Consulting Case Interview: Profitability

This is the third video in mock case interview series brought to you by Consulting and Strategy Club, IIM Lucknow. It depicts a case where the sales of a new device have not been picking up.

[hemantdhote]

Why you guys were in a hurry to wrap this up?
We would love to see a 30 min video on a detailed analysis and approach.
Many areas misssed here which could have been covered.
The video goes with a standard template of case solving, would love to see how IIM folks add value with innovation

[amishakumari]

After going through many videos, I found this video well explained and understandable. Thank you for the video.

[mahajankunal]

Very good practical given here. But u missed 2 key thing in competition segment.

The first is the cost of the traditional device n its usage cost ie the cost charged by doctors n chemists.

The Second one is that since herein its one of a kind product, are there any direct promotion activities wherein the prospective customers are shown a 30 sec to 2 minutes play/ ac/ advertisement/ nukkqd etc that shows as to how much useful this product is to a family in diagnosis of thr patient in emergency. A one of a kind product allows u to gain the first mover advantage, but at the same time you have to be the champion of its awareness in the market. You have to do it by yourself. Even when ATM's were introduced in the USA, people werenot happy as they felt that it reduces social life, but today that market is even using robots instead of people, for transactions. So you need to demonstrate the importance of your products, if you want to have a slice of their income.

[aarushijoshi]

I would have looked at this in a completely different way. Focussing more on the target customer segments and hospitals that we are pushing our product through. I would also possibly understand the reason for low commissions given to doctors since the price of the device seems to be much more than the cost per visit at the particular hospitals mentioned by the interviewer so there is a need to incentivise product recommendations more.

[akhilmehndiratta]

I think the problem statement was that sales is not as per expectations in one of the segment i.e., via hospitals (specifically through doctor, where they recommend) and we have to find the reason for it.
But in the video, it is taken to another side of issue that is user experience with the device, which could be the reason but not relevant here. As the sales is meeting the expectations in B2C through stores.

My approach would be to calculate the price charged by a doctor from a patient for measuring BP using his traditional device as this device is a replacement of it. It is directly challenging the income source of doctor to whom we are asking to recommend.
I would compare the price charged Rs 30 to 100 for measuring BP and assume the user to come to doctor for it once a month... Then find the loss to doctor in case recommend this machine and also taken into account the 3 years life, would calculate the commission to doctor for recommending and if it's fits my business model as per input cost of machine and profitable for our company, I would consider this business model otherwise would focus on B2c via stores.

[parvindernogi]

Cannot understand who is giving the interview. The person solving the case looks more confident.

[realestatebusiness]

Excellent work guys, , plz keep doing itt

[shubhamawasthi]

Thank you for such amazing video 👍 waiting for more.

[anukoolsrivastava]

I have no knowledge about business administration, just was seeing it as it looked interesting. It felt like MBA graduates are Doctors for Businesses.

[vivekgupta]

As far as doctors pushing for product is not good choice even so we have to available that product in medical stores, pharmacy shops that consumer see that product directly.
Secondly if doctors are recommended our product then we have to pay more to doctors for pushing to the consumer so doctors take interst to push the products on customers...

[twishampatighosh]

If I am the candidate, and the interviewer acts as the client while giving me the case study, I understand I need to clarify the doubts that I will have in my mind in order to successfully solve the problem. But are we allowed to ask so many questions? Do we get this much time in real-life interviews?

[niteshsharma]

How was the sugar measuring device a success in sales and its comparison with the new device sales is not considered to be in preliminary questions.

[PravinKumar-knke]

at 11 minute or somewhere near to it, she mentioned as sugar measuring device and not bp. 😅

[rashmi]

Wdf asking even this que necessary which the man said at end.. Ask about 60% sales etc correct pr not estimation... Won't that means we are actually questioning der sales forces, analytics etc. Forecasting methods and it's impossible to delve deep into it den

[AkashSingh-zbvb]

Dear Sir/Madam
Could you pls throw some light on how to condense this answer in short. I mean in 3-5 mins

[shauryapratap]

Sir will it also help for ZS Associates for engineering students?

[RoyBits]

please help me understand why this is very different from other profitability case

[gagansharma]

Promoting product through doctors will not be a great idea as the pricing plays a crucial role here if the price of the product is slightly on higher side and the competitors is offering the same at a Lower price i don't think people would go for first one despite recommended by the doctor as consumer is slightly smart in this thing.

[ninadpatil]

Is It really a profitability? Isn't sales is all about revenue? Industry aspects?

[movies-books-explainer-hindi]

voice is very poor... use some good quality microphone .. you are doing a great job..