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Medium Profitability Pricing Strategy Sales Recovery

Yogurt Company In Ecuador

#FMCG #Food & Beverage #Yogurt/Dairy
ProHub Comment

This case effectively combines financial analysis with strategic pricing considerations. The key insight is that a sales decline can paradoxically increase profitability when price increases and product cannibalization are considered. Candidates must balance short-term profit optimization with long-term strategic goals around market share and product positioning.

Estimated Time 15 minutes
Difficulty Medium
Source ESADE
50 / 100
Your client is a leading yogurt producer in Ecuador. It only sells in the local market. In the last year, their sales dropped by 13.6% and they have hired us to recover their sales quickly

Clarifying Information

  1. Client has 2 SKUs, spoon yogurt and drinkable yogurt
  2. Client has no production problems
  3. Although we do not have detailed market data, we know that the yogurt market is functioning normally
  4. While the question is focused on sales growth, profitability should be considered