Understanding Consulting Case Interviews
Case interviews are a critical component of the consulting recruitment process. They assess your problem-solving abilities, business acumen, numerical skills, and communication style under pressure. Success in case interviews requires both structured thinking and creative insight.
This practice case simulates a typical management consulting interview scenario. Work through it to develop your case-solving skills and prepare for actual interviews with top consulting firms.
Case Interview Fundamentals
Before diving into the case, remember these key principles:
Structure
Begin with a framework that organizes your approach. Clearly communicate your structure before diving into analysis.
Calculation
Show your math clearly. Be comfortable with mental math and sanity-check your calculations.
Insight
Don't just analyze—interpret. Connect your findings to the client's core question and provide actionable recommendations.
GreenGrow Organic Foods: Market Expansion Strategy
Background Information
Our client is GreenGrow Organic Foods, a mid-sized producer of organic packaged foods with annual revenue of $250 million. They currently operate primarily on the West Coast of the United States, with a product portfolio including organic snacks, frozen meals, and breakfast items.
After five years of steady growth in their current markets, GreenGrow is considering expanding into the East Coast market. The CEO has asked our consulting team to determine whether this expansion makes strategic sense and, if so, how they should approach it.
Key Question
Should GreenGrow expand to the East Coast market? If yes, what should their expansion strategy be?
Available Information
- GreenGrow's current manufacturing facilities are located in California and Oregon
- Their highest-margin products are their organic snack lines (40% gross margin)
- Frozen meals have 25% gross margin but require specialized transportation and storage
- Breakfast items have 30% gross margin
- The company has $40 million available for investment in this expansion
- Their target customers are health-conscious consumers, primarily ages 25-45 with above-average income
- The East Coast organic food market is estimated at $5 billion annually and growing at 8% per year
- Three major organic food competitors already have established presence on the East Coast
Step 1: Structure Your Approach
Begin by creating a structured framework to analyze this market expansion question. A good framework for this case might include:
Market Attractiveness
- Market size and growth rate
- Customer demographics and preferences
- Competitive landscape
- Regulatory environment
- Pricing dynamics
Company Capabilities
- Supply chain considerations
- Manufacturing capacity
- Distribution channels
- Brand recognition
- Financial resources
Expansion Approach
- Build vs. acquire facilities
- Product portfolio selection
- Pricing strategy
- Distribution strategy
- Marketing approach
Financial Implications
- Investment requirements
- Expected revenue
- Profitability projections
- Payback period
- Risks and mitigation
Framework Tip
When structuring your approach, remember to customize standard frameworks to fit the specific case. Don't simply recite a memorized framework—adapt it to address the unique aspects of GreenGrow's situation.
Step 2: Analyze Market Attractiveness
Let's start by examining the East Coast market opportunity:
Market Size and Potential
| Metric | Data | Analysis |
|---|---|---|
| Current market size | $5 billion annually | Significantly larger than West Coast market ($3.2 billion) |
| Growth rate | 8% annually | Strong growth compared to overall food industry (2-3%) |
| Addressable market | ~$2 billion (segments where GreenGrow competes) | Focusing on snacks, frozen meals, and breakfast categories |
| Market share needed for success | 3-5% of addressable market | Would represent $60-100 million in annual revenue |
Key insight: The East Coast market represents a significant growth opportunity, with a larger addressable market than GreenGrow's current regions. Even capturing a modest market share would meaningfully impact company revenue.
Competitive Analysis
| Competitor | Estimated Market Share | Key Strengths | Key Weaknesses |
|---|---|---|---|
| NatureFirst Foods | 22% | Strong brand recognition, extensive distribution | Higher price points, limited product innovation |
| EarthWise Organics | 15% | Local sourcing emphasis, loyal customer base | Manufacturing capacity constraints, limited frozen options |
| PureHealth Foods | 13% | Innovative products, strong social media presence | Recent quality control issues, premium pricing |
| Other smaller competitors | 30% | Specialty focus, regional loyalty | Limited scale, distribution challenges |
| Conventional food companies with organic lines | 20% | Strong distribution, competitive pricing | Less authentic brand positioning, limited selection |
Key insight: While the East Coast market has established competitors, there appears to be no single dominant player. The market remains fragmented, with approximately 30% held by smaller regional players, suggesting room for a new entrant with the right strategy.
Step 3: Evaluate Company Capabilities
Supply Chain Considerations
GreenGrow must determine how to efficiently serve the East Coast market given their current manufacturing footprint on the West Coast:
| Option | Pros | Cons |
|---|---|---|
| Ship from existing West Coast facilities |
|
|
| Build new East Coast facility |
|
|
| Acquire existing East Coast manufacturer |
|
|
| Contract manufacturing partnership |
|
|
Case Note
In a real case interview, you would need to conduct a more detailed cost-benefit analysis of these options using data provided by the interviewer. Be prepared to ask for relevant information and make reasonable assumptions when necessary.
Step 4: Financial Analysis
Let's analyze the financial implications of a potential East Coast expansion, focusing on the option to build a new facility:
Investment and Revenue Projections
| Item | Value | Notes |
|---|---|---|
| Initial facility investment | $32 million | Manufacturing facility, equipment, initial setup |
| Working capital | $5 million | Inventory, initial production runs |
| Marketing launch | $3 million | Brand awareness campaign, trade promotions, sampling |
| Total initial investment | $40 million | Aligns with available investment budget |
| Year 1 Projections | ||
| Target market share | 1% | Conservative initial entry |
| Year 1 revenue | $20 million | Based on $2 billion addressable market |
| Gross profit (30% avg margin) | $6 million | Weighted average across product lines |
| Operating expenses | $8 million | Includes SG&A and facility operating costs |
| Year 1 operating profit | ($2 million) | Expected first-year loss |
| 5-Year Outlook | ||
| Year 5 target market share | 5% | Growth through distribution expansion and brand building |
| Year 5 revenue | $117 million | Including market growth at 8% annually |
| Year 5 operating profit | $15 million | 13% operating margin after scale efficiencies |
| Payback period | 4.2 years | Within company's 5-year target for strategic initiatives |
Step 5: Recommendations and Implementation
Strategic Recommendation
Recommendation: GreenGrow should proceed with East Coast expansion by building a new manufacturing facility, focusing initially on their high-margin snack products, followed by a phased introduction of breakfast items and then frozen meals.
Key supporting points:
- The East Coast market represents a significant growth opportunity with strong demand for organic products
- The market is large enough to accommodate a new entrant, with fragmentation among smaller players
- Building a dedicated facility offers the best long-term economics and operational control
- Phased product introduction mitigates risk and allows for learning and adaptation
- Financial projections indicate acceptable returns within the company's strategic timeframe
Implementation Plan
Market Research and Location Selection
- Conduct detailed market research in target East Coast regions
- Evaluate potential facility locations based on logistics, labor availability, and incentives
- Finalize facility requirements and specifications
Facility Development
- Acquire land and begin facility construction
- Order and install manufacturing equipment
- Develop East Coast supply chain relationships
- Begin recruiting key personnel
Pre-Launch Preparation
- Complete staffing and training
- Finalize distributor and retailer relationships
- Begin test production runs
- Develop marketing and launch materials
Phase 1 Launch: Snack Products
- Begin production and distribution of organic snack lines
- Implement regional marketing campaign
- Establish retail presence in priority chains
- Gather customer feedback and market response data
Expansion and Optimization
- Introduce breakfast product lines
- Expand distribution footprint
- Optimize production and supply chain
- Begin frozen meal line installation and preparation
Key Risks and Mitigation Strategies
| Risk | Mitigation Strategy |
|---|---|
| Lower than projected market acceptance |
|
| Competitive response from established players |
|
| Supply chain disruptions |
|
| Production quality issues in new facility |
|
| Economic downturn impacting premium food segment |
|
Key Success Metrics
To evaluate the success of the expansion, GreenGrow should track these key metrics:
- Market penetration: Retail distribution points, market share percentage
- Financial performance: Revenue growth, gross margin, operating profit
- Operational efficiency: Capacity utilization, production costs, inventory turns
- Brand awareness: Aided and unaided brand recognition in East Coast markets
- Customer satisfaction: Net Promoter Score, repeat purchase rates
Download the Complete Case Study Guide
Get our comprehensive guide with more practice cases, frameworks, and detailed solutions to help you ace your consulting interviews.
Download PDF
