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Case Prompt

You are consulting for a direct mail retailer that sells ladies clothing. Your client’s catalog printing and postage costs have just increased to thirty-two cents per catalog.

The average response rate for catalogs mailed is 2%. In addition, 25% of customers who order product can be expected to reorder within six months.

The average order size is $80. The profit margin on catalog orders, excluding printing and postage costs, is 15%.

How can your client decide if the new price is acceptable?

Case Study Overview

In this case, the client has asked you to help maintain profitability for the company. The company has recently seen some costs increase, taking away from the bottom line. Your job is to look into the profitability and advise the company on how to move forward with the increased costs in mind.

This case will help prepare you for a Oliver Wyman first round. Use the Profitability Framework to solve the case, but use your knowledge of the basic frameworks and your business acumen to create a custom framework that best suits the business situation in the case.

There are no diagrams/math exhibits in this case. This is a beginner level Oliver Wyman case, with a qualitative difficulty of 1 (out of 4).

Oliver Wyman Interview Tips

What does Oliver Wyman look for in its case interview candidates? Acute math skills and a flexible attitude.

Be prepared for potential curveballs from your interviewer, and make sure your mental math is sharp!

In this case, focus on one area of growth for your next case.

For quality out-loud casing practice, book a session with one of our ex-MBB interview coaches.

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