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Medium Profitability Product Strategy Risk Analysis

Campaign Swag

#Retail #Convenience Stores #Politics
ProHub Comment

This case tests the candidate's ability to balance quantitative profitability analysis with qualitative business risks. The key insight is recognizing that the $200,000 profit opportunity from campaign merchandise must be weighed against customer alienation risks, and that the real opportunity lies in replacing the underperforming 'Trucker Supplies' category rather than necessarily endorsing the political merchandise itself.

Estimated Time 15 minutes
Difficulty Medium
Source Cornell
50 / 100
Your client is the owner of a regional chain of convenience stores operating in the United States. It is an election year, and one of the leading candidates is a divisive personality. Those who approve of the candidate do so with gusto, and often display clothing and signs indicating their support. Those who disapprove of him oppose him strongly, and will often go to great lengths to ensure they are not mistaken for supporters of his campaign. Should the convenience store owner sell merchandise relating to this candidate’s campaign in her stores?

Clarifying Information

  1. Merchandise would include T Shirts, hats, flags, lawn signs, mugs and bumper stickers. This merchandise would be visually distinctive and eye-catching. Shoppers would be sure to notice the addition of this merchandise in these convenience stores.
  2. The client operates across 25 locations across five states in the midwestern US and would launch across all stores.
  3. The store locations fall in a variety of political districts, some of which lean towards or against the candidate in question.
  4. The owner would like to make this decision based on profitability, but would like to know what other factors should be considered as well.
  5. There are six months remaining before election day, and we can assume none of this merchandise will be sold after that point.