Consulting Case Interview: Profitability
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- čas přidán 23. 11. 2019
- 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.
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
Average attention span vv low
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.
Cannot understand who is giving the interview. The person solving the case looks more confident.
Thats the basic purpose.. To give a solution, you have to first do some fact-finding, research or homework.. Coz when if dont have a complete knowledge, your solution is just a hit-n-trial.. A business won't like to fund ur half-baked solution as it might b very high risk to their financial resources..
So its speak to solve n just speak 4 d sake of just speaking...
Both are students, nobody is interviewing.
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.
Any commission to doctor for recommending a product will be unethical especially when he/she is engaged in a clinical practice. This aspect was not discussed ..for all you know the doctors dont want to tread that line and seen as a marketing agent by the patients or the hospital administration . While the practice of kickbacks is very much prevelant , it is illegal
Thank you for such amazing video 👍 waiting for more.
Excellent work guys ,, plz keep doing itt
After going through many videos , I found this video well explained and understandable. Thank you for the video.
tum jsr se ho kya??
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.
That is a good point. But I won't look at as loss of income for doctors. I doubt any patient goes to a doctor only for BP check, BP is usually checked as part of the general ailment visit, let alone visiting 12 times a year. I would assume as people can now check BP at home, visits or calls to doctors might increase.
▪If the issue is promotion (either trade/doctors or consumer promo), then promotional channel should be optimized based on reach, credibility, cost in context of the target customer segment.
▪As target customers are 40+ years, most likely urban, my initial hypothesis would be online promotion on healthcare apps (Practo, 1mg etc.). The 'doctor' channel might be low on reach (not many visits per capita), mid-high on credibility and high cost of promotion. A survey of the target customers will prove/disprove the hypothesis about the channel preferences.
▪To assess commission cost, the candidate should estimate
(-) potential loss of BP checking revenue for doctors = (avg. BP only visit = 4/yr* INR 30*3 equals = INR 360)
(+) increase in # of doctor visits/house calls*avg. price per visit
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Max commission (assuming increase in house calls is not attributable to machine use) = INR 360 i.e. 13% of price. This looks high but can be optimized by segmenting doctors (by speciality, by footfall, by hospital association) and allocating commissions where highest returns are made
Please upload more such videos
absolutely to the point explaination
So good!
I have no knowledge about business administration, just was seeing it as it looked interesting. It felt like MBA graduates are Doctors for Businesses.
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.
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...
can you please put on the caption?
👍👍
at 11 minute or somewhere near to it, she mentioned as sugar measuring device and not bp. 😅
Dear Sir/Madam
Could you pls throw some light on how to condense this answer in short. I mean in 3-5 mins
Do you mean synthesising a thoughtful conclusion at the end? If yes, it should normally not last more than 2 mins in my opinion, but if you’re talking about answering the case in 3 to 5 minutes, I would call it a bad idea. Since the interviewer wants to understand your perspective and delve into your problem-solving, you should have a detailed approach and for that to happen you will have to take time.
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
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?
Yeas.
One does not get this much time and luxury to ask so many questions
Actually I was also wondering the same. Usually this is not the scenario.
Is It really a profitability? Isn't sales is all about revenue? Industry aspects?
Sir will it also help for ZS Associates for engineering students?
How have you been preparing for the same?
Hey have you given the interview?
Can any one from all of you can reply about how was your interview because I am having the same tomorrow?
@@amayatre3558 Sorry brother ZS is coming in my college on 27 July.
Being a pharmacy company having pan india presence and can't figure out why sales aren't picking up... Then CHULLU VAR PANI MAI DUB MARO
voice is very poor... use some good quality microphone .. you are doing a great job..
I don't think this is a ethically correct business case interview , because doctors cannot recommend any company's specific product to his/her patients. I may be wrong but there is a scene of kickbacks and commissions involved.
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.
As mentioned,the product is one of a kind, there are no competitors in the maket for the product. I don't think pricing would play much role here, since it's an essential item, and the demand is generally inelastic in such cases.
Hi , what will be ccpc approach?
you also have the option to rewind great that you checked the comment option atleast do check that option as well.congrats for watching the first video.on youtube etc
We can give discount of 10 percent that our customer attract towards our product and when we use he/she has habitual of our product....
8.20 : "Are you giving commission to the Doctors" ....Isn't this normalizing bribery in such case studies ? IIM Lucknow, rethink !!!
Its more like a sponsorship than bribe
Made it confusing by asking too many prelims ques, Not a very structured layout
that's how case interviews are done. If you don't ask preliminary questions, how will you know what the real problem is?
wasted 13 minutes