Market sizing with two product lines

Question

Hi, I saw a prompt which asked for a market sizing while having two product lines. The product are two different pills that are sold to different customers. Pill one is sold to pregnant women, pill 2 to sick people.

In such a case, would you do two different market sizing trees, one for pill 1 and one for pill 2 to not mix up things and then combining the end-result? Or how would you approach such a market sizing task?

Answer 1

Hi!

The client segments seem completely different, yet the product type is probably similar (both are pills, probably sold through the same channel).

I would solve the case with two different “trees” (one per each product), yet I would expect the structure of both trees to be very similar (e.g., in both cases you start from segmenting the population, etc.). You would then add each market to get to an overall figure.

I hope that helps!

Answer 2

Hi there,

Yes, this is essentially two market sizing questions for the price of one…

The tree structure would likely be similar, yet the categories in the tree will be different as will be the assumptions to support your numbers.

If you want detailed feedback, think about it and post your result here in a new thread! :-)

Cheers,

Florian

Answer 3

Hi there,

I would be happy to share my thoughts on your question:

First of all, yes, you basically have to size both markets separately and add them together.
Moreover, please keep in mind that most strategy consulting firms have not used stand-alone market size estimations for a long time. While this does not mean that it never happens, this type of case study question may not be very meaningful for both the candidate and the interviewer, as only a few skills are being tested. That being said, simpler market size estimations can still be part of a case study.

If you would like a more detailed discussion on how to best prepare for your upcoming interviews, please don't hesitate to contact me directly.

Best,

Hagen

Answer 4

Interesting setup.

I would need to understand the prompt in detail, but my hunch is that it would be best to approach each product line separately. Especially if they address a different target population.

Best,
Cristian

Answer 5

Yes, you would perform 2 different market sizings, as the pills neither target the same people nor provide a similar benefit.