IIM Ahmedabad

Consult Prep Caselet

2024-2025
Issue Details and Copyright

Caselet, Consult Club, Indian Institute of Management Ahmedabad. 3/e

© 2025, Consult Club, IIM Ahmedabad. All rights reserved.

Notice
No part of this publication may be reproduced or transmitted in any form or by any means – electronic or mechanical, including photocopy,
recording or any information storage and retrieval system – without permission in writing from the Consult Club, IIM Ahmedabad.

First edition: January 2023

Second edition: December 2023
Third edition: January 2025

Disclaimer
The Consult Club has used feedback from students, along with external references and sources to compile this resource. However, we have
not independently cross-verified the data obtained from these sources. Readers should be aware that data accuracy and reliability may vary
among sources and may consume the data and figures presented in the Caselet accordingly. Readers should also be aware that student
feedback to help construct the cases in this Caselet is voluntarily provided in retrospect and hence may have varying degrees of accuracy.
Consult Club cannot be held accountable or liable for any errors, omissions, or inaccuracies found within this document. Furthermore,
while we have made reasonable efforts to proof-read and quality-check the content of the Prep Caselet, the possibility of errors cannot be
entirely eliminated. Readers are encouraged to exercise caution and seek additional information or professional assistance as needed,
especially for critical and important data points.

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Introducing the IIM Ahmedabad Consult Prep Caselet

Consult Club, IIM Ahmedabad is proud to present the third edition of the Consult Prep Caselet, an add-on to our Consult Prep Book for
aiding case preparation for consult enthusiasts.

The document is a careful curation of real interview experiences of candidates with leading consulting firms. These interview experiences
are collected, analyzed, sanitized, and then bolstered using relevant frameworks.

The biggest-ever 3rd edition of the Consult Prep Caselet consists of 20 cases across 6 key case types, covering 10+ industries. We hope,
just like the Consult Prep Book, this Caselet document will help thousands of users develop and strengthen their case solving skills.

We’re making this document available in the public domain with a goal to aid consulting aspirants, irrespective of campuses and levels of
information access, step closer to their professional goals. We sincerely hope this document provides you with what you need to ace your
consulting interviews! We hope that we’ve been able to help you in doing so and wish you the best in your journey to realize your dreams!

Lastly, a huge shout-out to the Consult Club team of IIM Ahmedabad for working incredibly hard to deliver this Caselet!

Varun Vaziraney Shikhar Prakash

Coordinator Cell Head – Publications
Consult Club, 2024-25 Consult Club, 2024-25
IIM Ahmedabad IIM Ahmedabad

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Acknowledgements

IIM Ahmedabad Consult Prep Caselet

We are grateful to all the people that have helped by sharing their cases and interview experiences, which has enabled us to put together a
comprehensive preparation resource for the current and future batches.

We want to thank the Consult Club team that helped put together this 3rd edition of the Consult Prep Caselet, 2024-25. We would like to
thank Abhijit Bhalachandra, Anjanee Khosla, Ashraya Maria, Dhruv Jain, Gaurav B N, Saket Athalye and Umang Tyagi (PGP 2023-25) for
providing their valuable input and support to put together this Prep Caselet. We would also like to acknowledge the efforts of Abhishek L,
Alok Ranjan, Devavrat Wagle, Kaashif Mohsin, Kaustabh Chatterjee, Sushruti Verma and Vrinda Khandelwal (PGP 2024-26) for helping the
club build this caselet.

We would also like to extend a special acknowledgement to Amit Date, Nayan Kumar Nahata, Samruddhi Chokhda and Tejas Tripathi (PGP
2024-26) for their contribution to the Publications team in helping finalize this document. We would like to thank Akshat Gupta, Raghav
Agarwal and Yash Khandelwal for their contribution to cases. The team has ensured breadth and depth in the cases to give the readers a
comprehensive view.

We would like to thank Shikhar Prakash, Cell Head - Publications, Consult Club (PGP 2023-25) for leading all the initiatives with thorough
professionalism, and successfully delivering this integrated output. We would like to thank Varun Vaziraney, Coordinator, Consult Club
(PGP 2023-25) for his invaluable guidance and unwavering support in ensuring the creation and delivery of this resource.

We would also like to thank the broader student groups of the PGP 2023-25 and 2024-26 batches, many of whose submissions have added
unmatched richness to the Caselet. We also want to thank the contributors of the previous editions of the IIMA Consult Prep Book and
IIMA Consult Prep Caselet as well as numerous Consult Club alumni whose submissions and feedback, over the years, have shaped this
document, and created a brilliant base for us from where we could build further to create this edition of the Consult Prep Caselet.

We would also like to extend our deep and heartfelt gratitude to Mr. Tushar Patel for graciously letting us use his beautiful photographs of
the IIM Ahmedabad campus.

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Table of Contents

Particulars Sector Rigor Page Particulars Sector Rigor Page

A. Profitability F. Unconventional

1. Sugar Mill Food Processing Easy 7 Tips & Tricks 38

2. Dessert Manufacturer Food & Beverages Moderate 9 14. Illegal Drug Usage Public Policy Easy 39
Cab Aggregator Profit Services Moderate 11 Price Increase Decision for Manufacturing Easy 41
3. 15.
Slowdown Equipment Manufacturer
Home Appliance Manufacturing Difficult 13 16. Market Share Growth BFSI Easy 43
4.
Manufacturer
Increasing Women’s Public Policy Moderate 45
17.
5. Metropolitan City Airport Real Estate Difficult 15 Workforce Participation
B. Market Entry 18. Oil Marketing PSU Oil & Gas Difficult 47
6. Indian 2W Foreign Market Automobile Moderate 18 19. Commercial Vehicle Loan BFSI Difficult 50
7. Copper Plant in SA Mining Difficult 20 Carbon Credit Fund Sustainability Difficult 52
20.
Strategy
C. Pricing

8. Diabetes Medication Pharmaceuticals Moderate 23

D. Growth

9. Pharma Growth Pharmaceuticals Moderate 26

Market Leadership for Airlines Difficult 28
10.
Airline
11. OTT Player OTT Difficult 30
E. Due Diligence
Bakery Chain Due Private Equity Moderate 33
12.
Diligence
PE Firm Investment Private Equity Difficult 35
13. Proposal for Sauce
Manufacturer

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Profitability
cases
 Profitability | Food Processing | Easy

Sugar Mill – Interview transcript

Your client is a sugar mill owner. They are facing decline in profitability. Find out why. Sure. They can reduce electricity costs by moving to alternate power sources or increasing the
I would like to ask a few preliminary questions to know more about the company and the efficiency of machines. They can go for replacement or upgrade/servicing of the machines. They
business. What exactly does the company do and what geography does it operate in? can also plan to take advantage of the government’s solar power scheme and install solar panels
in the mill. Regarding the use of bagasse, they should first compare the savings in power and
It buys sugarcane from the suppliers and then processes it to manufacture sugar, jaggery etc.. The revenue generated to the paper or packaging industry before making provisions for using it for
company is based in Uttar Pradesh. power generation.
Do they also provide molasses as raw material to spirit companies, or do they have any other Thank you for your analysis. You did a good job.
source of revenue?
That’s a great question but let’s ignore those for this case.
Alright. I’d also like to ask if it is an industry wide phenomenon or limited to our company.
The decline in profits is unique to our client, while others have increased their profitability.
I think I have all the basic information I need. I can get started with analysis.
Sure, go ahead.
Low profitability can be due to either lower revenue or higher costs, or a combination of both.
Since the competitors are not facing similar issues, can I assume that prices have remained the
same? Also, do we know if the volume has gone down or product mix has changed?
Yes, you are right. There hasn’t been any change in volume or product mix.
Understood. That means costs are on the higher side. I can do a value chain analysis to
determine which drivers are driving the costs up.
Sure, go ahead.
The components that I would like to analyze are as follows: Raw Material Procurement,
Processing, Storage & Transportation, Distribution and finally After-Sales/Marketing. Should I look
into something more as well?
It seems fine.
Next, I would like to understand which component contributes to the maximum deviation in
costs compared to our competitors.
You may proceed with processing costs. There are no other cost heads where the client is facing
a problem.
Okay, The possible sub-heads to analyze processing costs would be rent, power expense,
machinery, technology, labour hours and wages, packaging, and efficiency (defects). Do we know
which costs are higher with respect to our competitors?
We know that the client is using more electricity for its power requirements. Can you find out
why that might be the case?
Electricity expense can be divided into two parts: Average price per unit times the number of
units consumed. Do we know if either has changed for the client?
There has not been changes any in electricity rates.
Since the volume has not increased, the efficiency must have gone down. We are using more
electricity to produce the same quantity.
Yes, you are right. The machines are old and thus become inefficient. We also observed that
other players use bagasse, a by-product of production, to satisfy their power needs. Please
provide some suggestions to the client.

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 Profitability | Food Processing | Easy

Sugar Mill

Your client is a sugar mill owner. They are facing decline in profitability. Find out why.

Interviewee Notes Case Facts Approach/ Framework

• Qualitative case, no • Client is a sugar mill

numbers provided owner with products like
Costs
• A single cost head case sugar, jaggery etc.
where one issue needs • It is facing higher costs
to be identified compared to its
• The cost problem is competitors
identified to be in • The processing cost Storage &
electricity header is creating a major Raw Material Processing Distribution Marketing
Transportation
• The machines have got difference
old and thus efficiency • They are not using
has reduced bagasse which its
Labour hours
competitors are using Rent Machinery Technology Electricity Packaging Defects
and Wages

Units
Avg Price/unit
consumed

Recommendations
• Candidate should give a combination of short term and long-term recommendations.
• In the short term, the client can look for minor upgrades or servicing of the equipment and use bagasse as suited.
• In the longer run, the client should aim to replace the equipment and use solar power/ alternate sources.

Observations / Suggestions
• This is a cost reduction case where the interviewee should quickly establish the major cost buckets after discussing with the interviewer. The candidate can either probe each bucket along
the value chain, or ask the interview which buckets to look into.
• Each cost component should be broken down into multiple cost levers to ensure that nothing is being missed out.
• When analyzing a specific cost bucket, look into its components in decreasing order of their magnitude.

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 Profitability | Food & Beverages | Moderate

Dessert Manufacturer – Interview Transcript

Your client is a manufacturer of Western desserts. It is facing a decline in profits since Yes, purchase frequency have declined in the last 6-9 months. Can you think of some
the past 6-9 months and wants your help in understanding why. factors leading to this?
I would like to know more about the client. Where does it operate? Does it have I would like to classify potential factors into internal and external. Internal factors
online or offline presence? And how is it positioned in the market? could be Obsolescence, Quality and Affordability of client’s products. External factors
The client operates pan-India with both online and offline presence. They are among include substitutes and complements.
the top five brands in the country in Western desserts. The operations are limited to You’re spot on. There has been a change in Quality of Products being offered as the
Metro and Tier 1 cities, manufacturing through central kitchens, and selling through manufacturer has altered the recipe to reduce cocoa usage, which has affected the
their own stores and online channels. taste of the products, and in turn caused reduced customer interest.
So, the client has a strong presence but operates only in major urban areas and Understood. I believe there would be cost implications to this as well, as more effort
controls its value chain from manufacturing to retailing. Is the profit decline observed needs to be invested in development of new products
by just our client or the industry as a whole?
Interesting, can you now think of some ways to address the client’s challenges, both of
The competitors are also facing a similar profit decline. managing cocoa price volatility and addressing customer dissatisfaction due to recipe
Alright, I would like to start by considering profits as revenue minus costs. Have either In order to manage cocoa price volatility, I would first recommend diversifying
of the two changed in the same duration? Supplier Base and explore sourcing cocoa from regions unaffected by the South
Well, revenues have decreased and costs have increased. Costs are the primary American supply. I would also recommend exploring long-term contracts with
driver. suppliers to lock in prices and mitigate future volatility. Alternative Ingredients can
Alright, I would like to first evaluate the costs in terms of value chain for our client. also be tried, which would accelerate the development of recipes using cocoa
Apart from overheads, value chain would include costs associated with desert substitutes while maintaining flavour and quality.
development, procurement, production, storage, transportation, and distribution Interesting suggestions. What do you think about addressing the customer
through stores and online channels. Marketing, SG&A and Customer Experience costs dissatisfaction due to recipe change?
are other potential heads. Do we know if any of these costs have increased? Conducting surveys or focus groups to understand customer preferences and gauge
The increase is most notable in procurement costs. reaction to new recipes would be recommended. Creating new cocoa-rich products
Got it! Procurement costs can be associated with either the cost of raw materials as a premium offering to cater to loyal customers willing to pay higher prices is
itself, or with inbound logistics. Have either of the two increased? another way to deal with the dilemma. Marketing campaigns could also be run to
emphasize the brand’s commitment to quality and innovation to rebuild trust.
The rise is primarily due to raw materials. Specifically, the cost of cocoa has seen a Can you think of some risks associated with your suggestions?
significant increase.
With respect to recipe development, new recipes may fail to meet customer
Interesting. The increase in cocoa costs can be due to an increase in unit prices,
expectations, leading to further dissatisfaction. Also, long development cycles could
increased volume usage, or both.
delay implementation, prolonging revenue challenges. On the sourcing risks, sourcing
You are right, there is a 3x increase in cocoa prices. This is attributed to a global cocoa from diverse regions could lead to variability in product quality, transitioning
cocoa supply crunch caused by a poor harvest in South America. Can we now take a suppliers might strain existing partnerships or incur penalties.
look at the declining revenue front? Alright, we can close the case. Thank you!
Sure. Revenues equal product price times volume-sales controlled for the product
mix. Do we know if there has been any major change to either of these?
The revenue decline is not specific to a single product. The client has increased prices
by 5%, but demand is fairly price inelastic. Volume has declined.
Got it. The volume decline can be caused by either decline in number of customers,
average order size per customer and number of purchases by a customer over a
period. Has there been any decline in these factors?

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 Profitability | Food & Beverages | Moderate

Dessert Manufacturer

Your client is a manufacturer of Western desserts. It is facing a decline in profits since the past 6-9 months and wants your help in understanding why.

Interviewee Notes Case Facts Approach/ Framework

Profits
• Revenues declined, • Decline in Profits
costs increased • Last 6-9 months
• Costs are the major • Online & Offline
driver Presence
• Procurement costs • Top 5 Brand in Revenue Cost
increased → Raw the country in its
Material costs product category
increased → Cocoa R&D Unit Price
• Metro & Tier-1
Prices increased Cities only Volume
Price Product Mix
• Volume sales • Central Kitchens Sales
Procurement
declined → Internal • Own Stores &
Factors → Quality Usage
Online Channels
Volume
→ Less cocoa in • Industry Wide Logistics
products Issue

Production
Number of Orders per Avg. Order
Customers Customer Size
Recommendations (Repeat)
Storage

• Diversifying supplier base and explore sourcing

cocoa from other regions Distribution
• Exploring long-term contracts with suppliers to External Internal
lock in prices and mitigate future volatility.
• Alternative ingredients can also be tried SG&A
• Conducting surveys to understand customer
preferences
• Creating new cocoa-rich (premium) products Obsolescence Quality Affordability
• Marketing campaigns to emphasize the brand

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 Profitability | Services | Moderate

Cab Aggregator Profit Slowdown – Interview Transcript

Your client is a cab aggregator. They are one of the biggest players in the Indian market, but their The journey can be broadly broken down into the experience before the cab ride, during the cab
growth of profits has stagnated. Find out the reasons and make recommendations ride and after the cab ride. Is there a particular one you would like me to focus on?
Understood, I would like to start off by asking some preliminary questions to understand the
Please focus on the experience before and during a cab ride for a particular trip. Assume the
situation better. What is the time period over which this stagnation has been observed?
customer already has the app on their phone.
Growth has been slow for some time, but the particular stagnation has been observed over the
past year. The steps that the customer would follow here are:
• Opening the app and finding the location of their destination
Got it. And to understand the market situation a bit better, what is the client’s share of the total • Selecting the ride type, looking at wait time and price
market and what is the competitive landscape? • Waiting for the cab
The market has many players but is dominated by 2 major players, our client is the smaller of • Upon the cab coming, verifying details and getting in
these two firms • The cab ride experience itself, ensuring factors like safety, hygiene, quality of driving,
Noted. Also what are the different revenue streams and segments for the business? navigation, attitude and conversation
The client earns a share of the revenue from each ride that is taken through the service. The • Reaching the correct destination and drop off point
segments would be the different types of vehicles offered on the app. • Completing the ride by making the payment (if not through the app)
Understood, I will proceed with my analysis. Since profits are a function of revenues and costs, I Are there any components here that you would like me to focus on?
would like to understand both and break them down further. I would like to ask first if the costs
have increased or have revenues decreased? Yes, you mentioned navigation as part of the cab ride experience. Go deeper into what issues
Your approach sounds good. The costs have increased and so have the revenues, but not to a could be happening here and the impacts that would be caused.
strong extent. You may proceed with analyzing the revenues. Navigation is an essential part of a cab ride experience for any cab aggregator. It is primarily done
Noted, since the revenue drivers in the industry are the rides that that cabs get through the through mobile apps and the GPS software that the aggregator provides for the location and
service. I will break revenue down into the number of rides multiplied by the amount of revenue routes. Since the problem is localized to rural regions, it is possible that the GPS system is not
from a ride. Which or both of these have not grown sufficiently? quite robust enough and is facing difficulties in correctly locating certain destinations or pick up
The number of rides has not seen sufficient growth. points and in mapping out the correct routes. Such an inefficiency would cause delays, mishaps
The number of rides would again be a function of rides per customer and number of customers. and frustrations in the ride experience. Is there something unique about the company’s software?
Which or both of these are not seeing growth?
The number of customer has grown normally but the rides per customer has fallen. That is exactly correct, the client uses its self-owned and company-built GPS routing system
Is the lower-than-expected number of trips being seen across the different ride types? which was focused on urban areas at the time of inception and has only now just been adapted to
Yes, it has been seen in the most common rides - standard, auto rickshaws, and 2 wheelers map out rural areas as well. Other companies, like the competitor typically employ standard
services such as Google Maps for their routing and mapping. The adoption rate for cab
Has the impact been seen across geographies, or is it limited to particular regions of India?
aggregators is already low in rural areas and experiences with issues in navigation and location
The impact has been seen specifically in rural and semi-rural parts of India, where the client has have left many customers frustrated and lead to a very low repeat customer rate in these newly
been expanding operations to recently expanded to areas. How should the client proceed from here? Give recommendations.
Got it, would it be correct to also understand that this expansion is the reason for the rise in
costs over the past year that was mentioned earlier? The suggestions would be broadly focused on two things
You are correct, the client invested into operations and setup for extending its market to rural 1. Fixing GPS Software – As an immediate step it may be wise for the client to adopt a service
and semi-rural markets as its primary presence is currently in Tier-1 and Tier-2 cities. This move like Google Maps API to aid in their functioning. For the long term, they can continue to
was to counter the market leader firm, who has also ventured into the regions around the same build out their own software.
time, from capturing more share. 2. Bringing Back Customers – The client should employ an ad campaign that focuses on the
region and shows the reliability and improved nature of maps. They can also offer heavily
Understood, and have they been facing similar issues with their revenues? discounted or even free rides to first time customers, as well as customers who have had
No, they have not faced the same issues and are seeing good growth in the regions. bad experiences as known through complaints or ratings.
Got it, so the problem is unique to our client. I would like to break down the problem from the These will bring the client up to the mark of its competition and allow them to achieve growth
user’s perspective by drawing out a customer journey. I can do it both from the side of the riders through establishing a strong presence in the rural markets.
and drivers. Which one should I proceed with first?
That sounds good, please proceed with the customer journey of the riders. Those sound good. We can end here, thank you.

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 Profitability | Services | Moderate

Cab Aggregator Profit Slowdown

Your client is a cab aggregator. They are one of the biggest players in the Indian market, but their growth of profits has stagnated. Find out the
reasons and make recommendations.

Interviewee Notes Approach/ Framework

• Experiential issues can
Profits
cause negative experiences
resulting in poor retention
and repeat rate Revenues Costs
• Deviation from market
standards like your own
GPS software must be
Money per ride No. of rides
carefully built and tested

No. of Rides per

customers customer

Case Facts
Customer Journey
• Problem is localized to
rural and semi-rural
regions of India that were Pre cab ride During cab ride Post cab ride
recently expanded to
• The major competitor has
undertaken a similar
expansion without
encountering such issues
Safety Hygiene Driving Navigation Attitude

Recommendations
• Contract the use of standard GPS services like Google Maps for now, continue developing own system over time
• Establish a media campaign focused on improved service in rural areas. Give high discounts and free rides to customers that had bad experiences.
Observations / Suggestions
• Breaking down the customer journey when it’s a product one is familiar with can seem easy, but remember to cover all bases
• Recommendations must focus on both immediate recovery and overall company objectives

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 Profitability | Manufacturing | Difficult

Home Appliance Manufacturer – Interview Transcript

Your client is a home appliance manufacturer owned by a PE Player, seeking to improve Selling to businesses could be a strong revenue stream. We could target offices,
profitability in their refrigerator segment. Give them recommendations for the same. restaurants, or hotels that need bulk refrigerators. A focused B2B sales team could offer
customized pricing, service agreements, and bulk order incentives. Businesses typically
Thank you for the problem statement. Can you share an overview of the market and our value durability, reliability, and after-sales service more than individual consumers, so we
position within it? could position our products on those lines.

70% of the market share is controlled by a few key players, while the remaining 30% is That seems promising. Which of these approaches do you think is more feasible for us?
split among 10-15 smaller companies. We are currently one of the top 4 players in the
market, with our product and pricing at par with competitors.
B2B seems to offer the most immediate potential for profitability, as businesses often
What are the client's primary objectives, and is there a timeline in mind?
purchase in bulk and have more consistent buying patterns. Additionally, businesses may
The client wants to increase revenue within the next 2 years, focusing on growing the be less price-sensitive. B2B customers like hotels or restaurants are likely to prioritize
profit margin percentage in their refrigerator segment. larger refrigerators for their operations. We could further refine our offering by
focusing on models with the highest margins.
Where does the firm geographically operate?
That sounds like a solid approach.
The firm operates in most parts of the country.

Thanks for that information. Just to confirm, is this a price-sensitive market? Additionally,
I’d like to understand: are there any insights on product profitability? For example, do
certain product lines or sizes offer higher margins?

Yes, customers are highly price-sensitive.

Okay, we can look at increasing the revenue by looking at an increase in either Price of
our product, or we can approach it from the quantity side.

Yes. I also want you to note that the price cannot be changed.

Thanks for clarifying. Since it’s a price sensitive market, I will examine from the quantity
side. I’d like to explore opportunities to target new segments. Can we discuss expanding
our focus on specific consumer groups or markets? For example, could we target large
families, enter the B2B market, or look at specialized segments like frozen storage or cold
chains?

That’s an interesting suggestion. Let’s focus on the first two ideas: targeting large families
and selling to businesses. How do you propose we proceed with these segments?

For large families, we can highlight the value of larger refrigerators that better suit their
storage needs. This segment might respond well to targeted advertising focusing on
convenience and cost savings, such as reduced shopping frequency due to higher storage
capacity. Advertising could be conducted through digital channels, neighborhood events,
or partnerships with grocery chains where families frequently shop.

That sounds plausible. What about businesses?

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 Profitability | Manufacturing | Difficult

Home Appliance Manufacturer

Your client, a manufacturer of home appliances, seeks to boost sales in their refrigerator product line and has approached you for strategic
recommendations.

Interviewee Notes Case Facts Approach/ Framework

• A basic understanding of • Market Dynamics: 70% Growth in Revenue

refrigerator product lines of the market is
was expected. controlled by a few
• Discussions revolved players; the remaining Inorganic Organic
Growth Growth
around targeting new 30% is fragmented
customer segments and across 10-15
entering the B2B market. companies. Volume
M&A JV Price Increase
Growth
• Unconventional • Product Insights: At par
approaches were with competitors in
encouraged to both pricing and quality. Volume per
New Customers
differentiate from • Highly price-sensitive Customer
competitors. market.
Large Specialized
B2B
families Segments

Value Customer
proposition acquisition

Targeted ads Sales Team

Positioning

Recommendations
• Target B2B Market
• Marketing to Large Families
• Leverage Existing Margins
Key Learnings
• A structured approach focusing on new customer segments is critical for success.
• Differentiated marketing and pricing strategies can unlock higher revenues.
• Targeting B2B customers offers the most immediate profitability potential.
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 Profitability | Real Estate | Difficult

Metropolitan City Airport – Interview Transcript

Your client, a metropolitan city airport, seeks to increase revenue generated from eateries No, data from other airports wouldn’t be helpful as passenger profiles and preferences vary
within the airport premises. significantly across locations. What would be the best methods to collect actionable data
specific to this airport?
Thank you for the problem statement. Could you share some details about the current setup?
Specifically, how do the eateries generate revenue for the airport? Here are a few approaches we could explore:

The airport earns 11% commission on all sales made by the eateries. This commission rate is i. Mobile App Integration: Use the airport’s mobile app to encourage passengers to log
fixed and cannot be increased. Similarly, the eateries cannot increase their prices. their preferences, browse eatery menus, and make reservations.
ii. Wi-Fi Analytics: Track passenger footfall and movement patterns using data from
Understood. Are there any constraints on introducing new eateries or expanding the range of airport Wi-Fi networks.
products offered by the existing ones? Is there any timeline I should keep in mind? iii. Point-of-Sale Data: Collaborate with eateries to analyze sales transaction data for
insights into spending patterns, popular menu items, and peak demand times.
We have limited space, so adding new product categories or eateries has been explored and
iv. Surveys and Feedback: Deploy kiosks or integrate surveys into the app to gather
ruled out for now. You can assume 2 years.
qualitative feedback directly from passengers.
Got it. To explore growth opportunities, I’d like to begin by segmenting the types of customers
Thank you, we can wrap this up here.
who frequent the eateries. Based on passenger behavior, can we group them into categories like
corporate travelers, passengers who arrive early and browse, and the average hungry traveler?

That segmentation works. You can proceed with it.

Thank you. With this segmentation in mind, I’d like to evaluate two approaches: (1) Increasing
Footfall at Eateries, and (2) Modifying the restaurant mix to better cater to their preferences.
Are these areas worth exploring?

We’ve already evaluated those options, and neither is feasible at this time. Let’s look at
something else.

Understood. If those options are not feasible, I’d like to examine the customer journey for
passengers at the airport to identify potential gaps or opportunities. Would that be helpful?

Yes, go ahead. Describe the customer journey.

The customer journey can be broken into three key stages:

i. Before arriving at the airport: Passengers may decide in advance whether they want to eat,
influenced by factors like flight timing, personal preferences, and access to lounges.
ii. Upon arrival at the airport: Passengers interact with the environment, browse eateries, and
make decisions based on proximity, visibility, wait times, and perceived value.
iii. At the eatery: Their experience with the service, food quality, and ambience affects
satisfaction and future spending behavior.

We could also look at packaging options.

Around 0.02% of the passengers pre-book food at the airport. Additionally, we know that South
Indian is the most popular cuisine. Is there anything else we can look at?

I believe the key missing piece is granular passenger data. Without detailed insights into
passenger preferences, spending habits, and movement patterns, it’s difficult to tailor strategies
effectively. Could we seek data from other airports, and would that be helpful for
benchmarking?

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 Profitability | Real Estate | Difficult

Metropolitan City Airport

Your client, a metropolitan city airport, seeks to drive growth in revenue generated from eateries within the airport premises

Interviewee Notes Case Facts Approach/ Framework

• This case required some • Revenue Model:
Revenue from airport eateries
out-of-the-box thinking. Airport earns 11%
• Segmentation of commission on sales
customers was a good from eateries.
# of eateries Revenue per eatery Eatery mix
starting point, to explore • Constraints: Fixed
the drivers of airport commission rate, no
eatery revenue. new eateries, no price # of orders Avg order value Commission %
• The customer journey hikes.
yielded key insights for the
Orders per
case. # of customers
customer

Before airport At airport At eatery

Corporate Travelers

Flight timings Proximity Service

Early Arrival Browsers
Lounge access Visibility Food quality
Avg Hungry Traveler
Preferences Wait time Ambience

Perceived Value Packaging

Recommendations App Integration Wifi analytics PoS & survey data

Recommendations
• Wi-Fi Analytics: Use data to track passenger footfall and movement patterns across terminals.
• Surveys and Feedback: Deploy kiosks or integrate quick surveys into the airport app to gather qualitative insights.
• Point-of-Sale Data: Collaborate with eateries to analyze spending behavior and peak hours.
Key Learnings
• Detailed insights into passenger preferences, footfall patterns, and spending behavior are essential for targeted interventions.
• Understanding customer segments like corporate travelers and early arrivals helps tailor promotions effectively

(C) Consult Club, IIM Ahmedabad 2024-2025 Page 16

Market Entry
cases
 Market Entry | Automobile | Moderate

Indian 2-Wheeler Foreign Market – Interview transcript

An Indian 2 wheeler company wants to expand to foreign markets. Which geographies would you From my understanding of these markets. I believe considering their population, Brazil and Nigeria
suggest and why? have a good market size. I am unsure about Vietnam. In terms of income level, I believe we can
keep Brazil in the high-income per capita category followed by Vietnam and then Nigeria. Moreover,
I would like to ask some preliminary questions to understand the situation better. I would like to I believe there would high competition from Japanese firms in Vietnam. In comparison, I don’t think
understand the product portfolio, target segment and market position of the client first. there would a lot of competition in Nigeria and moderately in Brazil. Can you help me with details
for the market size in Vietnam, the 2-wheeler penetration if available across the 3 countries and any
The company specializes in affordable commuter bikes and mid-range scooters. It majorly targets barriers to entry for each of them.
budget-conscious and mid-range consumers. Domestically, it is one of the top players, known for
cost efficiency and reliability. Sure. Firstly, your current assumptions are pretty close. While Brazil and Nigeria have a good
market size, its comparatively smaller in Vietnam. In terms of 2-wheeler penetration, you consider
Understood. Additionally, I would also like to understand the motivation of the client to expand to Vietnam as high, Brazil as moderate and low for Nigeria. As you correctly pointed, there is high
foreign markets and if have a preference for any particular market? competition in Vietnam whereas in Brazil, the market is very fragmented with no large players and
in Nigeria, its price driven by Chinese competitors. Considering these details, can you estimate the
The indian market is currently saturated in terms of growth with the client being one of the top
barriers to entry in each countries and further potential for growth for their markets?
players. Hence, the primary goal of this expansion is to drive revenue growth while entering high-
potential markets. Geographically, client has no preference for a foreign country for market entry. Okay. I think Vietnam would have a high barrier to entry considering technologically astute Japanese
firm which will pose high competition with a smaller market size. Even for Nigeria, considering it’s a
I can probably firstly list down the factors on which the client can assess which foreign market to
price sensitive market with low penetration, it could also pose high barriers to entry.
enter in order to implement a structured process to the decision making.
Comparatively, Brazil with its highly fragmented market, with decent 2-wheeler penetration
That seems fair. Pls proceed. numbers and large market size provides high potential for growth allowing for entry of a new player
to consolidate the market. Following Brazil, I think Nigeria, despite its high entry barriers, could
For assessing the potential for entering a new foreign market, I would like to look at – i. Market make for a decent market considering a large market size as well as the client’s expertise in cost
size (TAM) and its future growth potential ii. Consumer demographics and local industry trends iii. efficiency. The client would however have to deploy resources on penetrating the market which
Competitive landscape in terms of market saturation and barriers to entry iv. Economic feasibility could make exercise more expensive, making slightly less desirable. So, I would recommend a
including macroeconomic indicators and exchange rates v. Regulatory environment in terms of phased dual market entry with the primary target being Brazil followed by Nigeria.
ease of doing business and political stability vi. Operational feasibility in terms of supply chain
networks and workforce availability vii. Risks involved and ease of exit strategy if needed. Do these Great inferences from the details provided. The client had also identified Brazil and Nigeria. Brazil
factors look good? for near-term profitability and Nigeria for long-term growth. Any risks that you presume here that
the client should consider?
Yupp, this is pretty exhaustive. How would you go ahead with your analysis?
In Brazil, the primary risks include intense competition from fragmented local players, which may
Considering the above factors, we can firstly look at types of countries – developed, developing dilute pricing power and require significant marketing investments to establish brand recognition.
and underdeveloped to narrow down our search. Developed nations often provide stability, robust Additionally, while infrastructure is relatively developed, logistical challenges in semi-urban and rural
infrastructure, and higher purchasing power, making them attractive for premium offerings, though areas may impact distribution efficiency. Nigeria presents risks related to affordability, as the market
they come with intense competition and higher operational costs. Emerging markets, such as India is highly price-sensitive and dominated by low-cost Chinese imports, demanding a competitive
offer high growth potential due to rapid urbanization, a growing middle class, and relatively pricing strategy with thin margins. Infrastructure gaps, such as unreliable transportation and supply
untapped sectors, but they may present challenges like regulatory hurdles, infrastructure gaps, and chains, add operational complexities.
price-sensitive consumers. I believe that we need not consider underdeveloped countries Can you finally summaries the case for me?
considering larger hurdles to setting up a business.
An Indian 2-wheeler company, the client, seeks foreign expansion to drive growth. Among Vietnam,
That’s good. Those are valid points you have raised there. Actually, this is a real-world case that Brazil, and Nigeria, Brazil is recommended for its large, fragmented market, moderate competition,
we solved for a client. So, considering that assume you have 3 options - Vietnam, Brazil, and and high growth potential. Nigeria offers long-term potential despite price sensitivity and
Nigeria where the client would like to enter. Ignore regulatory barriers for now. competition, while Vietnam poses high entry barriers due to saturation and Japanese dominance. A
Understood. Considering we have narrowed down our search, we can initially look at the following phased entry strategy prioritizing Brazil, followed by Nigeria, is advised.
main factors for entering the 2-wheeler market – market size, 2-wheeler penetration, income
levels, growth potential and competition.
Makes sense. What do you think about these markets in these respects?

(C) Consult Club, IIM Ahmedabad 2024-2025 Page 18

 Market Entry | Automobile | Moderate

Indian 2-Wheeler Foreign Market

An Indian 2 wheeler company wants to expand to foreign markets. Which geographies would you suggest and why?

Interviewee Notes Case Facts Approach/ Framework

• Important to understand the • The company specializes in
product portfolio of the affordable commuter bikes Regulatory
and mid-range scooters.
Market Size
client as well as specific Environment
• It majorly targets budget-
goals they may have to conscious and mid-range Market Competitive
enter a foreign market. consumers. Entry Landscape Industry Trends Consumer Behaviour
• Ask for reference data • Domestically, it is one of
wherein needed. the top players, known for Economic Feasibility Risks Growth Potential
cost efficiency and
• Important to realize that it
reliability.
is easier to break down each • The indian market is Metric Vietnam Brazil Nigeria
step into smaller sub currently saturated in
process to analyse them, terms of growth with the Market Size Medium Large Large
especially when a clear way client being one of the top
players. 2-Wheeler
through or information is High Moderate Low
• The primary goal of this Penetration
not available. expansion is to drive
• Even though this is an actual revenue growth while Income Per Capita Medium High Low
case, there is no compulsion entering high-potential
Competition Intense (Japan) Fragmented Price-driven (China)
to arrive at the exact same markets.
recommendation. Entry Barriers High Medium High
Growth Potential Low (Saturation) Moderate High

Observations & Suggestions

• It is important to ask preliminary questions to understand the company and the industry. A key insights about the core competency of the firm as well as the motivation for expansion
was derived from the preliminary questions.
• It is important to ask questions for details that the candidate is not aware of (like the details for competition or barriers to entry in an unknown market or geography) instead of random
assumptions. However, calculated and inferential assumptions based on a clear line of thought or logic can be used for extrapolation.
• It is important to summarize the case crisply by including only the recommendation and the major details without going over every case point discussed during the interview.

(C) Consult Club, IIM Ahmedabad 2024-2025 Page 19

 Market Entry | Mining | Difficult

Copper Plant in South Africa – Interview Transcript

A company extracting minerals like Aluminium, Iron, Zinc and Copper, with plants in India is Thank you.
looking to expand into other countries. They are primarily supplying to India for most minerals,
50% of some of the minerals go to Europe. They are now considering setting up a copper plant in First we calculate
South Africa, which has no other copper plants. Help them with this decision. Annual Revenue = $7,250 /ton × 100,000 tons/year = $725 million /year
Understood, I would like to ask a few clarifying questions before going forward with my analysis. Annual costs = Fixed + Variable = $50 million/y + $5000/ton x 100,000 tons/y = $550 M
What is the client’s primary objective in setting up the South African plant? Annual Profit = $725 million – $550 million = $175 M
The lack of copper plants in the area brings a good opportunity to enter the South African
Using these we calculate the Net Present Value (NPV) with a discount rate of 10% (due to a low
market and to establish a presence in the broader African market.
to moderate risk factor as evaluated), gives us $363 million which is positive.
Understood, I would like to start off by analyzing the market attractiveness of setting up the new The IRR comes out to be approximately 34% which is significantly above the 10% rate
plant. I will further delve into financial and operational feasibility afterwards. Does that approach
These values tell us that the plant is financially profitable
seem okay?
Yes, that sounds comprehensive, please proceed. That sounds fair. Moving on, what are the operational factors that you would consider?
To understand the market, since we know that South Africa does not have any other copper Some major factors to consider and make sure of would be:
plants. How much copper are they importing per year? • Location and proximity to resources
They are importing 150,000 tons of copper annually. • Utilities and their costs
Noted, now we have an idea of the demand. Based on our previous plant setups and current • Transport logistics
plans, what will be the approximate capacity of this new copper plant? • Availability of skilled labor and costs
• Political stability and regulations
The plant is proposed to have a capacity of 100,000 tons.
Given the size of the project, we would want to research these and perhaps negotiate with the
We can clearly see that the plant is cover 67% of the current demand. Is there any additional government
information about the South African economy, perhaps regarding the mining and manufacturing
industries, or their trends? What particularly about these factors would you negotiate or understand?
The mining and manufacturing sectors are the major industries driving the economy historically. These factors are important for the following reasons that I would want to negotiate -
Government incentives have been leading to a rise in the automotive sector and more recently, • Location - whether the area presents sufficient space to expand, dispose waste and is not too
the country has seen a push for the space industry as well. far from resources and hubs
• Utilities – the plant’s operational costs are quite high so we can negotiate subsidies for water
Understood, these trends point towards a booming manufacturing sector and a stable base of and electricity for the plant given the importance of the plant
operations for mineral extraction. There should be a consistent and growing demand for copper, • Transport – proximity to ports and availability of transport companies will be important in
being involved in these production heavy sectors. establishing a strong supply chain and preventing further costs
Good insight, you can move onto the financial analysis. • Labor – training costs can run high so labor with relevant experience will help
For the financial portion, I would like to evaluate the decision of whether to invest as a capital • Political – that regulations do not restrict foreign investment and are stable for the time being
investment and calculate to see if it is NPV positive.
Your approach sounds good, can you also estimate the IRR to see how it relates to the These all sound reasonable. Is there something else as well that you would want to negotiate with
perceived risk and discount rate? the government? Perhaps on the demand side.
Yes of course, I will estimate the IRR as well. For the discount rate since we have good growth Yes. Since the current economy is dependent on the import of processed copper, there may be
indicators, but the plant setup is still a large capital expenditure, does a moderate discount rate of an inertia to shift within the market and importing players. The client should lobby the
10% sound right for my calculations? government to negotiate an agreement where the import of copper will only be permitted post
Yes, that sounds appropriate, you can use 10%. What other numbers will you need to calculate the amount that the new plant will be producing, i.e., 100,000 metric tons. This will ensure that
the NPV of the investment decision? there is not too much resistance and direct competition with foreign players that are involved in
Could I please get information about the initial investment, annual operating expenditure and South African imports. The client can sufficiently leverage the benefits of a large foreign
operating lifespan of the plant? investment which will be greatly involved in job creation, economy and industrial boosts.
The setting up of the plant, will have an initial investment of $300 million with an annual fixed That is a good analysis. For the final go-ahead decision what would you look at?
operating costs of $50 million and variable costs of of $5000 per ton for its lifespan of 5 years. The decision would hinge on whether the South African government accepts the agreement
Are there any other numbers that you would need for your evaluation? described above. It would be necessary as the client should ensure that there will be a sufficient
I will be calculating the revenue; I have the production capacity numbers so I would also want to and sustained demand for the capacity of the plant’s production. If the government accepts, the
know the market rate of copper per metric ton. project should go ahead.
The current rate of copper is $7250 per metric ton. Great. Let us end here, thank you.

(C) Consult Club, IIM Ahmedabad 2024-2025 Page 20

 Market Entry | Mining | Difficult

Copper Plant in South Africa

A company extracting minerals like Aluminium, Iron, Zinc and Copper, with plants in India is looking into expansion into other countries. They are primarily
supplying to India for most minerals, 50% of some of the minerals to Europe. They are now considering setting up a copper plant in South Africa, who has no
other copper plants. Help them with this decision.

Interviewee Notes Approach/ Framework

• Value chain is similar to Market Entry
standard manufacturing
• Major projects can allow Market
for negotiation with Demand 150,000
government to help Evaluate potential roadblocks and
synergies and cost levels opportunities for growth
Supply 100,000
• Detailed numbers are
being given so financial
analysis will be intensive Financial
NPV IRR
CapEx $ 300M Annual Revenue = Rate X No. of tons With guesswork and
= 7250 x 100,000 = $725M Using a discount rate of 10%
Present value of cash flows = estimation, NPV is
Fixed costs $ 50M
Case Facts 175 175 175 175 175 calculated using 30%
Annual Costs = Fixed + Variable 1 + 2 + 3 + 4 + = $663.3M
• No current copper plants Variable cost $5000 /ton 1.1 1.1 1.1 1.1 1.1 5 where it is still fairly
= 50M + (5000 x 100,000) = $550M +ve, then 35% where it
in South Africa imply Copper rate $7250 /ton NPV = PV of cash flows – initial investment = falls slightly –ve, giving
imports of copper Annual Profits = Revenue – Costs 663.3 – 300 = $363.3M (Positive) an estimate of 34%
Lifespan 10 years =725M - 550M = $175M
• Operating costs run high
with energy and materials

Operational

R&D Raw Material Production Transportation Distribution Marketing After sales

Recommendations
• Negotiate terms with the government to limit imports of copper to be only beyond the levels that the plant can produce, go ahead if agreed
• Leverage economic outlook to get subsidies for manufacturing resources like water and electricity, and ease on regulations
Observations / Suggestions
• Considering current market response and pushback is a significant concern for market entry, and must be evaluated properly when it comes to roadblocks
• When working with geographies that one may be unfamiliar with, you can extrapolate certain information from overall trends and ask questions to confirm

(C) Consult Club, IIM Ahmedabad 2024-2025 Page 21

Pricing case
 Pricing | Pharmaceuticals | Moderate

Diabetes Medication – Interview Transcript

You are launching a new medication for diabetes in the medicine market. How will I would like to start with 3 economic strata - 40% Low economic group, 40% Mid
you price the product? economic group, 20% High economic group. Since product improvements do no get
value in the same proportion, for a 30x effectiveness pill, I assume the prices can be a
I would like to know more about the market a little bit. Where is the current maximum of 15x for the highest willingness to pay customers.
medication targeted? Are there any competing drugs in the same market?
a) Low economic strata: Assuming ability to pay: Rs 2 per pill, size of eligible market
The target market is India. There are various drugs for diabetes in the market. Most of
(all strata): 100%; total profit: (2-1.5)*1x = 0.5x
them are similar to each other in nature and use.
b) Mid economic strata: Assume ability to pay: Rs 10 per pill, size of eligible market:
Can you tell me a bit more about diabetes medicines - how the medications are 60% (mid+high economic strata); total proft: (7.5-1.5)*0.6x = 3.6x
administered currently? How are they priced? And how frequently are they
consumed? I would like to know these with respect to our new medication as well as c) High economic strata: Assume willingness to pay: Rs 15 per pill, size of eligible
current competition. market: 20% (only high economic strata); total profit: (15-1.5)*0.2x = 2.7x
Say each competing pill in the market is currently sold at Rs.1. It has to be consumed
once per day and for a lifetime. Our drug is similar in this regard. Thus, pricing it at Rs 10 per pill and servicing mid and high economic group is most
Are there any differences in our medication with respect to the competition? profitable
Particularly in terms of efficacy?
I believe we can close the case. Thank you and best of luck!
Yes, our medication is 30 times more effective than the average pill in the market.
Interesting. What is our objective that I should keep in mind when pricing the
medication? Also, how much does it cost to manufacture our new pill?
Your objective is to maximise profits. It takes Rs. 1.5 to manufacture the pill
Since ours is a specialised and innovative drug, value based pricing makes the most
sense given we want to capture maximum profits. Competition’s pricing can provide a
baseline reference for us to ground our understanding of customers’ current
willingness to pay given the current markets. Since our drug is not a generic one, cost-
based pricing is not relevant. Does this approach make sense to you?
Yes, please go ahead

Next, I would like to segregate the diabetic population into financial strata and identify
size of each group. I will then identify willingness and ability to pay per pill for each
segment. Finally, I would calculate the price of product that would maximise profit in
the market.

In my analysis, I have assumed that given it is a pharmaceutical product, there is no

possibility of price discrimination between customers. Can I proceed with my analysis?
Yes, let’s deep dive into it.

(C) Consult Club, IIM Ahmedabad 2024-2025 Page 23

 Pricing | Pharmaceuticals | Moderate

Diabetes Medication

You are launching a new medication for diabetes in the medicine market. How will you price the product?

Interviewee Notes Case Facts Approach/ Framework

• Since the drug is • Indian Market
specialised and
innovative, value- • Diabetic Medication
based pricing would
Pricing of Medication
help capture the • Many Competitors
maximum profits
• Competitor’s Selling
• Competition’s pricing Price = Rs. 1
provides a baseline Rs. 1per medicine
Competition
benchmark • One pill consumption Cost Based Value Based (Baseline Benchmark)
Based
a day – consistent for
• Since the drug is not a our product
generic one, cost-
based pricing is not • Lifetime Consumption
relevant. – Not a cure
Low Moderate High
Willingness Willingness Willingness
• Since price • Our Cost = Rs. 1.5
to Pay to Pay to Pay
discrimination cannot
be achieved, we can • USP = 30x Efficacy
reasonably assume
that a price equal or Willingness to Pay = Rs. 2 Willingness to Pay = Rs. 7.5 Willingness to Pay = Rs. 15
lower than willingness Capture Market = 100% Capture Market = 60% Capture Market = 20%
to pay will yield sales Profit = (2-1.5)*1x = 0.5x Profit = (7.5-1.5)*0.6x = 3.6x Profit = (15-1.5)*0.2x = 2.7x

Recommendation

• We should use a value-based pricing approach for the new diabetic medicine while ensuring to charge above the costs and competition benchmark

• Rs. 7.5 per medicine is the recommended price based on a profit maximisation approach for the current market, even though it captures only 60% of the market

(C) Consult Club, IIM Ahmedabad 2024-2025 Page 24

Growth cases
 Growth | Pharmaceuticals | Moderate

Pharma Growth – Interview transcript

A pharma company (X) that is successful globally has entered the Indian market two years ago So there are two key challenges: first, the high price itself, and second, the current financing options
with a breast cancer drug. A competitor (Y), similar in size and global presence, entered the Indian requiring high down payments, which deter many patients from opting for the treatment.
market a year before X with a similar drug. Y has the dominant market share and is growing faster What would you recommend to overcome these challenges?
than X. How would you improve X's performance in India?
I’d like to confirm that the objective is to improve X’s performance in the Indian market and I’d focus on three strategies:
achieve faster growth in market share compared to competitor Y. Is there any other specific goal 1. Introduce Flexible Financing Options:
or constraint I should keep in mind? We could develop an EMI-based payment plan with minimal down payments. The key here would be
to make the plan simple and easy for doctors to explain to patients, ensuring they understand the
Yes, the primary objective is to improve X's performance and growth in the Indian market,
benefits and affordability of this option.
especially in terms of increasing market share and matching or surpassing Y’s growth rate. There
2. Partnership with Financial Institutions:
are no additional constraints, apart from the fact that the MRP cannot be reduced below a certain
Collaborating with banks or NBFCs to offer low-interest loans tailored for patients could make the
threshold due to company policy.
drugs more accessible. Such partnerships could also increase trust in the financing options provided.
Understood. Before diving deeper into the problem, I have a few of questions to better 3. Insurance Awareness Programs:
understand the context. 1. What is the current market share of X compared to Y? and 2. Are While expanding insurance coverage is a long-term solution, in the short term, we could promote
there any differences in product efficacy, pricing, or other factors between the two drugs? greater awareness of the financing options available. This would help bridge the gap and encourage
Y holds a significantly higher market share and is growing faster. Both drugs are similarly priced adoption of the drug among patients.
and highly effective. I see how these strategies could work. Focusing on flexible payment plans and partnerships seems
Okay. I also want to know who are the key target customers, and what are their primary like a practical approach to addressing affordability barriers. Good insight!
concerns? Can you suggest ways to increase accessibility?
The target customers include oncologists who recommend the drug and patients who use it. I have a couple of ideas to improve accessibility as well.
We could look into expanding the distribution channels so the drug is available in rural and semi-
Thank you. I’ll proceed to analyze the problem and identify key drivers for growth.
urban areas, where access might be limited right now. This way, we can ensure that more people,
Sure, go ahead. especially those in underserved regions, can get the treatment they need.
Growth can be achieved organically by focusing on increasing revenue per user, transactions per Another thought is to introduce on-ground support programs. We could hire field representatives
user, or the number of users through strategies like improved marketing, partnerships, loyalty who would work directly with oncologists and patients, helping them better understand the financing
programs, and better customer engagement. Inorganically, growth can be driven through options available. It could make a big difference in making the process smoother for everyone
acquisitions or joint ventures to quickly capture market share or expand into new segments or involved.
geographies. What would you like me to focus on? That’s interesting. Can you please quickly summarize all initiatives?
Let’s begin with organic growth. To summarize, the priority for X should be addressing financial barriers by introducing simple,
When we talk about increasing revenue per user, one way is to enhance the value per transaction. effective financing options, while simultaneously strengthening relationships with oncologists and
For instance, we could introduce bundled packages that include additional services like diagnostic improving marketing efforts. This two-pronged approach would help X regain competitive ground in
tests or post-treatment care, which would increase the perceived value of the drug. India.
As for increasing the number of users in existing markets, a key focus should be on building Sounds good. We can close the case now.
relationships with oncologists. They are instrumental in drug recommendations, so we could
organize outreach programs like seminars, conferences, or visits by key opinion leaders. This
would help strengthen trust and confidence in X’s drug.
Additionally, improving marketing efforts could make a big impact. For example, we can create
campaigns that highlight the drug’s efficacy and the patient support programs we offer. Using digital
platforms and communicating in local languages could help us reach a broader audience more
effectively.
That sounds promising. But given the high pricing of both X and Y's drugs, affordability must be a
significant barrier. How would you address the issue of financial accessibility for patients?
You're absolutely right. Affordability is a major challenge, especially since both drugs are priced
similarly and are quite expensive. Are any financing options available currently?
Yes, however, the down payment requirement is too high for patients.

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 Growth | Pharmaceuticals | Moderate

Pharma Growth

The client, a pharma company supplying breast cancer drug, wants to improve its market share as against a similar competitor.

Interviewee Notes Case Facts Approach/ Framework

• Confirm the objective to • Competitor Y holds a higher
improve market share and market share and is growing Growth
performance of X’s drug in faster, while both drugs are
India compared to Y. similarly priced and effective.
• Identify the constraint that • Target customers are
MRP cannot be reduced due Organic Inorganic
oncologists recommending the
to company policy.
drug and the patients.
• Ask clarifying questions on
• Company X cannot reduce the
market share, product
price due to company policy
efficacy, pricing, and drug Number of Revenue per
but seeks to improve Acquisition
differences. users user
affordability and adoption.
• Segment the problem into
organic growth • Focus is on improving X’s
competitiveness through Cross-selling Joint venture
• Explore strategies to
address financial barriers various initiatives Accessibility
Affordability

Recommendations
• Flexible Financing Options
• Partnerships with Financial Institution
• Insurance Awareness Programs
• On-Ground Support Programs Expand
On-ground
• Marketing Efforts distribution
programs
channels

Key Learnings
• Establish a clear understanding of the problem and any limitations
upfront.
• Break the problem into organic and inorganic growth opportunities
for targeted solutions.
• Address barriers like high costs through innovative financing
solutions. Introduce Flexible Partner with Insurance Awareness
Financing Options: Financial Institutions Programs

(C) Consult Club, IIM Ahmedabad 2024-2025 Page 27

 Growth | Airlines | Difficult

Market Leadership for Airline – Interview Transcript

Your client is a private equity (PE) fund that has recently invested in an airline company operating That’s interesting. How about exploring inorganic opportunities to boost revenues?
in Southeast Asia (SEA) on a limited scale. The airline holds approximately 5% market share, Inorganic growth could certainly play a role. The airline could consider forming strategic alliances
while the industry is dominated by five airlines that collectively command 75% of the market. The or joint ventures with other airlines to expand its reach without significant capital expenditure.
client's objective is to position the airline among the top two in the market in terms of Code-sharing agreements, for instance, would allow the airline to serve more destinations by
profitability. leveraging the networks of partner carriers. Another possibility is collaborating with tourism
Thank you. To begin, I’d like to clarify a few details. Is the primary focus on achieving profitability, boards or travel aggregators to create bundled flight-tour packages, which could attract high-
or does the client also want to expand market share as a means to support this goal? margin customers such as international tourists.
The main focus is profitability, but expanding market share can certainly be part of the strategy. Good points. Let’s move on to costs now.
The client is looking for innovative solutions to achieve their goals. On the cost side, I’d analyze the value chain to identify inefficiencies and opportunities for
Understood. Could you share more about the airline’s revenue streams? For instance, is it optimization. Starting with procurement, the airline could negotiate better fuel contracts through
primarily reliant on ticket sales, or does it have other sources like cargo or onboard services? long-term deals or hedging mechanisms to reduce price volatility. Additionally, transitioning to a
Most of the revenue currently comes from ticket sales, with limited ancillary revenue streams. standardized fleet with more fuel-efficient aircraft would bring long-term cost benefits while also
Thank you. And regarding costs, could you provide some insights into the major cost drivers? For aligning with sustainability trends.
instance, does fuel, maintenance, or staffing take up the largest share? Moving to operations, predictive maintenance using IoT and sensors could help reduce downtime
Fuel and maintenance are the largest contributors to costs, followed by staffing and distribution and maintenance expenses. This would not only lower costs but also improve operational
expenses. reliability. Staffing costs could be optimized by automating non-core processes such as check-ins,
That’s helpful. I’ll approach this by analyzing profitability through its two main components: baggage handling, and ticketing, reducing the reliance on manual labor.
revenue and costs. I’ll start with revenue, looking at how we can grow both the customer base On the customer service front, the airline could introduce policies to poach passengers from
and the revenue per customer, and then move to the cost side to identify opportunities for competitors. For instance, customers who lose seats due to overbooking by other airlines could
optimization. Does that sound like a reasonable approach? be offered low fares or complimentary upgrades to fill empty seats during low-demand periods.
That sounds good. Let’s start with revenue.
That’s a thorough breakdown. Would you have any other recommendations to make the airline
On the revenue side, revenue can be expressed as a product of ticket prices, number of tickets stand out in this competitive market?
per customer and number of customers. In order to increase its customer base, the airline could
Certainly. Beyond these foundational strategies, there are some creative, long-term initiatives the
consider partnering with corporates to target the premium travel segment. Exclusive packages for
airline could pursue. One idea is to enter adjacent markets, such as offering branded taxi services
frequent business travellers would help improve load factors on premium routes while
for last-mile connectivity. This would allow the airline to provide an end-to-end travel solution
differentiating the airline. Additionally, the airline could expand into underserved geographies. Are
while capturing additional revenue streams.
there any specific areas in SEA where the airline currently has a limited presence?
The airline primarily operates on major SEA routes but hasn’t explored secondary or regional Another possibility is building or acquiring an airport in a strategic location. By managing its own
airports much. hub, the airline could reduce its dependency on existing airports, optimize operations, and
That’s an opportunity worth exploring. Expanding to underserved regional destinations could help generate new revenues through airport services.
the airline attract new customer segments while avoiding direct competition with the dominant Additionally, investing in cutting-edge technologies like driverless planes might seem ambitious,
players on major routes. but establishing an early foothold in this space could position the airline as an industry leader.
The next focus would be on increasing revenue per customer. This can be done by enhancing While there are safety and regulatory challenges, the long-term potential is significant.
ancillary revenue streams. For instance, the airline could introduce additional chargeable services These are some interesting ideas. If you were to prioritize your recommendations, how would
such as premium F&B offerings, in-flight Wi-Fi, pay-to-use washrooms, or even other innovative you do it?
add-ons. Another idea would be to reorient seat configurations based on passenger height I’d prioritize initiatives based on their feasibility and potential impact. In the short term, I’d focus
demographics, which could help fit more seats per flight without compromising customer on partnering with corporates to tap into the premium segment, optimizing fuel contracts, and
comfort, thereby increasing overall capacity and revenue. introducing ancillary revenue streams like chargeable services and in-flight advertising. In the
medium term, expanding into underserved regional routes and transitioning to a more fuel-
Additionally, increasing advertising revenues is another avenue. The airline could explore creative
efficient fleet would be key priorities. Finally, in the long term, I’d look at ambitious moves such
methods like branded in-flight experiences or digital advertising displays onboard, which could
as entering the taxi business, acquiring an airport, and investing in disruptive technologies like
open up new streams of income while enhancing the passenger experience.
driverless planes.
That’s a well-thought-out plan. I think we can wrap up the case here. Thank you.

(C) Consult Club, IIM Ahmedabad 2024-2025 Page 28

 Growth | Airlines | Difficult

Market Leadership for Airline

Your client is a private equity (PE) fund that has recently invested in an airline company operating in Southeast Asia (SEA) on a limited scale. The airline holds
approximately 5% market share, while the industry is dominated by five airlines that collectively command 75% of the market. The client's objective is to
position the airline among the top two in the market in terms of profitability.
Interviewee Notes Case Facts Profits
Approach/ Framework
• Focus on increasing • The client is a PE fund
profitability while exploring that invested in an airline
market share growth as a operating in SEA with a
supportive objective Revenue Costs
5% market share.
• The airline’s revenue is
• Approach: primarily ticket-based, Organic Inorganic
o Analyze profits through with limited ancillary Growth Growth
revenues and costs. revenue streams.
o Explore both organic and • Major costs include fuel,
inorganic growth strategies Revenue per Number of Strategic Collaborations
maintenance, staffing,
customer customers Growth with External
for revenue. and distribution Options Stakeholders
o Optimize cost structure expenses. • Ancillary • Corporate
using value chain analysis and revenue (F&B, partnerships • Airline alliances • Collaborating with
• The client’s objective is Tourism Boards
Wi-Fi) • Expand regional (code-sharing)
innovative solutions. to make the airline one • Collaborating with
• Advertising reach • Joint Ventures
of the top two in terms revenue with Other Travel Aggregators
• Explore creative and of profitability. Airlines
ambitious ideas to achieve
market leadership in Cost Analysis
profitability
Other Ambitious Procurement Operations Distribution
Ideas

• Fuel contracts • Shift to online ticket

• Predictive
• Branded taxi services (hedging, long-term sales
maintenance (IoT)
• Airport acquisition deals) • Airport shuttles
• Automate processes
• Driverless planes • Standardized fuel- (last-mile
(ticketing, baggage)
efficient fleet connectivity)

Recommendations
• Short-Term: Partner with corporates for premium travel, optimize fuel contracts, and introduce ancillary revenue streams like F&B and advertising.
• Medium-Term: Expand into underserved regional routes and transition to a fuel-efficient fleet.
• Long-Term: Enter adjacent markets, build/acquire an airport, and invest in innovative technologies like driverless planes.
Key Learnings
• Partnerships, new revenue streams, and regional expansion are effective immediate drivers, while disruptive ideas ensure long-term market differentiation.
• Aligning short, medium, and long-term initiatives with operational realities ensures both feasibility and maximum impact.

(C) Consult Club, IIM Ahmedabad 2024-2025 Page 29

 Growth | OTT | Difficult

Netflix India – Interview Transcript

Your client is Netflix India, and they want to double their revenues in 5-6 years. How should they To capture share in these newer markets, Netflix can use four levers: awareness, accessibility,
go about it? affordability and experience. To improve awareness, they could expand their marketing reach by
using newer channels targeted towards Tier 2 & rural areas such as advertisements in vernacular
That sounds interesting! So, a 5-year doubling translates into an objective of around 15% CAGR. newspapers. Accessibility can be improved by partnering with smartphone makers to have the app
To identify the avenues for this growth, I’d like to start by understanding Netflix’s business model. pre-installed, and by having a Lite version of the app for consumers with poor connectivity or small
What are their revenue streams, and what types of content do they stream? data plans. Affordability can be through part-pricing like we discussed earlier, allowing customers to
They earn solely from subscriptions, and stream four types of content: movies, TV series, subscribe with micro plans and a freemium model to allow trial and affinity without payment.
documentaries, and mini-series. The content is a mix of original and licensed shows. Finally, the experience part can be broken into 3 elements: the app, the content provided, and
additional services. On the app, they could look to improve its look and feel to make it easy to
What is the pricing model like for these subscriptions? I’m guessing there would be different tiers. navigate, and also incorporate interfaces in regional languages. In terms of content, they could dub
their content to regional languages as well as create targeted region-specific content. Finally,
So, they have multiple subscription plans based on the streaming quality and the number of screens
additional services would comprise their recommendation engine and integrating reviews of
that one can share the plan on. Then there’s also a cheaper mobile-only subscription.
upcoming shows.
Okay. I am hypothesizing that their target consumers are mid-to-high income urban young adults. Is
That sounds good for growing their consumer base. Is there anything else they can do?
that correct?
Yes. These were the levers available to grow MAUs for the existing content portfolio. But, they can
Yes. Netflix is primarily concentrated in large cities at present.
also look to expand their content portfolio itself to related categories such as sports coverage,
And, what is the market structure like? Also, do we have any data on the market’s growth? music videos and audiobooks. For instance, JioCinema-HotStar has a strong presence in sports and
Netflix already does sports-related documentaries like Drive to Survive, which could give it
The top 3 players, including Netflix, hold 75-80% of the market. The remaining are highly synergies. Other categories could be music videos, like YouTube, and audiobooks, like Audible. The
fragmented regional players. The market overall is growing at 10-15% with increasing TV to OTT caveat is that each of these is an entrenched player, so capturing market could be tough.
substitution, driven by increasing digital & data penetration in Tier 2 cities and beyond.
Yes, these are longer term growth options. What can they do in the medium term to grow fast?
Okay. I think I have a decent understanding to start analysing the problem. Now growth can either
be in the same industry or the other. My hypothesis is that Netflix would want to grow within They could explore inorganic options in addition to the organic ones we already covered. Since
OTT only. they are focusing on the OTT industry only, they should look at partnerships and acquisitions in the
current industry value chain instead of diversifying. These integrations can be horizontal or vertical.
Yes, that is a valid hypothesis. Horizontally, they could acquire multiple regional players – these will be small enough to acquire –
They can achieve this growth through organic or inorganic means like partnerships and and give both immediate market capture as well as a ready pipeline of local content. This will
acquisitions. Do they have any preference at this stage? directly aid with the 2x growth objective. To strengthen its content portfolio, Netflix can also look
at upstream integration with Bollywood or regional movie production houses for exclusive, high-
Not really. You can start with organic growth & then look at inorganic options later. quality local content.
Within their existing product offerings, they can grow their revenues through price & volume Sounds good. I think you’ve covered the options quite comprehensively. Can you give a final
levers, which is essentially growing MAUs. I would break pricing into price levels and pricing recommendation?
structure. Since they primarily cater to mid-to-high income customers, price sensitivity should be
low giving some headroom for hikes. In terms of structuring, they could explore freemium models, Sure. Just to recap, Netflix’s objective was to achieve 2x growth in 5-6 years and the market
genre-wise plans, and rent-a-movie to unlock greater volumes at a mass market level. Coming to landscape is one where growth is being driven by Tier-2+ geographies unlike Netflix’s metro
volumes, growth can come from market size or market share growth. That makes me wonder, if stronghold. As such, based on growth potential, feasibility, and timelines, I would recommend three
the market size is already growing at 15% and Netflix holds a significant market share, why is it actions:
looking for specific growth solutions? They’ll anyways double if they just keep up with the market. 1) Expand organically into Tier-2+ geographies through targeted marketing, cheap micro-
subscriptions, and easy access from being pre-installed on budget phones.
That’s a very sharp observation! So, Netflix is currently concentrated in Tier 1 cities, but much of 2) Strengthen their relevance & accessibility to Tier-2+ consumers through regional-language
the market growth is in Tier-2+ and rural areas. Metro markets are stagnating. adaptations and local content, as well as local language app interfaces.
Makes sense. So, they need to expand beyond their current market scope. This can be through 3) Acquire or partner with regional OTT leaders in key geographies to capture market share and
newer customer segments or geographic expansion. In this case, since growth is geographically obtain content pipelines.
varied, it would be more effective to focus on this route. Great! We can close the case here.
Sounds logical. How would you recommend they go about it?

(C) Consult Club, IIM Ahmedabad 2024-2025 Page 30

 Growth | OTT | Difficult

Netflix India

Netflix India wants to double its revenues in 5-6 years. How should they go about it?

Interviewee Notes Case Facts Approach/ Framework

• Understand the business • Single revenue stream
model and revenue – subscriptions Revenue Growth
drivers • 4 content categories:
• Netflix unlikely to seek movies, TV shows,
unrelated diversification mini-series, OTT & Media New Industries
at this stage, because documentaries
OTT is still a growth • Concentrated market
market and its global – 75-80% with 2-3 Partnerships,
Organic
M&As
strategy has been focused. players
• Downstream integration • Client is a market
Existing Content New Content Related
does not make sense for leader Same Industry
Categories Categories Diversification
a platform model, but • Market growing at
upstream can add value 15%, driven by Tier-
since content is the main 2+ geographies Price MAUs Horizontal Vertical
value creator. • High Tier-1 city
• Tier-2+ penetration likely concentration Price Levels Upstream
Awareness Accessibility Affordability Experience
to be a function more of • Target group: mid-
awareness, accessibility high income urban Pricing Plans Downstream
Ease of
and affordability than young adults Targeting Freemium App
Installation
differentiation at this
Ease of Part- Content
stage. Channels
Use pricing
Supporting
Services

Recommendations:
1) Expand organically into Tier-2+ geographies with advertising programmes, pre-installation agreements for smartphones, and part-pricing subscriptions
2) Acquire regional OTT leaders to capture markets and obtain local content pipeline
3) Adapt content and app interface to vernacular languages, and provide region-specific content
Key learnings:
1) A growing market does not mean your client will automatically grow. Market may be growing in other pockets.
2) Explore organic and inorganic options in-depth and look for synergies or complementarities between the two to ensure your overall approach is coherent.

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Due Diligence
cases
 Due Diligence | Private Equity | Moderate

Bakery Chain Due Diligence – Interview Transcript

Your client is a PE firm looking to acquire a premium dessert/bakery chain based out of Mumbai. They have asked Okay. As for the chain. it is generally perceived for its good consistency in quality and service, having a
you to hire us to carry out the commercial due diligence of the firm. large variety of fresh, authentic and unique offerings with an aspirational value. The brand is viewed
positively by the market and does have a good recall value from its stores/cafes.
Understood. Can you help me better understand the firm? What are their offerings, operational details and target
That’s the general perception. But how would you validate this customer perception about the chain to
markets?
assess the business?

It is a premium dessert chain offering western delicacies like cheesecakes, brownies, pastries along with a few Fair point. For assessing the consumer perception, we can look at survey to gauge willingness to pay,
baked savory items and coffee. They prepare their desserts in central cloud kitchens and sell through either their popular SKUs, and brand recall in test cities. Furthermore, we can also look at the data available from the
stores/cafes or through online delivery via Swiggy or Zomato. They are mainly located in Tier 1/II cities. online delivery platforms like Swiggy or Zomato to understand order frequency, average order value
(AOV), and delivery times.
Got it. I’ll approach this case by evaluating three aspects: market sizing and attractiveness, business specific Makes sense. However, how does the founder come in play in assessing the business here?
metrics, and competition analysis. Does that framework work for you?
I believe, especially in case of the chain, the founder herself is a trained pastry chef who came back to
Yes. That looks fine to me. Go ahead with your analysis. India to start the business and curates all the recipes and SOPs for creation, storage and delivery of the
products. Hence, the presence of a founder with direct industry understanding of the dessert business
In order to size the market, we can start with calculating the TAM (total addressable market) in India and then leads to good products as well as lends the brand a sense of authenticity.
using penetration rate and average order value, calculate the SAM (serviceable addressable market) for the
Good points there. Consider now if you had to launch a store in a new city. What factors would you
premium western desserts. Furthermore, if we can multiply the market share (current or expected) to get the
have to consider and what challenges operationally do you anticipate?
value of SOM (serviceable obtainable market) exercisable by the chain. Does that approach sound correct?
For launching the chain into a new city, I would like to assess the following factors – i. Presence of
Yes. Seems reasonable. Can also you define on what parameters you will calculate the TAM? competitors in that city along with benchmarking intensity of competition. ii. Willingness to pay for
customers iii. Number of stores to be opened considering lead conversion %, average order values and
I’ll segment the target audience based on city tiers, income levels, and age brackets. We can assume that the area coverage to prevent cannibalisation iv. Delivery infrastructure in terms of penetration of online
customers are largely upper-middle and high income individuals residing in Tier 1/II cities (urban) mainly failing in delivery platforms as well as planning for setup of dark stores/cloud kitchens. v. Product mix to be
the 18-35 age bracket. catered to adapting to any local preferences vi. Performance marketing for brand awareness and
promotion in the city vii. Supply chain factors including sourcing of ingredients and hiring of staff.
That’s the correct market segment that the chain currently caters to. Can you work the numbers to arrive the
market size using these factors? You can assume penetration rate for western desserts is about 25% in Tier 1 That’s really comprehensive. Can you talk about the competitive landscape as well?
cities.
The western desert segment, considering is a growing one, will likely see more brand proliferations
Considering the population of India to be 140 Cr, with about 35% residing in Tier 1/II (urban) regions. Out of across different price points leading to high degree of competition. Currently as well, the chain faces
these cities, the upper-middle- and high-income group would constitute about 30% of the population and about intense competition from chains like Smoor and Love and Cheesecake as direct competitors while from
40% population would fall in the desired age group. Thus, the target customer would be = 140 Cr * 0.35 * 0.3 * “xx” and “yy” at lower price points apart from the numerous standalone localized bakeries. There is also
0.4 * 0.25 = 1.47 ~ 1.5Cr. Considering an order value of Rs 400 per month, the market size would be 400 * 12 * indirect competition from café chains like Subko, Blue Tokai, Third Wave Coffee as well as online-
1.5 = 7000Cr annually. This show that the market is sizeable with high growth potential. delivery substitutes for deserts.
That seems fair. Can you talk me through why do you consider the market will grow well? Interesting. So, who would you assess the chain in this competitive landscape? What levers do you think
they have for future growth if any?
I think the market for western desserts should grow at a good pace for the following reasons – i. Increasing
globalization has led to a change in consumer preferences with greater exposure to western delicacies, especially I believe the chain is primed to do well, despite the competition in the market, considering it’s a reputed
in the younger demographic which is more experimental ii. Rising disposable income allows greater affordability iii. brand with an established consumer base. Moreover, it balances quality and price sensitivity of its
Rise of celebratory culture with association of cakes/desserts with occasions. iv. Ease of access due to emergence products making it well placed in a sweet spot to grow its consumer base. I think the chain can use the
of online delivery platforms. v. emergence of café culture for hangouts and dates. following levers for growth – i. More expansion into Tier-II seeking aspirational appeal ii. Introduction of
new product line along vegan, gluten free healthy options. iii. Product personalization options iv.
That’s seems very elaborate. You can move ahead to the business specific analysis of the chain Corporate partnerships for gifting as well as entry into packaged retail products v. Loyalty programs for
consumer engagement
Got it. For analyzing the business, we can look at the following factors – customer perception, financial health and
metrics, operational efficiencies, any risks or synergies and founder’s role. That’s a very through analysis of the business. Well done!
Can you talk about customer perception and how you would go about assessing them for the chain? You also
mentioned founder’s role here, so please talk about that as well.

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 Due Diligence | Private Equity | Moderate

Bakery Chain Due Diligence

Your client is a PE firm looking to acquire a premium dessert/bakery chain based out of Mumbai. They have asked you to hire us to carry out the
commercial due diligence of the firm.
Interviewee Notes Case Facts Approach/ Framework
• It is important to • The chain is premium
understand the brand dessert chain
properly before offerings western Market Sizing Business Analysis Operational Feasibility
proceeding in terms of its delicacies like
USP and offerings. cheesecakes, Use market-sizing (in terms of • Customer perception - • Competitors benchmarking and
• It is also crucial to brownies, pastries number of customers) to willingness to pay, intensity
calculate TAM. popular SKUs, and brand • Willingness to pay
understand the along with a few
recall, order frequency, • Number of stores to be opened
positioning of the brand baked savory items SAM = TAM * penetration rate average order value • Delivery infrastructure
as well as the current and coffee. SOM = SAM * market share (AOV), and delivery • Planning and setup of dark
state of the segment to • They prepare their Market Size (in monetary times stores/cloud kitchens.
predict future growth. desserts in central terms) = TAM/SAM/SOM * • Financial health metrics • Product mix to be catered
average order value • Operational efficiencies • Performance marketing for brand
• It is also better to be cloud kitchens and
• Risks or synergies awareness
detailed in your analysis sell through either Target Population • Founder’s role. • Sourcing of ingredients
and clarify your their stores/cafes or India population (~140 Cr) × • Hiring of staff.
assumptions for a due through online Urban (~35%) Upper-Middle & Market Growth
diligence problem in delivery via Swiggy or High-Income (~30%) = 98M. Competitive Landscape
Relevant age group (~40%) = 6
order to not miss out on Zomato. • Shift to western
Cr.
the finer points. • They are mainly Consumer Penetration=25% delicacies • Direct Competition – Smoor, Love
located in Tier 1/II Target customers = ~1.5 Cr. • Experimental younger and Cheesecake, Localised
Market Value with an average demographic Bakeries
cities.
monthly spend of ₹400 per • Rising disposable income • Indirect Competition - Cafes
customer • Rise of celebratory (Subko, Third Wave, Starbucks,
Market size = ₹ 7000 Cr • Ease of access due to Blue Tokai), Online Substitutes
annually emergence of online
delivery platforms.

Recommendations:
• The chain is a well-positioned brand in the western dessert segment in India, which is likely to have a high growth potential albeit with high competition.
• The brand has balanced quality and price well enough to cement its position as a reputed name and show promise for further growth with multiple growth levers available at its disposal.
Key learnings:
The chain’s success hinges on identifying affluent customer segments in Tier-1 and Tier-2 cities, tailoring its offerings to match local tastes, and strategically positioning its brand as a
premium yet accessible option. Efficient delivery logistics, quality consistency, and scalability through dark kitchens and leveraging online delivery platforms are crucial for the chain's
expansion.

(C) Consult Club, IIM Ahmedabad 2024-2025 Page 34

 Due Diligence | Private Equity | Difficult

PE Firm Investment Proposal for Sauce Manufacturer – Interview transcript

share of 8% and is the leader in terms of the multiple players. In terms of the new age sauces, the
Your client is a PE firm wanting to buy stakes in a sauce manufacturing company which produces market has merely 7-8 players overall. There is a market leader with around 45% market share.
table sauces (tomato ketchup, mustard ketchup) and new age sauces (mayonnaise, subway sauces). Our client’s target comes 2nd with around 18% market share, and the rest of the market is divided
However, the client wants to do a conditional investment asking the sauce company to focus only among 5-6 smaller players.
on one segment. Do a commercial due diligence and recommend which segment to focus on.
Okay, understood. So, from the revenue perspective, it seems that the sauce manufacturing
In order for me to arrive at a recommendation on the segment that the client should focus on, I’d
company is clearly able to better sell the new sauces in comparison to the table sauces where
like to create a due diligence framework which will be split into: pre-diligence, diligence and post-
established brands are dominating. What about the major cost heads for the company?
diligence. Is there a problem with this framework or should I proceed? Would you like for me to
start with any specific aspect?
That’s a good analysis. The major cost heads for the company are related to manufacturing and
The framework seems fine. You can start in the order of due diligence i.e. pre-diligence. distribution when it comes to both the sauces.

Sure. Before I begin, I would like to ask a few clarifying questions. I want to understand the client’s Okay, is there anything that the company is doing in order to differentiate itself in either of the
portfolio and what are its existing investments like? segments in terms of flavors?
The client has a mixed portfolio of different sized investments and has prior experience of Nothing of that sort. The company is dealing in generic popular flavors just like its competitors.
investments in the food and agriculture sector. Currently, they have a diverse portfolio with
investments across multiple sectors with some skewness towards consumer-focused brands. What are the pertinent problems that the company is facing in both these segments?
However, they do not have a thematic investment pattern and are sector agnostic in that sense. The company is not able to market its products well compared to competitors which have a robust
They are planning to enter the sauces market and are interested in buying a stake in this because it marketing mechanism due to their presence in both Tier-1 and Tier-2 cities. Further, there is
can potentially be a part of their portfolio and could generate revenues for them. limited capacity for manufacturing, limiting profit potential.
Alright. And what are the financial objectives of their investments? Understood. Is this a listed public company or a private unlisted entity? Further, does the company
The client plans its investments in such a way that they look to exit the investment in roughly 5-7 have any debt outstanding?
years. The objective is simply to maximize the growth of their investment. With respect to the It is a private unlisted company looking to raise an IPO in the next 3-5 years to be in line with its
sauce manufacturing company, the client plans to exit the investment in 5 years. major competitors. The company does have debt on its balance sheet. However, it is not too large
Okay, understood. Is there any minimum return expectation that the client has with respect to its an amount.
investments? Okay, and lastly, what are the profit margins like in both these segments?
The client expects its investment to grow by a minimum of 15% every year i.e. for its investment The profit margins are healthy for both segments: 25% operating margin in the table sauce segment
to double in roughly 5 years. and 35% operating margin in the new sauce segment.
Alright. I would now like to focus on the sauce manufacturing company and ask a few questions Based on the facts that we just discussed, I recommend that the client invest in the sauce
regarding the potential investment. What is its market presence? Is it operating nationally or is the manufacturing company in their new sauces segment for both operational as well as financial
brand international? reasons. The industry is growing at almost double the rate of the table sauces industry. Further, the
The company operates in India. It operates in Tier-1 cities only having presence in the top 25 cities operating margins for the company are stronger in this segment. As the new age sauces also
of the country. account for 70% of the revenue, the company can double down on its efforts in this segment. The
company is also 2nd in this segment and currently lacks the marketing efforts that its competitor is
Focusing more on the two segments, do we have the information regarding the revenue split able to take.
between the table sauces and new sauces for the company? What are the rates at which the The manufacturing company could utilize the funds received from our client’s investment to focus
markets for these sauces are growing? on their marketing and capacity expansion efforts in the new sauces segment. Further, the
investment should be used for R&D and coming up with new flavors according to customer
Good questions. The revenue is split 30:70 in favor of new sauces. The annual market growth rate
preferences and tastes which will help the company in differentiating itself in this segment and eat
for table sauces is 8% while the rate for new sauces is 15%.
into the market share of the segment leader.
Okay, that’s interesting. What is the competitive landscape like in these segments? As the manufacturing company is anyway looking to raise an IPO in the next 3-5 years, this would
serve as a great opportunity for the client to exit from the investment within its intended time
The table sauce segment is largely dominated by the top 4 brands i.e. HUL, Nesle, Kissan and horizon and achieve its investment objective.
Maggi that capture roughly 55% market share. The rest of the 45% segment is fragmented with
multiple players. Our client’s potential target is one of those fragmented players having a market Good analysis. I think we can end the discussion now. Your viewpoint was well thought-out.

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 Due Diligence | Private Equity | Difficult

PE Firm Investment Proposal for Sauce Manufacturer

You're a PE firm wanting to buy stakes in a sauce manufacturing company which produces table sauces (tomato ketchup, mustard ketchup) and
new age sauces (Mayonnaise, Subway sauces). However, you want to do a conditional investment asking the sauce company to focus only on
one segment. Do a commercial due diligence and recommend which segment to focus on.
Interviewee Notes Case Facts Approach/ Framework
• It is important to • Objective for investment
understand the rationale of is to double investment in Commercial Due
5 years. Diligence
the investment.
• 15% CAGR and a time
• The preliminary questions • horizon of 5 years.
should cover questions • Major cost heads include
manufacturing and Diligence (For both
about the client and the Pre-diligence segments- table and Post-diligence
target company to get distribution. new)
• No differentiation by the
important case facts.
target in terms of flavors
• It is essential to have a basic currently. Financial Non-Financial
understand of the private • The existing portfolio of
equity industry and the the client has consumer-
process of due diligence, focused brands and the Investor Profile • Future outlook Exit options
client has prior experience • Competitive
• It is important for the Revenue Cost
in such investments. benchmarking
interviewee to link • The target company is • Differentiation
Existing investments Segment growth
important case facts to unlisted and private. and Moat
subsequent answers. • Profit margins and
industry competitiveness. Alignment with
Investment objective • Drivers • Direct costs
• Customer (Manufacturing) Investment objective
behaviors and • Overheads
patterns (Distribution, Selling,
• Industry growth General, Admin, etc.)

Observations & Suggestions

• Do a proper analysis of the competitive landscape to gauge the competitive edge of the target company and also look into the threats of new entrant specially a big player.
• Understand the operating model and the technology used of the target company to gauge the scalability of the business model.

Key Learnings
• In cases of due diligence and M&A, clarification questions are very important and adequate time should be given to get relevant case facts.
• The question about financial and strategic investment should have been asked in the beginning. Again, since time horizon was known beforehand, here case facts could have been linked
better.
• It is important to think of synergies even between existing portfolio of the PE firm to the target company like potential technology transfer from companies in the portfolio operating
abroad.
(C) Consult Club, IIM Ahmedabad 2024-2025 Page 36
Unconventional
cases
 Unconventional Cases – Tips & Tricks

Pointers to Remember

• Never try to force fit a framework

• Understand the problem really really well
• Ask the interviewer if you’re unfamiliar with a particular industry, do not hesitate to ask questions
• If the industry is familiar, comparisons with companies you know about would help in providing recommendations
• Be as comprehensive as possible and hence bucketing the problems into different sections will help in structured thinking
• Can be looked at through 2 lenses – qualitative & quantitative (as a mathematical problem)
• Using the 3CP i.e., of Company, Customer, Competitor and Product approach works in certain cases, but focus on keeping the
approach MECE
• In certain cases when the scope of the cases is broad, the interviewee should ask if the focus needs to be on a specific aspect to
structure thoughts in that direction
• While scoping the problem, the interviewee can consider if there are competitors in the same industry and the strategies, they follow

Easy wins

• Breakdown into a mathematical formula

• Always remember Demand and Supply
• Any problem can have an internal cause (in control of company) or external cause. For external cause, use PESTEL to analyze possible
issues

(C) Consult Club, IIM Ahmedabad 2024-2025 Page 38

 Unconventional | Public Policy | Easy

Illegal Drug Usage – Interview Transcript

Your client is a government body who is concerned about rising illegal drug usage among youth.
The second option is to track the purchases of the ingredients mix required for manufacturing such
Give your recommendations.
drugs. This can be done on a national level by giving strict directives to medical houses to not give
Sure, thanks. I would like to ask a few questions to help me understand the problem better. Please these ingredients without a prescription, and / or to allow sale of these ingredients only through
let me know if we have data about the timeline? Since when has this issue been rampant? hospitals after having necessary prescriptions from the hospital doctors.
From the international standpoint, there should be greater focus on border patrolling, both in terms
It is not a recent phenomenon. It has been an ongoing issue for the past few years. We do not of roadways and waterways i.e. the two most common ways in which drugs are smuggled from
have exact data on number of youth using drugs illegally in a year. abroad. Further, checking at the customs counters, especially at airports must be strengthened and
random surprise checks of trucks and other transport vehicles must be carried out across cities and
Next, I would like to better understand the problem better. Is it a problem pertaining to a villages all over the country from time to time. I believe these are the short-term recommendations
particular state or it is a national issue? for this problem.

Good question. This problem is not restricted to a particular state of the country, so you can Good, these are fair points. What about the long-term recommendations for supply side?
consider this to be a national issue.
From a long-term perspective, it would be better to analyze the problem from the PESTEL
Okay! To give recommendations for illegal drug usage among youth, I would first look at an analysis framework and look for the areas in focus, mainly political and legal, and the government ministry
of the current situation including the various data points that should be looked at. Then, I would can think of passing stricter laws granting the anti narcotics bureaus all over the country with greater
look at the potential situation that could arise in the future and give recommendations accordingly. powers to exercise control over the borders and customs to prevent drug supply in the country.
That sounds fair. Let’s move on with the first part then.
I see it as a supply-demand problem. Supply being the availability of illegal drugs through both Okay. What about the demand side?
domestic and international brokers and demand being the usage of the drugs by the youth.
As I already said, from the demand side, we can look at the users from three perspectives, mainly,
Alright. That’s good. Can you talk about the demand side first? current users, users already in rehabilitation and potential users. We can have an action plan for
each of these users.
Focusing on the demand side, I’d categorize the demand based on the type of users i.e. potential
users, current users and users who are already in rehabilitation. We can have a specific action plan Can you elaborate on the recommendations for each of these?
for each kind of user and recommendations can be made accordingly.
From the short-term perspective, there have to be awareness programmes that need to be
Okay. Let’s get to the recommendations later. Can you now elaborate on the supply side? conducted in schools, colleges and universities across the country in order to educate and deter
potential users of drugs from using them. In terms of current users, a robust medical network is
Okay! Speaking about the supply side, I would categorize the supply based on whether it is coming necessary and hence boosting rehabilitation centres and having ample medications to treat the said
from domestic sources or from international sources. The problem of drugs is a pertinent issue addiction will be key. For the users who are already in rehabilitation, strict monitoring and control
across the globe and international and domestic trade, both are concerns. will be necessary in order to ensure that these users do not relapse and start using drugs again,

Great. So, anything else in the analysis stage? I think that is good enough for the short-term. Can you think of any long-term recommendations for
the demand side?
So far, we’ve looked at supply and demand at an aggregate level, but we also need to look at it in The long-term recommendations would again be similar in terms of creating political and legal
more detail in terms of the key drivers for each. mechanisms that are conducive enough to create a social environment where illegal drug usage will
That is fine for now. We do not need to get into that deep an analysis. Let’s start with the be discouraged in the country. This will need evidence-based policy-making and deeper data insights
recommendation stage. than the ones we have right now.

Sure, the recommendations can be broken down into short-term and long-term recommendations. Good, we can end the discussion here. Thank you.
Let me first talk from the supply side perspective. In terms of domestic supply, the main drivers
that can be identified are tracking the supply in terms of monitoring the sewage lines where we can
look for presence of byproducts as a result of drug manufacturing. The same is highly technical in
nature and will need substantial investment and constant monitoring all over the country.

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 Unconventional | Public Policy | Easy

Illegal Drug Usage

Your client is a minister who is concerned about rising illegal drug usage among youth. Give your recommendations.

Interviewee Notes Case Facts

• Important to start by • The issue is not Approach/ Framework
understanding the various pertaining to a
data points and the particular state; it is a
Illegal Drug Usage:
gravity of the issue national issue. Analysis
(whether it is state- • Try to give
specific or nation-specific) recommendations
• Drug usage among youth from a short-term
is a function of two and long-term Demand Side Supply Side
things: supply side and perspective.
demand side. • Bring in other
• Cover all possible modes frameworks such as
Potential Users (At Users undergoing
of raising awareness in PESTEL in your Current Users Domestic International
risk) rehabilitation
analysis while speaking. recommendations
even if they may not
Rehabilitation
explicitly be a part of Medication
Centres
the layout given on
the right. Monitor
Continuous sewages for
Awareness Monitoring byproducts Customs
Campaigns
Track
purchases of Strict
ingredients Border
mix Patrol Airways
Schools Colleges Universities

Roadways Waterways

Recommendations:
1) Raise awareness campaigns for the youth in schools, colleges and universities to curb demand issue.
2) Stricter checks and border patrolling for international supply issues.
3) Track purchases of ingredients mix and monitor sewages for tracking release of byproducts during manufacturing of drugs.
Key learnings:
1) Continuously sharing your hypothesis along with questions can lead to much quicker analysis of the case.
2) Using the demand-supply framework to bring structure in an unconventional case is important.

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 Unconventional | Manufacturing | Easy

Price Increase Decision for Equipment Manufacturer – Interview Transcript

Your client is an electronic components manufacturer. They are evaluating if they should increase I would assume that B2C customers may be more price-sensitive, and we may see a larger volume
their prices by 10% and want your help to decide the same. decline in that segment. Do we have any information on the price elasticity? Additionally, would any of
the costs change due to price increase?
Sure. Before beginning the assessment, I have a few questions to understand the client and industry
better. Firstly, could you help me understand why the client is looking to increase prices – is it Good observation. Yes, we have a fair idea about the price elasticity. For the B2C segment, the
purely for financial reasons? What types of products does the client sell and who are its customers? elasticity is -1.2 and for the B2B segment it is -0.8. The costs will remain the same.

The client feels they can improve their revenues and profit and wants to increase their price. The
All right. Since the elasticity of the B2B segment is lower than -1, it would imply that the % volume
client only manufactures and sells one product, i.e., transistors. It sells the product to both B2B and
decline is less than the % increase in price, indicating higher revenues. Furthermore, since the B2B
B2C customers.
segment comprises >90% of the revenue, total revenues will increase even if prices are increased in
All right. Are the products similar for B2B and B2C customers, or are there differences? How does both segments.
the client sell to each segment? To be exact, at a monthly level, B2B segment revenues will increase by ₹12,00,000, with sales volume
decreasing to 920 units. In contrast, in the B2C segment, revenues will decrease by ₹3,20,000, with
Both products are similar in terms of functionality. However, B2B transistors are larger in size. The sales volume decreasing to 8,800 units per month. Therefore, overall revenue increases by ₹8,80,000/
client sells the product to distributors who then seem to the respective markets. mo (considering simultaneous price increases).
I would like to proceed with assessing its impact on profits. Do you have any questions here?
Okay. Could you also help me understand the industry dynamics? How does the client fare in the
market? How does the client’s product stack up against that of competitors? No – your analysis looks good. Let move towards assessing profits.

In the industry, there few players are currently operating. However, the top 3 players capture a So, since fixed cost remains the same after price increases, the only change in profits would be driven
large share. Our client is one of the top 3 players in each segment. Regarding the product, the client by a change in contribution margin (sales – variable cost). Based on the available data, at a monthly
and competitor products are broadly similar. level, the contribution margin for the B2B segment increases by ₹ 6,00,000, indicating higher profits. In
contrast, for the B2C segment, the contribution margin decreases. Based on the available data, at a
Okay, I think I have a fair understanding of the situation. I will ask any further questions as we monthly level, the contribution margin for the B2C segment decreases by ₹ 1,92,000, indicating
approach with the assessment. declining profits.
So, given that the client is pursuing this price increase primarily from a financial motive, I would look Assuming simultaneous price increases across segments, profits for the company would rise.
to assess this decision from 2 lenses: Does this sound fair?
1) Financial impact of price increase on revenues and profits
2) Once we have assessed the financial impact, I would like to consider any non-financial aspects Yes – this looks good. What would be your final recommendation based on financials?
that may be relevant.
Based on the analysis, I recommend the client to go ahead with the 10% price increase since it
This sounds fair. Let begin with the financial assessment. increases both revenue and profit.
To proceed with this, I would like to understand the client’s current prices, volumes, and cost While most of the analysis was done considering price increases in both segments, if the firm has the
structure (fixed and variable) for each segment. Do we have any information regarding the same? option only to increase prices for only one segment, then I would recommended increasing prices
only for B2B customers and keeping prices constant for B2C customers.
Yes, we do have information regarding this.
For the B2C segment – the client prices the product at ₹ 1000 per unit. Its current sales volume is Sounds good. Is there anything else that you would want the client to consider here?
1,20,000 units per year. Variable costs per unit stand at ~40% of sales price. Fixed costs are
₹4,00,000 per annum. As highlighted earlier, we should explore non-financial considerations regarding this decision.
For the B2B segment – the client prices the product at ₹ 1,00,000 per unit. Its current sales volume One key consideration is that since products in the market are homogenous, if competitors also have
is 1000 units per month. Variable costs per unit stand at ~50% of sales price. Fixed costs are a similar cost structure, they may also look to increase their prices to take advantage of higher profits.
₹4,00,000 per annum. Interestingly, the homogenous nature of the products, along with the inelastic demand, also provides
Great based on this information, I can gather that revenue mix between B2B and B2C segments is an opportunity to collude with other players to raise prices in the B2B segment.
skewed towards the B2B customers (10:1 ratio). To assess the impact of a 10% price increase, I However, increasing prices and potential for profits may cause new entrants to enter the market to
would like to understand how sales volume would change due to price increase. Since competitor capture these profits.
products are similar, a price increase would likely make some customers shift to competitors Increasing prices in the B2B segment may also hurt customer relationships if price increases become
leading to a decline in sales. However, the quantum of change depends on the price elasticity of frequent. As relationships matter for B2B sales, this may hamper sales.
each segment.
Great. We can close the case now. Thank you for your time.

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 Unconventional | Manufacturing | Easy

Price Increase Decision for Equipment Manufacturer

Your client is an electronic components manufacturer. They are evaluating if they should increase their prices by 10% and want your help to
decide the same.

Interviewee Notes Case Facts Approach/ Framework

• Ask for questions to try • Electronic equipment
Price increase
and understand the components manufacturer
company, product, and • Objective for 10% price increase
customers better. Helps is primarily financial Financial Non-financial
narrow down the problem improvement
and also simplifies problem • Sells only transistors to B2B and Revenue Profits
solving as the case B2C customers; B2B product Competitor action
Data B2B (o) B2C (o) B2B (n) B2C (n)
progresses. larger in size
Price (₹/ unit) 1,00,000 1,000 1,10,000 1,100
• Ask for financial data; • Client is among top 3 players in VC (₹/ unit) 50,000 400 55,000 440
understand how it varies the market; Competitors have FC (₹/ mo) 4,00,000 4,00,000 4,00,000 4,00,000 New entrant threat
with changing prices similar products
Monthly values B2B B2C Total Customer relationship
• Key was identifying • Financial data
Current sales vol 1,000 10,000
difference in elasticities • B2B: Price - ₹1 L; Current Current revenue ₹ 1000L ₹ 100L ₹ 1100L
across segments vol - 1.2L / year; VC – 50% Current CM ₹ 500L ₹ 60L ₹ 560L
• Keep note of the unit and of price; FC - ₹ 4L; elasticity: New sales vol 920 8,800
New revenue ₹ 1012L ₹ 96.8L ₹ 1108.8L
time period. Use (-0.8) New CM ₹ 506L ₹ 58.08L ₹ 564.08L
consistent units and time • B2C: Price - ₹1 K; Current Δ revenue ₹ 12L ₹ - 3.2L ₹ 8.8L
period for all calculations. vol - 1K / month; VC – 40% Δ CM ₹ 6L ₹ -1.92 L ₹ 4.08L
of price; FC - ₹ 4L; elasticity: Since fixed cost are same after price increase, an increase
in CM would lead profits increase. Hence CM has been
(-1.2)
calculated above.

Key learnings
• For data such as elasticity, while it is fair to ask for information from the interviewer, try to provide an answer first/ hypothesis of how elasticity may vary
• Do not hesitate in asking for data from the interview, however, please have a clear rationale for asking the same and how it fits in the interview
• Discussion non-financial implications briefly towards the end, even in a financials focused case, highlights comprehensiveness. However, please take a call on this depending on how the
interview progress.
• Qualitatively provide insights based on logic (e.g., revenue increase given the mix and elasticities) prior to quantitative validation, highlights strong grasp on concepts and clarity of thought.

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 Unconventional | BFSI | Easy

Market Share Growth – Interview transcript

You are the CEO of NPCI and the Government wants you to launch BHIM UPI 2.0 app to Features suited for rural market, for example, Regional Language Support, Voice-Assisted
command 5% market share as opposed to 0.1% the current BHIM app has in the UPI Payments Transactions and Simplified User Interface, can be added. Offline payment options like QR-based
space. How would you approach this? payments without internet connectivity can be enabled. Also, Financial product bundling can be
I would like to confirm that the objective is to increase market share from 0.1% to 5% in the UPI another strategy to achieve growth with feature addition. Relevant offerings like insurance,
payments space. Is there any other objective? microloans, and small savings schemes can make the app more appealing.
That sounds good. Let’s cover the other areas.
No other objective.
Understood. Before diving deeper into the problem, I have a couple of questions to better Next, I’d like to cover ‘Partnerships and Ecosystem’. To increase adoption of the app, merchant
understand the context. What is the expected timeline for achieving the 5% market share goal? partnerships are required to be scaled. We can promote the app to local merchants and
shopkeepers by offering exclusive discounts, cashback, or loyalty points for app users.
We want to achieve this target in the next 3 years.
Additionally, we can tie up with rural banks, microfinance institutions, and government welfare
Who is the primary target audience for BHIM UPI 2.0? Are we focusing on urban users, rural schemes to integrate BHIM as their default payment option.
populations, or both?
That’s a strong point.
We are looking to focus on semi-urban and rural populations.
Next area is Marketing and Awareness. I have three ideas A) Localised campaigns – we can create
I understand our main competitors are Google pay and Phone pay. They are targeting urban
advertisements in vernacular languages with relatable, culturally appropriate messaging to reach
markets so it does make sense to target semi-urban and rural markets. Do we have data on the
diverse audiences in semi-urban and rural areas.
challenges faced by the current BHIM app?
B) Educational Initiatives – We can conduct on-ground workshops and training sessions for
Feedback indicates that the current app lacks advanced features, suffers from higher transaction merchants and consumers to build confidence in digital payments.
failure rates, and has limited visibility. C) Incentive programs – We can launch programs like referral bonuses, cashback offers, and
Got it. Are there any constraints, such as budget or regulatory requirements, that we should merchant-specific discounts to encourage app downloads and usage.
consider? Yes, that’s how we would typically market BHIM for our target segment. What about Operations?
Cost efficiency is important, but there are no strict budget constraints.
The last area is operational excellence. In order to scale with near zero failure rates, we need to
I have enough information to structure the problem. I’d divide it into five areas:
upgrade the backend systems to handle increased transaction volumes without downtime.
1. Market Segmentation and Targeting
We also need to establish multilingual customer support channels to assist users in resolving issues
2. Product Enhancements
quickly, especially in rural areas.
3. Partnerships and Ecosystem
4. Marketing and Awareness Campaigns I think we have covered all relevant points. Now, can you suggest a roadmap to achieve the desired
5. Operational Excellence growth?
Okay. I’d like to know what you’d cover in each of these. In year 1, we should focus on product reliability and targeted awareness campaigns in pilot regions.
We should also focus on building partnerships with local merchants and financial institutions.
Market Segmentation and Targeting – We have already identified semi-urban and rural focus. In
In year 2, we should expand partnerships and marketing to cover a broader geographic area. This
terms of demographic segments within these areas, we can focus on underserved groups such as
would be a good time to introduce new app features and incentivize merchant adoption.
small shopkeepers, farmers, and lower-income households who would benefit from adopting
Finally, in year 3, we should scale operations fully, by leveraging the insights gained from the first two
digital payments.
years. Focus should be on retaining users and improving engagement with loyalty programs.
That’s aligned with our observations. Please proceed.
That’s quite comprehensive. We can close the case. Thank you!
Next under product enhancements, I’d suggest enhancing the app in terms of A) Trust &
Reliability and B) Feature addition.
All right, let’s dive deeper into that.
We can enhance the trust and reliability of the app by ensuring near-zero transaction failure rates
as transaction success is the key parameter for reliability. This can be achieved by strengthening
the infrastructure. Additionally, in our marketing initiatives, we can highlight NPCI’s credibility as
the governing body behind UPI for security reassurance.
What features would you add?

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 Unconventional | BFSI | Easy

Market Share Growth

The client, NPCI, aims to scale BHIM UPI 2.0’s market share from 0.1% to 5% in the UPI payments space and is seeking a comprehensive
approach to achieve this target.

Interviewee Notes Case Facts Approach/ Framework

• Analyze the reasons for • Current market share of BHIM
BHIM UPI’s Market share growth
UPI: 0.1%; target: 5% in 3 years.
underperformance • Target audience: semi-urban and
• Identify stakeholders rural populations.
involved in driving UPI Market
• Low digital literacy and trust Product Partnerships Marketing & Operational
segmentation
adoption issues hinder adoption in semi- enhancements & ecosystem awareness excellence
& targeting
• Plot the adoption process urban and rural areas.
• Consider NPCI’s • Competitors (e.g., Google Pay, Infrastructure
Urban
capabilities and constraints PhonePe) dominate the market upgrade
• Give recommendations with higher adoption rates.
and roadmap to achieve • Challenges due to lack of Multilingual
Semi-urban Merchant tie-
the desired goal advanced features compared to Other tie-ups customer
ups
competitors, high transaction support
failure rates and limited visibility
Rural
Recommendations
• Enhance product features and multi-lingual support.
• Upgrade technical infrastructure to reduce transaction failures.
• Launch targeted marketing campaigns to promote BHIM UPI with
localized content.
• Introduce incentive programs
• Establish partnerships with local businesses
• Strengthen customer support with 24/7 helplines
Key Learnings Trust & Feature Localised Incentive
• Break down the problem into manageable components, such as Reliability Addition initiatives programs
product, marketing, and partnerships.
• Prioritize data analysis to identify root causes of low market share.
• Develop actionable, resource-efficient recommendations aligned Educational
with the client’s capabilities. initiatives
• Communicate solutions clearly and structure implementation plans
for measurable outcomes.

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 Unconventional | Public Policy | Moderate

Increasing Women’s Workforce Participation – Interview Transcipt

Your client is an Indian policymaker who wants to increase women’s participation in the Yes, go ahead with corporate.
workforce. How would you approach this problem? Corporate workforce participation starts with pre-employment. Here, the main issue is gender
bias in education and lower enrollment in professional fields like STEM and management. The
That’s an important and multifaceted problem. To begin with, I would first break down the
solution lies in encouraging women to pursue these fields through scholarships and awareness
workforce into two overarching categories: the public sector and the private sector. From there,
campaigns. In recruitment, biases during hiring processes can be addressed by training HR
I would identify specific occupational categories within each. This will help us determine where
professionals and implementing diversity hiring quotas. Retention is another critical stage, where
women are underrepresented and what targeted interventions can be applied. Does that sound
barriers include a lack of work-life balance, insufficient maternity benefits, and safety concerns.
like a good place to start?
Flexible working hours, childcare facilities, and workplace safety programs can tackle these issues.
Yes, that sounds logical. Could you elaborate on how you would categorize these sectors?
In progression, women often face the glass ceiling and a lack of mentorship. Leadership
Certainly. In the private sector, I would look at corporate jobs, entrepreneurship, manufacturing, development programs and formal mentoring structures would help. Finally, in re-entry, many
NGOs, and freelancing or the informal economy. Agriculture is an interesting case because it women struggle to return after career breaks. Returnship programs and re-skilling initiatives can
straddles both private and informal employment, so I’d address it as its own category later. In the address this.
public sector, I’d focus on roles in government and policymaking, as well as any public enterprises That’s quite thorough. Now, let’s move to entrepreneurship. How would you apply the AMO
that employ a significant portion of the workforce. framework here?
Good structure. Let’s start with your broader analysis. How would you break this down across Entrepreneurship can be analyzed through three lenses. First, ability, which refers to the skills and
these categories? knowledge women need to succeed. The barrier here is a lack of business training and financial
For the private sector, corporate jobs involve structured organizational roles, often in industries literacy. Offering targeted workshops on business management, accounting, and digital marketing
like IT, banking, and consulting, where there are barriers like work-life balance and leadership can address this. Second, motivation, which involves overcoming societal stigma and inspiring
opportunities for women. For NGOs, the one additional aspect would be the amount of women to become entrepreneurs. Featuring successful women entrepreneurs in campaigns and
opportunity there is to create positive social impact. Entrepreneurship includes women starting creating visible role models can boost motivation. Third, opportunity, which revolves around
businesses, where the focus would be on access to funding, mentorship, and business training. access to resources like funding and networking platforms. Women-focused venture funds and
Manufacturing typically involves factory work, where issues like workplace safety, fair wages, and exclusive networking events can ensure they have the opportunities needed to start and grow
equitable hiring policies are critical. Freelancing or the informal economy, which encompasses their businesses.
women monetizing skills like tailoring or home-based services, requires addressing financial Excellent. You’ve identified detailed strategies for both contexts. How would you recommend
literacy and creating digital platforms for women to find opportunities. Does this sound implementing these?
reasonable? In the short term, for corporate jobs, I’d pilot flexible work policies in selected companies and
Yes, sounds good. You can move on to other sectors. introduce mentorship programs. For entrepreneurship, I’d host financial literacy workshops and
For agriculture, though it is technically private sector, it has a significant informal component, and create a women-focused venture capital fund. In the long term, for corporate, mandating diversity
the challenges here include access to credit, technical knowledge, and market linkages. In the hiring quotas and establishing government-backed leadership programs would institutionalize
public sector, I’d consider increasing women’s representation in policymaking, administration, and progress. For entrepreneurship, promoting women-specific funding schemes through public-
public enterprises by creating reservations and supporting their professional growth. private partnerships and institutionalizing mentorship platforms would create lasting impact.
That’s quite detailed and well structured. If you were to provide a high-level strategy for each, That’s a great recommendation. I think we’re done here. Thank you!
what would that look like?
For corporate jobs, I’d focus on flexible work policies, mentorship, and leadership development.
For entrepreneurship, the key would be funding access, business training, and mentorship
programs. In manufacturing, workplace safety, gender-neutral hiring, and tax incentives for
inclusive employers would help. For freelancing and informal work, I’d recommend building online
marketplaces and providing financial literacy programs. In agriculture, microcredit schemes and
skill-building workshops would be effective, and for the public sector, increasing representation
and providing targeted reservations would work well.
That’s a good overview. Let’s narrow the focus to corporate jobs and entrepreneurship. How
would you analyze these two?
For corporate jobs, I’d use a lifecycle analysis. This approach divides the workforce journey into
stages: pre-employment, recruitment, retention, progression, and re-entry. For entrepreneurship,
I’d apply the AMO framework, which evaluates the barriers to women’s participation through
their ability, motivation, and opportunity. Should I begin with corporate?

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 Unconventional | Public Policy | Moderate

Increasing Women’s Workforce Participation

Your client is an Indian policymaker who wants to increase women’s participation in the workforce. How would you approach this problem?
Interviewee Notes Case Facts Approach/ Framework
• Clarify the Problem Statement • Women’s workforce
and structure the solution. participation in the Workforce
Break workforce participation country is currently
into public and private below global and
sectors, then further into sub- regional averages Private Public
Agriculture
sectors like corporate, • Focus narrowed to Sector Sector
entrepreneurship, corporate jobs and • Reservations in
manufacturing, etc. entrepreneurship for policymaking
• When asked to focus on detailed analysis • Leadership
Corporate Freelancing / development
Corporate and Entrepreneurship Manufacturing NGOs
Jobs Informal Work programs
Entrepreneurship, use relevant
frameworks such as lifecycle
Corporate Sector (Lifecycle Analysis)
analysis for corporate, AMO
framework for Pre-Employment Recruitment Retention Progression Re-entry
entrepreneurship, etc.
• Prioritize practical solutions Promote STEM and Implement leadership
and ensure given Mandate diversity hiring Provide paid maternity Launch “returnship”
management courses via development programs
quotas and train HR to leave, childcare facilities, programs and re-skilling
recommendations are scholarships and and formal mentorship
address unconscious bias and flexible work options initiatives
actionable within the socio- awareness campaigns structures
economic and cultural
Entrepreneurship Analysis (AMO Framework)
context.
Ability Motivation Opportunity

Lack of business skills and Social stigma and absence Limited access to funding
Barrier
financial literacy of role models and networking platforms

Conduct workshops on
Highlight successful women Establish women-focused funding
business management,
Strategy entrepreneurs through schemes and exclusive
accounting, and
campaigns networking forums
digital marketing

Recommendations
• Pilot flexible work policies in corporate jobs and host financial literacy workshops for entrepreneurs.
• Promote government-backed funding initiatives for entrepreneurship. May also partner with private players to launch government-backed venture capital funds focusing on women entrepreneurs.
• Create public-private partnerships to promote workplace inclusivity and safety in manufacturing and agriculture.
Key Learnings
• It is important to break down the workforce into public and private sectors ensures clarity and targeted interventions.
• Leveraging tools like lifecycle analysis for corporate roles and AMO analysis for entrepreneurship provides a clear, MECE framework to identify root causes and craft actionable solutions.

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 Unconventional | Oil & Gas | Difficult

Oil Marketing PSU – Interview Transcript

Your client is an Indian oil marketing PSU. They want to grow their non-fuel revenues. How should Okay. I would break this down into three dimensions: which pumps to add NFR to, the operating
they go about it and what operating model should they adopt? model, and the service delivery approach. Does that sound like a good approach?
What does non-fuel revenue entail? And why is the client seeking non-fuel revenue? Yes, you can start off with this and then develop it as you go along.
Non-fuel revenue primarily comprises the retail outlets that are run at petrol pumps. Internationally, For target pumps, we can classify these based on two dimensions: geography and customer
such stores generally sell coffee, cigarettes, liquor, food items and some auto supplies. It’s like a segments. We can then evaluate their typical customers based on 4 factors: need for non-fuel
convenience store. But in India you can’t sell liquor at petrol pumps. The client is interested in this consumption, time availability, spending capacity, and presence of alternatives. On the geography
because fuel sales in India have very low margins while non-fuel retail has much higher margins. dimension, it would be better to focus on highway pumps instead of intra-city – their customers
have a strong need for refreshments and food, have significant time at hand, and there are typically
Got it. Fuel sales are high volume but low margin, so the client wants to boost profitability through
limited alternative options available. Within this, the client could consider prioritising highways
this subsidiary revenue stream. I’d like to know a bit more about the client. What is their
connecting Tier-2 cities. Their travellers should have decent spending power and the competition as
geographic presence like, and what is the current state of their non-fuel operations?
saturated as on highways connecting Tier-1 cities where there are large stopping points already
They are one of the largest oil marketing companies (OMCs) in India and have over 1 lakh petrol established.
pumps across the country. They have non-fuel retail at 20 pumps and want to grow 100+ such
Okay. So, petrol pumps on highways connecting Tier-2 cities.
outlets per year going ahead.
Yes. Further, they can also target specific customer segments within that. This has implications for
Is there any pattern to these outlets – do they focus on certain types of pumps or geographies?
both the target pumps and the assortment. Petrol pump customers will either be commercial
What is the assortment they focus on? And how are they performing?
drivers like truckers, or normal passengers like cars. The client should prioritize normal passengers
These outlets are distributed across the country and types of pumps. The assortment is like any as they have will have much greater need for impulse or discretionary items, higher spending
general convenience store, but it has not been finalized yet. These stores are at a trial level right capacity and lesser time pressure. Truckers have a guaranteed need for food, but they would look
now, and we don’t have any results yet. You can think from first principles. more for meals than snacks. Accordingly, we can prioritize deployment to pumps on routes that see
greater passenger traffic. Over time, as capability develops and basis resource availability, the client
Okay. My hypothesis is that these stores will primarily cater to impulse purchases and refreshment can look to expand to full-fledged break stops and target Tier-1 city highways too.
needs, and perhaps day-to-day general purchases. What are the different types of pumps of the
client? Sounds logical. Now, what model should these stores run on?

You can broadly think of them as 2 types: highway pumps and intra-city pumps. Retail outlets can broadly be of two types: own operations and franchise operations. Are both of
these available options here?
And what is the market landscape like in non-fuel retail. What do other players do?
Yes. There are three possible models: company owned & company operated (COCO), company
It’s fairly new as a concept in India. Many petrol pumps have shops and dhabas around them, but owned & dealer operated (CODO) and dealer owned & dealer operated (DODO).
rarely as part of the pump itself.
Okay. There are three parameters that need to be evaluated here: control, cost and capability.
Okay. So just to reconfirm, the client wants our recommendation on how to grow its revenues 1) COCO will give full operational and brand control, but also high costs. Further, there will be a
from these non-fuel outlets on its petrol pumps. major capability gap – running retail outlets, particularly in grocery or food & beverages, is not
Yes. an area of existing competence for an oil marketing company.
2) CODO should give decent operational and brand control through standardized processes and
They can achieve this growth through organic or inorganic means like partnerships and acquisitions. brand guidelines, while bringing in retail expertise and assortment localization. Costs will also
Do they have any preference at this stage? be lower with most of the operating costs being outsourced.
3) DODO will have the least control and risks brand dilution and brings in revenue-generation
Broadly organic, but you can consider different models within it.
risk from dealer resistance. At the same time, it will have the least cost and outsource the
Okay. So, within organic growth, they can grow revenues in the existing categories that they sell or retail operations.
explore newer product categories. Since this is a new concept, I’ll focus on the existing categories I feel the client should adopt a CODO model – it will give control, be scalable, and bridge
first. Here, they can look to grow their revenues in the existing markets they are trialing at present capabilities.
or through expansion into other markets.
And then how will the outlets run under CODO?
Don’t give me this marketing framework of product-market for growth. I want to know how the
That brings us to the service delivery approach, comprising the process approach and organization
client should incorporate non-fuel retail into its operations and what operating model it should have
design. I’ll cover both together for each value chain step. The value chain will comprise assortment
for these stores.
planning, sourcing, logistics, and store operations, with a supporting function for infrastructure.

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 Unconventional | Oil & Gas | Difficult

Oil Marketing PSU – Interview Transcript

Sure. You can elaborate on them one-by-one. Given the partner’s retail capabilities, it would make sense to outsource the entire assortment
planning, sourcing, and store operations to them. For these, the client could define overarching
I would break the assortment and its planning into two buckets – food & beverages, and non-edibles.
guidelines and mandates as part of the partnership agreement but leave the operational details to
F&B can be further broken into packaged and non-packaged. Packaged can comprise standard snacks
the partner. Store design may also be done better by the partner. The actual infra setup as well as
and drinks, while non-packaged would be quick-service items like tea & coffee, sandwiches, samosas,
logistics can be handled either by the client or by the partner based on their unit economics.
and so on. Non-edibles can be cigarettes, auto supplies, travel accessories, and so on.
F&B will have significant regional variations in demand. So, it would be better for the client to define These operating plans make sense but won’t they bring too much fixed costs and thereby risk on to
the overall range but let the operator decide the exact assortment within it. For non-edibles, there the client?
may be some brand differences, but the categories themselves should largely be consistent. The
client should keep this in-house to leverage scale economies in sourcing. Yes, that is true. Since the outlets are all company-owned, capex will be high posing a breakeven
Does this structure sound good? Because, assortment will influence the other value chain steps. risk given this is still a new concept. There are two ways to mitigate it:
1) Let the dealer or partner take on infrastructure creation too, with the client only providing
Yes. This is a good assortment structure. You can proceed to the other elements. layout specifications. This will reduce fixed costs at the expense of revenue share.
2) Do a phased roll-out, state- or region-wise, containing the sunk costs should the concept not
1) Coming to sourcing, the non-edibles can directly be procured from respective brands at a
work out as well as thought. This will also reduce the overhead of warehouses and so on
national level through an account management team. In F&B, packaged items can also be
needed up front during the initial stage.
procured nationally by aggregating demand, but non-packaged should be with the operator
since both supply & demand are localized. Awesome. We can end the case here.
2) Logistics will comprise warehousing and transportation. The client will need to set up its own
warehouses for packaged F&B and non-edibles. Non-packaged F&B won’t need significant
storage and can be stored directly in the stores. Transportation can either be done using the
client’s fleet or outsourced based on existing capacity and the economics.
3) Store operations will be at a national and store level. At the national level, the client will need
to have a dedicated NFR store management team to coordinate operations and systems,
monitor SOP adherence, and oversee any issues as well as growth opportunities. They will
also need a training team to train the dealer’s employees on the SOPs and brand guidelines.
At the store level, operations can be broken into packaged items and non-packaged. The
packaged team will primarily focus on shelf management, inventory and visual merchandising,
while the non-packaged team would cover both preparation and service.
4) Infrastructure creation can be done by the client in-house as they will already have those
teams for petrol pump expansion. However, they will need to add a dedicated team for store
design and space planning.
That was really comprehensive! I think that sounds like a good model.
Thanks! This is an approach they can follow for the organic CODO model. However, there’s also an
alternative partly-inorganic operating model that they can explore, which is to partner with a
convenience store chain to operate the NFR outlets.
Why would the client want to do that?
It’s a win-win model in that the client provides retail opportunities and space to the partner while
they bring expertise. On our three parameters:
1) Control: While the client will have less direct control, the operations themselves will be much
better controlled and organized, providing consistency across outlets and reducing brand risk.
2) Cost: Much of the operations can be outsourced in this case, further lowering costs. However,
the downside is that a single partner will get more bargaining power, reducing revenue share
for the client. The client will need to see which way the balance tilts.
3) Capability: This model will provide the best capability, with outlets now run by a retail expert.
Makes sense. That’s a great idea! How would operations run under this model?

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 Unconventional | Oil & Gas | Difficult

Oil Marketing PSU

Your client is an oil marketing PSU. They want to grow their non-fuel revenue and want your inputs on how to go about it, particularly where they should
grow and what operating model they should follow.
Interviewee Notes Case Facts Approach/ Framework
• Non-fuel retail = • Client wants non-
Non-fuel Retail
convenience store at fuel retail because
petrol pumps. it is higher margin.
• COCO, CODO, • Client has 1 lac Target Petrol Service Delivery
Operating Model
DODO are all organic. petrol pumps; NFR Pumps Approach
Consider inorganic? being piloted at
• Oil marketing company 500. Customer Parameters Organic Inorganic
Geography
Segments
unlikely to have grocery • No data from pilot.
COCO CODO DODO Partnership
retail competence. • Grow 100+ stores Highways Passengers
• 4 parameters for target per year. Control High Moderate Low Moderate
pumps: non-fuel • Fuel pumps of 2 Commercial Cost High Moderate Low Moderate
Intra-city
consumption need, types: highway & Drivers
Capability Low Moderate Moderate High
time availability, intra-city
spending capacity, • 3 operating model
competition options: COCO, Primary Support
CODO, DODO Value Chain Activities
(D=Dealer)
Assortment Store
Sourcing Logistics Infrastructure
Planning Operations

Assortment Planning Store- Store Infra

National Warehousing National
Range Operations level Design Creation
Non-packaged /
Food & Non- Local Transport Packaged
Quick Service
Beverages Edibles

Non-
Packaged
Packaged

Recommendations:
1) Target petrol pumps on highways connecting Tier-2 cities and having high passenger traffic.
2) Go with a CODO or partnership operating model, outsourcing retail-specific activities and consolidating planning, sourcing, and logistics as far as possible for scale economies.
Key learnings:
1) Be flexible to change approach during the case and be mentally prepared for lack of data.

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 Unconventional | BFSI | Difficult

Commercial Vehicle Loan – Interview Transcript

A microfinance company is diversifying into the commercial vehicle loan segment. Design the The person lives with his wife and 2 kids. None of them earns.
approval mechanism for the new scheme, keeping an individual in mind.
The personal expenses can be divided as food, rent and utilities, education expenses of children,
I would first like to understand the current business of the client and why they are planning to other miscellaneous expenses like medical and clothes. Is that fine?
diversify. Yes fine. Let’s only focus on food, rent and education for now. Assume the rent is 2000, food
It’s a pan-India company that provides loans to SMEs and individual businesses. Now they want to expense is 5000, education expense is 1000 per kid and miscellaneous is 1000, all per month.
extend that to commercial vehicles like mini-trucks for category expansion. That sums up to INR 10000 per month of personal expense. That leaves him with a saving of
INR12500 (50000-27500-10000) per month.
What kind of customer segment is the company targeting? Is there any constraints that we put on
customers? Good. What do you think, should we disburse the loan?
Let’s focus only on individual customers. If anyone walks up to us, we will evaluate their application. The person saves INR 150000 annually. For 10% simple annual interest rate in 5 years, the simple
Tell me how you are going to evaluate such applications. interest is INR 250000 (INR 500000 * 10% * 5). Assuming equal payment across 5 years, this amounts
Analysis can approached in two parts: Individual’s ability to pay back and risks attached to the person. to collection of INR 150000 annually ((500000+250000)/5) which is same as annual savings of the
The ability to pay back is dependent on income and expenditure of the person. family.
Let’s explore the risk part first. Since, we have not considered margin of safety yet, this seems a risky loan. We should not approve
this application.
We can look at an individual level and cluster level. We can check the past credit history and existing
loans and use analytics at cluster level to find if the person may default. Analytics can be performed Well, you seem to be a risk averse person. What can we change so that we can approve the loans?
using existing data with the company. We can look at it from a person-specific and product perspective. For this person, we can increase
Good enough. Going further, let’s focus on an individual and decide if we should give out loans. the down payment amount, get collateral and include a guarantor. From a product perspective, we
This person takes vegetables from a large farmer and sells it in mandi. He is planning to buy a mini can look to change the terms like time horizon or come up with a new financial product altogether.
truck worth Rs.6 lakhs. He will pay Rs.1 lakh as down payment and has come us to lend him the That’s all. Thanks for the comprehensive analysis.
remaining Rs.5 lakhs. How do we decide?
Sure. So, I will try to understand his ability to pay us back. This will constitute assessing his/her
income and expenditure, also the time duration and interest rate of the loan. Is reselling of vegetable
the only source of revenue for this person?
Yes, this is the only source of income. We expect them to pay back in 5 years with 10% annual
simple interest rate.
I would like to start with calculating his revenues. The monthly revenue can be divided into two
parts: Average income per trip and number of trips per month. Do we have information about these?
Yes, he earns around INR 2000 per trip and does 25 trips in a month.
Perfect. This means, they earn INR 50,000 (INR 2000 * 25) per month. Next, I can look into the
expenses. This can be further broken into professional and personal expenses. I would like to start
with professional one first.
Sure, go ahead.
The professional costs can be broadly categorized as Fuel costs, Maintenance and Insurance costs
related vehicle and some additional labour costs for vegetables loading-unloading. Fuel cost can
further be divided in the distance times number of trips per month times average fuel prices per km.
Let’s ignore the labour costs and club rest of the expenses as variable cost of INR 22 per km. The
mandi is 25 kms away.
That means for 50km to and fro daily trip, the monthly professional costs are INR 27500 (50km *
INR 22 per km * 25 trip in a month).
That’s, right.
Next we can look at the personal expenses. How many members are there in his family? Do others
earn as well?

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 Unconventional | BFSI | Difficult

Commercial Vehicle Loan

Your client is a microfinance company. They are planning to initiate a new loan scheme for commercial vehicles. They need your help to design
the approval mechanism for the new scheme.
Application
Approval
Interviewee Notes Case Facts
• Big Microfinance Company: Ability to Pay
• Offers loans to SME and Risks
company with pan- Back
individual business which can be
India presence used for data analytics.
Credit
Revenue Total Expenses
• Expanding to Customer: History
Commercial Vehicles • Individual clients against large-
like mini-trucks loan scale players: Design policy for
individual customers Present Loans
segment
Professional Personal
Expenses Expenses
Analytics
Rent &
Fuel Expenses
Header Calculation Utilities
Transport 25/month * INR 2000
Earnings = INR 50000
Maintenance Food
(-) Professional 50km/day*INR 22/km* 25day/month
Expenses = Rs.27500
(-) Personal Rent = INR 2000 EMI
Expenses Food = INR 5000 Insurance
Payments
Education = INR 2000
Others = INR 1000
Total = INR 10000
Labour Miscellaneous
Savings INR12500

Key Learnings
• Scoping the problem at the very start is the key on unconventional cases as this. Without defining the subject of analysis, it would have been very difficult to dig further.
• Quantitative cases are by their nature very particular. Double checking the exact calculation before speaking is very important. A small error is a major dampener. Best way to check is run
the entire calculation through the interviewer briefly.
• Important to make assumptions on the fly both as an unconventional and a number-heavy case. Always a good idea to keep explicitly stating the assumptions and avoid a carry-forward
effect of errors later.
• Interviewer always wants something particular out of these. Good to be in the discussion mode and present as many alternatives as possible and let them lead you. Being conservative and
very particularly hypothesis-heavy might actually hurt.

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 Unconventional | Sustainability | Difficult

Carbon Credit Fund Strategy – Interview Transcript

The client is a nature conservation organization looking to set up a fund to invest in carbon credit- The client needs to define the type of project it would focus on. Key factors would be:
generating projects in India. Please advise them on key factors to consider a) Geography within India to invest in; b) Focus area: forest conservation v/s restoration v/s
Sure, sounds interesting. So, our client in a nature conservation organization looking to set up a management; c) Revenue model: carbon credit only or carbon credit along with sales of forest
carbon credit fund in India. Given their background, is it fair to assume that the fund would invest in products; d) Project size; e) Mix between self-developed and 3rd party projects
projects focusing on environment conservation/ restoration? Furthermore, client can evaluate currently running projects as investment opportunities.
Yes, the client aims to invest in such projects. They are focusing on forest-related projects in India. Fair enough. The client has some assessment of the geographical area and is working toward defining
Okay. Before I get into the elements of strategy to be kept in mind – I would like to clarify a few the exact project type. These inputs would help for the same. Let’s move onto the next section.
things. Firstly, what is the prevalence of such projects in India? Next, what is the expected fund size
In terms of ‘How to win’, I would broadly classify the activities under the following buckets:
& type of investors? Finally, what is the primary objective of the fund – financial returns,
a) Deciding the fund structure: Number of investors, type of investors to onboard, ticket size, fund
environmental benefits, or social benefits?
incorporation, and its terms & regulations
All right. So, while there are several locations where such projects can be deployed, only a few b) Operating model: Understanding the relationship between various internal fund stakeholders and
projects currently operate that meet carbon credit issuing standards. The fund is envisioned to be setting up governance bodies.
$100M in size. There are no investors on board currently; some investors are interested but want Furthermore, it would also require understanding various partners/ parties involved at each stage of a
the fund first to define its entire strategy first. In terms of objectives, the fund is looking to do well project’s life cycle, from origination to carbon credit verification to sales.
on all three parameters. What metrics should the client track to assess performance on all three? c) Capabilities: Identify critical capabilities required (technical expertise, project feasibility assessment,
Sure. In terms of financial performance – ROIC & NPV could serve as good metrics. Environmental investor management team, etc.) and work towards building them in-house (technical facility) or via
benefits can be measured via # carbon credits generation, the area under conservation, # species on-ground/ community partners.
protected, etc. Social benefits can be measured via # of people employed, community benefits, etc. Broadly, these are some key areas to look at. Do you want me to go into further detail?
Also – is it fair to assume that the fund will develop new projects and not just invest in existing
This sounds comprehensive. The client has a few specific questions. Let’s discuss those. Building on
projects, given the paucity of viable projects?
the fund structure, do you have any initial recommendations on the investor mix (by type)?
Sounds good. While the fund’s key focus is environmental benefits, the other two are equally
The exact investor mix would depend on several factors like investors available, funding ability, and
important, partly due to different types of investors. Could you help us identify who these different
investor objectives. If we have any more detailed information about the same, then I can work toward
types of investors could be, and would all three objectives be equally important to them?
build a more granular recommendation. However, at a broader level, I would recommend having a mix
And, yes, the fund is willing to invest in both external & self-managed projects.
between private financial institution and DFIs to balance financial and environmental objectives.
I believe that in most cases all three types of benefits would have some value to investors who are
The broader suggestion works. We do not have any granular information at the moment. Could you
looking to invest in the fund, however the priority of benefits may vary. Few investor types are:
finally help the client understand the various risks and challenges for such a fund?
1) Private financial institution – Usually financial benefits are the key priority
2) Corporates – Investment could be driven by financial motives, but in most cases social/ Some of the key risks that the fund would face are:
environmental benefits are more crucial. They may be looking to build a brand narrative. 1) Nascent India market for trade in carbon credit or green credits
3) Developmental financial institutes/ Government – Environmental or social benefits would be key; 2) Risk of projects being claimed to be encroaching on local community land
Financial benefits are required, but not the most important criteria (give grants) 3) Lack of availability of funds/ projects to invest in India given the nascency of the industry
4) High uncertainty as returns highly dependent on carbon credit prices
This sounds fair. I think we have a decent understanding of fund’s objectives & investors. Let’s now
5) Developing market and newer regulations could impact the flow of carbon credits
move towards advising the client on key areas to look into.
6) High risk of project failure in initial stages
Sure. Now that we have a basic understanding of the various objectives at hand & investor types.
Are there any potential steps that the client can pursue to reduce these risks upfront?
We should look into the following two areas:
1) Where to play: What would the key focus areas and project portfolio choices? The client can undertake the following actions, to safeguard against some of the risks:
2) How to win: Focusing on fund structure, operating model, & capabilities required. 1) Set–up a comprehensive community benefit sharing program – both monetary and non-monetary-
The above areas would broadly cover the fund’s strategy areas. Does this sound fair? at the onset of any project
2) Look to set up corporate partnerships to secure steady demand for carbon credits
Yes. This looks good. Let’s start with Where to Play.
3) Set-up partnerships with on-ground project developers to secure access to upcoming projects
4) Encourage and pitch to the government to promote green credit & carbon credit program
Great. We can close the case now. Thank you for your time.

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 Unconventional | Sustainability | Difficult

Carbon Credit Fund Strategy

The client is a nature conservation organization looking to set up a fund to invest in carbon credit-generating projects in India. Please advise
them on key factors to consider.

Interviewee Notes Case Facts Approach/ Framework

• Enquire about the • Nature conservation
Carbon credit fund
objective and focus areas organization based in India
before proceeding with • Fund to focus on investing in
the strategy carbon-credit-generating
• Need to adopt a dual projects in India Objectives Where to play How to win Risks
viewpoint: one looking at • Projects would look to focus on
the fund and second forest conservation and
Project Nascent Market
looking at the projects restoration and generate carbon Environmental Fund Structure
geography & volatility
• As a fund, recognize that credits via carbon emissions
your core skillset may not sequestered v/s baseline Project revenue Govt.
Financial Operating model
be technical prowess; • Fund size expected to be $100M; model regulations
recognize the need for Investors not yet decided
Project size & Internal (fund Community area
extensive 3rd party • Focus on all three objectives Social
duration operations) encroachment
collaboration given different types of investors;
• When evaluating risks, try However, environmental is the Project focus External
Project failure
to apply the PESTLE core driver area stakeholders
framework to narrow • Fund will both invest in existing Invest v/s
down on potential projects & manage new projects Manage Capabilities
external risks

Key learnings
• The above structure provides an approach to tackle unconventional cases requiring discussing all strategy components. You start by defining objectives/ goals, then move to define the focus
area (via research, interviews, and financial modeling), then decide your operating model & approach to win that market, and finally consider risks & develop a mitigation plan
• In such cases, it is always good to get an understanding of the exact activities of such funds before approaching the solution
• View the problem from the lens of multiple stakeholders related to the fund. In this case, investors were direct stakeholders, but community members were indirect stakeholders and very
crucial for successful operations.
• The above interview did not discuss much on competition, given that the broader mandate was to highlight elements of strategy to consider. However, one can raise the same, especially
when talking about ‘Where to play’ and ‘Risks’
• Try to bring in insights that are relevant and current to the market

(C) Consult Club, IIM Ahmedabad 2024-2025 Page 53

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