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Four routes for a skincare brand in India
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.
A fictional skincare brand in India sells a cream at INR 500 to the consumer (all figures exclude tax). Making it costs INR 150. In modern trade (supermarket chains) the retailer keeps 25 percent of the shelf price, and the brand spends INR 25 a unit on promotions and INR 15 on logistics. In general trade the shop keeps 15 percent and the distributor 8 percent; logistics cost INR 10 and the brand's own sales team INR 30 a unit. On a marketplace the fee is 15 percent, delivery through the platform INR 60 and on-platform ads INR 50 a unit. On its own website the brand pays 2 percent for payments, INR 70 delivery, INR 15 of returns and INR 120 of advertising to win each order. Which route earns the most per unit? (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.
- Contribution per unit = what the brand receives minus product and channel costs
- Modern trade: shelf price minus retailer margin, minus promotions and logistics
- General trade: minus shop and distributor margins, minus logistics and sales team
- Marketplace: minus fee, delivery and ads
- Key: Own website: minus payments, delivery, returns and the cost to win the order
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: Modern trade
What a strong candidate does: The brand receives 75 percent of INR 500, then pays promotions, logistics and the product.
Modern trade contribution (INR per unit): 500 × 0.75 - 25 - 15 - 150 = 185
Step 2: General trade
What a strong candidate does: The brand receives 500 minus 15 and 8 percent margins, then pays logistics, sales team and product.
General trade contribution (INR per unit): 500 × (1 - 0.15 - 0.08) - 10 - 30 - 150 = 195
Step 3: Marketplace
What a strong candidate does: Full price minus the 15 percent fee, delivery, ads and product.
Marketplace contribution (INR per unit): 500 - 500 × 0.15 - 60 - 50 - 150 = 165
Step 4: Own website, first order
What a strong candidate does: Full price minus payments, delivery, returns, advertising and product.
Website contribution, first order (INR): 500 - 500 × 0.02 - 70 - 15 - 120 - 150 = 135
Step 5: Own website, repeat order
What a strong candidate does: A customer who comes back costs no advertising.
Website contribution, repeat order (INR): 500 - 10 - 70 - 15 - 150 = 255
Step 6: Own website, three orders
What a strong candidate does: If a customer orders three times, the INR 120 to win them is spread over three orders.
Website contribution per order over three orders (INR): 500 - 10 - 70 - 15 - 150 - 120 ÷ 3 = 215
The recommendation to listen for
At the end, say: "The CEO walks in. What is your recommendation?"
Per unit, general trade earns the most at INR 195 and the brand's own website the least on a first order at INR 135, so the brand should keep shops and supermarkets as its base. The website only wins when customers come back: over three orders it earns INR 215 per order, more than any other route. The risk is that each route reaches different shoppers, so the choice is about mix, not one winner. As a next step, measure how many website buyers order again within six months; that number decides how hard to push direct.
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.