S14E30: Kearney Case Interview - Soft Drink Manufacturer
Aug 23, 2024
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Alfredo Vetencourt, a manager at Kearney, shares insights into the strategic operations consulting world. He guides a candidate through a real-time case interview focused on a soft drink manufacturer's expansion. The discussion dives into market analysis, consumer trends, and competitive positioning against giants like PepsiCo. Alfredo emphasizes the importance of structured frameworks and effective presentation skills in case interviews. He also celebrates listener successes, showcasing how mentorship plays a vital role in securing consulting positions.
The Kearney case interview process emphasizes collaborative problem-solving through a structured framework that includes market analysis and company capabilities.
Candidates must consider market dynamics and operational risks, highlighting the importance of customer loyalty and brand image in strategic decisions.
Deep dives
Understanding the Case Interview Structure
The case interview is structured around a framework that allows interviewees to tackle problems collaboratively while articulating their thought process. The interview begins with the candidate laying out a framework that includes four main buckets: market attractiveness, company capabilities, financial considerations, and risks. In this specific instance, the candidate is asked to evaluate the potential expansion of a carbonated drink manufacturer’s glass bottle portfolio in the U.S. market, which includes asking clarifying questions and gaining insight into the initial case prompt provided by the interviewer.
Analyzing Market Attractiveness
Market attractiveness is assessed by evaluating the size and growth potential of the market for glass bottled carbonated drinks. The candidate identifies that the current U.S. market is valued at approximately $2.2 billion, but the growth rate is only 2% annually. It becomes evident that competition is fierce, with major players like Coca-Cola and Pepsi owning significant market shares. Furthermore, a smaller competitor, Harritos, has successfully targeted Hispanic consumers and achieved a 30% growth rate, raising questions about market segmentation and consumer preferences.
Assessing Company Capabilities
The candidate evaluates the company's capabilities by looking into its existing operations, including manufacturing processes and market experience. Understanding the costs associated with producing glass bottles in both Mexico and the U.S. becomes vital, especially given that the manufacturing cost in Mexico is lower at $0.10 per bottle compared to $0.15 in the U.S. Additionally, factors such as distribution logistics and compliance issues are crucial in determining the feasibility of expanding the glass bottle portfolio. The candidate emphasizes that leveraging the company's existing marketing strategies and expertise will be critical for capturing market share.
Making Recommendations Based on Findings
Ultimately, the candidate concludes that expanding the glass bottle product line in the U.S. could be a worthwhile pursuit while suggesting a focus on manufacturing within the U.S. due to political and operational stability. Although the costs per bottle are similar across both production sites, the candidate identifies potential risks involved in manufacturing in Mexico and emphasizes the importance of customer loyalty and brand image. Recommendations to conduct customer surveys and assess market dynamics further facilitate an informed approach to the expansion. The candidate’s insights reflect both the potential benefits and challenges of the proposed venture.
Kearney is one of the world’s foremost strategic operations consulting firms with around 6,000 people in 40 countries. If you’re applying to Kearney, you’ll face a case interview.
In this episode, you'll learn what to expect in a Kearney case interview through a real-time demonstration led by Alfredo Vetencourt (Kearney Manager).
Alfredo takes a real candidate through a Kearney case study – based on a client project! It is a fantastic overview of the firm's interview process.
Follow along with paper and pencil to see if you can solve the case alongside our candidate.
Kearney Links Kearney is hiring for a select number of roles – see openings and apply Contact Kearney’s recruiting team Learn about Kearney’s Digital and Analytics practice
Management Consulted Links Work with expert coaches to prep for case interviews in Black Belt – limited seats available Book a consultation with Eden to confirm which package is right for you
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