Cookie and Privacy Settings

This website uses cookies to enable essential functions like the user login and sessions. We also use cookies and third-party tools to improve your surfing experience on preplounge.com. You can choose to activate only essential cookies or all cookies. You can always change your preference in the cookie and privacy settings. This link can also be found in the footer of the site. If you need more information, please visit our privacy policy.

Data processing in the USA: By clicking on "I accept", you also consent, in accordance with article 49 paragraph 1 sentence 1 lit. GDPR, to your data being processed in the USA (by Google LLC, Facebook Inc., LinkedIn Inc., Stripe, Paypal).

Manage settings individually I accept
expert
Expert with best answer

Vlad

97% Recommendation Rate

389 Meetings

8,090 Q&A Upvotes

USD 239 / Coaching

1

B2B Market Sizing

Hello Community,
I am currently practising different Market Sizing Questions using the replacement and supply/demand approach.
While the B2C market is relatively straightforward, I am wondering if there is a common approach to estimate B2B markets?

As an example, I would like to estimate the carsharing market in Germany both B2C and B2B. How would you calculate B2B here? Thank you in advance.

Best,
Juliana

Hello Community,
I am currently practising different Market Sizing Questions using the replacement and supply/demand approach.
While the B2C market is relatively straightforward, I am wondering if there is a common approach to estimate B2B markets?

As an example, I would like to estimate the carsharing market in Germany both B2C and B2B. How would you calculate B2B here? Thank you in advance.

Best,
Juliana

1 answer

  • Upvotes
  • Date ascending
  • Date descending
Best Answer
Book a coaching with Vlad

97% Recommendation Rate

389 Meetings

8,090 Q&A Upvotes

USD 239 / Coaching

Hi,

In general, you have two options of including different use cases in your market sizing (b2b. commercial, etc):

  1. Calculate the private use first and then make an assumption re b2c / b2b ratio. E.g. calculate the private real estate in the city and then make an assumption about the commercial real estate as the relative % of private.
  2. You can add the b2b use cases right in the beginning of your calculations. For example, if you need to calculate the tire market for the light vehicles, you can assume that every 5th car in the street is commercial, thus the total number of cars = # of private cars / 4 * 5. After that, you can calculate the whole tire market

In your particular case, I would try to clarify what exactly b2b means. Are you talking about the companies that subsidize the rides for the employees? (Then you can use the % of your friends who have their rides subsidized. Although B2b, in this case, is already included in the private consumption). Or you are talking about the Uber drivers who use carsharing because they can't afford the car ownership? (Make an assumption re the % of taxis).

Best

Hi,

In general, you have two options of including different use cases in your market sizing (b2b. commercial, etc):

  1. Calculate the private use first and then make an assumption re b2c / b2b ratio. E.g. calculate the private real estate in the city and then make an assumption about the commercial real estate as the relative % of private.
  2. You can add the b2b use cases right in the beginning of your calculations. For example, if you need to calculate the tire market for the light vehicles, you can assume that every 5th car in the street is commercial, thus the total number of cars = # of private cars / 4 * 5. After that, you can calculate the whole tire market

In your particular case, I would try to clarify what exactly b2b means. Are you talking about the companies that subsidize the rides for the employees? (Then you can use the % of your friends who have their rides subsidized. Although B2b, in this case, is already included in the private consumption). Or you are talking about the Uber drivers who use carsharing because they can't afford the car ownership? (Make an assumption re the % of taxis).

Best

(edited)

My man Vlad always comes up with great answer. Thanks — Henry on Aug 04, 2019

Related BootCamp article(s)

Market Sizing

Market Sizing Questions are used to test your quantitative & reasoning skills. Learn more on how interviewers evaluate your given answer!

2 Q&As

Important Facts

It's essential to know some key figures regarding geographies, population, economies for your case interviews. We summarized them for you here.

1 Q&A

Related case(s)

Bain case: Asian lubricants producer

Solved 134.8k times
Bain case: Asian lubricants producer LubricantsCo, a very successful Asian premium producer of lubricants in their native region, would like to further increase their revenue and profit. The product range ranges from lubricants in the automotive sector (e.g. motor and gear oil) to industrial applications (e.g. fats, heavy-duty oils). According to preliminary examinations, further growth potentials in the Asian core market are rather limited. Thus LubricantsCo would like to investigate options to internationalize in the passenger car business – also outside the premium segment which is given priority. Therefore your consulting firm was instructed to elaborate a market entry strategy for the European market.  
4.6 5 28582
| Rating: (4.6 / 5.0)

LubricantsCo, a very successful Asian premium producer of lubricants in their native region, would like to further increase their revenue and profit. The product range ranges from lubricants in the automotive sector (e.g. motor and gear oil) to industrial applications (e.g. fats, heavy-duty oils). ... Open whole case

Oliver Wyman case: Full Electrons Ahead

Solved 84.7k times
Oliver Wyman case: Full Electrons Ahead Your client, large automotive OEM WyCar, has developed its first fully electric vehicle (EV) and introduced it as a pilot on the Austrian market last year. However, sales have been far below the expected numbers. The management has engaged you to support them in understanding the reasons and advise them on how to adjust the product offering.
4.6 5 5862
| Rating: (4.6 / 5.0)

Your client, large automotive OEM WyCar, has developed its first fully electric vehicle (EV) and introduced it as a pilot on the Austrian market last year. However, sales have been far below the expected numbers. The management has engaged you to support them in understanding the reasons and advise ... Open whole case

Roland Berger case: Light on!

Solved 67.6k times
Roland Berger case: Light on! LumCO, a company producing injection-molded components for lighting applications, has operated successfully in its native European market. The company wants to open up one production facility each in China and the United States and establish their own distribution network in both countries to serve as a hub for the entire region. The products LumCO manufactures can be categorized into Specialties, which are designed and produced by LumCO according to customer specifications (e.g. head lamp casing and lenses in vehicles, luminaires for design lighting applications) and Standards, which encompasses an assortment of components for multiple lighting applications for different industries (fixtures, lenses, luminaires). Based on the only slight but stable growth outlook in Europe, LumCO is eager to establish the production sites in China and the U.S. as soon as possible and also to begin to distribute their products directly. As a consultant, you are asked by the board of management to assess this plan considering your knowledge of each region and the lighting market in particular.
4.6 5 14291
| Rating: (4.6 / 5.0)

LumCO, a company producing injection-molded components for lighting applications, has operated successfully in its native European market. The company wants to open up one production facility each in China and the United States and establish their own distribution network in both countries to serve ... Open whole case

Deloitte Consulting case: Footloose

Solved 65.2k times
Deloitte Consulting case: Footloose Duraflex is a German footwear company with annual men’s footwear sales of approximately €1 b. They have always relied on the boot market for the majority of their volume. In this market they compete with three other major competitors. In the fall of 2019, Badger – one of Duraflex’s competitiors – launched a new line of aggressively priced work boots. The strong success of this line has caused Duraflex’s management to re-evaluate their position in work boots. With limited additional resources, the management must now decide if they should focus their efforts on competing with Badger in the work boot sector, or allocate their resources on further strengthening their position with casual boots. The management team approached you and asked for your advice. In order to advise them on their future work boot strategy please prepare first some insights regarding market size and competitive landscape.
4.5 5 12975
| Rating: (4.5 / 5.0)

Duraflex is a German footwear company with annual men’s footwear sales of approximately €1 b. They have always relied on the boot market for the majority of their volume. In this market they compete with three other major competitors. In the fall of 2019, Badger – one of Duraflex’s competitiors – ... Open whole case

DHL Consulting case: Books & Codes

Solved 57.8k times
DHL Consulting case: Books & Codes A friend of yours recently got promoted to the position of director of a university library. Yesterday, your friend received a call from the Ministry of Education, who offered him to be part of a national RFID pilot with his library. As your friend is unsure if he should pursue this option, he asks you for your advice. Your task is to assess the RFID technology for his library. How would you approach such a request?
4.6 5 4644
| Rating: (4.6 / 5.0)

A friend of yours recently got promoted to the position of director of a university library. Yesterday, your friend received a call from the Ministry of Education, who offered him to be part of a national RFID pilot with his library. As your friend is unsure if he should pursue this option, he asks ... Open whole case