Your client is a chewing gum manufacturer in the United Kingdom and you’re currently at the airport waiting for your flight. In the time that you have, you’re thinking about how big the annual chewing gum market is in the UK in terms of market value.
Case-Frage:
Strukturvorschlag
Suggested case structure:
I. Structure
If the candidate seems lost or needs help, the interviewer can assist by giving hints below:
- First, assume the total population of the UK.
- Secondly, think of which age group represents a heavy user of chewing gum or which age groups represent which consumption ratio.
- Thirdly, estimate how many gum-packs are being consumed per consumer (per week, month, and/or year).
- Estimate the price of a pack of gum and calculate total annual revenue.
The candidate should think about a structure first and explain this to the interviewer before starting to make assumptions.
When the structure is clear, the candidate can start estimating by making his own assumptions without help from the interviewer.
II. Analysis
We can make the following assumptions for our analysis:
- UK population is 80 m.
- The heavy user group is between 10-20 years old and represents 20% of the total population. Each user consumes 1 pack of gum per week.
- The remaining population of 80% consumes 1 pack of gum per month.
- The estimated price of a pack of gum is $0.80.
III. Solution
80 m*20%=16 m
16 m*52 weeks=832 m
832 m*$0.80=$665 m
80 m*80%=64 m
64 m*12 months=768 m
768 m*$0.80=$614 m
$614 m+$665 m=$1.28 b
Weitere Fragen
Which drivers affect the consumption of chewing gum per person?
Which drivers affect the consumption of chewing gum per person?
How would changes to your assumptions affect the market size estimation?
How would changes to your assumptions affect the market size estimation?
SugarGums
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