Sparkle Co.

ProHub Comment

This is a two-part profitability case that tests diagnostic ability and market entry judgment. The first part requires candidates to identify that declining profitability stems from lost market share despite overall market growth, then the second part asks them to evaluate a new product launch with realistic financial constraints. The case emphasizes the tension between long-term growth opportunities and short-term business needs.

Estimated Time 15 minutes
Difficulty Medium
Source Columbia
50 / 100
Sparkle Co. is a mid-sized private beverage company ($900MM annual sales) that manufactures sparkling water in a range of flavors. After several years of profitable growth, Sparkle Co. has seen profitability deteriorate in the past year. The CEO dreams about taking the company public, and has hired our firm to diagnose the problem and help turn things around.

Clarifying Information

  1. We don’t have any figures yet about revenues or costs – we just know net profit is down slightly vs. last year
  2. Sparkle Co. is based in New York City, and sells across the country through retailers such as grocery stores and drugstores and major ecommerce sites like amazon.com
  3. They do not want to expand outside the US