Mock Consulting Interview - Consultant

[Music] man yeah hi hi welcome to Maine thank you I'm Emily nice to meet you nice to meet you too okay follow me okay so I propose that we just jump right into the case and get started how does that yeah yeah that's through it okey-dokey so I'm gonna keep my a computer screen open and there's a few pieces of data and some graphs that I might want to show you but otherwise I'm ready when you are yeah I'm ready great our client is next-gen tech and they've created a wearable device called the Theo and Theo is essentially a little computer on your wrist it tracks activity so it tells you your calories your steps it also can accept text messages it's basically a fully connected device next-gen tech wants Theo to make one billion dollars over the next two years in the u.s. they brought us in because they have a bit of a problem Theo has Wi-Fi built in which is great but that connectivity is only available currently when it has Wi-Fi so they want to partner with a cellular carrier to provide that connectivity and they've talked to Verizon and AT&T the two biggest players in the US and Verizon AT&T are excited about the opportunity but they have said that they will only work with next-gen tech and with Theo if they are the only two providers so what next-gen tech asked us to come in and help them answer is should they go with ATT and Verizon and an exclusive relationship or should they pursue a partnership with other carriers great so let me summarize the case for you to make sure I got all the details our client is next-gen tech our client has developed his wearable device called Theo which is like a computer on your wrist it tracks your Fitness calories tax permeate and our goal here is to make you a 1 billion dollar revenue is that yep revenue and in the US only yes we're only talking about the u.s. right now okay when complications that the device has Wi-Fi built and mm-hmm but our client wants to wants it to work anywhere even when Wi-Fi is not available somebody want to partner with some cell cellular carriers mm-hmm and the options we have are basically one AT&T and Verizon partnering with AT&T and Verizon but they demand exclusivity mm-hmm or following audit areas you got it can I ask one more question sure are we planning to sell this device only through like the carriers of stores yeah for now that's our distribution channel is going to be through ATT and Verizon or other carriers stores great do you mind if I take some some time to organize my thoughts go for it all right so out goes from a deal 1 billion dollar business in the u.s. in revenue in the next two years yep and the options the question have to answer is to where to go with 18:10 Verizon and sign an exclusivity contract or follow other carriers you got it to assess this this problem I like to look to market size of the carriers to the customer base and the retail footprint of the options okay so under market size I'd like to understand since the carrier's would be the only logistics the footprint that this would be the only way of selling the product I'd like to understand the number of customers we currently have for AT&T Verizon and VR what is the price would be selling to describe sure and what is the growth expected between year one and two mm-hmm under customer base I would like to understand the demographics of customers understand their price sensitivity sensitivity just as the likelihood of the customer base to to purchase our product makes sense and finally I would like to look at the retail footprint and see what was the number of stores we currently have for the options and what's the sales force of it okay I like that where do you wanna start I'll like to start by the market size if that's fine that works for me so first of all like to understand what is the price with ATT and Verizon our expectation is it will sell the Theia for $400 mm-hm and it with other carriers our expectation is that we would sell it for $500 is there a reason for that good question so part of what makes 18 Verizon a teen teen Verizon good partners is that they would be willing to throw in a little bit of money to bring down the cost that customers would have to pay walking out the door with you so a teen teen Verizon are essentially is helping to subsidize that $400 cost make sense I'd like to know the current number for customers we have okay um over why do you want understand that is on a set like the total market potential market and calculate the penetration rate so can see how feasible it is to get to one-minute revenue okay each of the options okay so I have a little bit of data for you then let me share that with you okay so I have the customer base for AT&T and Verizon and other carriers which includes Sprint t-mobile us said we're pretty it's pretty granular so this is for the current customer base right right right now do we have the expected customer base next year why do you want understand that because we we want you like our goal is to get to 1 billion revenue in year 2 mm-hmm and I'd like to talk with the penetration rate yeah next year so we do have some growth rates um we know the growth rate for and both 18 18 Verizon as well as for other carriers is about 20% I'll kiss any of these numbers okay so what I would do to calculate the penetration rates is first of all I would estimate the potential market by multiplying the number of customers and in your qu which means I will calculate them for customers with 20 percent growth rate okay and to find one billion by this number which is the penetration rate that's gonna assess you yeah I think so why don't you just start sure than me can keep going customers for option one which is AT&T and Verizon and option two which is which are the other care is it so the growth rate is 20% we get to the number of customers in your chew okay which is 24 million for AT&T Verizon and 36 minutes just added 10% to each of that okay so you did 20 times 1.2 yeah okay now we have the price per device for each of the scenarios and here we have four hundred dollars fourteen thousand and five hundred dollars for option two all right by multiplying these two mm-hmm I'll get to the obtain show total - I assume you have like hundreds and penetration okay so this is the total mark not nine point six billion and 1.18 that's one option - since we want one billion revenue in here - I would divide 1 billion by nine point six and my final so in this case I will approximate 10% if that's fine with you and here's one bidden by 18 again proximately 5% if that's fine sounds good so both both penetration rates seem relatively low hmm of course option 2 seems easier to achieve however says that we have more carriers it's more granular is harder to probably standardize go to market strategy they have so I would so I in a vacuum five percent seems better than ten percent penetration but because but because option two is the other carriers and that's really fragmented that could be potentially really exactly okay so move back to my framework the next step would like to to to take is to look at the customer base hmm and understand who our customer our customers are what are they what they value when acquiring a product from from their their their carriers the way to do that would be probably to run a survey customer survey uh-huh we definitely did do a customer survey and I'm excited to share it with you so you can see here that this tells us what is the most important selection criteria for eighteen to Verizon and the other carriers so I'm assuming these numbers here are like the sample size which means the number of customers interviewed in the survey right yep they fourteen T and Verizon the two most important selection criterias are reliability of the network and customer service so I'm assuming in AT&T Verizon provide a better network and a better customer service on the other hand the other carriers are very concerned about price they're very price sensitive which tells me that since our product is like a new product and we're looking for early adopters early adopters are probably not very price sensitive so it seems like AT&T Verizon customers have a better fit for our product okay that makes sense to me and so do you feel like you have enough information yeah since the the distribution channels we're talking about are the carrot stores mm-hmm I'll like to understand like take a look at the route a footprint available sure and see what uh what's the number of stores each of the options have how good is the Salesforce and do you have do you have any data on that I do in fact here we go so he would have the number of stores in the US and outside of the US focusing first on the US I can see that AT&T AT&T and Verizon combined have four thousand stores and all the other carriers combined have only 3,000 stores so we're talking about for option one AT&T Verizon who had 33% more stores and outside of the US that's not true however since our goal is in the next two years at least is to focus only in the u.s. I don't think it's a problem right now is fair yes so again thank you Tim Verizon seemed a better fit for everybody okay so great so we have a meeting with the CEO tomorrow and she asked us to come in and let her know what we've learned so far what a recommendation is based on what we've learned any risks that we perceive and if we have any next steps wait do you mind if it takes some second thoughts so my final recommendation would be to go it NTT Verizon okay option one and the reason for that is that the penetration rates seem very reasonable for both options however the customer base for AT&T and Verizon customers see a better fit true to our product because our customers are the customers are less price sensitive and are more likely to be early adopters of this there's no device okay the main solution channel be the carrier's stores mm-hmm AT&T Verizon they have more store like 32% more stores and since this device I feel like customers need to like try it on and make sure it fit and look well it's a good it's a good reason shop it's good to have more stores yeah next steps are first of all follow up on the risks and then and finally get it law team to do to to write the contract and get the best as possible for us great you're done good job thank you ah so next steps on our side is that we will let you know if you make it through to the next round and you should get a call from us thanks for being excited about Bain and thanks for coming in and doing a case with me thank you thank you for having me it's really good to meet you the nail did a great job on that case there were a few things that I really appreciated about what he did first he listened really intently as I was setting up the case and the complications in the situation he wrote great notes and then he asked really important clarifying questions it also allowed him to set up a framework where he then was able to drive the rest of the case and so all along the way he was referring back to his framework I was able to refer back to it to keep us on track and stay structured there often isn't a perfect answer to a case and what Danielle did a great job of is defending his point of view he found the data points from throughout the case and brought them into his final recommendation the last thing I want to mention is that Danielle did a great job of making the interview feel just like a business conversation he asked great questions he shared of his experience he allowed me to go back and forth with him and I think we had a little bit of fun so Bravo Danielle you did a great job [Music]

Channel: undefined

Views: 667,858

Rating: 4.8751917 out of 5

Keywords: consulting, youtubecareers, recruiting, mock interview, consultant interview, 19000029_01

Id: psuKyBsH1oo

Length: 13min 38sec (818 seconds)

Published: Tue Oct 01 2019