Interviewer view · keep this screen to yourself

A 20 percent price promotion in the UK

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 drinks brand in the UK sells 1,000 units a week to a grocer at a net price of GBP 10, with variable cost of GBP 6 per unit. The grocer proposes a promotion: the brand funds a price cut so its net price falls to GBP 8, and volume is expected to rise to 1,400 units. Does the brand gain, and what volume would it need to break even?

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.

Compare weekly contribution with and without the promotion
- Contribution = units x (net price minus variable cost)
- Break-even volume = old contribution / new unit margin

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: Without promotion
What a strong candidate does: 1,000 units at GBP 4 each.
Base contribution (GBP): 1,000 × (10 - 6) = 4,000
Step 2: With promotion
What a strong candidate does: 1,400 units at GBP 2 each.
Promotion contribution (GBP): 1,400 × (8 - 6) = 2,800
Step 3: Difference
What a strong candidate does: Promotion minus base.
Change in contribution (GBP): 2,800 - 4,000 = -1,200
Step 4: Break-even volume
What a strong candidate does: Units needed at GBP 2 to earn GBP 4,000.
Break-even units: 4,000 ÷ (8 - 6) = 2,000

The recommendation to listen for

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

The brand should decline the promotion as proposed, because it loses GBP 1,200 a week: contribution falls from GBP 4,000 to GBP 2,800. First, cutting the net price from GBP 10 to GBP 8 halves the margin per unit from GBP 4 to GBP 2. Second, this means volume must double to 2,000 units to break even, against the 1,400 expected. The risk is losing shelf space or share if a competitor accepts the promotion. As a next step, propose a smaller price cut and test it in a few stores.

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.