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Is wider distribution in Nigeria worth it?

You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.

Case timer

00:00

Target length:

1. Read the prompt aloud

Read it slowly, then pause. Let the candidate ask questions before they structure.

An illustrative biscuit brand in Nigeria is stocked in 40,000 outlets, which each sell 30 packs a week. The brand receives NGN 150 per pack and earns a 40 percent gross margin. A distributor can add 20,000 smaller outlets that would each sell 20 packs a week, but serving them adds NGN 30 of cost per pack. What revenue does the brand make today, and what weekly contribution would the new outlets add?

2. Answers to clarifying questions

This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.

3. A model structure

Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.

  • Revenue = outlets x rate of sale x net price per pack
    • Today's outlets
    • New outlets: smaller rate of sale and extra cost to serve

4. The working, step by step

Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.

  1. Step 1: Revenue today

    What a strong candidate does: 40,000 outlets x 30 packs x NGN 150, in NGN millions per week.

    Weekly revenue today (NGN millions): 40,000 × 30 × 150 ÷ 1,000,000 = 180

  2. Step 2: Contribution per new pack

    What a strong candidate does: Gross margin of 40 percent of NGN 150 is NGN 60, minus NGN 30 cost to serve.

    Contribution per new pack (NGN): 150 × 0.4 - 30 = 30

  3. Step 3: Weekly contribution added

    What a strong candidate does: 20,000 outlets x 20 packs x NGN 30.

    Added weekly contribution (NGN millions): 20,000 × 20 × 30 ÷ 1,000,000 = 12

The recommendation to listen for

At the end, say: "The CEO walks in. What is your recommendation?"

Yes, the brand should add the 20,000 new outlets if the distributor's cost estimate holds, because they add about NGN 12 million of contribution a week on top of NGN 180 million of weekly revenue today. First, each new outlet sells only 20 packs a week, but each pack still earns NGN 30 after the extra cost. Second, this means wider distribution pays, although gains shrink in more remote shops. The risk is that serving small outlets costs more than NGN 30 per pack. As a next step, pilot with part of the new outlets and track sales and cost per pack.

Score the candidate

Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.

This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?

Structuring
1
No clear structure, or a memorized framework that does not fit the problem.
3
A sensible structure, but with some overlap, a gap, or no clear priority.
5
A structure built for this problem, with no overlap and no gaps, a stated hypothesis, and a clear first step.
Math
1
Frequent errors, no units, or needed heavy help to finish.
3
Right answers but slow or messy working, or one error caught late.
5
Accurate and clearly narrated, with units, a sense check, and what the number means.
Exhibit reading
1
Read the chart aloud without finding the number that matters.
3
Found the key number but gave only part of the so-what.
5
Pulled the right number quickly and said what it means for the case.
Synthesis
1
Summarized what was done, with no clear answer.
3
Gave an answer, but with weak reasons or no next step.
5
Answer first, then two or three reasons with numbers, the main risk, and next steps.
Communication
1
Hard to follow: long silences, no signposting.
3
Clear most of the time, with some rambling.
5
Calm and concise, signposted each step, and checked in with the interviewer.

Total

0 out of 25

Score all five criteria to see the band and the feedback template.