Practice interviews

The promotion lifts volume. Does it earn more contribution?

Merefield sells household products through retailers. A buyer proposes a promotion that shifts shoppers from a higher-margin pack.

The question

This is an authored consumer-goods sales case, inspired by the work described in Unilever’s UK and Ireland programme. It is not a Unilever question.

Matched four-week forecast
UnitsContribution per unit (£)
Promoted pack without promotion100002
Promoted pack during promotion160001.4
Other pack without promotion80003
Other pack during promotion60003

Same stores and four-week window. Contribution per unit already includes product and trade costs; do not deduct the discount twice. The displaced 2,000 other-pack sales are included in the forecast.

“Compare total contribution, identify the hidden trade, and negotiate a better test.”

A strong answer, step by step

Open each step in turn. This is one strong answer, not the only one.

Step 1: Calculate the promoted pack

What would you do here? Open the move you’d make.

  • Compare pack contribution

    The strong move. More units can produce a much smaller increase in contribution.

  • Use promoted-unit growth to judge success

    Tempting, but it misses something. The promotion changes both volume and unit contribution.

See how a strong candidate says it

“The promoted pack rises from £20,000 contribution to £22,400. Its 60% volume increase adds only £2,400 contribution because each unit earns less.”

What a strong candidate could say

Why it works: More units can produce a much smaller increase in contribution.

Step 2: Count cannibalization once

What would you do here? Open the move you’d make.

  • Evaluate the promoted pack as its own campaign

    Tempting, but it misses something. A promoted-product-only calculation misses the lost contribution elsewhere.

  • Include the £6,000 displaced contribution

    The strong move. The buyer’s forecast shifts some demand rather than creating it.

See how a strong candidate says it

“The other pack falls from £24,000 to £18,000. Total contribution falls from £44,000 to £40,400: a £3,600 decline. I would not deduct the £6,000 again; it is already in the promoted total.”

What a strong candidate could say

Why it works: The buyer’s forecast shifts some demand rather than creating it.

Step 3: Negotiate the mechanism

What would you do here? Open the move you’d make.

  • Test a different trade or audience

    The strong move. The plan should improve the total business, not only the promoted line.

  • Approve the original promotion

    Tempting, but it misses something. The supplied forecast does not support the original plan on contribution.

See how a strong candidate says it

“I would discuss a shallower discount, a pack with less overlap, or a smaller store test. We need a plausible mechanism for incremental demand, with contribution measured across the affected range.”

What a strong candidate could say

Why it works: The plan should improve the total business, not only the promoted line.

Step 4: Make a joint review

What would you do here? Open the move you’d make.

  • Compare different store periods

    Tempting, but it misses something. Seasonal or unmatched comparisons cannot isolate the trade in this packet.

  • Use a matched-store contribution check

    The strong move. A joint plan needs comparable evidence and an explicit objective.

See how a strong candidate says it

“I would agree stores, dates, availability and a matched comparison with the retailer, then review total range contribution and repeat demand. I would separate any strategic distribution objective from a claim of immediate profit growth.”

What a strong candidate could say

Why it works: A joint plan needs comparable evidence and an explicit objective.

The answer, in short

Decision
Renegotiate the promotion rather than buy a 60% volume headline.
Because
The supplied range contribution falls by £3,600.
What would change it
Evidence of incremental repeat demand or a separately agreed distribution goal could change the plan.

Common traps

  • Ignoring cannibalized sales.
  • Subtracting a discount already included in contribution per unit.

Check your answer

  • Did you calculate £22,400 for the promoted pack?
  • Did you include both packs and find the £3,600 decline?
  • Did you avoid counting the same cannibalization twice?
  • Does the proposed test measure total contribution?

Last reviewed Nov 10, 2026