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What is a detergent brand worth in Spain?

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.

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.)

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 value = branded contribution minus private label contribution
- Branded: packs x (maker price minus cost) minus advertising
- Private label: packs x (maker price minus cost)
- Key: Price premium over the store brand

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: Branded maker price
What a strong candidate does: The maker receives 70 percent of EUR 10.
Branded maker price (EUR per pack): 10 × 0.7 = 7
Step 2: Branded contribution
What a strong candidate does: 2 million packs at EUR 7 minus EUR 3.50, minus EUR 2 million of advertising.
Branded contribution (EUR millions): 2 × (7 - 3.5) - 2 = 5
Step 3: Private label maker price
What a strong candidate does: The maker receives 60 percent of EUR 7.
Private label maker price (EUR per pack): 7 × 0.6 = 4.2
Step 4: Private label contribution
What a strong candidate does: 2 million packs at EUR 4.20 minus EUR 3.50.
Private label contribution (EUR millions): 2 × (4.2 - 3.5) = 1.4
Step 5: Brand value per year
What a strong candidate does: The difference.
Brand value (EUR millions per year): 5 - 1.4 = 3.6
Step 6: Price premium
What a strong candidate does: EUR 10 against EUR 7, as a share of EUR 7.
Price premium (percent): (10 - 7) ÷ 7 × 100 = 42.86

The recommendation to listen for

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

The brand is worth about EUR 3.6 million a year, so the maker should keep it and keep advertising, because it earns EUR 5 million as a brand against EUR 1.4 million as private label. First, shoppers pay a 43 percent premium for the brand, which leaves the maker EUR 3.50 a pack against EUR 0.70. Second, the EUR 2 million of advertising is well covered by that gap. The risk is that private label keeps gaining share, as it has across Europe, and the brand must cut its price to hold volume. As a next step, test how many packs the brand loses if the premium widens or the supermarket runs its own label on promotion.

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.