Strategy question
Due to COVID-19, the sales of greeting cards in retail stores have dropped. What are some of the strategies to increase sales?
- Shopify
- Strategy
- Medium
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What this question tests
Retail growth strategy under a structural channel or behavior shift.
How to approach it
- Clarify the real cause: reduced in-store foot traffic and a shift to digital greetings, not necessarily lower demand for the sentiment.
- Propose expanding into e-commerce with the physical store as a pickup point.
- Propose a print-on-demand personalized card offering.
- Propose bundling cards with small gifts to increase basket size, plus hybrid digital-and-mailed options.
- Prioritize the online and digital channel shift first, since it addresses the root cause directly.
- Define success as total category revenue including the new digital channel.
What a strong answer includes
- Correctly diagnoses the root cause as a channel shift, not necessarily lower demand for greeting cards themselves.
- Proposes a channel-level fix, e-commerce and pickup, rather than just discounting in-store cards.
- Adds a bundling strategy to lift basket size, a practical retail lever beyond category-specific fixes.
- Picks total category revenue across channels as the metric, not just in-store sales.
Common mistakes
- Assuming the drop means people don't want greeting cards anymore, rather than considering the channel shift.
- Proposing only in-store fixes when the disruption was fundamentally about reduced physical store visits.
Likely follow-up questions
- How would you decide how much to invest in digital versus reviving in-store sales?
- What would you measure to know if the online shift is cannibalizing in-store sales?
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Learn the skill behind it
Chapters of the AI PM course that teach what this question tests.
- Chapter 4: Discovery and strategy for AI products
- Chapter 9: Prove it paid off: outcomes, economics, and pricing
- Chapter 14: Get the job: the AI PM interview loop