Back to Practice case - RefreshNow! Soda

Practice case - RefreshNow! Soda

 

QUESTION 1: What key factors should RefreshNow! consider in deciding whether or not to launch O-Natura?

Helpful Hints

  • Take time to organize your thoughts before answering. This tells the interviewer that you think about the problem in a logical way
  • Develop overall approach before diving into details

Reveal answer

A good answer would include the following:

Consumers. Who drinks flavored water? Are there specific market segments to address?

Cost/Price. Is the flavored bottled water market more profitable than those markets for RefreshNow!’s current products? Is it possible to profitably sell (price set by the market, internal production costs) O-Natura? Given fixed costs involved, what would be the break-even point for O-Natura?

Competitors. Which products is O-Natura going to compete with? Which companies are key players and how will they react?

A very good answer might also include multiple additional key factors RefreshNow! should consider. For example:

Capabilities and Capacity. Are the required marketing and sales capabilities available within RefreshNow!? Does the product require specialized production, packaging, or distribution? Is it possible to accommodate O-Natura in the current production and distribution facilities? What impact does geography have on the plant selection?

Channels. What is the ideal distribution channel for this product? Are current retail outlets willing to add O-Natura to their product catalogue?