Estimating revenue based on martial status

market size
New answer on Apr 09, 2021
4 Answers
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RUSDI
Skilled
asked on Apr 07, 2021
Corporate strategy analyst and IESE MBA. Preparing for MBB interview. Have done more than 70 cases prior preplounge

I have difficulty in my previous interview. Would be great if anyone can helps

Population in city = 5 M

Ppl with age < 35 single has 80% chance to sign for product

Ppl with age >35 single has 40% chance to sign for product

Married couple has 25% chance to sign for products

Older generation is not interested.

How many products can we sell?

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Florian
Expert
replied on Apr 07, 2021
Ex-McKinsey | 5+ years consulting experience | Active interviewer & coach | Healthcare industry | Inhouse Consulting

Hi RUSDI,

are all the information above provided or based on your assumptions?

If the information you shared is given, then you need to make assumptions on how you can break down the 5M population into the respective segments in order to identify the number of customers and then multiply it by the average number of products sold per customer.

Basically you need to determine:

1. Which share of the population is < 35 yrs old and single?

2. Which share of the population >35 yrs old and single?

3. Which share of the population is married?

4. What is the average number of products sold per customer?

The rest is simple math.

I hope this helps. Please let me know if you need further help with market sizing cases.

Best,

Florian

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RUSDI on Apr 07, 2021

Thanks again for the response. I make assumption that only people with age 15-55 are relevant. Then, make assumption only 50% of people is married since it is developed country (aging population). Finally, I draw venn chart to distribute the number. I am not sure if I can approach this way

Florian on Apr 07, 2021

Hi Rusdi, if marital status is a meaningful segmentation for the specific case, then I think your approach works well. Without knowing what this case is about, it is a bit hard to tell, whether this is generally the right approach.

Ian
Expert
Content Creator
replied on Apr 07, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

Hi Rusdi,

Sorry, but this doesn't make sense. "Revenue based on Martial status" means nothing.

Could you clarify what exactly we are trying to measure the revenue of?

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RUSDI on Apr 08, 2021

We are trying to measure market size of people who sign for new accounts in digital bank

Clara
Expert
Content Creator
replied on Apr 09, 2021
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello Rusdi!

I feel we are missing a part of the prompt here, which product are we trying to sell?

Cheers,

Clara

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RUSDI on Apr 11, 2021

Banking products (saving accounts, etc). It is about the decision whether to enter digital bank or not

Antonello
Expert
Content Creator
replied on Apr 08, 2021
McKinsey | NASA | top 10 FT MBA professor for consulting interviews | 6+ years of coaching

Hi, in addition to the solutions proposed by the other coaches in the discussion, I would like to suggest similar cases in the platform to practice with:

  • https://www.preplounge.com/en/consulting-forum/how-much-would-you-charge-to-clean-all-the-windows-in-seattle-4965
  • https://www.preplounge.com/en/consulting-forum/market-sizing-milk-consumption-5087
  • https://www.preplounge.com/en/consulting-forum/how-would-you-calculate-the-value-of-a-cow-4982
  • https://www.preplounge.com/en/consulting-forum/estimate-number-of-traffic-lights-in-a-london-5692

Hope it helps,
Antonello

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Florian gave the best answer

Florian

Ex-McKinsey | 5+ years consulting experience | Active interviewer & coach | Healthcare industry | Inhouse Consulting
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