Evening Nightcap
Practice this advanced growth strategy case interview question from Deloitte in the Media & Entertainment sector. Includes detailed problem prompt, clarifying questions, structured framework, and expert recommendation. Part of ProHub's 835+ consulting case library.
This growth case requires the candidate to identify the optimal product launch strategy among multiple options. The key insight is leveraging the exhibit data (WTP analysis and Harvey Ball competition assessment) to recommend a technology newsletter over sports—demonstrating how qualitative competitive dynamics should override raw revenue calculations.
Clarifying Information
- Client/Company information – It is a daily e-newsletter that goes out daily Monday to Friday at 6pm EST. Evening Nightcap has a loyal customer following and strong advertising partners. The brand relies on talented writers to communicate the proper voice, which resonates with its audience.
- Industry/Competition information – N/A
- Timeframe – N/A
- Product information – Subscribers do not pay a fee to read the newsletter, but advertisers pay anywhere between $50,000-$100,000 for a week (5 days) of email advertisements. At this time, the rate is a flat fee, regardless of subscribers There are currently 2 sponsors per email.
- Value Chain/Revenue information – Makes money by selling advertisements. Revenues of 7.5 million if take average of 75,000/week using 50 weeks per year * 2 sponsors
- Any constraints on the case – The CEO wants to keep the newsletter free to subscribers.
- Define growth: revenue growth over subscription growth.
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