Break-even on a new flavor, with cannibalization
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Pie chart: Where the new flavor's sales would come from (survey of 1,000 snack buyers). Shoppers who would otherwise buy one of our flavors: 40 percent; Shoppers who would otherwise buy a rival brand: 35 percent; Shoppers new to the category: 25 percent.
The prompt
An Indian snack brand sells about 500 million packs a year across its flavors. Launching a new masala flavor costs INR 50 million one time (INR 5 crore, since 1 crore is 10 million), for recipe work, packaging, and launch advertising. Each pack contributes INR 4 (price minus variable cost). Past launches reached about 3 percent of brand volume in their first year. The chart below shows where research says the new flavor's sales would come from. Should it launch?
Interviewer-led: the interviewer shows the survey chart and asks for break-even, then the effect of cannibalization, then a recommendation.
Practice with a partner
1. Send the interviewer link to a friend. They read the case aloud and hold the answers.
2. You open the candidate view: you see only the prompt, a timer and a notes box.
3. Speak the case out loud. Your partner shares data when you ask, then scores you with the rubric.
Interviewer view
For the person running the case
Candidate view
For the person answering the case
The exhibit
Pie chart: Where the new flavor's sales would come from (survey of 1,000 snack buyers). Shoppers who would otherwise buy one of our flavors: 40 percent; Shoppers who would otherwise buy a rival brand: 35 percent; Shoppers new to the category: 25 percent.
My notes on this case
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