Hi,
1) First of all, there are 2 ways to structure market sizing:
2) You should learn the key market sizing techniques:
3) You should learn the key tools:
4) Learn key numbers: populations, gas price, gas consumption, Boeing speed and nmber of seats, average salary, # of gates in the airport, GDP growth rate, inflation, etc.
5) Practice 10-15 cases and you'll be fine
Feel free to PM for clarifications
Good Luck!
Hi there,
My experience is that you need to practice and in everyday life there are plenty of opportunities to do so.
when you are traveling to work/institute: how busses are there in the city, how many bus stations, how many bus lines, etc....
Out in the evening in some bar/cafe: how many people visit that place every day, every week every month, how much bewereges are consumed, how many similar palces are there in the city, etc...
etc. etc.
First time it will be kind of strange and you will think 'what the hell I know' but you will get better with practice. If you would do it with somebody else will be funnier and more effective :)
Hi,
Usually students struggle because no one has previously explained the basic principles. It makes you panic every time you see a arket sizing question and feel like it is a lot worse than it actually is.
The basic premise of these types of questions is: what is the £/$ value so demand or population size of using a specific product. I like the toothbrush example.
Let's say there are 10mn people in London and 90% use a toothbrush. That is 9mn toothbushes being used, now let's say at a price of £2 per toothbrush, London market size is £18mn.
The above is very basic and there are lots of factors to add. But hopefully this helps as the starting point. The rest is additional info and 'colour' to the story (growth, etc.).
Hope this helps, let me know if you want to practise these.
Hello Victoria great break down. I am just curious how you got 4mln for each age group? I would think if we have a population of 320M and life expectancy is 80 years, we would have 8 sub groups ( 0-10, 10-20...70-80) and as such each group would have 320M/8groups which should be 40M/group. Contrarily, if we needed to know the amount of people that are say 5,10 or 15yrs old and we carry the same even split assumption, then 40M/10ages which will be 4M each.
(edited)