Undergraduate Consulting Club - Competition Guide 2015

2015 UNDERGRADUATE CONSULTING CLUB (UCC) CASE COMPETITION COMPETITION GUIDE

UCC CASE COMPETITION – COMPETITION GUIDE 2015

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WELCOME Welcome to the 2015 UCC Case Competition at the University of Minnesota. We are delighted to see such dynamic and diverse future global leaders participating this year. The case competition is designed to enrich and challenge your creativity, analytic and problem solving skills and help prepare you for a career in today’s rapidly changing business environment. We encourage you to take full advantage of this opportunity to dive in, connect and learn. We look forward to hearing your ideas and seeing your presentation. Good luck,

Sibi Murugesan (Vice President, Case Study Author) & the UCC Executive Board


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RULES AND RESOURCES The following information is provided to help all participants have a positive and productive experience throughout the entire case competition. RULES

The case may not be shared or distributed to anyone outside of the competition at any time.

Teams will have about 3 days (85 hours) to work on the case.

Each team will receive electronic copy of the Competition Guide

Students may not receive help from any professors or faculty members. All work presented must be the work of solely the participating team members.

Only competition staff and judges may attend the presentations.

Teams who have not yet presented will not be able to view other teams’ presentations.

QUESTION PROTOCOL Any questions regarding the case and/or competition logistics should be sent to [email protected] with the subject line of “2015 UCC Case Competition Question.” While teams are allowed to reach out with data related questions, requests seeking guidance on analytic process or final recommendations/opportunity will not be able to be addressed. When submitting a question, please include your team’s name. Questions will be addressed between 4-5 pm daily on Wednesday and Friday. Questions for Thursday will be answered in person at the Q&A session on 4/16 in CSOM 2-231 from 5:30 pm – 6:30 pm. All answers will be emailed to team captains. This is meeting is not required to attend. FINAL DELIVERABLE

Teams may submit only one final presentation to the judges

The presentation must be in Microsoft PowerPoint, with printed handouts for judges

The presentation must be in English

Final PowerPoints must be e-mailed to [email protected] by 8 AM on Saturday 4/18/2015.

SUPPLIES We will project your presentation for you. Please put your presentation on the flash drive.

mailto:[email protected]


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PRIZES

FIRST PLACE: $2,000 for the team

SECOND PLACE: $500 for the team

THIRD PLACE: $250 for the team CASE COMPETITION DAY SCHEDULE Saturday April 18th, 2015 Below is a preliminary schedule of events for the day of competition. Please note that all times are tentative and may be subject to change. The UCC will notify all team captains of any changes made. 8:00 AM - Teams submit final version of power point to [email protected] 9:00 AM - Judges arrive to Carlson; Judges' Briefing 9:30 AM - Preliminary presentations begin 12:00 PM - Lunch is catered 1:00 PM - Preliminary Presentations resume 3:00 PM - Final Presentations begin 4:00 PM - Announcement of winners; informal networking


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DAY OF COMPETITION LOGISTICS Important Notes

The day of the competition, students will report to CSOM L-126 at least 10 minutes prior to their assigned presentation time

Each team will prepare and distribute printed handouts of presentation slides to all 7 judges

Each team will save their PowerPoint on a flash drive

Teams are not permitted to revise their slides at any point after the 8AM submission.

Each round will run as follows: o 5 Minutes: Presentation set up o 10 Minutes: Uninterrupted presentation o 10 Minutes: Q&A

DAY OF COMPETITION ROOMS & LOCATIONS All case competition rooms will be located in the Carlson School of Management on West Bank, adjacent to Hansen Hall. CSOM L -126 – UCC Case Competition Base; Team Check In; Team “Locker” Room CSOM 1-143 – Preliminary Round Location CSOM 2-224 – Final Round Location


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JUDGING/SCORING Rubric Judges will evaluate teams on the following 115-point scale. Introduction, Identification of Business Issue and Research Objective (15 points) · Analysis of Kable King & cable/TV industry · Clearly defined business issue Specific, actionable and critical research objectives, stated as questions Analysis (20 points) · Strategic orientation and focus · Insightful, critical Information to report vs nice to know Interpreting the Data (15 points) · Use of qualitative (primary research) and quantitative (UCC) data · Ability to mine the data and derive actionable insights · Creativity, thoughtfulness and validity of data points/output Final Recommendation and Opportunity (20 points) · Evaluation of feasible recommendation and opportunity (quantified) · Realism and practicality of recommendation and opportunity · Justification of recommendation and opportunity · Strategic orientation and focus · Logical tie-in to analysis Organization of Material and Overall Presentation (35 points) · Ability to defend position · Clarity and style of presentation · Polished deck telling a clear story · Slide progression (each slide builds on the previous slide) · Delivery · Smoothness and balance of work, teamwork Questions and Answers (10 points) · Presentation style, communication skills · Creativity · Professionalism · Use of Time


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HOW TO APPROACH THE CASE Tips & Suggestions There is no prescribed method for dividing the work of preparing the case analysis. One approach is detailed below, but teams are encouraged to work through the case using the method that best fits members’ strengths and preferences. DIVIDING THE WORK Each team member should have a role; it is the team captain’s responsibility to guide the team in defining & assigning work. One approach might include defining roles based on the judging criteria:

1. Introduction, Identification of Business Issue and Research Objectives: Greet the audience; provide a comprehensive overview of the situation, complication and key issues to be addressed

2. Analysis: Teams should have a fundamental understanding of Kable King’s business/product offerings, competitive landscape and current category/snacking category performance. The analysis should tie back to the research objectives and be insightful. The analysis should evaluate both external and internal factors. A SWOT analysis is one way participants could review the organization.

3. Recommendation and Opportunity: Normally, teams should analyze two to three alternatives. The recommended alternative should address the key issues and solve the problem stated.

4. Business Case: Teams should justify why their recommendation is the optimal solution and outline key benefits to Kable King.

5. Final Recommendation and Opportunity: The recommended plan of action must be realistic, practical and attainable. It should tie back to the research objectives and be supported throughout the duration of the analysis.

6. Conclusion: Teams should conclude their presentation with a summary of key points and then open the floor to questions from the judges.

PRESENTING Prior to presenting, the team should designate a member or members to change slides. There should be balance and flow between presenters. Practicing these transitions can be as important as the presentation itself. Sloppy or awkward transitions are distracting and show a lack of preparation to the judges. When entering the presentation room, team members should introduce themselves to the judges and quickly take their positions. We highly encourage all team members to present the case and answer questions.


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QUESTION PERIOD When the team has completed the presentation, all members should stand and wait for the judges to begin the question period. When a judge asks a question, be careful that several team members do not jump in to answer. Team members should discuss prior to the presentation who will answer certain categories of questions. If the question is unclear, ask for clarification before trying to present an answer. After a team member has answered a question, a follow up answer should only be given by another member of the team if it will add value to what was already said. Teams must also ensure that they do not contradict one another while answering questions. Many times judges will tell teams they do not agree at all with the solution presented. When this occurs, becoming confrontational will only hurt the team. It is at this time when confidence in the solution pays off. Teams should support their answers by revisiting the facts they presented and assuring the judge that the chosen plan is the optimal solution to the problem. Teams should also pay attention to the body language of the judges. When a judge begins to nod their head in agreement or present other similar language, the person answering the question should wrap up and allow for the next question to be asked. The objective is to efficiently answer questions in the 10- minute period. ATTIRE It is important to dress professionally while participating in the competition. Business professional attire is suggested. It is important that team members not only wear professional clothing, but that they are comfortable in their attire. THE FIRST PRESENTATION If this is your first case competition, you may be understandably nervous about the challenging and fast paced day. Each team can get off to a good start by having a game plan prior to leaving for the competition. Sometimes the excitement and adrenaline of competing can lead teams to become disorganized and unfocused. Communication is the key component that will allow teams to stay on track and complete the presentation to the best of their abilities. Communicating key information such as time remaining, potential roadblocks or new information will help all members fully prepare for the presentation and work as a strong unit. The most important thing to remember about presenting is to leave the outcome in the presentation room. Premature celebration or feelings of doubt may cause teams to lose sight of their strategies and not succeed in the competition. Whether teams win or lose, work well or poorly together, every participant will gain valuable experience from the competition.


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2015 UCC CASE COMPETITION

CASE STUDY


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THE BIG QUESTION What role does Kable King’s current cable portfolio play in the cable/TV world to differentiate themselves from competitors and where should they plan to innovate in the future? SITUATION Facing stagnant growth in their base cable business, Kable King is looking for a new avenue for growth. It’s no longer about inventing the next big cable package but coming up with the next big TV idea. COMPLICATION Your client, Kable King, is one of four cable giants in the US market. The four giants all are very similar in product offerings. Kable King wants to differentiate itself from the other companies now and in the future and is looking for advice on how to make that happen. KEY QUESTIONS TO CONSIDER What role does Kable King’s current cable portfolio play in the cable/TV world and where should they plan to innovate in the future? As you develop your answer, be sure to take account of the following considerations:

Customer Segment Expansion Key TV Trends TV Innovations “Make Your Cable Bundle” Options Demographic Impact - Kids/Millennials/Seniors The Influence of Changing Media Any other key area of primary research (Student discretion)

CASE OPPORTUNITY Teams should work together to establish the business rationale and outline key elements of a strategic plan to help Kable King “win” in the TV world. The analysis should explore all, yet should not be limited to, the key questions outlined above. Once a recommendation is formed, teams then need to formulate a compelling business and execution/activation plan. KEY DELIVERABLE 1. Establish the business issue: determine what it is you want to accomplish with your analysis. Your goal is to clearly define the issue and the specific results to be achieved. This critical first step of establishing a clear understanding of the business issue will guide you throughout the duration of the analysis, further allowing you to:

Identify specific research objectives

Establish your role in developing an analysis that will lead to actionable recommendations

Provide a means for quantifying an opportunity


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2. Develop analysis: mine the data, highlight key implications and craft a business case with specific rationales for your recommendations. Your analysis is the basis of the client deliverable and provides answers in a logical flow. Suggestions to keep in mind as you begin telling your story:

Ask yourself what information is critical to report to the client vs. nice to know

Each slide needs to build upon the previous slide – one way of knowing if your story flows is by reading the headings on the slides; do they flow from page to page? If not, there may be something missing, or there may be too much!

3. Finalize analysis, provide recommendations and quantify the opportunity: identify and advise on possible courses of action for addressing the business issue. Ensure recommendations link back to the client’s research objectives and tell them to do something to improve their business. Ensure recommendations are:

Relevant and feasible

Linked to the research objectives, the client’s business issue and strategic priorities

Supported by the analysis and insights

Active not passive

Quantifying an opportunity

Providing next steps


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COMPANY BACKGROUND

In 1957, George Kable had a dream. He had been addicted to TV ever since he started watching cable back in college. He loved it so much that he dreamt of creating his own company to give excellent cable TV to millions across the country. He took all of the money he had saved for graduate school and used it to create his own company: Kable King. Fast forward a decade and Kable King was booming. After its humble beginnings in rural Minnesota, it had now expanded across the country, operating in New York, Los Angeles, Chicago and everywhere in between. Kable King was essentially the only cable company in the US, raking in millions of dollars in profit and giving excellent service to loyal customers. It seemed that Kable had definitely become king. Fast forward another two decades in the cable industry. The entrance of three almost simultaneous new players threatened the existence of Kable King. Each of the three new players ate huge chunks of Kable King’s market. TV Town gained large market share in the West Coast market while Cinemagic captured the East Coast. eStream took over the Southern market, leaving Kable King to function as the market leader in only the Midwest market. George Kable’s dream seemed shattered. Over the next decade, through creative marketing campaigns, increased customer service and better products, Kable King fought tooth and nail in every segment to regain lost market share. But they were not able to regain their status as “the king of cable.” Now, all four “Kable Giants” hold essentially the same market share in all 4 markets. Their product offerings are very similar as are the prices. Every now and again, a company might spike forward in market share due to a marketing campaign or a new promotion but on the whole, the four are very comparable. This has frustrated George Kable. He is tired of being “a part of the herd.” He wants to reestablish his company as the premiere cable company and return to the glory days. He has hired your firm to help solve this issue.

CURRENT STRATEGY OF KABLE KING In 2000, Kable King launched its overall strategy program named “Excellence in Every Channel.” The main goals of this new program were to return Kable King to focusing on the customer, through enhancing the ability to enjoy more quality channels/programming at lower costs, improving its public reputation and making TV watching as seamless as possible. The future is expected to bring increased digitalization of all links in the value chain and higher levels of personalization.


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KABLE KING

Product Portfolio

74%

16%

10%

% of Revenue Breakdown

Cable Packages

Installation &Maintenance

Promo Space

11

4

73

12

6

56

32

52

0.9

0.0

4

11

6

77

15

2

64

30

10

1

0.7

0.0

5

12

0

83

14

5

65

27

15

8

0.7

0.0

2

B C P B C P + A C P A C P + H C P H C P + I & M P S

YEARLY NEW CABLE PACKAGE SALES (IN 100s)

2012 2013 2014


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Product

Offering Description Price Cost

Basic Channel

Package (BCP) 10 Channels $30/month $10/month

Basic PLUS

(BCP+) 25 Channels $40/month $15/month

Advanced

Channel

Package (ACP)

40 Channels $55/month $20/month

Advanced PLUS

(ACP+) 55 Channels $65/month $25/month

Hyper Channel

Package (HCP) 100 Channels $75/month $40/month

Hyper PLUS

(HCP+)

100 + Individual

Channels may be

purchased (on

average, 10 extra

channels are

purchases)

$65/month + $2/month

for each additional

channel purchased


for each additional

channel

Installation &

Maintenance

(I & M)

Kable King will install

your “KableBox” and

will service it

$100 for Installation

(onetime fee); $70 for

Maintenance/visit (on

average)

$10 for Installation (One

time cost); $45 cost for

maintenance/visit (on

average)

Promo Space

(PS)

Companies may buy

space on

“KableBoxes” to

advertise

$250 per KableBox $50 cost per KableBox

*All products are sold online through the company website, www.kableking.net, except for I & M (which is sold online but installed in person)

http://www.kableking.net/


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Experience as a Customer

*Sample size: 5,000 randomly selected customers of the top 4 Cable Market Leaders

10%

12%

37%

41%

% Ranked as Top Driver of Satisfaction (2014)

Quality programming

Quantity of channels

Affordable packages

Personalization to preferences

17%

27%

35%

12%

3%6%

Kable King Customer Segmentation

YH

YH + C

OH

OH + C

S

S + C


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Customer Segments

Young Households

Young Household +

Children

Older Household

Older Household +

Children Seniors

Seniors + Children

Abbreviation YH YH + C OH OH + C S S + C

Segment Description

Head of Household is

between 18 - 35


between 18 – 35 with Children

ages 1 - 17


between 36 - 65

Head of Household is between 36 –

65 with Children ages 1 - 17

Head of Household is older than 66

Head of Household is older than 66 with Children

ages 1 - 17 Top Channels Watched (in no particular order)

1. Travel 2. Food

Network 3. ESPN 4. CW 5. NBC

1. Disney 2. Lifetime 3. Nickelodeon 4. QVC 5. NFL

1. CNBC 2. TNT 3. TBS 4. NBA 5. FOX

1. CNBC 2. FOX 3. Food

Network 4. NBC 5. AMC

1. CNN 2. Food

Network 3. History 4. AMC 5. NATGEO

1. CNN 2. CBS 3. BBC 4. A&E 5. Food

Network Average Salary of Kable King Customer Segment

$50,000 - $75,000

$80,000 - $100,000

$90,000 - $115,000

$95,000 - $125,000

$70,000 - $85,000

$80,000 - $95,000

654716

802 813 816

2010 2011 2012 2013 2014

Kable King Number of Customers (in 10,000s)

Number of Customers (in 10,000s)


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KABLE KING DIRECT COMPETITORS

TV TOWN

A Cable Company that offers a majority of channels but with a focus on around the clock TV shows and

reruns

Product Portfolio

Product

Offering* Description Price Cost

Basic Channel


Basic PLUS


0

10

20

30

40

50

60

70

80

90

100

2010 2011 2012 2013 2014

Customer Satisfaction 2010 - 2014 (in %)

Kable King TV Town Cinemagic eStream


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Advanced

Channel

Package (ACP)


Advanced PLUS


Hyper Channel


Hyper PLUS

(HCP+)

100 + Individual

Channels may be

purchased (on

average, 10 extra

channels are

purchases)


for each additional

channel purchased


for each additional

channel

Installation &

Maintenance

(I & M)

TV Town will install

your “TVBox” and

will service it




average)




average)

Promo Space

(PS)

Companies may buy

space on “TVBoxes”

to advertise

$150 per TVBox $50 cost per TVBox

*All products are sold online through the company website, www.tvtown.com except for I & M (which is sold online but installed in person)

*Products offered by Kable King and TV Town are essentially the same; prices are the only traits that vary

between the two companies*

http://www.tvtown.com/


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Customer Segments

Customer Segments

Young Households

Young Household +

Children

Older Household

Older Household +

Children Seniors

Seniors + Children


Segment Description


between 18 - 35



ages 1 - 17


between 36 - 65





ages 1 - 17 Top 5 Channels Watched (in no particular order)

6. Travel 7. Food






6. CNN 7. Food



Network Average Salary of TV Town Customer Segment

$50,000 - $75,000

$80,000 - $100,000

$100,000 - $135,000

$95,000 - $125,000

$70,000 - $85,000

$80,000 - $95,000

17%

24%

33%

19%

3%4%

TV Town Customer Segmentation

YH

YH + C

OH

OH + C

S

S + C


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eSTREAM

A company that is very similar to the other 3 “Cable Giants” but has since acquired a smaller firm, gaining

the ability to stream certain movies over the internet

Product


Basic Channel


Basic PLUS


Advanced

Channel

Package (ACP)


Advanced PLUS


Hyper Channel


831

845

875

889897

2010 2011 2012 2013 2014

TV Town Number of Customers (in 10,000s)



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Hyper PLUS

(HCP+)

100 + Individual

Channels may be

purchased (on

average, 10 extra

channels are

purchases)


for each additional

channel purchased


for each additional

channel

Installation &

Maintenance

(I & M)

eStream will install

your “eBox” and will

service it




average)




average)

Promo Space

(PS)

Companies may buy

space on “eBoxes” to

advertise

$200 per eBox $50 cost per eBox

*All products are sold online through the company website, www.estream.com, except for I & M (which is sold online but installed in person) ** Products offered by Kable King and eStream are essentially the same; prices are the only traits that vary

between the two companies*

***eStream offers in its HCP+ package the option to watch certain movies offered in its lineup online

through the Internet. This technology was gained as eStream acquired PhutureTech, a small tech company

focused on alternative media, in 2010***

Customer Segments

http://www.estream.com/


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Customer Segments

Young Households

Young Household +

Children

Older Household

Older Household +

Children Seniors

Seniors + Children


Segment Description


between 18 - 35



ages 1 - 17


between 36 - 65






11. Travel 12. Food






11. CNN 12. Food



Network Average Salary of eStream Customer Segment

$50,000 - $75,000

$80,000 - $100,000

$90,000 - $115,000

$95,000 - $125,000

$70,000 - $85,000

$80,000 - $95,000

45%

27%

17%

9%2%

eStream Customer Segmentation

YH

YH + C

OH

OH + C

S


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CINEMAGIC

A cable company that has a predilection for offering HD movie channels of many different genres

Product


Basic Channel


Basic PLUS


Advanced

Channel

Package (ACP)


Advanced PLUS


Hyper Channel


821879

932 9581034

2010 2011 2012 2013 2014

eStream Number of Customers (in 10,000s)



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Hyper PLUS

(HCP+)

100 + Individual

Channels may be

purchased (on

average, 10 extra

channels are

purchases)


for each additional

channel purchased


for each additional

channel

Installation &

Maintenance

(I & M)

Cinemagic will install

your “CineBox” and

will service it




average)




average)

Promo Space

(PS)

Companies may buy

space on “CineBoxes”

to advertise

$175 per CineBox $50 cost per CineBox

*All products are sold online through the company website, www.cinemagic.com, except for I & M (which is sold online but installed in person) ** Products offered by Kable King and Cinemagic are essentially the same; prices are the only traits that vary between the two companies **

-

17%

27%

35%

12%

3%6%

Cinemagic Customer Segmentation

YH

YH + C

OH

OH + C

S

S + C

http://www.cinemagic.com/


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Customer Segments

Young Households

Young Household +

Children

Older Household

Older Household +

Children Seniors

Seniors + Children


Segment Description


between 18 - 35



ages 1 - 17


between 36 - 65






16. Travel 17. Food






16. CNN 17. Food



Network Average Salary of Cinemagic Customer Segment

$50,000 - $75,000

$80,000 - $100,000

$90,000 - $115,000

$95,000 - $125,000

$70,000 - $85,000

$80,000 - $95,000

741

776

803

826

845

2010 2011 2012 2013 2014

Cinemagic Number of Customers (in 10,000s)


Documents

Undergraduate Consulting Club - Competition Guide 2015