Can anyone suggest the method for estimating the market size for diabetes devices?

Hi there,

The best way to learn is by doing :) Post your approach here and we can provide feedback!

General Tips for Market Sizing

1. Just like in a case, make sure you understand the question - what are you really being asked to calculate
2. Decide whether a top-down or bottom-up approach is best
3. Figure out what you know you know, and what you know you don't know, but could estimate
   1. This helps you determine how to split out buckets
4. Stay flexible - you can start with a "high-level" market sizing, but gauge your interviewers reaction....if it looks like they want you to do more...then go along level deeper in terms of your splits

Hi anonymous,

As has been suggested it would be most helpful if you can suggest an approach that we can discuss before just asking for the answer. A few tips and things to think about here:

• De-scoping the market (are we talking about a certain geography, type of diabetes, market size in revenue vs. volume) 
• Top-down vs. bottoms-up approach 
• What are the key drivers of the market size in this case (addressable population, % of population with relevant diabetes disease, replacement rates, willingness / ability to pay) 
• Useful lifetime of these diabetes devices (to figure out the replacement rate

Best regards,

Axel

Hello!

I would always recommend you to give it a shot and then post it here, this would help you the most. 

This is a very typical market sizing case, where the key steps are: 

• Calculate the total population
• Calculate the % of population that could be interested in this product (this could be done by clustering -the classical ones are age groups, purchaching power, etc.-)
• Calculate the % of the total adressable market that any firm in particular could have -in case it´s asked only-. 

Hope it helps!

Cheers, 

Clara

Hi there, 

In addition to the answers provided by the other coaches, in case you want to practice more of market sizing questions: 

• https://www.preplounge.com/en/consulting-forum/how-much-would-you-charge-to-clean-all-the-windows-in-seattle-4965
• https://www.preplounge.com/en/consulting-forum/how-would-you-calculate-the-value-of-a-cow-4982
• https://www.preplounge.com/en/consulting-forum/estimate-number-of-traffic-lights-in-a-london-5692
• https://www.preplounge.com/en/consulting-forum/how-to-estimate-the-size-of-the-bottled-water-market-in-france-9286
• https://www.preplounge.com/en/consulting-forum/estimating-of-cryptocurrency-owners-market-sizing-9180
• https://www.preplounge.com/en/consulting-forum/how-many-wealthy-people-are-in-the-uk-8819
• https://www.preplounge.com/en/consulting-forum/how-would-you-estimate-the-market-size-for-video-games-in-the-usa-9427

Hope that helps!

GB