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Case Interview Fundamentals: Lesson 19 [Drill: Beer Direct Sales] — Transcript

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0:00Hey guys, so in this framework drill,
0:02you will learn and apply two things. The
0:05first is the step-by-step to build and
0:08present your frameworks, as we've seen
0:11in the theory video on on that. And the
0:13second thing is
0:15how to adapt the 3Cs or how to adapt
0:19your frameworks, in this case the 3Cs
0:21framework,
0:22for a specific case. This is a
0:27medium to difficult, but more towards
0:30medium case on a beer company that's
0:33trying to start a direct-to-home
0:37beer delivery operation in major cities,
0:39and they want to know if they should do
0:40it or not. We're going to go into the
0:42case questions soon.
0:44Uh but first,
0:46a note for you guys who are practicing
0:49or who are learning. There are two time
0:52frames that you can consider in order to
0:55do the drill, do the exercise on paper
0:58or while recording on audio
1:01before you watch my answer. If you're on
1:04skill-building mode, so if you're
1:06building the skills of building
1:08frameworks,
1:10take 10 to 15 minutes to structure this.
1:13I'd say 95% of you who are watching this
1:16are in this mode. If you can't yet
1:19build a really good framework for every
1:22case that you do, then you're on
1:24skill-building mode. And you're going to
1:27take longer in this mode than you would
1:29in an interview because you're learning.
1:31So, take your time to learn. Later, you
1:33can focus on improving time. If you're
1:36on time-improving mode, so if you if you
1:39know how to build frameworks, but you're
1:40not just fast enough yet for an
1:43interview, then take two to three
1:45minutes to structure because that's the
1:47time you've got in the interview. So,
1:49you already know how to do it, you just
1:51can't do it quick enough, so you're
1:53practicing for a time. Most of you guys
1:55are going to be on skill-building mode.
1:58So, just take take your time to
2:00structure this. You can always come back
2:031 2 3 weeks from now and structure this
2:06again on time-improving
2:08mode. All right?
2:10So, let's go into the case.
2:13And the case question is, should a major
2:17beer company start a direct-to-home
2:21beer delivery operation in major cities?
2:25Let me give you some context because
2:27this is not an obvious situation. This
2:30company's trying to, instead of going
2:33through retail to sell beer, they're
2:35trying to instead sell directly via
2:38delivery. A lot of people drink beer at
2:40home with their friends, and they need
2:42to go to the supermarket or order from a
2:45third-party delivery service. This beer
2:48company's trying to cut the middleman
2:51and sell beer directly for the
2:53drink-at-home occasion. And as a side
2:56note here, in a real interviews, it
2:58often happens that your interviewer
3:00casually tells these context situations
3:04in an informal manner, as I just have
3:06done. So, they will explain the case
3:09question in more depth, just informally.
3:12Even though it's informal, all this
3:14information should be used to solve the
3:18case. So, your next step now should be
3:20to ask clarification questions in case
3:23you have any. What would yours be? Well,
3:26here are mine.
3:28Actually, I just have one clarification
3:30question, which is, why do they want to
3:33do it? Is it to increase their margin by
3:36cutting the middleman off, or is it to
3:38gain market share because their beer's
3:41going to be so convenient to buy for
3:43that specific drinking occasion that
3:46people prefer to buy their beer because
3:49of the channel instead of
3:53going to supermarkets and having the
3:55option to choose among competitors. So,
3:57what is their
3:58reason to do this? Let's say that the
4:01interviewer tells me that they want to
4:03do this to get more margin by cutting
4:05off the retailer and to get more market
4:08share in the drink-at-home drinking
4:11occasion. So, both reasons, and this
4:14makes the case a little bit more
4:15complex, but not too much. Okay?
4:18There are other clarification questions
4:20that would make sense. Anything that
4:23helps you define the problem
4:26is game.
4:28If it's something that should be used to
4:30solve the problem, then it should be in
4:33your structure, not in your
4:34clarification question. So, that's kind
4:36of the line that you should draw. If
4:38it's a question that helps you define
4:41the problem and come up with the right
4:42structure, it's a clarification
4:44question. If it doesn't help you define
4:47the problem, but it helps you solve the
4:49problem, then it should be in your
4:51structure.
4:53Right? So,
4:54now it's the time for you to pause your
4:56video and structure the case.
4:5910 to 15 minutes in case you're learning
5:01how to build frameworks, two to three
5:03minutes in case you're learning how to
5:05do that fast. Now,
5:08most of you guys are going to do it on
5:09paper, which is fine. I highly recommend
5:12you that you do it on paper, and then
5:15hit the record button in your cell
5:17phone, in your smartphone, and actually
5:19deliver the presentation to your
5:21interviewer. You can then listen to that
5:24later or compare that to the way I
5:26present my framework, and that will help
5:28you improve your communication skills as
5:31well. Okay? So, pause the video now and
5:33do the framework on paper. If you want
5:35to also record the delivery of it, it's
5:38really important, and I'll see you soon.
5:41So, let's jump into my answer in this
5:43framework. So, I'll do it in three
5:45steps, as you should have.
5:47You should do the categories first, and
5:49these categories are the parts of the
5:51system that you're studying, in this
5:53case beer sales. Then, you should state
5:56your issues, the questions that you want
5:58to make about each category and the
6:01answers you want to have. And then, the
6:03third step is to, for most issues or for
6:06the most relevant issues, to say the
6:08hypothesis behind them, the hypothesis
6:10that underlie them, or at least explain
6:13why you need that piece of information.
6:16Now, as you've seen in the other video,
6:18there is a fourth step, which is how to
6:20test that hypothesis, but we can omit
6:23that for now
6:24because the interviewer will ask you
6:27in case
6:29they want to know how would you test it.
6:31And we also cover that in the hypothesis
6:33testing session of this course, in the
6:36hypothesis testing module, which you
6:38will get access
6:40in a few days.
6:42Okay? So, from now on, it's me
6:46delivering this framework to the
6:48interviewer after thinking for a few
6:50minutes.
6:51And here's how I would say it.
6:53Okay, so to answer how to answer if this
6:57major beer company should start a
6:59direct-to-home beer delivery operation
7:01in major cities, I would get a
7:05prioritized list of some cities that
7:08they think or that we think would make
7:09sense.
7:11And for this list, I would ask
7:14four more major questions or I would
7:16study four major categories. Here they
7:18are. The first are the customers. I want
7:21to know if they would like this
7:23direct-to-home delivery service channel.
7:26The second is the company. I want to
7:28know if we can operationalize this.
7:31Then, I want to study the competitors to
7:34know if we can outcompete them.
7:37And by competitors here, I mean other
7:39beer delivery services,
7:41not other breweries. And finally, I want
7:44to study our current distribution
7:46channels to see how does this move
7:48change our relationship with them. So,
7:51let me start with the customers first. I
7:53have four main questions regarding the
7:55customers. The first one is, do they
7:58currently get beer delivered? And if
8:01not, is this a lack of supply or a lack
8:04of interest? So, if it's a lack of
8:06supply, if no one delivers beer to their
8:08home in the select cities that we're
8:10studying, we need to confirm if there's
8:13interest. We need to see if they do a
8:15lot of beer runs, for example, if they
8:17go to the supermarket just to buy beer.
8:20That would be the perfect occasion for
8:22this delivery service. If there's
8:24supply, but they're not getting the beer
8:26delivered, there might be a lack of
8:28interest, and we can check that because
8:31if there is no market for this, then we
8:34probably don't want to do it.
8:36Second issue I want to analyze. How
8:38satisfied are they with the current
8:41delivery options? So, if they do get
8:43beer delivered, how satisfied are they
8:46with their options?
8:47I want to know if they're satisfied with
8:50time to deliver, with the price of the
8:53delivery beer versus the supermarket. I
8:55want to know the delivery conditions,
8:57for example, is the beer cold enough?
8:59And I want to know how the ordering
9:01process looks like and if they're
9:02satisfied with it. So, if they're
9:05calling
9:06companies to get beer delivered, but
9:08they heavily prefer an app, then
9:13there could be opportunities here with
9:15their insatisfaction. And here is, maybe
9:17they're getting beer delivered, but we
9:19can do a much better job. Third issue,
9:22how often do they drink at home?
9:25I want to know if this is a frequent
9:27purchase,
9:28and I'm assuming it is for the people
9:31who who who do drink beer at home
9:34because if it is, then we have we can
9:37have the opportunity to have loyal
9:39customers, which tend to be more
9:41profitable. And the fourth issue here
9:43is, do they get delivery for other
9:45things? So, maybe they're not getting
9:47beer delivered,
9:49perhaps due to a lack of supply, but
9:53our hypothesis is that if they're used
9:55to deliver
9:57to use delivery for foods, for other
9:59things, maybe drug stores, anything like
10:02that, they're more likely to use this
10:04channel for beer as well. So, by going
10:07through these four issues, I think we
10:09can understand if customers would like
10:11this channel. Now, let's move on to
10:13company. There are three major issues
10:15that I want to analyze here. The first
10:17is how a warehouse and logistics work.
10:21So, I want to know specifically within
10:23warehouses
10:25how many warehouses in a city do we need
10:28or per city? And I know there's a
10:30trade-off of having more warehouses and
10:32delivering faster versus having less
10:35warehouses and having less investment.
10:38So, I want to know what the optimal
10:39number is. And then the logistics.
10:42We will how will we deliver this beer
10:45home and how will it work? Second thing
10:48about if the company can operationalize
10:50this is how will we take orders? So, how
10:53how does our ordering flow look like?
10:56And then how do we assign these orders
10:58to specific warehouses and delivery
11:01people? And then finally, what should be
11:04our delivery terms? And this involves a
11:07bit of customer analysis as well, but
11:09also what does the company want to
11:10achieve with this? Do they want to fast
11:12delivery like in
11:1430 minutes like Domino's? And do do we
11:18want to deliver the beer cold? And also
11:22what type of
11:24pricing and what is our cost? So, just
11:27to know how profitable will this
11:29operation be. Now, on to competitors.
11:34So, regarding our competitors, I want to
11:36know if we can outcompete them, other
11:38delivery services. And there are three
11:39questions here. The first one is how
11:42good are the current delivery services?
11:45Are they doing a good job or not? And
11:47this involves customer satisfaction, but
11:49also their operations. So, we need to
11:51study them.
11:53Second, can we compete with them given
11:56that we won't carry our competitors beer
11:59brands? And I'm assuming that we won't.
12:02And the hypothesis here is that
12:04customers like to buy different brands
12:06in the same shopping occasion.
12:08And then because of that, assortment is
12:11an important decision driver. So, if
12:14this is true and we won't carry our
12:16competitors beer brands, we'll we'll
12:20uh
12:21be lacking to our customer in an
12:23important driver. And then finally,
12:27if we enter this market, can we stop
12:30supplying to these competitors? Because
12:33then they won't have our brands and this
12:36will uh give them a disadvantage as well
12:39in case the last hypothesis was true.
12:42And here I think there are two things.
12:43One is contractual obligations. Maybe by
12:47law we can't stop supplying them. And
12:49then the second thing to see here is if
12:52they can buy wholesale or even in the
12:54supermarket,
12:56uh
12:57and then we have no business telling
12:59them that they shouldn't buy our
13:01products or not.
13:03Finally, let's move on to distribution
13:05channels. I want to know how does this
13:07change our relationship with them?
13:11And I think here there's just one real
13:15issue, which is would supermarkets,
13:17convenience stores, etc. retaliate? So,
13:21what I mean here, I think there are
13:22three
13:23competing hypotheses of what could
13:26happen with distribution channels in
13:28case we implement this strategy. The
13:30first one is that our move towards
13:33direct sales will weaken our negotiation
13:35power with them if this new channel is
13:37successful. So, we're selling more
13:39direct and less through supermarkets,
13:43convenience stores, etc. and take sales
13:45away from them. Now, I don't believe
13:48that this channel will be so huge that
13:52we will severely hurt these channels,
13:54but it could be the case. And in this
13:56case, we may lose negotiation power.
13:58They may even take our product out of
14:01premium
14:02shelf space.
14:04The alternative hypothesis is that we
14:06will control the shift from indirect to
14:10direct sales.
14:11For example, by pricing our direct
14:15delivery beer lower or higher. So,
14:18instead of
14:19them gaining bargaining power, then
14:21maybe we could gain bargaining power
14:23with them and our negotiation power is
14:25even stronger.
14:27So, as they threaten us to
14:30remove our beer from premium shelf space
14:34and etc., we can threaten them to lower
14:37the price of home delivery beer and then
14:40they won't sell as much of our beer nor
14:43our competitors beer because people are
14:44just going to be ordering it. So, that's
14:46an alternative scenario. And the third
14:49scenario is that that this has no effect
14:51on bargaining power.
14:53People don't do a lot of beer runs or
14:54they won't switch. And in this case,
14:57maybe this business model isn't that
15:00good. It's not going to get that large.
15:02Now, I have a meta-hypothesis here,
15:05which is what I think could happen about
15:08these scenarios is that we may be able
15:10to control them through pricing. If we
15:13price close to their price, we won't
15:15have much of an effect. If we price a
15:18lot lower, then maybe we will
15:22bother them a lot. So, maybe we can
15:24control the scenarios through pricing,
15:26which then makes pricing a critical
15:30issue here. Just in case this business
15:32actually makes sense, which is what
15:34we're studying in the other buckets. So,
15:37it is by doing this this analysis and
15:40asking these questions and getting these
15:42answers in these four buckets that I
15:44would advise this beer company if they
15:46should start this direct-to-home beer
15:49delivery operation or not.
15:52And
15:53the way I would do it is I would start
15:56understanding if customers would like
15:58this channel. So, I would do the
15:59customer analysis first because if
16:01there's no demand for
16:03beer delivery at home, then I don't
16:05think it makes sense to study the other
16:07things. The answer is no, they
16:09shouldn't. So, that's where I would
16:10start and that's it.
16:13So, let's do a quick debrief here. What
16:15are the key learnings that you should
16:16have gotten from this framework? The
16:19first one is I've used the adapted three
16:22C's to structure this case. Pretty
16:24obvious I said I would that I would do
16:26it up front. But let's go through what I
16:29did exactly to adapt the three C's here
16:32and why this was the best option. The
16:35first thing I did is that there's no
16:37product. So, you might say, "Well,
16:39Bruno, but the three C's are customer,
16:42competition, and
16:44company." And you'd be right, but a lot
16:46of candidates use the business situation
16:48framework, which is the three C's and
16:51the product. So, I'm covering that up
16:53here. There's no product as this is a
16:55shift in the channels for all products.
16:59I'm not changing anything about the
17:01products of this brewery. So, it doesn't
17:03make sense to talk about products.
17:06Second thing is I considered competitors
17:09as the other delivery services, not the
17:13other breweries. Why did I do that?
17:15Isn't the competitor of a beer company
17:18another beer company? Well, yes, but
17:22in this case, we're talking about this
17:25beer company being a delivery service or
17:28verticalizing into a delivery service.
17:31So, we're talking about the competitors
17:33of this move of being a delivery
17:37service.
17:38Finally, I added other distribution
17:41channels as a category because this
17:43affects them. And I want to know how
17:45does it affect them because we as a beer
17:48company are the
17:50we're dependent on our distribution
17:53channels. So, if it affects them, it
17:55might as well affect us. And that's
17:58exactly what I'm looking for in this
18:00category. Now, I've done this case with
18:04candidates before and there are two
18:06patterns that I noticed. Some candidates
18:09are going to build a profitability tree
18:12to try to solve this case. Is selling
18:15beer through this new distribution
18:17channel going to be more profitable than
18:20our current business as usual?
18:23And while this can work,
18:26uh
18:27it's a very numerically oriented way of
18:30seeing this problem. And the problem is
18:33no one's done this before.
18:35It's a new move in the beer industry.
18:37So, you can make some assumptions about
18:40which one's going to be more profitable
18:42than than others. But if you do the
18:45assumptions yourself as a candidate,
18:46you're
18:47you're assuming something you cannot.
18:50You're not being data-driven. And
18:54if your interviewer just gives you a ton
18:56of data,
18:57you're going to be able to go through
18:59the case, but that data is going to be
19:02made up. In a real project, you wouldn't
19:05be able to do that
19:07to do a profitability comparison unless
19:11you
19:12did this study of these four categories
19:16first. Now, other candidates will use a
19:18business situation or a three C's
19:21framework or some other framework that
19:23they've learned somewhere of I don't
19:25know, new channel or
19:27or something like that. And the problem
19:29with those is
19:32let's say you're using the business
19:34situation framework from Victor Cheng.
19:36The problem with that is there's no
19:39product here. Some people would say,
19:41"Well, but the new product is the new
19:43channel." But then you're you're just
19:46mixing concepts up. A product is a
19:48product, a channel is a channel. There's
19:51a reason why they have different names.
19:53You analyze different things about them.
19:55You And you're not changing your product
19:58in this in this in this case. So,
20:02while you can
20:03uh do that,
20:05first, it's going to be very obvious to
20:06your interviewer that you're
20:07force-fitting a framework because you're
20:10calling something a concept that it it's
20:13not. You're calling a channel a product.
20:16Uh
20:17and second,
20:19you're going to just be doing a lot of
20:20mental gymnastics just to be able to fit
20:24your framework into the problem while
20:26you should be doing the opposite. You
20:28should be
20:29uh building or adapting a framework to
20:32your problem. So, this is the first
20:34takeaway. I've used the adapted 3 C's in
20:37the structure uh
20:39as the structure for this case because
20:40it's the best way to approach this
20:42problem or one really good way.
20:45Second takeaway here, notice the
20:47phrasing of the buckets. I didn't say
20:49customers, I want to analyze customers,
20:52but I said, "Would customers appreciate
20:55or like this new channel?"
20:57And this is a strong differentiator
21:00between candidates because first, it
21:03shows that you're not repeating a
21:05framework from memory. And second, it
21:07becomes an answerable question. So, a
21:09lot of candidates, they have these
21:11buckets in mind.
21:13And they say, "Well, in this case, I'm
21:14going to
21:15put distribution channels." And if you
21:18just say, "Well, I want to analyze the
21:20distribution channels." Or I want to
21:22analyze the customers.
21:24It's not clear what you want to analyze
21:26about them or why do you want to analyze
21:29them. So, much better to say, "Would
21:32customers appreciate this new channel? I
21:35need to do a customer analysis to answer
21:37that question." Or "Will the current
21:40distribution channels retaliate in some
21:42way? Or is this going to change our
21:44relationship with them?"
21:46I need to study them
21:48uh things about them to answer this
21:50question. This makes you more human,
21:52less robotic. A lot of you guys are
21:55worried, "Well, how am I not How do I
21:57not become a robotic candidate?" Well,
21:59this is one answer. You speaking real
22:02phrases, "Would customers appreciate?"
22:04instead of "I want to analyze
22:06customers." which doesn't mean anything.
22:09And the other thing is you need to
22:11questions that you can answer. "I want
22:13to analyze customers." is not a question
22:15and you can't answer that.
22:18A customer analysis can take as much as
22:21I don't know, years to make. Rig- It's
22:23not well-defined in scope. But if
22:26instead you have a real phrasing, real
22:29questions in these buckets, then
22:32uh you can answer these questions.
22:34"Would customers appreciate this
22:35channel?" You can gather enough data,
22:37enough evidence to say yes or no to
22:40that. Or probably or probably not, as it
22:44often is in real life because you can't
22:46really predict things, but you can say
22:48if they're likely or not. Now, another
22:51note
22:53uh for those of you who are curious
22:54before we jump into the business sense
22:57debrief in which I tell you which issues
22:59were are most important and which issues
23:02are differentiators. And this note is,
23:04"How do I lay out the structure on
23:07paper?"
23:09If you see my slides here, you're going
23:11to see that there's a lot of phrases
23:13written. And just to write these phrases
23:15on paper in a real interview, you'd take
23:17a lot of time. You'd spend more time
23:19writing than thinking, and that's not
23:21ideal. So, how would I do that on paper
23:24in a real interview? Well, not like
23:27this. Instead, I would say instead of
23:29writing "Customers, would they like this
23:31channel?" as I did here so you'd get
23:34clarity on what I'm talking about and
23:37what exactly uh I'm asking, I'd just
23:40write "Customers."
23:42When I'd communicate this to the
23:44interviewer, instead of saying "I want
23:46to analyze customers." I'd say, "I want
23:48to analyze if customers would like this
23:49channel." So, I'd give the inter- the
23:51interviewer all the information in
23:54verbal. But in writing, I just write
23:57"Customers." or "CUST"
24:00because I know by reading that that I
24:02meant customers.
24:04Let's check one issue of that. Here I
24:06wrote, "Do they currently get beer
24:09delivered?" "If not,
24:11is it lack of supply or lack of
24:13interest?"
24:15In a real uh interview, I'd just jot
24:17down whatever words I would need to
24:20remember so I could say these words to
24:23the interviewer. So, I'd write something
24:25like I'd make a bullet point and I'd
24:27write something like
24:29"Currently delivery?" {question mark}
24:33and then two uh
24:35ramifications of that. One is supply?
24:39{question mark} interest? {question
24:41mark} And as I read that, I would be
24:44able to tell the interviewer, "Well, my
24:46first question here is, do they
24:47currently get beer delivered?
24:50And if not, is it a lack of supply or a
24:52lack of interest?" So, here in this
24:55case, what you see on the screen is
24:58something that makes you it easier for
25:00you to understand, but in a real
25:02interview, you need to be able to do
25:04that writing a few words uh just so you
25:08can remember. And once you've trained
25:10enough and once you're used to doing
25:12that, you're going to be able to
25:14remember uh by your own writing. And
25:16then you speak to the interviewer in
25:19full phrases as a real human. Now, let's
25:22jump into the business sense debrief so
25:25we you can see which
25:27uh of these issues are more important
25:29and which of these issues really
25:31differentiate you and make you stand out
25:33as a candidate so you can compare with
25:35your own framework because I understand
25:37that your own framework is probably
25:39different from the one I did.
25:41Uh and that's not a bad thing, but you
25:43have to have some way to understand if
25:46what you did is good or not. So, let's
25:48jump into that.
25:50So, to be seen as a candidate with
25:52really good business sense to your
25:54interviewer, you need
25:56two required issues. If you didn't touch
25:59on these issues in your framework, then
26:02you can consider that you've made a
26:04mistake in terms of business sense, even
26:06in terms of structuring because it
26:08wouldn't be an exhaustive structure. And
26:10this is how structuring and business
26:12sense overlap. The first one is
26:15acknowledging that this specific channel
26:18addresses one specific consumption
26:22equation which might not be currently
26:24addressed by current channels. So, it is
26:27acknowledging that well, this client
26:30wants to do delivery at home and this is
26:33useful because there's one consumption
26:35occasion which is people drinking beer
26:38at home and
26:41current channels, supermarkets, even
26:43convenience stores may not be really
26:47uh
26:48really good for this specific
26:51consumption occasion. And maybe there
26:54are other delivery services which would
26:56be good if they're doing a good job, but
26:59the thing is to acknowledge that, you
27:00know, when you're drinking beer at home
27:02with friends or uh in an event, you
27:05don't want to go to the convenience
27:07store or to the supermarket to buy more
27:10beer. No one wants to do that. That
27:12sucks.
27:13And it's really simple. Business sense
27:16is usually common sense and you need to
27:19acknowledge this in your framework
27:21somehow.
27:23The second thing you need to have in
27:25your framework in order to have
27:26acceptable business sense in your
27:28interviewer's mind is the operational
27:31challenges in warehouse, logistics, and
27:34ordering. And the reason you need to do
27:36that is that this is not something that
27:39your company, the beer company,
27:41currently does.
27:44So,
27:45this may seem
27:47pretty simple,
27:49but operating a warehouse, doing
27:52logistics for e-commerce
27:54uh in a time-sensitive product such as
27:57beer, when people order beer via
27:59delivery, they want to
28:01get the beer as soon as possible, as
28:03cold as possible. And dealing with the
28:05ordering and the software platform, this
28:08seems simple because a lot of e-commerce
28:10companies do it really well, but it's
28:13not something that an industrial
28:15company, a beer company, knows how to
28:18do. And while you can buy
28:22{quote} {unquote} this stuff from
28:25third-party providers, if you're doing
28:27that, then why not just uh simulate
28:31sales or uh support current uh players
28:36in the delivery space. So, if you want
28:38to do this yourself, you better get good
28:40at it. And this is something that you
28:42need to make your interviewer aware that
28:44you understand is important because even
28:47though it's not something
28:49uh unusual for a company to be able to
28:52do these three things well, it's not
28:53something that a beer company really
28:55does well.
28:57Now, there are two what I call standout
28:59issues that you must have done in this
29:02case in order to be outstanding in
29:05business sense. And there may be others
29:06which I haven't thought about. I mean,
29:09these are things that make you stand
29:10out, so uh
29:12there's no rule book for them. A lot of
29:15it comes down to creativity, but these
29:17are two things that I think you could
29:19consider in a case similar to this, to
29:22add in a case similar to this next time
29:24you do one. The first one is, "What
29:26matters to this customer in this
29:29occasion?" So,
29:31in my framework, I mentioned that we
29:34need to know what matters to this
29:36customer in this occasion. And I
29:37mentioned that indirectly, but I said
29:40that the customer might care about the
29:42time to deliver or how cold the beer is
29:45or how easy it is to order. Now, one
29:48thing to notice here, this is not
29:50something that usually beer customers
29:53care about. I mean, they care about how
29:55cold a beer is if they're in a bar or in
29:58a restaurant, but they don't care about
30:00it too much if they're in a supermarket.
30:03They care about
30:05uh ease of ordering
30:07if they are in a convenience store
30:09because they want to convenience. I
30:11mean, it should be easy to to buy,
30:14but
30:16yeah, I guess this is important anyway
30:18because it's beer. Uh but, the thing is,
30:21by mentioning to the interviewer that I
30:23can understand what is important to this
30:26customer in this occasion, I'm implying
30:30that I can understand what is important
30:32what is an important driver of purchase
30:34to any customer in any occasion. So,
30:38this is one thing that will make you
30:40stand out by
30:41uh you've probably not thought about
30:43this beer delivery problem before. So,
30:45if you can come up with this in an
30:47interview, it shows to the interviewer
30:48that you have this ability.
30:50Now, the second thing that uh you should
30:53have
30:54talked about to stand out in terms of
30:57business and strategic knowledge that
30:58this move
31:00might change the relationship with the
31:02current distribution channels. And the
31:04reason why this is important,
31:06I didn't say why this is important
31:08during the case, but I'm going to say
31:11now,
31:12is you have a whole beer business to to
31:16to run.
31:18And this includes the drinking at home
31:20occasion,
31:21but it includes other occasions, other
31:24drinking purchasing occasions as well.
31:27And for every
31:29purchasing occasion nowadays, and even
31:31if this direct to home service is really
31:34successful, to all the other
31:37uh drinking occasions in the future, you
31:40will need your distribution channel's
31:43goodwill. You need them to sell more.
31:46You need them to guarantee a high market
31:49share. So, acknowledging that this move
31:52might change this relationship is
31:53important because if you don't
31:55acknowledge that, and there is indeed
31:58after you gather the facts, the data,
32:00the information about how they might
32:02react, if you find out that they will
32:05retaliate,
32:06then you're putting your whole business
32:09at risk because of one new channel
32:12initiative. Now, if you're a consultant
32:15and you propose that they should do it
32:17without addressing this thing first,
32:20some executive in the beer company might
32:23deny
32:24uh the the logic, or they might uh get
32:28really angry, or they might
32:30even make you not look good to the other
32:33executives because they will just raise
32:35this issue and say, "Well, have you
32:37thought about that risk? This is a risk
32:39that could put our whole company in bad
32:42waters, that could reduce our market
32:45share. And have you asked them how they
32:47might retaliate, or have you benchmarked
32:50what happened in other countries once
32:52companies did that?" So, things like
32:54that. This is really important because
32:55distribution channels are a key part of
32:58your business. They're a key partner of
33:00your business.
33:02Okay? So, the first two required issues
33:05are needed. You need them in your
33:07framework. These last two standout
33:10issues
33:12uh are
33:13differentiators.
33:15You don't need them to have done a good
33:18job, but you need them to have done a
33:19great job. And there might be others
33:21that I haven't thought of, of course. I
33:24hope you've liked this drill. I hope
33:26you've improved on it. Uh if you didn't
33:29do a good job, try to structure this
33:30case again.
33:32Close this video, try to structure it on
33:34paper again, maybe even replay it to
33:36watch it again because
33:38that's how you learn. You learn by
33:41trying to apply what you've just read or
33:44watched in this case. Okay? So, I'll see
33:46you in the next drill, and I hope you
33:48had a good time. The next drill is a
33:49really good one, so check that out to to
33:52improve your framework building and
33:55adapting skills.

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