First question: What information would you require to help explain the slowing down of growth?

The Good Answer:

• The growth of the bar/disco channel is peaking; the number of new outlets is no longer increasing.
• The whisky category has reached a high "share of throat" in this channel and is unlikely to grow further through penetration.
• Competitors saw the opportunity and started to invest, eroding some of the client's market share.

The Excellent Answer: (All of the above, plus)

• The client's advertising campaign is 5 years old, and the brand image is aging, making it hard to recruit new, younger consumers.
• There's a lack of aspiration for consumers to upgrade to more premium products from the client.
• The category life cycle is short; as the initial batch of consumers ages, they go to bars less frequently and are leaving the market.

Second question: What is driving profitability down?

The Good Answer:

• Increased competition has driven prices down and limited room for price increases.
• Competition has driven up trade marketing costs, as outlet owners have more bargaining power and demand more sponsorships.
• Imported goods are subject to currency fluctuations.

The Excellent Answer: (All of the above, plus)

• As the business expanded, the client partnered with smaller, weaker outlets that provided a lower return on investment.

Third question: What are the potential strategic options?

Here are some options that can be explored:

• Revitalize the brand with a new campaign to improve competitiveness.
• Premiumize the market and encourage consumers to up-trade to higher-value products.
• Seek opportunities in less competitive rural areas.
• Explore new channels, such as in-home or restaurant consumption.
• Innovate on delivery to create a competitive advantage.
• Improve the outlet selection process to focus on high-return partners.