I am a bit confused on how to approach market sizing information when the question is very broad. Any tips?
I am a bit confused on how to approach market sizing information when the question is very broad. Any tips?
Hi,
As usual, if the question is vague you should first try to clarify the scope with the interviewer :
- what's are the revenu we want to consider ?
- what's the geographic perimeter ?
- How granular should we be in hyp. definition ?
BEst
Benjamin
Hi,
To be honest, your question is quite vague since it has no further explanation or an example.
Based on my understanding of your question, you should ask the clarifying questions that will help you narrow down the objective. E.g.:
Best
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:
The real answer is depends. Each mkt sizing question is different and needs to be solved in a different way
You usually have bottom-up and top-down approaches. A good start is to try to understand first which one would work best/ would be the most effcient way to get to an accurate estimate. Once you select a methodology you can start drafting the path to the solution in your head.
Also, leverge your interviewer to check your ideas.
Hope that helps a bit
Tommaso