Help needed for market sizing questions

Market sizing
New answer on Dec 31, 2021
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Anonymous A asked on Nov 14, 2018

Hello everyone,

Can somebody help me with these two market sizing questions?

1. If you have to sell New York, how much would it be?

2. How high is the demand for plastic bags in U.S.?

I really appreciate your help! Thanks!

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Vlad
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updated an answer on Nov 14, 2018
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

How would you approach it if it was an interview today? Happy to provide you the feedback and review at least some initial ideas from your side.

Best

(edited)

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Ian
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replied on Dec 31, 2021
MBB | 100% personal interview success rate (8/8) and 95% candidate success rate | Personalized interview prep

Hi there,

Providing some market sizing thinking for anyone revisiting this Q&A:

Remember that there's rarely a "best" answer with market sizing. What's important is that you break down the problem the way it makes sense to you. Importantly, break it down so that the assumptions you make are the ones you're most comfortable in.

For example, do you know all the major brands? Great go with that. Do you understand all the segments of that country's population (either age or wealth or job breakdown)? Go with that. Do you know the total market size of the tourism (or hotel) industry? Then break it down that way.

Some tips:

  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
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Vlad gave the best answer

Vlad

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McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
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