A team has finished a margin diagnostic at Marlow Chemicals (₹542 Cr revenue) and drafted the recommendation below. The partner wants it pressure-tested before the client readout.
The draft recommendation
"Operating margin fell 4 points this year. Our analysis shows the business has lost pricing discipline. We recommend an immediate across-the-board price increase of 5-7%, supported by tighter discount governance."
The evidence pack behind it
| Finding | Value |
|---|---|
| Average realised price, like-for-like | +1% |
| Premium-tier volume | −16% |
| Budget-tier volume | +18% |
| Discount rate on premium tier | Unchanged |
| Input costs | +2% |
The slide is well built and the client is expecting a pricing answer.
Pressure-test the recommendation. Your answer should provide:
State any assumptions you make.
100 points, 60% to pass.
Does the conclusion follow from the evidence; price vs mix decomposition; corrected recommendation