How would you go about this question?
How would you go about this question?
How many ATMs are there in X airport?
2 answers
Hi,
I would suggest that you should present your own approach and I would be happy to review.
Meanwhile please see below my approach to segmentation in market sizing as well as examples of solved cases:
B2C:
-Demographics (Age, education, income, family size, race, gender, occupation, nationality)
-Behavioral (Purchasing behavior, customer journey stage, occasion & timing,
customer loyalty & interest, risk tolerance, user status)
-Psychographic (Lifestyle, personality traits, values, opinions, interests of consumers)
-Geographic (Geographical boundaries)
B2B:
-Company characteristics (Industry, company size, number of employees)
-Geography (Geographical boundaries)
-Purchasing Approach (Occasion & timing, customer capabilities, nature of existing relationship)
-Personal Characteristics (Loyalty, risk attitude, user status)
B2G:
-Demographics (Type of agency, size of budget, the amount of autonomy)
-Geographic (Geographical boundaries)
-Government Tier (Federal , State, Local, Quasi-governmental, International)
-Bid type (Closed, Open)
But sometimes you don’t need to segmentation. Here is an example of case that could be solved with high level top down approach - estimate the size of credit card market in the US:
https://www.preplounge.com/en/consulting-forum/how-should-i-approach-the-following-question-estimate-the-market-size-of-credit-cards-in-the-us-6695
Hi there,
I would split the question into 3 sub-questions:
1) How many people pass by the airport per month = number of runways * flights per month per runway * average occupancy of a plane --> you get the airport footfall
2) What is the percentage of those travellers who would need to withdraw cash? (you could split the foot traffic by age group and apply a % per age group) --> you get the number of monthly ATM transactions
3) How many monthly transactions is needed to make an ATM profitable? (you can ask the interviewer or you could assume around 50) --> divide the number of you get from step 2 by this rate and you will get the numbers of ATM in the airport
What do you think? How did you approach this question?
I hope this helps,
Khaled
Related case(s)
Ein Restaurantinhaber überlegt sich, Schulen mit Essen zu beliefern. Für seine Überlegungen würde er gerne wissen, wie viel Geld er verdienen würde, wenn er 1% der Schulkantinen-Mittagessen in Deutschland verkauft? Open whole case
MeGrain is a co-operative of 5000 farmers in the central part of India. As a co-operative, the farmers came together to sell the grains to retailers and wholesalers. They are the 3rd largest grain sellers in India and sell 10million quintals of grains annually. They have operations in 4 regions in ... Open whole case
An American marketing company plans to fill the Olympic Stadium in Berlin with cats for an advertising event and now hires your consulting company to find out how many animals they would need for this. Open whole case
In an annual reunion with your MBA colleagues, one of them shares with you an idea of a new venture they have been working on: affordable baby strollers. They have deep experience in puericulture and childcare, and know there is a stable business to tackle. Given your experience in consulting, they ... Open whole case
