Candidate view
Where the money goes on a USD 60 serum, and what 5 more points of retailer margin cost the brand
The prompt
Lumora (a fictional skincare brand in the United States) sells a serum at a shelf price of USD 60 through a specialty beauty retailer that keeps 45 percent of the shelf price. Lumora's costs per unit, as a share of what it receives, follow a typical large beauty company: cost of goods 26 percent, advertising and promotion 32 percent, selling and admin 19 percent, research 3 percent. What does Lumora earn per serum? The retailer now asks for a 50 percent margin. If Lumora keeps its spend per unit the same, what happens to its profit per serum?
Your interviewer will share data as you ask for it. Ask clarifying questions, state a hypothesis, then lay out your structure out loud before you calculate.
Case timer
00:00
Notes stay on this page only. They are not saved and are gone when you leave or reload.
Finished the case and heard your feedback? Mark it done so it counts in your progress on this device.