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Firm: . Kearney Case Number: Case setup (facts offered by interviewer): ? Your client is a . based manufacturer of branded cookies (cookies that carry the name of the manufacturer) ? Recently private label cookies (those carrying the name of the retailer) have emerged and threatened branded cookies ? Private label cookies emerged five years ago ? Two and onehalf years ago they made up 10% of the overall cookie market (brand being the other 90%) ? Today they make up approximately 20% of the overall cookie market (., there has been a steady, linear increase of private label portion of the overall cookie market during the past five years) ? The overall cookie market has been relatively flat over the past five years ? Private label cookies are made by the same manufacturers who make branded cookies, they are just sold under the name of the retailer ? There are essentially three major petitors to consider: ? Your client, who makes only branded cookies ? A second major player, that makes both branded cookies and supplies cookies for private labelers ? A collection of small outfits, that make both branded cookies and supply private labelers ? Distribution occurs primarily through one of two types of outlets: ? Grocery outlets: all grocers sell branded cookies, most also carry their own private label cookies. This represents approximately 90% of total cookie sales ? Mass merchandisers (ex. Walmart, Sam’s, etc.): sell only branded cookies Question: ? How large would you estimate the overall . cookie market to be in terms of $? ? How large of a threat do you believe the trend in private label cookie sales to be to your client? ? Based on your assessment, what is an appropriate strategy for your client to follow? Suggested solutions: The first question, estimating the size of the . cookie market, has no right or wrong answer. It is a test of a candidate’s ability to make reasonable assumptions and work quickly with numbers on an “order of magnitude” level. One acceptable response would be to estimate the number of . households, estimate