Give an estimation of how many Logan cars are in Cluj. Please motivate your answer.

cars Guesstimate
New answer on Feb 15, 2021
3 Answers
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Bibbi asked on Feb 14, 2021

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Gaurav
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replied on Feb 15, 2021
Ex-Mckinsey|Certified Career Coach |Placed 500+ candidates at MBB & other consultancies

Hi there,

1) why don't you post your approach here and we comment on it?

2) Search for Guesstimate​ questions on Preplounge to see the framework and other examples.

Hope it helps!
GB

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Bibbi on Feb 15, 2021

Thank you for suggestions! i was thinking of the next solution: -Based on online research, there are about 8 milion cars in Romania today. -Based on Worldometer the current population of Romania is about 19.000.000 -Acording to statistics, Dacia Logan is Romania’s best selling car, 14% of romanians cars are Logan => 1.120.000 Logan cars in Romania - Cluj-Napoca has a population of 600.000, including students and the others who do not have their permanent residence in cluj -using rule of three calculation: 1.120.000 * 500.000 / 19.000.000 ≈ 29.000 Logan cars in Cluj-Napoca

Antonello
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replied on Feb 15, 2021
McKinsey | top 10 FT MBA professor for consulting interviews | 6+ years of coaching

Hi, 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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Ian
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replied on Feb 15, 2021
MBB | 100% personal interview success rate (8/8) and 95% candidate success rate | Personalized interview prep

Hi Bibbi,

General Tips for Market Sizing

  1. Just like in a case, make sure you understand the question - what are you really being asked to calculate
  2. Decide whether a top-down or bottom-up approach is best
  3. Figure out what you know you know, and what you know you don't know, but could estimate
    1. This helps you determine how to split out buckets
  4. Stay flexible - you can start with a "high-level" market sizing, but gauge your interviewers reaction....if it looks like they want you to do more...then go along level deeper in terms of your splits

Logan Cars in Cluj

  1. Population of Cluj
  2. # of adults
  3. # of cars per person
  4. % ownership of Logan cars - broken down by something that directly correlates by use (age, income, etc)
  5. Answer - multiply 1-4 out

Car Market Sizing

Take a look at these other Q&As around car estimation!

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

https://www.preplounge.com/en/consulting-forum/how-many-cars-use-the-m25-motorway-daily-6977

https://www.preplounge.com/en/consulting-forum/i-came-across-market-sizing-case-the-question-is-how-many-freight-trucks-are-there-in-us-how-will-you-approach-it-6147

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Gaurav gave the best answer

Gaurav

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