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BCG Medium Market Entry

City Food Bank

#Non-profit #Agriculture
ProHub Comment

This is a candidate-led market entry case that requires strategic thinking across market assessment, go-to-market strategy, and operational planning. The case tests the candidate's ability to structure a non-profit expansion problem, identify attractive regions using multi-dimensional criteria, and make infrastructure decisions (single vs. dual warehouse). The math component (Q4) requires calculating warehouse capacity based on donation flow, meal costs, and demand growth projections.

Estimated Time 26 minutes
Difficulty Medium
Source PeterK
38 / 100
One of the U.S. largest food banks - City Food Bank (CFB) - experienced an increase in both demand and donations during the pandemic in 2020. The donations sky-rocketed by 60% and CFB would like to leverage this momentum and expand its geographical footprint in the U.S. CFB has brought your team in on a pro bono project to help them strategize their market expansion effort. We’re in early 2021.

Clarifying Information

  1. The number of people experiencing food insecurity grew exponentially across the U.S. due to loss of home, unemployment, child and elder care needs, etc. Percent of all U.S. households that experienced food insecurity jumped from 11% in 2019 to 23% in 2020
  2. Distribution of food insecurity differs by state (see Appendix 1)
  3. CFB used to raise $100M per year in donations, but in 2020 their donation collection jumped by 60%
  4. CFB would like to ensure at least 90% of funds will be applied to hunger-relief efforts in new regions (i.e. no more than 10% will be used to cover admin costs)
Mock Interview
Interviewer

One of the U.S. largest food banks - City Food Bank (CFB) - experienced an increase in both demand and donations during the pandemic in 2020. The donations sky-rocketed by 60% and CFB would like to leverage this momentum and expand its geographical footprint in the U.S. CFB has brought your team in on a pro bono project to help them strategize their market expansion effort. We're in early 2021.

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
Practicing...
Score coming soon
Practice this case with AI Mock Interview

City Food Bank seeks to expand nationally using its 60% donation increase from 2020. The case requires candidates to develop a market entry framework, identify high-impact regions, design a go-to-market strategy, and determine optimal warehouse capacity to support expansion while maintaining operational efficiency and the 90% donation-to-impact ratio.

Key Insights:

  1. Structure market entry by analyzing market attractiveness (food insecurity prevalence, competition from other NGOs), business model viability (donation sustainability, marketing needs), and operational feasibility (logistics, warehousing, distribution complexity)
  2. Go-to-market strategy must address financial sustainability given donation volatility, business model factors like marketing and distribution infrastructure, and operational complexity of entering new regions
  3. Warehouse scaling decision (expand vs. dual warehouse) requires financial analysis of opex/capex trade-offs, strategic consideration of expansion platforms and risk mitigation, and operational assessment of complexity and efficiency
  4. The 90% donation-to-impact constraint drives all financial planning and capacity decisions
  5. Regional selection should prioritize high food insecurity, low NGO penetration, and proximity to existing infrastructure for operational feasibility