Interviewer view · keep this screen to yourself

Which segment earns the profit?

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.

Using the table above, the fictional coffee chain wants to know which customer segment to build its next year around. Work out the revenue and contribution of each segment, in INR crore (1 crore is 10 million), and the contribution per customer.

The prompt refers to Exhibit 1. After reading it, say: "Open Exhibit 1 now."

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.

Segment contribution = customers x visits x spend per visit x contribution margin
- Revenue by segment
- Contribution by segment
- Key: Contribution per customer

Exhibit 1

The prompt uses this exhibit, so the candidate opens it right after you read the prompt ("Show exhibit 1" on their screen).

Customer segments of a fictional coffee chain in Mumbai, one year (illustrative)

Customer segments of a fictional coffee chain in Mumbai, one year (illustrative)
Segment (need)	Customers (thousands)	Visits per customer per year	Spend per visit (INR)	Contribution margin (percent)
Commuters (speed on the way to work)	200	100	180	40
Students (a cheap place to sit and study)	400	30	120	25
Office teams (somewhere to meet)	50	40	600	45
Weekend families (a treat)	150	12	500	35

So-what

Students are half of all customers, but they visit less, spend less and get the most discounts. Work out the profit of each segment before deciding whom to chase.

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: Commuter revenue
What a strong candidate does: 200,000 customers, 100 visits each, INR 180 a visit, divided by 10 million to get crore.
Commuter revenue (INR crore): 200,000 × 100 × 180 ÷ 10,000,000 = 360
Step 2: Commuter contribution
What a strong candidate does: 40 percent of revenue.
Commuter contribution (INR crore): 360 × 0.4 = 144
Step 3: Student revenue
What a strong candidate does: 400,000 customers, 30 visits, INR 120 a visit.
Student revenue (INR crore): 400,000 × 30 × 120 ÷ 10,000,000 = 144
Step 4: Student contribution
What a strong candidate does: 25 percent of revenue, lower because of student discounts and long stays.
Student contribution (INR crore): 144 × 0.25 = 36
Step 5: Office team contribution
What a strong candidate does: 50,000 customers, 40 visits, INR 600 a visit, at 45 percent.
Office team contribution (INR crore): 50,000 × 40 × 600 ÷ 10,000,000 × 0.45 = 54
Step 6: Family contribution
What a strong candidate does: 150,000 customers, 12 visits, INR 500 a visit, at 35 percent.
Family contribution (INR crore): 150,000 × 12 × 500 ÷ 10,000,000 × 0.35 = 31.5
Step 7: Total contribution
What a strong candidate does: Add the four segments.
Total contribution (INR crore): 144 + 36 + 54 + 31.5 = 266
Step 8: Commuter share of contribution
What a strong candidate does: Commuters are a quarter of customers. What share of contribution do they bring?
Commuter share of contribution (percent): 144 ÷ 265.5 × 100 = 54.24
Step 9: Contribution per commuter
What a strong candidate does: INR 144 crore over 200,000 commuters.
Contribution per commuter (INR): 144 × 10,000,000 ÷ 200,000 = 7,200
Step 10: Contribution per student
What a strong candidate does: INR 36 crore over 400,000 students.
Contribution per student (INR): 36 × 10,000,000 ÷ 400,000 = 900

The recommendation to listen for

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

The chain should build next year around commuters, and protect office teams, because commuters are a quarter of customers but bring about 54 percent of contribution, INR 144 crore of INR 265.5 crore. First, a commuter is worth about INR 7,200 a year against INR 900 for a student, eight times as much. Second, office teams are worth the most per head, about INR 10,800, though the group is small. The risk is that students fill seats that commuters and teams would use at peak times, so serving them costs more than the margin shows. As a next step, check sales by hour and by store to see whether students crowd out higher value visits.

Score the candidate

Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.

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.