Consulting Case Interview by Bain Associate Consultant — Transcript

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1. 0:00foreign
2. 0:05thank you for coming in today we're very
3. 0:08excited to have you my name is Ziad and
4. 0:10I will be your interviewer today awesome
5. 0:12great I'm super excited to be here I am
6. 0:14Maria vagyan awesome so um do you want
7. 0:16to just dive straight into the case yeah
8. 0:18I'm ready whenever you are okay let's do
9. 0:20it
10. 0:21so for today's case you actually have a
11. 0:23maker of Botox that is considering
12. 0:25expanding into the migraine Market
13. 0:28and they've already begun clinical
14. 0:29trials in this area
15. 0:31the product is expected to receive FDA
16. 0:34approval at the end of the year
17. 0:36and your team has been hired to assess
18. 0:37the viability of the product launch so
19. 0:40essentially the question is how would
20. 0:42you determine if Botox company should
21. 0:44enter the migraine Market
22. 0:46okay awesome thank you for sharing that
23. 0:49information
24. 0:49so just before I get started I want to
25. 0:52make sure I correctly
26. 0:55correct client here is Botox and they
27. 0:57are considering expanding into the
28. 0:59migraine market and the product they're
29. 1:01working with is going through the trial
30. 1:03process now waiting for FDA approval and
31. 1:06our main goal here is to figure out
32. 1:08whether or not it's viable or not to
33. 1:11enter the migraine Market
34. 1:13that's correct okay awesome so before we
35. 1:16get started just wanted a little bit
36. 1:18more information about the product to
37. 1:20know exactly what it looks like sure
38. 1:22um so what I know is that the product is
39. 1:24basically an injection that is given
40. 1:26every two months
41. 1:27and it offers similar efficacy to other
42. 1:30like Market options without any side
43. 1:33effects and as a benefit it does have
44. 1:36some like skin care benefits to it so
45. 1:39okay awesome as a person who loves skin
46. 1:42care that's amazing I feel like that's
47. 1:44all the information I need so is it okay
48. 1:46if I take a couple moments to brainstorm
49. 1:47my thoughts absolutely awesome thank you
50. 1:52okay great so after looking at the
51. 1:55situation at hand in order to figure out
52. 1:57whether or not Botox should enter the
53. 1:59migraine Market there's three main
54. 2:01factors I'm thinking about the migraine
55. 2:03Market financial implications and just
56. 2:05overall risks so under the migraine
57. 2:08Market I think it would be really
58. 2:10beneficial to understand what the size
59. 2:12of the migraine Market looks like and
60. 2:14what consumer demand is also diving into
61. 2:18how fast it's growing if it's stagnant
62. 2:20shrinking just like the overall market
63. 2:23growth and then I think it'd be really
64. 2:26beneficial to understand what other
65. 2:27treatments are out there and what
66. 2:29potential competition would look like to
67. 2:31see what botox's market share could be
68. 2:34so second diving into the financial
69. 2:35implications there's kind of two sides I
70. 2:38think would be helpful the revenues and
71. 2:40costs so under revenues
72. 2:42um I think it would be great to
73. 2:44understand what the competitors are
74. 2:45pricing injections for to determine how
75. 2:48Botox should price it it'd be also
76. 2:51helpful to understand what our customers
77. 2:53elasticity is and their willingness to
78. 2:55pay to figure out a good price and then
79. 2:58doing a little bit more analysis into
80. 3:00what number of units sold could look
81. 3:02like and how can a police
82. 3:04cannibalization of other Botox products
83. 3:07would affect this law
84. 3:09and then on the cost side it would be
85. 3:12helpful to understand what initial
86. 3:14Investments would be needed looking at
87. 3:16the research and development maybe
88. 3:18potential clinical trial costs and then
89. 3:21what ongoing costs there may be for
90. 3:24this injection
91. 3:27and third the risks
92. 3:29I see two main areas within the risks a
93. 3:33logistical aspect and then more
94. 3:35regulatory
95. 3:36so in the logistics I think something to
96. 3:40keep note of is figuring out whether or
97. 3:42not Botox has the capabilities to add
98. 3:45additional supply chain distribution
99. 3:47centers or production facilities
100. 3:51um maybe diving a little bit into what
101. 3:53our administrative or Workforce
102. 3:55expertise and skills look like to see if
103. 3:57it's capable for us to launch such a big
104. 3:59product and then lastly under logistical
105. 4:02risks kind of figuring out if this
106. 4:05injection matches with botox's Mission
107. 4:09and portfolio of their other products
108. 4:12and then lastly under regulation risks
109. 4:15you had mentioned that we're in the
110. 4:18clinical trial process looking for FDA
111. 4:20approval so diving into what the
112. 4:23barriers to entry would be looking at
113. 4:25specifically the FDA approval maybe if
114. 4:29any patents are needed what progressing
115. 4:32clinical trials look like
116. 4:33so after assessing the overall migraine
117. 4:36Market financial implications and risks
118. 4:38I think we would have a good
119. 4:39understanding if this is a viable entry
120. 4:42or not
121. 4:43but looking at it I think it'd be
122. 4:45beneficial to start off with the market
123. 4:47as a whole and see if that's attractive
124. 4:49or not does that sound good yeah let's
125. 4:51do that actually that I think that's a
126. 4:52good place to start maybe we can go by
127. 4:54how big do you think this Market is in
128. 4:56the first place okay perfect so just to
129. 4:58make sure you want me to Market size the
130. 5:00overall botox injection Market is that
131. 5:03specifically for the US that's correct
132. 5:05just the US okay perfect is it okay if I
133. 5:07take a couple moments to brainstorm my
134. 5:09thoughts absolutely awesome
135. 5:15okay perfect so the way that that I
136. 5:18think about this is to estimate the size
137. 5:22of the botox injection Market we should
138. 5:24start off with the overall U.S
139. 5:26population then dive into the percentage
140. 5:28of people who suffer from headaches and
141. 5:31then the percentage of people who have
142. 5:33headaches that are bad enough that they
143. 5:34would need these injections then by
144. 5:37doing those calculations we can get the
145. 5:39total size of like the total number of
146. 5:42patients that we'd be working with
147. 5:44and then from there I'm thinking I could
148. 5:47estimate the number of injections per
149. 5:49patient
150. 5:51and put a price tag to that to figure
151. 5:53out the overall Market size for
152. 5:55injections and then we're looking
153. 5:58specifically at botox's share so then
154. 6:00applying what our potential market share
155. 6:02would look like to get the overall Botox
156. 6:05Market size for injections does that
157. 6:08sound like a good process yeah no that's
158. 6:10a good approach okay awesome so I'm just
159. 6:12going to take a moment to put the math
160. 6:14to that
161. 6:17okay awesome so
162. 6:19if we start off with the US population
163. 6:21of 320 million
164. 6:24I would say about thinking from personal
165. 6:27experience of my friends like one in
166. 6:29every five I feel like get headaches so
167. 6:31we could say about 20 of people suffer
168. 6:34from headaches
169. 6:36and then out of those that 20 I'd say
170. 6:39like
171. 6:40one in four people have headaches that
172. 6:42are so bad that they would need some
173. 6:44sort of migraine injection treatment so
174. 6:46let's take 25 of that
175. 6:48so 20 of 320 million is 64 million
176. 6:55and then a fourth of 64 million is going
177. 6:58to be 16 million
178. 7:00so that's the number of patients that
179. 7:03may be needing an injection
180. 7:06next I'm going to think about like how
181. 7:08many injections a patient would need I
182. 7:10think you would mention that these
183. 7:12injections are needed every two months
184. 7:14so a patient would need it six times a
185. 7:17year
186. 7:19and then next I want to think about what
187. 7:22a potential price would be so I
188. 7:25personally have not had any Botox I'm
189. 7:27only 21 but I'm thinking that it ranges
190. 7:31quite a bit from very cheap options to
191. 7:34more expensive
192. 7:35off the gun I think about 200 is pretty
193. 7:38fair price tag to put on it I think so
194. 7:42that's a good price okay great so I'll
195. 7:43take the 16 million number of patients
196. 7:46times six injections a year
197. 7:49times two hundred dollars per injection
198. 7:53and I'll just take a moment to crank out
199. 7:56that math really quickly 16 times 6 is
200. 7:5896 times 200 is going to be
201. 8:0319.2 billion dollars
202. 8:06so I'm getting
203. 8:0819.2 billion dollars for the total
204. 8:10Market but we're looking specifically at
205. 8:13Botox
206. 8:15Botox I know has like a really big name
207. 8:17they're a well-known company so I'm
208. 8:19assuming they have a pretty high market
209. 8:21share I think around 30 is a good bet
210. 8:24does that sound like a good number I
211. 8:26would say so yeah okay great so I'm
212. 8:29going to take 30 and is it okay if I
213. 8:31round that 9.2 billion to 19 billion
214. 8:34sure okay great so 30 of 19 billion is
215. 8:39going to be I know 19 times 3 is 57 so
216. 8:4430 of 19 will be 5.7 billion so I'm
217. 8:49getting a total number of 5.7 billion
218. 8:53dollars for the U.S botox injection
219. 8:55Market
220. 8:56great so looking at that number
221. 9:00I'm trying to figure out whether or not
222. 9:02it's attractive or not it seems like a
223. 9:04pretty big number but I think to really
224. 9:07determine if the market is attractive or
225. 9:09not we could look at what potential
226. 9:11growth looks like or what the
227. 9:13competitive landscape is do we have any
228. 9:15information about either of those yeah
229. 9:17so we have some information about it we
230. 9:19know that when it comes to market growth
231. 9:21we expect the market to remain somewhat
232. 9:23stagnant so no growth nor is there a
233. 9:25decline and then when it comes to the
234. 9:27competitive landscape we actually don't
235. 9:29expect there to be a lot of competitors
236. 9:30so we think that it's kind of not a very
237. 9:33competitive market to go into so we
238. 9:34don't expect any like Fierce competition
239. 9:36of some sorts okay perfect so knowing
240. 9:40that the market is pretty stagnant
241. 9:41pretty large at 5.7 billion and not too
242. 9:44saturated it looks like the market as a
243. 9:46whole is pretty attractive but I think I
244. 9:50would still like to discuss a little bit
245. 9:51more and dive into maybe the financial
246. 9:53implications or potential risks do we
247. 9:56have any information about maybe
248. 9:57financial implications yeah so we
249. 9:59actually think that the financial the
250. 10:01financial side would probably be like
251. 10:03looking good based off of like the 5.7
252. 10:05billion estimate that you have I'm
253. 10:07actually more interested in looking at
254. 10:08the risks could you maybe brainstorm a
255. 10:10few ideas or potential risks that the
256. 10:12botox company could be facing when they
257. 10:14enter the migraine Market yeah course is
258. 10:17it okay if I take a couple moments to
259. 10:19think about that one absolutely okay
260. 10:22okay great so
261. 10:25I'm thinking there's three main causes
262. 10:28of concern our client should think about
263. 10:30before entering the botox market and
264. 10:32that comes with branding cannibalization
265. 10:35and patient concerns
266. 10:37so first under branding I'm thinking
267. 10:41even if they use the same name as Botox
268. 10:43or a different name and different brand
269. 10:45there's risks to both sides if our
270. 10:49client was supposed to use the botox
271. 10:51name keep that same name
272. 10:53I know that Botox has a very specific
273. 10:55connotation to it that it's cosmetic
274. 10:58kind of controversial sometimes
275. 11:00but we're not servicing a cosmetic
276. 11:03product so it might turn some patients
277. 11:06away because ours is a migraine
278. 11:08injection not a cosmetic injection
279. 11:11but then if we were to use a different
280. 11:13name there's the possibility if there
281. 11:16being a lack of Market traction because
282. 11:19you have to redo all the marketing and
283. 11:20branding since Botox already has a big
284. 11:22name so if you were to use a different
285. 11:24one A little bit harder to get some
286. 11:25traction there
287. 11:27so is The Branding side next we look
288. 11:29under cannibalization
289. 11:31so Botox already has some pre-existing
290. 11:34products of course they have some
291. 11:36injections like lip injections I think
292. 11:39so I'm thinking that if we're launching
293. 11:43a new product at a pretty similar price
294. 11:45range maybe lower it might cannibalize
295. 11:47some of botox's pre-existing products
296. 11:49stock is a concern to look at but I'm
297. 11:52thinking that if we do a little bit more
298. 11:54investigation into the regulatory
299. 11:56process or other mechanisms to kind of
300. 11:59keep the market separate that could be a
301. 12:02potential mitigation to it
302. 12:04and then lastly is the patient concerns
303. 12:07I'm thinking that with patient concerns
304. 12:11I know that I personally am very scared
305. 12:13of shots so there may be other patients
306. 12:16out there that are a little bit adverse
307. 12:18to injectable therapies especially when
308. 12:21there might be oral remedies like
309. 12:25other like Tylenol or Advil or other
310. 12:27things that they could take to get rid
311. 12:28of their migraine another patient
312. 12:31concern to think about is that they
313. 12:35the injection is still being approved by
314. 12:37the FDA right so they may be a little
315. 12:40bit averse to using a product that has
316. 12:44just been approved and may be looking to
317. 12:46see more research or more trials in the
318. 12:49future
319. 12:50and then the last concern with patients
320. 12:53is that insurance companies may not
321. 12:55necessarily pay for the botox injection
322. 12:58so we may have to look a little bit more
323. 12:59with insurance companies to make sure
324. 13:01that this is something that they will
325. 13:03put onto their plan
326. 13:04awesome
327. 13:05um all sounds like good risks to take
328. 13:07into account so CEO of the company walks
329. 13:09in and wants a 30 second recommendation
330. 13:11what do you say awesome
331. 13:14um yeah I would say this sounds like a
332. 13:16very viable opportunity it seems like
333. 13:19the market is very attractive we did
334. 13:21calculations and saw that the market is
335. 13:23about 5.7 billion dollars that Botox
336. 13:26could tap into which seems very
337. 13:28attractive since the market is stagnant
338. 13:30it's not super saturated just as a
339. 13:34potential risk though since we're still
340. 13:36in the clinical trials and FDA process
341. 13:38it's very dependent on making it past
342. 13:42that so just continuing to do the
343. 13:45clinical trials working with insurance
344. 13:47companies to make sure it can get on the
345. 13:49plan and marketing the product in a way
346. 13:52that alleviates patient concerns for
347. 13:54like using the product in the future I
348. 13:56feel like are the best ways to go but
349. 13:58yeah overall it seems like a great
350. 14:00opportunity awesome well thank you so
351. 14:02much for the time and yeah I thought I
352. 14:05thought that that was a that was a case
353. 14:06awesome thank you
354. 14:08that's exactly how a mock interview goes
355. 14:10when it comes to Ria's performance I
356. 14:12thought that she did fantastic
357. 14:14everything from the beginning all the
358. 14:16way to the end
359. 14:17when it came to the prompt she asked
360. 14:19thoughtful clarifying questions and she
361. 14:21made sure that she understood the
362. 14:22objective when it came to the framework
363. 14:24this was a combination of a market entry
364. 14:26and a market sizing case and I think
365. 14:28that she did a good job at structuring
366. 14:29both Frameworks on the market entry side
367. 14:32she explained that we needed to look at
368. 14:33the market the financials and the risks
369. 14:35when it came to the market sizing she
370. 14:37laid out a very good approach that was
371. 14:39structured and clear on how she would
372. 14:41calculate the market size
373. 14:43on the analysis side she did great when
374. 14:45it came to the math all of her numbers
375. 14:47were sharp and her methodology was very
376. 14:49clear and she was able to explain all of
377. 14:51the numbers to me
378. 14:53finally when it came to the
379. 14:55brainstorming she was able to put
380. 14:56everything into different buckets and
381. 14:58she remained structured and poised
382. 14:59throughout the entire process so overall
383. 15:01I thought that she did very well and I
384. 15:03would definitely accelerate her to the
385. 15:04next round
386. 15:16foreign
387. 15:17[Music]