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What is a detergent brand worth in Spain?
The prompt
A fictional detergent maker in Spain sells 2 million packs a year under its own brand at EUR 10 on the shelf. The supermarket keeps 30 percent, making a pack costs EUR 3.50, and brand advertising costs EUR 2 million a year. The alternative is to drop the brand and make the same detergent as a supermarket's private label: same volume, shelf price EUR 7, the supermarket keeps 40 percent, and no advertising. How much is the brand worth each year, and what is its price premium? (Figures are illustrative.)
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.
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