Case Interview Question #00554: Our client Becton, Dickinson and Company (BD) (NYSE: BDX) is an American medical equipment company that manufactures and sells medical devices, instrument systems and reagents. Headquartered in Franklin Lakes, New Jersey, BD does business in nearly 50 countries and has 28,803 employees worldwide. Revenue in fiscal year 2010 was about USD $7.37 billion.
The client Becton Dickinson & Company’s research & development (R&D) department have recently invented a small device that can improve the quality of sleep by 400%. Your consulting company has just been retained to help bring this new product onto market. Specifically, the client wants to know how they should price it and what the estimated market for this product is. How would you go about the case?
Additional Information: (to be given to candidate if asked)
- The client company had operating income of $1.68 billion on revenue of $7.37 billion in 2010.
- This new sleep enhancing device will become the company’s flagship product, as there are no other similar products currently on the market. Users strap the device around their head and breathe through a mask on the front.
- The new device costs $20 per unit to produce.
- A normal person needs on average 8 hours of sleep per night. This new product reduces the number of required sleep hours by 6.
- The client Becton Dickinson & Co. wants to focus on U.S. market first.