Bottom-up Market Sizing

Bain & Company Market sizing
New answer on Jul 06, 2021
3 Answers
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Anonymous A asked on Jul 05, 2021

Hi! Can anyone please give me few examples of bottom-up market sizing questions and how they would solve it please? I am really struggling so any help would be much appreciated. 

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Ian
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updated an answer on Jul 06, 2021
MBB | 100% personal interview success rate (8/8) and 95% candidate success rate | Personalized interview prep

Hi there,

Here are a few ones I like (feel free to message if you'd like to talk through the answers...it takes a while and is difficult to type!).

  • Estimate the daily revenue of your nearest starbucks store
  • How many taxis are in Manhattan (can be both bottom-up and top-down)
  • Average annual printing cost of a large corporate bank

Here are some good ones with answers as well:

https://www.preplounge.com/en/management-consulting-cases/brain-teaser/intermediate/taxis-in-manhattan-market-sizing-229

https://www.preplounge.com/en/consulting-forum/how-long-did-it-take-to-build-the-chinese-wall-10049

https://www.preplounge.com/en/consulting-forum/how-many-elevators-are-needed-in-a-mall-9916

(edited)

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Asim
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replied on Jul 05, 2021
Strategy& Engagement Manager | Grad & MBA Interviewer| Ex-Investment Banker | Financial Services expert

The one case I really like for market sizing is this one:
https://www.preplounge.com/en/management-consulting-cases/candidate-led-usual-style/intermediate/deloitte-consulting-case-footloose-74

I'd say it is closer to bottom up given it gives you a bunch of charts and data for you to piece together to come up with the market size (as opposed to starting with a broad brush total market and then making assumptions to guestimate off the back of that top-down).

Other coaches might have some suggestions on other cases too.

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Clara
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replied on Jul 06, 2021
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello! 

Most of cases can be solved both ways, both bottom and top down. It's really interesting to do it both ways!

That is precisely why I recenty created the following case, with a detailed market sizing problem, in case it helps > https://www.preplounge.com/en/management-consulting-cases/candidate-led-usual-style/intermediate/market-sizing-new-startup-launch-baby-strollers-in-the-us-244

Hope it helps! Cheers, 

Clara

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Ian

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