BCG Case Study Prompt
Our client is a manufacturer of party goods. They have two product portfolios: everyday and seasonal.
Everyday products pertain to occasions that happen throughout the year such as birthdays and anniversaries. Seasonal goods are for occasions such as the 4th of July or Thanksgiving. They have a design facility that comes out with different party themes and takes care of licensing for goods using characters like Mickey Mouse or Shrek. They also have a manufacturing and distribution facility and a sales force that provides support to retailers.
One of their large and new customers came to management complaining that their prices are too high. They claimed that this is due to high distribution costs. After some analysis, the client found this to be true. We have been asked to figure out how we can decrease distribution costs.
How can the distribution costs be cut?
Case Study Overview
In this BCG case study, the client (a consumer goods manufacturer) has asked you to create a strategy to reduce distribution costs for the company. How will you approach this problem?
You can use the Profitability Framework to help build your structure for the case, but BCG will be looking for you to create a custom framework tailored to the specifics of the case. Don’t rely on the basic frameworks!
With a qualitative difficulty of 2 out of 4, this BCG case study will set you up for a first round at BCG. The case contains several math exhibits for you to interpret.
BCG Interview Tips
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