How much is the lipstick market in Sweden worth?

case study
Recent activity on Feb 26, 2018
4 Answers
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Christian asked on Feb 10, 2018
Currently preparing for T1-T2 Interviews.

Classical question. I just wondered if you would use the same estimates/approaches/results as i have/did.

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B
Expert
replied on Feb 10, 2018
NOT AVAILABLE

Hey Christian,

Which one did you use? Easier to check whether we would use the same (or not)

Best

Bruno

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Tomasz
Premium
replied on Feb 10, 2018
Currently preparing for MBB interviews

Top down approach would be:

- Sweden's population - 10 mln people, half female

- 20% are outside of age bracket - women below 18 and over 75

- split between heavy users and occassional users, assume 50/50 split

- heavy users buy 10 lipsticks a year, occasional users buy 2 lipsticks a year, average is 6

- average price of a lipstick is 10 EUR

makret is 240M EUR

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Christian on Feb 11, 2018
Nice, I calculated pretty much the same. I didnt't split up between user types but seems like a good explaination. And I calcualted with +12-80 because those are easy numbers (12/80= 15%). Overall it seems good tough. Again thank you sir!

(edited)

Andrea
Expert
Content Creator
replied on Feb 26, 2018
Former BCG Principal and decision round interviewer

Tomasz approach is solid. Would take an haircut from the estimate due to alternate products (lip balm, lip ointment, etc)

andrea

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Vlad
Expert
Content Creator
replied on Feb 12, 2018
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi,

Agree with the approach below. I would also take into account the hygienic lipstick used both by Men and Women and kids in winter.

Best

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