Drinks Gone Flat

ProHub Comment

This is a classic revenue decomposition case testing candidates' ability to break down a business problem using price-quantity analysis and identify root causes through data segmentation. The case rewards structured thinking, efficient use of exhibits, and the ability to move from diagnosis to actionable recommendations without excessive interviewer prompting. The Value Brand's aggressive price reduction (from $0.60 to $0.40) is driving volume cannibalization while eroding overall profitability.

Estimated Time 15 minutes
Difficulty Easy
Source NYU
50 / 100
The beverage department of a regional supermarket has seen a drop in revenue over the last year and has hired your firm to determine the cause of the decline and recommend ways to reverse the trend.

Clarifying Information

  1. Client is a leading regional grocer within the southeastern U.S.
  2. Competitive landscape has not changed in the last year
  3. Revenue decline is specifically within the beverage segment
  4. Client wants to find the cause of the declining revenue and recommendations for how to stop the decline