Case Interview Walkthrough with Matt

Introduction

• Speaker: Matt, Strategy Associate at Google
• Background: Former consultant at BCG
• Purpose: Walkthrough of a McKenzie style case interview
• Focus: Thought process for evaluating product launch strategy

Case Overview: Super Soda

• Client: Super Soda
• Industry: Beverage production (top three in the U.S.)
• Product in Focus: Electrolyte, a flavored sports drink
• Key Features of Electrolyte:
  • Lower sugar content compared to competitors
  • Focus on replenishing electrolytes over sugars
• Objective: Analyze factors surrounding the product launch

Key Factors for Launch Decision

1. Take Quick Notes:

   • Document important points from the prompt
   • Example notes: Super Soda evaluating "Electrolyte" launch

2. Clarifying Questions to Interviewer:

   • Have they tested the product or done any research?
   • What markets are they planning to target?
   • Have competitors launched similar products?

Building the Framework

Definition:

• A framework is a structured way to analyze the case (mutually exclusive and collectively exhaustive).

Suggested Framework for Super Soda:

1. Customer:

   • Segmentation
   • Customer preferences

2. Competition:

   • Size and growth of the low sugar energy drink market
   • Key competitors (Cool Sweat, Recover Plus)

3. Company:

   • Supply chain capabilities
   • Sales and marketing capabilities

4. Product:

   • Cost of production
   • Pricing strategy
   • Product positioning

Market Analysis

• Market Size: 8 billion gallons for total U.S. sports drinks
• Electrolyte Market Share: 5% of total market
• Competitor Shares:
  • Cool Sweat: 20%
  • Recover Plus: 10%

Break-even Analysis:

• Pricing: $2 per bottle
• Cost: $1.90 per bottle
• Fixed Costs: $40 million
• Unit Profit Calculation:
  • Profit = $2 - $1.90 = $0.10 per bottle
• Break-even Volume: 400 million bottles (40 million / $0.10)
• Conversion to Gallons: 50 million gallons (400 million bottles * 1/8 gallon)
• Electrolyte Market Size: 400 million gallons
• Market Share to Break-even: 12.5% (50 million / 400 million)

Strategy to Gain Market Share

• Competitive Pricing:
  • Lower prices to attract more customers
• Robust Distribution:
  • Ensure products are available where customers shop
• Sales and Marketing Campaigns:
  • Build awareness and promote the product effectively

Recommendation and Synthesis

• Context Restatement: Brief overview of Super Soda and the product launch.
• Recommendation: Proceed with the launch, focus on achieving 12.5% market share.
• Risks: Competitor strength, execution issues.
• Next Steps: Conduct further research on competition and consumer demand.

Conclusion

• Importance of preparation for case interviews.
• Offer for one-on-one coaching available through a link in the video description.