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ME first round market sizing case

1st round Bain & Company Market sizing MBB Middle East
Neue Antwort am 7. März 2024
6 Antworten
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Anonym A fragte am 2. Feb. 2024

Hi coaches and fellow aspiring consultants, how would you go about approaching this market sizing question which I got in my first round case?

 

How much would you pay for a license (one time - assume valid for perpetuity) to sell rayban sunglasses in Saudi Arabia? No other information provided, make your own assumptions. 

 

 

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Ian
Experte
Content Creator
antwortete am 3. Feb. 2024
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

Hi there,

You'll learn a lot more from this by trying it out yourself first! Why don't you post your approach here and we can provide commentary?

Hint: This is a bottom-up market sizing (think about how much you could make in a year, then do an NPV)

Market Sizing WITH SOLUTION - Coffee Shop Revenue | PrepLounge.com

Market Sizing WITH SOLUTION - Number of Internet Users | PrepLounge.com

Market Sizing WITH SOLUTION - Number of Taxis | PrepLounge.com

How to approach market sizing

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

He's a Q&A for a great market sizing question here asking to estimate # of electric charging stations in a city in 10 years:

https://www.preplounge.com/en/consulting-forum/how-would-you-solve-this-market-sizing-question-from-roland-berger-7631

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.

Take a look here for additional practice! https://www.preplounge.com/en/management-consulting-cases/brain-teaser/intermediate/taxis-in-manhattan-market-sizing-229

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Udayan
Experte
Content Creator
antwortete am 2. Feb. 2024
Top rated Case & PEI coach/Multiple real offers/McKinsey EM in New York /12 years recruiting experience

The other way to think of this question is - what is the expected P&L of a Ray Ban franchise in Saudi Arabia. In terms of steps

  1. Select a place in SA to have a franchise, and make assumptions on population, % of that population that would want or own sunglasses
  2. Assumptions on new buyers and those replacing existing glasses and what % will buy RayBan
  3. If they buy RayBan what % will buy from your store vs other stores or vs online etc
  4. Avg revenue and cost (incl all overheads) for each pair of glasses
  5. Use that to get FCF and then apply a discount rate to get valuation
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Pedro
Experte
antwortete am 7. März 2024
30% off in April 2024 | Bain | EY-Parthenon | Roland Berger | Market Sizing | DARDEN MBA

Please provide your approach - coaches are unlikely to provide full answers on Q&A (it's a ton of work to write the whole thing).

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Anonym am 19. März 2024

Hi! Can you tell your approach and which office is this? Dubai or Riyadh?

(editiert)

Pedro am 19. März 2024

Sure, book a session :)

Cristian
Experte
Content Creator
antwortete am 3. Feb. 2024
#1 rated MBB & McKinsey Coach

Feel free to provide a suggested answer and I'm happy to give feedback on it. 

Otherwise, you're likely to get as much value from this Q&A as you would by reading the answer to this market sizing question from a case book.

Best,

Cristian

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Dennis
Experte
Content Creator
antwortete am 8. Feb. 2024
Ex-Roland Berger|Project Manager and Recruiter|7+ years of consulting experience in USA and Europe

Hi,

sounds like you already tried this case in your interview. So this is water under the bridge for you personally really. But if you want feedback aside from what the interviewer has given you, why don't you share the approach you took?

Best

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Alberto
Experte
Content Creator
antwortete am 6. Feb. 2024
Ex-McKinsey Associate Partner | +15 years in consulting | +200 McKinsey 1st & 2nd round interviews

Hi there,

Please provide your approach so we can comment on it and give you the best possible feedback.

Best,

Alberto

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Ian

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#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
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