Desafio Estratégico Bain

CASE 1: Flour & Pasta

1) Considering F&P’s increase in marketing expenses, what is expected to be its pasta value share¹ in 2009?

1 Value share = Revenues of a certain brand or company (R$M) / Sum of revenues of all the players in the market (R$M)

2) Considering F&P’s brand positioning in the southeast region, in the pasta category, it is correct to say that…

3) If F&P managed to merge two of its pasta brands in the southeast region, blue and green, into a new brand, how much volume would it comprise? (units: k ton, 2008)

4) Considering the flour category in the southeast region, what is F&P’s price index² and value share (respectively) in 2008? 

2 Price index = Price of a certain brand or company (R$/kg) / Average price of the whole market (R$/kg)

5) By looking at the evolution of the flour market over time, what is correct to say?

6) What was F&P’s RMS in the flour category, in 2006 and 2008 (respectively)?

• RMS = relative market share
• If company is market leader  RMS = company’s value share / 2nd player’s value share
• If company isn’t market leader  RMS = company’s value share / leader’s value share
• Note: Value share = Revenues of a certain brand or company (R$M) / Sum of revenues of all the players in the market (R$M)

7) Considering the expected market behavior of cake mixes, and F&P’s current portfolio, which strategy would you recommend them?

CASE 2: TravelCo

8) Based on the estimate of TravelCo revenues and margins, what is correct to say?

9) “What we see here is an increasing acceptance of sales on internet. People from all segments that we target are more willing to use it” – CEO TravelCo
“Opening new stores is important for low income people” – Academic researcher
“To capture market share in Eco-Tourism and Groups it’s really important to have a strong store network. On other hand, train tickets sell very well through the internet channel, as it is a standardized product, just like our current ones” – Marketing Director TravelCo

TravelCo has limited resources to develop new products and sales channels. Based on quotes and other provided charts, what is correct to say?

10) What is TravelCo’s year 5 market share in the domestic packages market, considering its RMS? Please select the results that is closest

• RMS = relative market share
• If company is market leader à RMS = company’s market share / second player’s market share
• If company isn’t market leader à RMS = company’s market share / leader’s market share
• ROS = Return on sales = Net Income (before interest and tax) / Sales

11) What is possible to conclude about TravelCo’s product portfolio?

• RMS = relative market share
• If company is market leader à RMS = company’s market share / second player’s market share
• If company isn’t market leader à RMS = company’s market share / leader’s

12) What best describe the situation shown on graph 11?

13) It is possible to segment the market in three customer groups. Travel operators offer product lines for all segments. After analyzing the market segmentation and the product lines offered by the main players in the market, which is the best alternative?

14) Based on market segmentation and growth, it is correct to say?

CEO’s speech: “TravelCo has had a very strong focus on promo-packs. These packages have a stronger appeal among the economic segment, due to low prices.”

Product Line Director Speech: “We are leaders in the Promo Packs market, but that has not made us leaders in profitability! Maybe its time for us to rethink our customer strategy…”

Specialist 1 speech: “The luxury segment is the one where the customer requires more flexibility, and therefore more expensive products, such as greater choice of hotels and flights, better locations and more services available.”

Specialist 2 speech: “Luxury packages may have higher costs, but at the same time offer higher margins, since customers are less price sensitive”

15) After listening to the CEO and the specialists, what can you say?