Drinks Gone Flat

ProHub Comment

This case tests a candidate's ability to quickly segment data to identify root causes and think strategically about pricing and brand positioning. The key insight is recognizing that the Value Brand's aggressive price reduction from $0.60 to $0.40 per gallon is cannibalizing premium brands while generating insufficient revenue gains. Strong candidates will avoid getting bogged down in cost analysis and instead focus on the revenue equation (price × quantity).

Estimated Time 15 minutes
Difficulty Medium
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