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BCG Medium Market Entry

City Food Bank

#NGO #Non-profit #Food Security #Humanitarian
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 15 minutes
Difficulty Medium
Source PeterK
50 / 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)