Bain Case Interview Practice #2: Fashion Co. Profitability

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This Bain case interview practice case is a revenue case, one of the most common types of cases for Bain first-round interviews. To pass your consulting interviews and land a consulting job offer, it is critical that you practice and master case interviews.
To solve or pass this case, you will need to create a consulting framework to assess the key drivers of revenue. Afterwards, you will identify and prioritize which driver has the greatest potential impact on revenue. Once you have brainstormed potential ideas, you will deliver a case recommendation.
This case is taken from Bain's case interview library, which can be found at: www.bain.com/careers/intervie...

[@HackingtheCaseInterview]

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[@spencertitus5496]

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[@JJ-zy3zv]

Seems like a huge missing assumption is whether the 20% discounts would prompt more units and thus result in incremental revenue (we're only treating it as a cost here)

[@akshaygoswami8199]

Great video and great recommendations. Few questions 1) Saw no clarifying questions 2) when case just says client is a fashion co., how to know whether wholesale, retail, online, franchise, etc. 3) In most revenue decline cases, the tendency is to ask for financials of client or peers. How to restrain from that? 4) When the second prompt was deep dive into market and customer trends, I already had those two in my structure before, so shall I just repeat the same sub points or come up with new ones. Thanks!

[@srishti1870]

Loved the video! It would be great to have a video that goes over the unique frameworks that people use.

[@HackingtheCaseInterview]

Yup, there will be a video covering frameworks in a few weeks!

[@SpaghettiToaster]

Isn't option A better if customers are assumed rational actors? To recoup their participation fee, customers would have to increase their shopping from 100$ to 250$, otherwise there would be no point in participating in the program. Hence, it stands to reason that the 25% of participants would be looking to increase their spending.

[@jehan9986]

I would need more information to solve this case. How did we jump to the awards program? don't they already have it for example?
How did we reach the conclusion that we need a loyalty program?
Also, when we figure that we need a loyalty program. We could ask then about the customer number (market size) and conclude the suggested recommendation.
I think we need to ask more questions to lead to that answer

[@vegetossgss1114]

115M for option B and not 150M I think
normal sales: 10M.100 = 1B dollar
option A = 7,5M.100 + 2,5M . (50 + 100*(1 - 20/100)) = 1,075B dollar
option B = 10M . (9/12 . 100 + 3/12 . 100 . 2 . (1 - 20/100)) = 1,115B dollar

[@amanpatnaik9862]

here in the 2nd case we are only taking till 6 month period in the the next 2 periods of 3 months sales will increase more....and there will be more incremental revenue...Should we calculate that also as in the 1st case it was taken for a year

[@ruidias9628]

What about counting for the potential increase in sales due to a lower permanent discount? Both in terms of increased consumers and increased sales (spending).
Why do we consider the sales as cost and not the sales as both profit and cost (due to lower selling points of discounts) ?

[@nikkzm3689]

Can anyone please explain the calculation of "Intermittent sales"? Didn't understand that part at all :(

[@p103]

Sir, I have a doubt. Should we write the framework(Quantitative and Qualitative) in our sheet which will be uploaded after the round?