Interviewer view · keep this screen to yourself
Where the shopper's rupee goes in general trade
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
1. Read the prompt aloud
Read it slowly, then pause. Let the candidate ask questions before they structure.
An illustrative shampoo pack in India has a maximum retail price (MRP, the legal ceiling printed on the pack, including tax) of INR 100. The goods and services tax (GST) on this product is 5 percent, included in the MRP. The shop keeps INR 12 and the distributor keeps INR 5. How much does the brand owner receive?
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.
- Brand receipt = MRP minus tax minus retailer margin minus distributor margin
- Tax inside the MRP = MRP minus MRP / 1.05
- Channel margins are shown in rupees per pack
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.
Step 1: Tax inside the price
What a strong candidate does: The MRP includes 5 percent GST on the pre-tax price.
GST per pack (INR): 100 - 100 ÷ 1.05 = 4.76
Step 2: Brand receipt
What a strong candidate does: Pre-tax price minus shop and distributor margins.
Brand receipt per pack (INR): 100 ÷ 1.05 - 12 - 5 = 78.24
The recommendation to listen for
At the end, say: "The CEO walks in. What is your recommendation?"
The brand owner receives about INR 78.24 of each INR 100 pack, so it should manage its margins on that figure, not on the MRP. This is because GST takes about INR 4.76 and the shop and distributor keep INR 12 and INR 5. As a result, a change in trade margins or tax moves the brand's receipt more than it seems. The risk is that when tax falls, shoppers and the government expect the saving to be passed on through a lower MRP. As a next step, track what each channel partner keeps 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?
Total
0 out of 25
Score all five criteria to see the band and the feedback template.