The above information begins to expose a clearer story. A number of factors have contributed to the emergence of the private label segment: manufacturer’s interest in utilizing excess capacity, grocer’s desire to sell products with their name on it (they may believe this creates return customers in an increasing competitive environment), consumers concerns about a troubled economy (price vs. quality tradeoffs).
At this point the candidate would be encouraged to state what they believe the magniturde of the private label threat to be to the client. There is no right answer. One can argue either way.
If the threat is seen as high, the likely recommendation is for your client to begin supplying private label products. The candidate should recognize that in competing in the private label segment, the basis of competition is primarily cost. At the same time, the client’s branded product should be protected. The following tactics might prove appropriate:
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Seek to wring costs out of all phases of the operation
? Utilize all existing excess capacity
? Gain maximum product knowledge as quickly as possible ? Understand low cost positions on product ingredients and mix ? Review process improvement/ manufacturing efficiency opportunities
? Undertake overhead reduction efforts
(Any of these points could be discussed in great detail)
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Ensure there is no customer confusion between private label offering and branded product
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Seek partnering agreements with retailers
? Joint advertising and promotions
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Explore deals with mass merchandisers to enter private labels (remember, mass merchandisers presently sell no private label)
If the threat is seen as low, the likely recommendation is for your client to stay with branded cookies only. The candidate should recognize that in competing in the branded segment the basis of competition is one of differentiation. Additionally, your client should do all it can to halt or reverse the momentum of the private label segment. The following tactics might prove useful:
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Pursue a maximum differentiation strategy
? Invest in brand image to support premium price
? Make it difficult to copy product: innovate wisely through product advances,
smart product line extensions, frequent changes to the product ? Manage price gap: explore price increases where appropriate
( Again, any of these points could be discussed in great detail)
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Explore exclusive partnering with mass merchandisers
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Consider alternative distribution channels
Seek partnering agreements with grocers regarding branded products Educate grocers as available
?
?
? Customers who buy private labels are the most price sensitive. They also tend to
be the least loyal customers and spend less per store visit.
? Grocers financial stake in private label products extends beyond the product
margins. There is lost profit from branded products that could occupy the same shelf space, advertising costs of the private label products, etc.
Key takeaways:
This case has no right or wrong answer. It forces the candidate to take a stand in a “grey” situation and defend it. It also provides a large amount of data upfront which the candidate must quickly sort through and determine what is important and what is not. The key is to understand the story behind the data. How did the private label segment emerge? What is driving it? How has it affected manufacturers, retailers and consumers?
Firm: A.T. Kearney
Case Number:
Case setup (facts offered by interviewer):
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Your client is a U.S. based oil refinery
The refinery has a single location and is a small to medium-sized refinery Your client, although profitable, believes it is lagging behind the competition and could improve
?
?
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You are brought in as part of a joint consultant-client team that will review overall operations and make recommendations on ways to improve the bottom line
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You have been assigned to work with the maintenance division
The maintenance department’s primary objective is to prevent equipment failure and to repair equipment when it does fail
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Understanding of its organization is important. It consists of three primary areas: nine assets areas, one central maintenance area and one group of contractors. The first two areas are employees of the client, the third an external source of labor.
? An asset is a physical area of the plant that contains various pieces of
equipment (pumps, heat exchangers, etc.). There are nine assets. Each asset has a Maintenance Supervisor who is responsible for all maintenance to be performed in his/her asset. Working for the Maintenance Supervisor in each
asset is, on average, eleven “craftsmen”. The craftsmen are the actual workers that perform the maintenance. The craftsmen are unionized and divide into twelve different craft designations (e.g. electricians, pipefitters, welders, etc.). Each craft designation has a defined set of skills they are qualified to perform. They are not allowed to perform skills outside of their defined craft, or help in the performance of activities involving skills beyond their craft. Collectively the twelve different crafts can perform any maintenance job that might arise at the refinery. The maintenance supervisor and his/her assigned craftsmen are “hardwired” to their asset. That is, they work only on equipment in their given asset.
? Central maintenance is a centralized pool of Maintenance Supervisors and
Craftsmen, who are dispatched to support the different assets during times of high workload. They are employees of your client and fit the description contained in the above Asset explanation. The only difference is that they may work in any of the different assets as determined by workload. There are a total of 11 Maintenance Supervisors and 100 Craftsmen that comprise Central Maintenance
? Contractors are a group of outside Supervisors and Craftsmen who support
your client during times of high workload. They also are capable of performing any maintenance job that may arise, but differ from your client’s Craftsmen in
2020年(招聘面试)怎样应付案例分析面试(英文版)
