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Cambridge Group Statistical Analyst Interview Question (student candidate)

I interviewed in Chicago, IL and was asked:
"A company that produces an inexpensive frozen pizza product (eaten mostly by children) is experiencing losses in sales and the grocery stores that carry the product are threatening to remove it from shelves. The company is considering at least two options: A) Begin a television advertising campaign for the current frozen pizza product targeting children after school, and B) In addition to the current frozen pizza, start to produce a new product, the "pizza pocket," which would be the first of its kind and does not have any current competitors. What are the pros and cons of each option? Walk through the processes of how you would decide whether to recommend either option to the company."
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Part of a Statistical Analyst Interview Review - one of 1 Cambridge Group Interview Reviews

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Wow, you have a really great memory and wrote a great review of their processes! I'm currently in correspondence with them as well.

But on to your question:

Pros
* Increased marketing leads to increased brand awareness/recognition which then leads to sales.
* After school tv slot is a strategic tactic to maximize target demographic.
* New product (pizza pocket) would expand product base which leads to positive imaging, an opportunity to claim strong market share with that product, and add another business line of revenue.

Cons
* Risks associated with strategy (If sales continue to decline)
* Higher costs to implement (advertising & R&D for new product line)
* Implications from supply chain changes

- E on Feb 29, 2012

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