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Hard Revenue Growth

Happy Bellies

#Food and Beverage #Consumer Packaged Goods
ProHub Comment

This case tests the candidate's ability to structure a revenue growth problem in a competitive market with cost constraints. The key insight is recognizing that Happy Bellies' declining position despite being the market pioneer suggests that simply launching new products without understanding competitive dynamics and cost pressures will likely fail. The case requires candidates to diagnose the root causes of revenue decline before proposing solutions.

Estimated Time 15 minutes
Difficulty Hard
Source Wharton
50 / 100
Your client, Happy Bellies, is a meal kit delivery service that streamlines the culinary journey for the customer from grocery shopping to proportioning the ingredients and providing detailed instructions for a home cooked meal. The company is the first in the meal-kit space but has seen over the years many competitors entering the market. To differentiate from competitors, the company would like to launch a new product offering to entice loyal customers to spend more money per box (weekly order). How can Happy Bellies increase their revenue?

Clarifying Information

  1. Objective - Evaluate the best product offering to grow revenue while minimizing costs
  2. Geography - Happy Bellies is a New York-based company with meal kit manufacturing based in the states of New Jersey, Texas and California. They only deliver in the US.
  3. Business - Current offerings are either 2-person or 4-person recipe slots at three, four or five meals per weekly order.
  4. Costs - Corporate expenses (product, engineering, project management etc.) are negligible. The client is worried primarily about procurement and production costs.