Hello,
I have been invited to participate in a market sizing case interview, which I was told would last ~ 1 hour. I have done market sizing during my case interview prep as part of a case, not a “market sizing case" on its own.
Are market sizing cases common in consulting, and what is the difference between a market sizing case interview/estimating the market size during a normal case interview?
Also, are there good resources to practice market sizing with?
Hi there,
First of all, congratulations on the progress in the application process with the consulting firm thus far!
I would be happy to share my thoughts on your question:
You can find more on this topic here: How to succeed in the final interview round.
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
(editiert)
Hi there,
Remember that there's rarely a "best" answer with market sizing. What's important is that you break down the problem the way it makes sense to you. Importantly, break it down so that the assumptions you make are the ones you're most comfortable in.
For example, do you know all the major brands? Great go with that. Do you understand all the segments of that country's population (either age or wealth or job breakdown)? Go with that. Do you know the total market size of a similar industry? Then break it down that way.
It's very simple: Do the approach the is the easiest for you given the question.
Are they asking you to estimate something where you don't even know where to begin from the top (maybe you have 0 clue as to the market size of the industry, the GDP of that country, etc. etc.)? Then do bottom-up!
Alternatively, does it seem impossible to do a realistic from-the-ground-up estimation of something (perhaps it requires just far too many steps and assumptions)? Then do top-down!
Fundamentally, you need to take the approach that just makes the most sense in that circumstance. Quickly think about the key assumptions / numbers required and whether you 1) Know them or 2) Can reasonably estimate them. If you can, go ahead!
An Example
Here is a good Q&A great market sizing question asking to estimate # of electric charging stations in a city in 10 years:
This one could be answered top-down (as I did) by estimating population of the city, # of drivers/ cars, etc. etc.
OR, it could be answered bottom-up by estimating # of stations you see per block (or # of gas/petrol tanks), % increase this might be over time (or # of EV stations that would be needed per gas tank given EV stations take 10 times as long), and # of blocks you'd estimate the city to have.
Additional practice (with video solutions!)
Hi there,
1) Are market sizing cases common in consulting
It depends on the office and firm. As an MBB example:
2) What is the difference between a market sizing case interview/estimating the market size during a normal case interview?
I helped candidates who got both.
3) Also, are there good resources to practice market sizing with?
Most coaches should be able to help with that. You can send a message first to clarify if they cover it.
For additional questions please feel free to PM me.
Best,
Francesco
In a market sizing case, you probably have an estimation with a but more complexity / details to consider, and you will likely have a lot of brainstorming questions related to market drivers, market growth, how to grow in that market, or industry topics.
And yes, market sizing is pervasive in case interviews - most likely during a whole interview process you will get a market sizing at some point.
Hello there,
Market sizing cases are common in consulting, especially in early-round interviews. They are designed to assess your quantitative skills, problem-solving ability, and ability to make logical assumptions under pressure.
To excel in answering market sizing questions, consider utilizing various resources for practice, such as case interview prep websites, consulting case books, and market research reports.
When faced with such questions, it's essential to start by clarifying the specific details of what you're estimating, whether it's market size in terms of revenue or units sold. To tackle the problem effectively, break down the market into smaller segments and estimate each one separately, like different tiers of smartphones in the smartphone market. While you'll need to make assumptions due to data limitations, ensure they are sensible and grounded in your market knowledge. Employ logical reasoning, like using the size of existing markets for similar products, to arrive at an answer. Finally, when presenting your response, articulate your reasoning clearly and elucidate the assumptions you've made to demonstrate your problem-solving skills effectively.
Hope this helps!
In a market sizing case interview, the focus is specifically on estimating the size of a market or segment. You will be given a hypothetical scenario and asked to determine the market size by breaking it down into relevant components, such as population, market share, pricing, and other relevant factors. The goal is to demonstrate your ability to approach a quantitative problem, make reasonable assumptions, and calculate a logical estimate.
Estimating the market size during a normal case interview is similar but typically occurs within the context of a broader case. In these cases, market sizing is just one aspect of the overall problem-solving process. You may be asked to estimate the market size as part of understanding the client's business, evaluating potential opportunities, or assessing the impact of a new product or service.
To practice market sizing, there are several resources available. PrepLounge, for example, offers case interview preparation materials that include market sizing questions and frameworks. You can also find market sizing practice cases in consulting case interview books or online platforms. Additionally, some consulting firms provide sample market sizing cases on their websites, which can be a valuable resource for practice.
When practicing market sizing, focus on developing a structured approach, making reasonable assumptions, and communicating your thought process clearly. Remember to break down the problem into manageable components, use relevant data points or benchmarks, and think critically about the factors that influence market size.
I recommend practicing both standalone market sizing cases and incorporating market sizing into broader case interviews to ensure you are well-prepared for different scenarios. Good luck with your market sizing case interview, and feel free to reach out if you have any further questions!
It's rather odd that they presented it as a market sizing case for 1h.
That's rather long. Most market sizing questions are solved in 15 min or so.
If I were you, I'd get back to the recruiter and ask them more about the format of the case. Will they be asking multiple market sizing questions? Is it just one interviewer? Is it rather a case where one of the questions is market sizing?
Knowing more about the format will also help you better prepare for the interview.
I can share here an article where you can read more about structuring techniques (bottom-up vs top-down) which are also the core ones to apply for market sizing questions:
Best,
Cristian
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