Estimate the amount of orange juice (in L) is sold in a metropolitan city?

New answer on Aug 25, 2019
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Drishti asked on Aug 25, 2019

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replied on Aug 25, 2019
McKinsey Business Analyst | 3+ years Experience | MBA at LBS


This is a typical market size question. You are given a question and have to guess all the numbers to arrive at the solution. This is how I would have approached it:

- Choose a metropolitan city and check if ok with the interviewer. Alternatively, choose a "standard" metropolitan city and you would have to guess how many people are there

- Guess the number of people that live in the city + tourists

- Assume the average life expectancy is 80 years

- Divide the population in 4 age groups and assume they are equally distributed (so that the amount of population per group is going to be the same and = total people/4)

- Define the sources of orange juice that could be sold in the metropolitan cities (e.g., big supermarkets, shops, petrol stations, temporary markets, ...)

- Assume that the average bottle of orange juice is 1 l (alternatively, you can also use two measures for the can 0,5 and bottle 1,5)

- Guess per every source and bottle size the percentage of people purchasing it per year (so for example if for you they are purchasing 2 times/year, double the percentage checking with the interviewer)

- Obtain the litres of orange juice sold per every "channel" and sum them up

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McKinsey Business Analyst | 3+ years Experience | MBA at LBS
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