I have practised around 15 guesstimates but still am unsure about my competence solving them.(unlike cases) Is there some laundry list which can be used for segmentation?
Few of the frequent ones I use are -
0) Population / Household
1) Geography split
2) Age wise split
3) Gender split
4) Income split
5) Replacement concept
Are there any other important ones?
Thank you for your time!
How does one feel confident about solving guesstimates?
Overview of answers
Upvotes
Best answer
You have actually nicely pointed out some of the common segmentation parameters.
0) Population / Household - It is good also to prepare a table of population of various countries
1) Geography split - I don't remember exactly where this can be useful.
2) Age wise split - For this, it is good to prepare a table of life expectancy of various countries. This will also help you with the replacement concept.
3) Gender split - This is quite straightforward and often a 50:50 split is taken. But not really effective for market sizing unless it's a gender-specific product
4) Income split - This is useful and again would be great to prepare how the income distribution in developing country and in developed country would look like. Income equality is a default option, but not always true.
5) Replacement concept: This is a great tool to estimate market demand for any consumer product based on population size and lifetime of the product.
This is almost all that you can do.
Was this answer helpful?
Originally answered question:
Facts and data for market sizing cases
Hi Anonymous,
market sizing usually doesn’t require much information to be memorized. The main data I would recommend to know are:
- State populations, in particular for the area you live in. So for Europe, knowing the population of Spain, UK, France, Italy Germany, Russia and the main countries in Eastern Europe would help.
- Formulas for volume/surface of solid figures - sphere, cylinder, pyramid, parallelepiped, cone.
Knowing the number of companies in your own country could also come handy if you end covering something related to that.
As mentioned, once you know the previous data, you should be able to estimate all the other numbers with an appropriate justification.
Best,
Francesco
Was this answer helpful?
Originally answered question:
Facts and data for market sizing cases
I am Germany based and I found it useful to additionally to what you mentioned to know the revenue and number of employees for the main German companies (VW, Siemens, BASF, Daimler). Otherwise I would say it's not necessary to memorize anything, if you can make justified assumptions.
Was this answer helpful?
Related Cases
Company case by Oliver Wyman
Style:
Topics:
Your client, large automotive OEM WyCar, has developed its first fully electric vehicle (EV) and introduced it as a pilot on the Austrian market last year. However, sales have been far below the expected numbers. The management has engaged you to support them in understanding the reasons and advise
... (Open whole case)
104.2k
Times solved
Intermediate
Difficulty
Company case by Bain & Company
Style:
Topics:
You have inherited the “Old Winery” from your grandfather, a winery that has been family-owned for five generations and can be dated back to the 16th century.Half of the eleven hectares are used to grow white grapes, the other half to grow red grapes. They are grown in a conventional way, i.e. they
... (Open whole case)
87.3k
Times solved
Intermediate
Difficulty
Company case by Roland Berger
Style:
Topics:
Onlinestar, an online retailer of furniture and garden products (core business), has grown significantly in recent years as a result of an expansion of its product portfolio. The company mainly imports goods from Chinese manufacturers but also operates its own production of cat lavatories (special b
... (Open whole case)
65.8k
Times solved
Intermediate
Difficulty
Style:
Topics:
Nutripremium is a very well-known premium nutrition food company in Europe (€1 billion revenue last year). It is based in Spain and has an excellent market share not only in its home country but also in Portugal, France, Italy and Germany. Nutripremium has two main lines of products:Vitamin-sup
... (Open whole case)
67.7k
Times solved
Advanced
Difficulty
Style:
Topics:
Beyer, one of the biggest pharmaceutical companies in the world, just invented a very reliable vaccine against Chickenpox, a disease that affects children in the age from 2 to 16 years.Beyer came to you wondering what their potential sales in Europe in the first year would be if they launched this p
... (Open whole case)
58.7k
Times solved
Advanced
Difficulty
