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Medium Sales Recovery Operations

Cola Case In Peru

#Consumer Goods
ProHub Comment

This case tests candidate ability to diagnose that internal operational decisions (workforce reduction) drove external market performance, not market conditions. The key insight is recognizing that the improved order strike rate (50% to 75%) partially offset the sales force reduction, and that profitability remained resilient despite the 25% sales drop—suggesting selective headcount reduction may have been intentional but needs reversal to restore growth.

Estimated Time 26 minutes
Difficulty Medium
Source ESADE
12 / 100
Your client is a leading soft drink producer in Peru. It only sells in the local market. In the last year, their sales have dropped 25% and they have hired us to recover their sales quickly.

Clarifying Information

  1. Client has only one SKU, a cola-based soft drink can of 33cl
  2. Client has no production problems
  3. Although we do not have detailed market data, we know that the soft drink market is functioning normally
  4. While the question is focused on sales growth, profitability should be taken into account
Mock Interview
Interviewer

Your client is a leading soft drink producer in Peru. It only sells in the local market. In the last year, their sales have dropped 25% and they have hired us to recover their sales quickly.

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

A leading Peruvian soft drink company experienced a 25% sales decline after cutting its sales force by 50%. Candidates must diagnose that while individual salesperson productivity improved (higher order strike rate), overall sales recovery requires adding approximately 40 salespeople to return to prior revenue levels while maintaining the improved conversion rate.

Key Insights:

  1. Distinguish between external market issues (competitive pressure, demand changes) and internal operational decisions (workforce reduction)
  2. Use KPI decomposition (Salespeople × Visits × Strike Rate × Units × Price) to identify root cause rather than assuming market decline
  3. Recognize that profitability impact was smaller than sales impact (down 10% vs 25%), indicating potential opportunity in the workforce restructuring decision
  4. Balance growth objectives with profitability and labor considerations (hiring 40 vs original 200 salespeople)
  5. Maintain monitoring of key metrics (order strike rate) as operational constraints when scaling back up