This is a straightforward product launch profitability case where the interviewer-led format allows candidates to discover that margin analysis alone is insufficient—customer preference data is critical. The key insight hinges on recognizing that under-30 customers (the target demographic) overwhelmingly prefer the Vibrants brand (87.5% vs. 12.5% for in-house), which outweighs the superior margins of the in-house alternative and aligns with the 90-day launch constraint.
Your client, a national drug-store, is adding a new type of hair dye to its retail offering. “Highlights Dye” allows customers to comb in small amounts of various color to hair rather than the traditional method of dying the whole head. The client is considering launching it’s own in-house brand or carrying an existing recognized brand-name – “Vibrants”.
Should the drugstore carry Vibrants over the in-store brand?