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Medium Market Entry

Apple of My Eye

#Consumer Goods
ProHub Comment

This is a math-heavy market entry case requiring strong quantitative analysis and organization. The case progresses logically from qualitative strategy considerations (Q1a alternatives, Q2 factors) to precise calculations (Q1b revenue impact, Q3 market sizing), testing both analytical rigor and creative brainstorming abilities.

Estimated Time 26 minutes
Difficulty Medium
Source NYU
20 / 100
Bob is a master brewer and has been brewing beer for the past decade. Upon graduating from Stern, he opened a brewery on the Upper West Side called Something Witty that features Belgian Witbier styled brews. While he found early success, he has noticed an increase in customers asking for gluten-free alternatives, such as cider. Bob has hired us to help him analyze his options.

Clarifying Information

  1. Bob’s goal is to continue to be profitable regardless of what expansion opportunity he explores
  2. Currently, Bob only sells bottled beer direct to consumers.
Mock Interview
Interviewer

Bob is a master brewer and has been brewing beer for the past decade. Upon graduating from Stern, he opened a brewery on the Upper West Side called Something Witty that features Belgian Witbier styled brews. While he found early success, he has noticed an increase in customers asking for gluten-free alternatives, such as cider. Bob has hired us to help him analyze his options.

You

Thanks. Before analyzing, I'd like to clarify a few key questions...

Interviewer

Good question. Let me provide some background information...

You

Based on this, I suggest analyzing from these dimensions...

AI Score
Structure Analysis Communication Business Sense Quantitative
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Bob’s brewery faces rising demand for gluten-free cider. The case evaluates whether to expand into cider production through facility renovations. Key analysis involves calculating revenue impacts, identifying success factors beyond financials, and validating production capacity against market demand targets.

Key Insights:

  1. Revenue impact analysis must account for both new product gains and cannibalization losses (beer production drops 6 cases/day)
  2. Breakeven analysis requires three-step calculation: annual production capacity → market size needed → market share percentage required
  3. Excellent candidates recognize the demand validation gap: producing 86,400 bottles annually captures 0.5% of market, but actual demand remains unproven
  4. Strategic considerations beyond revenue include cost structure, market demand trends, brand cannibalization, and competitive positioning