cookie market brand being the other 90%
Today they make up approximately 20% of the overall cookie market ., there has been a steady, linear increa of private label portion of the overall cookie market during the past fi
ve years
The overall cookie market has been relatively flat over the past five years
Private label cookies are made by the same manufacturers who make branded cookies, they are just sold under the name of the retailer
There are esntially three major competitors to consider:
Your client, who makes only branded cookies
A cond major player, that makes both branded cookies and supplies cookies for private labelers
A collection of small outfits, that make both branded cookies and supply private labelers
Distribution occurs primarily through one of two types of outlets:
Grocery outlets: all grocers ll branded cookies, most also carry their own private label cookies. This reprents approximately 90% of total cookie sales
Mass merchandirs ex. Walmart, Sam’s, etc.: ll only branded cookies
Question:
How large would you estimate the overall . cookie market to be in terms of $
How large of a threat do you believe the trend in private label cookie sales to be to your client
Bad on your asssment, what is an appropriate strategy for your client to follow
Suggested solutions:
The first question, estimating the size of the . cookie market, has no right or wrong answer. It is a test of a candidate’s ability to make reasonable assumptions and work quickly with numbers on an “order of magnitude” level. One acceptable respon would be to estimate the number of . houholds, estimate houhold consumption over some period of time, estimate the average cost of a bag of cookies, and project out for one year.
In this ca, after an estimate has been made, the candidate would be told to assume the market size is $1Billion to simplify any future calculations. As stated in the upfront information, the market is assumed to have been flat for the past five years.
The cond question is more involved. It involves determining to what extent your client is threatened by the increasing percent of the overall cookie market reprented by private label sales. To better answer this question information should be gathered pertaining to what is driving the demand for private label cookies, to what extent this has already affected your client’s sales, and what the likelihood is for the trend to continue. The following are questions and answers that would be provided in an interview scenario.
What are the sales trends for the client over the past five years
Your client’s sales have been flat at $600M for the time frame of five to two and one-half years ago. Over the past two and one-half years, sales have decread steadily down to a prent level of $560MM.
How has market share of the private label gment been split over the past five years between your client’s main competitor and the other smaller players
The smaller players combined had 100% of the private label subgment five years ago. Two and one-half years ago your client’s main competitor began supplying private labelers. Today, this main competitor owns 40% of the private label subgment, the smaller players own the remaining 60%
How has market share of the branded gment been split over the past five years
Your client held 60% of this gment five years ago, 67% two and one-half years ago and 70% today. Its main competitor held 30% five years ago, 25% two and one-half years ago and 23% today. The combined smaller players owned 10% five years ago, 8% two and one-half years ago and 7% today.
Analsis of the above information tells a very important story. The private label gment was launched five years ago by the smaller players. As private label first cut into the bran
ded gment, it came at the expen of your client’s main competitor and the smaller players, not your client. In respon to this, your client’s main competitor entered into the private label gment two and one-half years ago. This further hurt their 会议主持词范文
own sales and tho of the smaller players, but also began to hurt your client’s sales. Additional information is required to understand what is driving the demand for private label cookies
How does the quality of a private label cookie compare to that of a branded cookie
Consumer studies have shown that there is a noticeable difference in taste, texture and quality in favor of the branded cookies
