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A dairy brand in Saudi Arabia wants 20 percent more revenue
The prompt
A fictional dairy brand in Saudi Arabia sells a yoghurt drink to 2 million households. Each buys 20 times a year at SAR 5 net to the brand. That is SAR 200 million of revenue at a 30 percent contribution margin. It wants 20 percent more revenue within two years. Three ideas are on the table. A: get into 3,000 more convenience stores. This wins 250,000 new buying households at 12 purchases a year, with SAR 1.5 million of listing fees. B: a loyalty and multipack offer that lifts existing households from 20 to 22 purchases a year, costing SAR 2.5 million. C: a protein drink for gym-goers, bought by 300,000 households 15 times a year at SAR 8. It has a 35 percent margin and SAR 6 million of launch cost. 25 percent of its revenue is taken from the existing drink. Which ideas should it back? (Figures are illustrative.)
Your interviewer will share data as you ask for it. Ask clarifying questions, state a hypothesis, then lay out your structure out loud before you calculate.
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