McKinsey Case Interview Example - Market Study
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This is a McKinsey case interview walkthrough with Lisa Bright (ex-McKinsey) and Jenny Rae Le Roux (ex-Bain). The case is an interviewer-led case using the Market Study framework.
In addition, the case includes the Market Sizing framework as an element. If you're curious to see how an expert drives a full case from start to finish, you're in the right place! You can even pull out a pen and paper and do the case alongside Lisa and Jenny Rae!
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0:00 Introduction
4:43 Structuring Thoughts
6:10 Initial Framework
9:51 Data Interpretation
13:40 Quantitative Questions
37:14 Conclusion
38:39 Feedback
@ivyjumao-as9424 3 жыл бұрын
This is very insightful! Thanks for allowing your audience to journey with the mock process.
@Managementconsulted 3 жыл бұрын
Absolutely, Ivy! Thanks for following along.
@84balls 2 жыл бұрын
All the calculation she made was based on the US market (bec she was presented with US market data). However, BevCo have global operation with 10 bottling plants around the word too. Maybe that should have been discussed in the recommendations too?
@danielbielak6479 2 жыл бұрын
Fantastic case study! I walked through it live alongside her and found that to be really helpful.
@emilycarter8922 2 жыл бұрын
You might want to check this out kzfaq.info/get/bejne/oK-jo5CJqM3IaKs.html
@cathleenong9170 3 жыл бұрын
love the video, it's very helpful, THANK YOU!!!
@timothymark01 3 жыл бұрын
This is outstanding! Thank you for going through the entire process with candid transparency.
@Managementconsulted 3 жыл бұрын
Glad it was helpful, Tim!
@timothymark01 3 жыл бұрын
@@Managementconsulted absolutely it is! I sincerely appreciate how non-staged it was, and how the interviewee did things that, upon reflection, would do differently. I think that having a model of what a great case looks like is necessary to help us benchmark our perceived progress. If this is the standard, it gives us something to work toward. Thanks again for setting this up for us
@halikrizki 5 жыл бұрын
Really enjoyed the video. Thanks!
@Managementconsulted 5 жыл бұрын
We're glad you did! Make sure to head to our website for more free case resources!
@frozboomify Жыл бұрын
This was ane excellent case!
@veraczuz 3 жыл бұрын
In the beginning of the interview, @2:01, interviewer said "4bn$ in year 2 not by the end but actually in." and @17:40 the topic discussed again and interviewer said when you think breakeven point will happen and the candidate said "at the end of year 2 so I can cover fixed cost at the end of year 2." So here is the question; if it is end of year two, 60 m fixed cost should be calculated twice or not? If breakeven happen in the year not end of year, then should we calculate only first year's fixed income? which basically means Revenue - 60m-Variable cost= Profit what actually she did.. Please reply back, I'm waiting for your answer. @management consulted
@MrWhy1 2 жыл бұрын
This is brilliant
@lillylove5553 3 жыл бұрын
Wow is this really the expected standards for the interview?
@huaweihonor7714 Жыл бұрын
Do you have any video tutorial or online source for "Associate" interview in McKinsey ? Kind regards,
@wolfgangi 2 жыл бұрын
Damn she's good, I like how confident she carried herself
@dayofmylife7289 Жыл бұрын
awesome structure
@secretarydenasti4068 3 жыл бұрын
Good Performance
@awds121 2 жыл бұрын
Does anyone think that she went into too much detail at the beginning while she was planning her strategy? Because there are too many unknowns and you can come up with million different strategies. I would focus on understanding market dynamics and competitors and ask for extra information about these two. Once I established a base, I would move on to a more detailed analysis such as where to place the product and if we could. What do you think?
@KG-ik3gk Жыл бұрын
Isn't the question "how should BevCo design their product launch strategy?" - calculating the market gap opportunity is only one component of the answer?
@user-qi8ep3mg9w Жыл бұрын
This is very informative. Would it be ok if consultants used computers instead of writing down the information?
@OgwucheJoseph 2 жыл бұрын
Is the case usually read this fast?
@jameswang6346 3 жыл бұрын
The beginning of the case said client is looking to make 4 M profits at BEGINNING of year 2 (in year 2), so the breakeven should be beginning of year 2, not the end of year 2.
@gankala8 4 жыл бұрын
I was always curious why clients should engage with McKinsey to figure out their Market entry or attractiveness of a market. Most startups do their own primary and secondary research by talking to a potential customer and finding a niche/beachhead market. You can also do a Porters five forces analysis for your industry and focus on the 4P's (marketing mix) - Price, place, promotion, and product
@Managementconsulted 4 жыл бұрын
Startups usually can't afford McKinsey. Consulting firms are most often engaged by enterprise clients who are trying to mitigate risk.
@gankala8 4 жыл бұрын
@@Managementconsulted but that's the point I'm making. startups who are in masses can't afford. Enterprises who can afford should hire a team internally to develop marketing strategy. I would assume all top companies like Google and FB would have rockstar management consultants advising their CEOs or execs. Why do companies still use McKinsey to mitigate risk?
@mikolajbaranski7505 4 жыл бұрын
@@gankala8 Because large enterprises aren't as flexible as startups and most face different challenges than digital companies such as Facebook or Google. A company like McKinsey maximizes the efficiency of its employees and provides a more robust and cost-efficient analysis compared to what could be produced if each company had their own "management consulting" department.
@gankala8 4 жыл бұрын
@@mikolajbaranski7505 Good point. You sound like a BCG or McKinsey guy.
@asdasdd320 3 жыл бұрын
@@gankala8 and you sound like an idiot :D
@abhinavgupta3632 3 жыл бұрын
I think she made a mistake with the considering the fixed costs. The fixed costs had to be doubled because the objective was to make profit in 2nd year and the fixed costs were 60 mil per year. Barring that, this was a very interactive and insightful case study
@Managementconsulted 3 жыл бұрын
Thanks for your note!
@siddharthranawat1814 3 жыл бұрын
I think it was initial fixed cost like for plant setting, initial launch marketing and other expenses
@andrianiatmadja1095 3 жыл бұрын
I think she assumes that it's $4m of "annual profit" in year 2. So she does not need to double the fixed cost, considering that she's only calculating the volume they need to hit in year 2.
@anubhabde1310 4 жыл бұрын
Enjoyed the video, just got a couple of questions. When you are trying to capture 12.5% of the market and plan to be profitable by 4 million USD by 2 years that sounds like a pretty aggressive growth strategy. Should not there be a question on inorganic growth or acquisitions given R&D will anyways result in time and a sunk cost and you will get a established player and a footprint in the market? Another question is the case started with market sizing and distribution channels and capabilities. When we are discussing about customer, competitors, product, company, market and value chain should not customer segmentation or demand come first? Just trying to understand if there is an order to the things for analysis. Also, factors like margin paid to distributors w.r.t competitors for product push or pull, cannibalization, geography overlap, effort spent in marketing and sales, self visibility, product life cycle can be considered for retailers/distributors to host the product?
@happaman 4 жыл бұрын
Strong performance! Keep these coming!
@Managementconsulted 4 жыл бұрын
We're working to release more case walkthroughs soon!
@christosmaroulis132 2 жыл бұрын
Why is that you are NOT (roughly) halving the required 40mill PowerUp gallons to achieve a $4mill profit in the first two years? You are arriving at a 12.5% required market share for PowerUp by implicitly assuming that all 40mill gallons need to be sold in Year1 when your problem statement requires that you reach $4mill within Year2. Ergo, sell ~20mill in Year1 and another ~20mill in Year2, or however you want to split PowerUp's sales volume to achieve $4mill profit before the end of Year2.
@souhailzouhal7831 4 жыл бұрын
60m fixed costs is annual and should therefore be included 2 times in the breakeven calculation.
@anishmondalzen 3 жыл бұрын
Its the beginning of year 2, hence 1 year only. Even VC are taken for 1 year.
@owardocarther30 2 жыл бұрын
My question is rather, where do you find those market sizes, those graphs etc. Is that calculated inside McKinsey or is this publicly available?
@julio1148 2 жыл бұрын
often the data is tweaked for the interview, they just want to see how you think
@eQuiLLity 4 жыл бұрын
really awesome mock interview. Would it possible to get a copy of this case?
@Managementconsulted 4 жыл бұрын
We have cases here: managementconsulted.com/product/case-bank/, and also release free cases here: managementconsulted.com/free-case/
@hebasaad3008 9 ай бұрын
i enjoy it , so ggod
@fiveguys540ee 5 жыл бұрын
looks more like its for a senior consultant position. scary lol
@enriquelara9427 3 жыл бұрын
Please fit product, where it says project. Thank you.
@Dylan-iq1de 3 жыл бұрын
Where does the company get the target of 4 million from? I feel like IRL companies would more likely have a market share target instead of a random profit/revenue number?
@sloyism 2 жыл бұрын
It is always about profitability. What would be the point to get a huge market share if your new product generates massive losses to the company? So each time you have such challenge to address, it is always related to ROI, payback, break-even and profitability more than market share.
@Dylan-iq1de 2 жыл бұрын
@@sloyism I get that, but the 4 million is just a random number, why not 8 or 1 million? To come up with a realistic target you will need to look at how much market share you can get for example, alongside with other metrics ofcourse
@sloyism 2 жыл бұрын
@@Dylan-iq1de There is no specific reason for 4 M. It is just a case. It could have 1M or 12M, it would have changed nothing. What is key here is how there candidate is driving his analytical thinking. The figures are just here to support the case.
@kassoumdembele8203 3 жыл бұрын
Between GMAT & Case interview what is more hard?
@enriquelara9427 3 жыл бұрын
As a management consultant, the human resource being interviewed should have grasped quicker that with such a low profit margin, before deducting fixed costs, there is no way you can execute the launching of the new project. Even more, there are statistics of that market regarding minimum profit margins.
@DrJohnnyJ 2 жыл бұрын
Curious. If they can't do it (full vertical integration) then nobody can AND others have done it which means that it can be done. Seriously, there are no new investments required beyond legalities/paperwork and some testing.
@abhinavgupta3632 3 жыл бұрын
I think you did fell into the 100% bar graph trap. While you find that healthy drinks has no clear leader, you may have possibly ignored the customer preference between the three categories of packaged ice coffee. It's possible that health Iced coffee is itself not a preferred option.
@regina4376 3 жыл бұрын
That’s such a good point!
@cocoarecords 3 жыл бұрын
Amazing, yes it might be a new initiative but not necessary attractive to the customers and can make some losses
@mintswi 3 жыл бұрын
Really good point!
@davidzeibert7981 3 жыл бұрын
She mentioned that in the final minute, noting that the health sector of the prepackaged market could be 2%
@truthorsin1991 3 жыл бұрын
She didnt get its 120 million fixed cost by year 2
@nehedeezy5055 2 жыл бұрын
My first question would have been if they need help renaming.
@shubhangijalan1908 Жыл бұрын
🤣
@VamsiVaranasiKrishna Жыл бұрын
The interviewer is being so "nice" - usually that means the candidate won't be selected, because why twist the screws on someone you won't even hire, right? Hiring managers tend to test the candidates they might hire harder than the ones they won't hire.
@reemfahim1798 Жыл бұрын
i think there is a math error ,, she account for the fixed cost for 1 year and not 2 years ,, total FC should be 120 mn ,,
@gaymoderate4403 Жыл бұрын
ok so she's just throwing everything at the wall and seeing what sticks lol
@ethanluc8908 4 жыл бұрын
Is the interviewee at MBB?
@Managementconsulted 4 жыл бұрын
She was at McKinsey.
@aliakan9400 4 жыл бұрын
Not a mutually exclusive framework!
@zachkiefer 3 жыл бұрын
viewers: put this on 1.25x speed
@aayushkhazanchi7770 3 жыл бұрын
1.5 here
@damentomassi8353 Жыл бұрын
I clearly lack the knowledge necessary to understand why an outside consultant would be needed to perform this type of analysis. I don’t understand how orgs provide generic “business consulting”. Seems like a bygone remnant of the 70s… Read how McKinsey destroyed the middle class.
@aryanwarrior6233 Жыл бұрын
D one in black talks in irritating way
@SilviaViolin 3 жыл бұрын
1st question to discuss would be their packaging. What materials do they use? Biodegradable plastic? 2 can they source fairly produced cafe beans,? Can it be locally produced. If not, it‘s a stupid idea ecologically. 3. is cafe with caffein healthy? Are their other fizzy drinks healthy or should they stop selling them? 4. are there any locally produced, healthy options? 5. growth and profit has no value for the sake of it, it‘s nonsense. They need to think about something ethically socially valuable.
@SilviaViolin 3 жыл бұрын
What‘s the point of selling ice cafe?? Where’s the social benefit??? Could you first explain that before you do all these calculations? Cafe is an unethical product, every beginner knows that. Could you explain how they manage fairly the cafe production???? Where do they get it from, if they pay the workers properly it will be much more expensive, your calculations are totally wrong, sorry!
@saptarshidas488 3 жыл бұрын
Could you provide your analysis then?
@SilviaViolin 3 жыл бұрын
@@saptarshidas488 Yes, firstly cafe is a very expensive product, if you want to source it fairly. It is still a very corrupt and unfair business, going back to imperialism and abusing cheap labour. Secondly, selling a drink in small coups gives a lot of packaging waste, what products do they want to use? Do they calculate the costs of biodigradable packaging? It is unecological to sell drinks in small portions. They should sell 2 litre bottles, but with cafe that is not working, bad business idea. Thirdly, drinks with caffein are unhealthy, it's not a responsible product to sell. Fourthly, can they source it locally, with minimum transport and CO2 Emissions? Hardly. bad business choice. The person who analized this missed out on everything essential. There was no common sense in it at all.
@rojassoul 3 жыл бұрын
Really painful to watch her struggling.
@Managementconsulted 2 жыл бұрын
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