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Medium Cost Reduction Profitability

Cosmetics Company (Capgemini)

#Consumer Goods #Personal Care Products

Practice this intermediate cost reduction case interview question from Capgemini in the Consumer Goods sector. Includes detailed problem prompt, clarifying questions, structured framework, and expert recommendation. Part of ProHub's 835+ consulting case library.

ProHub Comment

This is a high-pressure turnaround case that tests the candidate's ability to synthesize data quickly and present findings under time constraints. The case emphasizes customer segmentation analysis, wallet-share dynamics, and distribution strategy alignment—requiring candidates to connect demographic trends, consumer behavior, and competitive positioning into actionable recommendations.

Estimated Time 26 minutes
Difficulty Medium
Source NYU
16 / 100
The client is the North American CEO of a global personal and home care products company. He has hired Capgemini Consulting to turn around the North American business from loss to profitability within two years. We’ve scheduled the final presentation with the board this afternoon, but the project team is stranded at an airport unable to make the presentation. You are asked to step in and make the presentation instead.

Clarifying Information

Internal Analysis

  1. Revenue Streams: Existing & new products
  2. Cost Drivers: R&D, manufacturing, operations
  3. Other considerations: Supply chain, channel strategy, financial situation, org structure, core competencies

Industry Analysis 4. Competitors: Who are the main competitors? To what customer segments do they cater? 5. Industry Rivalry: How intense is the rivalry in the cosmetics industry? Is any segment of the industry more competitive than other? Are there any specific trends in industry rivalry (consolidation, price wars, etc.)? 6. Retailers: Through what retail channels are the products sold? What is their relative power position?

Customer Analysis 7. Consumers: What are the different consumer segments and what are their relative sizes? Who are the client’s main consumers? How saturated is that segment? 8. Trends: Are consumer tastes changing towards or away from the client’s products?

Mock Interview
Interviewer

The client is the North American CEO of a global personal and home care products company. He has hired Capgemini Consulting to turn around the North American business from loss to profitability within two years. We've scheduled the final presentation with the board this afternoon, but the project team is stranded at an airport unable to make the presentation. You are asked to step in and make the presentation instead.

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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Practice this case with AI Mock Interview

A cosmetics company’s North American division is unprofitable and needs a turnaround within two years. The candidate must quickly analyze consumer demographics, spending patterns, and channel strategies to recommend how the company should reposition its product portfolio and distribution to drive growth and profitability.

Key Insights:

  1. Female Baby Boomers are the primary growth driver across all three North American regions (8.63% Mexico, 5.31% USA, 5.98% Canada)
  2. Personal care products have low share of wallet (1.7% in Canada) compared to necessities, but increasing perceived necessity can unlock growth
  3. The client has misaligned channel strategy—with many product categories, a diverse multi-channel approach (retail, direct selling, e-commerce) is needed rather than a dedicated single-channel strategy
  4. Geographic differences exist within North America requiring tailored regional strategies
  5. Customer wallet-share perception is directly linked to perceived necessity of the category