Get Active in Our Amazing Community of Over 451,000 Peers!

Schedule mock interviews on the Meeting Board, join the latest community discussions in our Consulting Q&A and find like-minded Case Partners to connect and practice with!
Meeting Board
Consulting Q&A
Case Partner

How to deal with B2B/B2C in market sizing - for instance, electric car market

Market sizing
New answer on Dec 30, 2020
6 Answers
1.1 k Views
Anonymous A asked on Dec 09, 2020

Hey,

I have this issue frequently when doing market sizing. It is quite straight forward to narrow a problem down in terms of the B2C market (age, demographics, income ... etc.) and then arrive at a first market estimate (let's say for electric cars sold). However, I then struggle how to walk through a second branch, such as B2B. Is there a common rule of thumb of how many business there are per person? I would assume for 20 persons, there is at least one business. Then I would have to segment the businesses by industry which can get quite daunting.

What is the way to go here?

I want to be notified about updates regarding this question via email

Overview of answers

Upvotes
  • Upvotes
  • Date ascending
  • Date descending
Best answer
Vlad
Expert
 replied on Dec 09, 2020
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi,

In general, you have two options of including different use cases in your market sizing (b2b. commercial, etc):

  1. Calculate the private use first and then make an assumption re b2c / b2b ratio. E.g. calculate the private real estate in the city and then make an assumption about the commercial real estate as the relative % of private.
  2. You can add the b2b use cases right at the beginning of your calculations. For example, if you need to calculate the tire market for light vehicles, you can assume that every 5th car in the street is commercial, thus the total number of cars = # of private cars / 4 * 5. After that, you can calculate the whole tire market

In your particular case, I would try to clarify what exactly b2b means. Are you talking about the companies that subsidize the rides for the employees? (Then you can use the % of your friends who have their rides subsidized. Although B2b, in this case, is already included in the private consumption). Or you are talking about the Uber drivers who use carsharing because they can't afford car ownership? (Make an assumption re the % of taxis).

Best

Was this answer helpful?
21
Book a coaching
Ian
Expert
Content Creator
 replied on Dec 09, 2020
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

Hi there,

Your question has me slightly confused, and I think it's because you're confusing yourself.

In general, you either do B2C OR to B2B. Likewise, you either do bottom-up OR top-down.

It's bizarre to do both.

So, in the case of the EV market, I would very much to B2C and break it down by population segments (probably income). Once done, I have the total consumption of EVs. There is not need to do B2B at this point!

Was this answer helpful?
17
Book a coaching
Anonymous A on Dec 09, 2020

Why? Private person can buy cars but also businesses?
Clara
Expert
Content Creator
 replied on Dec 10, 2020
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

This is one of the key clarifying questions at the beggining, when you are defining your population.

Should I focus in B2B, B2C, or both?

Hope it helps!

Cheers,

Clara

Was this answer helpful?
16
Book a coaching
Adi
Expert
Content Creator
 replied on Dec 09, 2020
Accenture, Deloitte | Precision Case Prep | Experienced Interviewer & Career Coach | 15 years professional experience
Was this answer helpful?
12
Book a coaching
Antonello
Expert
Content Creator
 replied on Dec 30, 2020
McKinsey | NASA | top 10 FT MBA professor for consulting interviews | 6+ years of coaching

Hi, in addition to the solutions proposed by the other coaches in the discussion, I would like to suggest similar cases in the platform to practice with:

  • https://www.preplounge.com/en/consulting-forum/how-much-would-you-charge-to-clean-all-the-windows-in-seattle-4965
  • https://www.preplounge.com/en/consulting-forum/market-sizing-milk-consumption-5087
  • https://www.preplounge.com/en/consulting-forum/how-would-you-calculate-the-value-of-a-cow-4982
  • https://www.preplounge.com/en/consulting-forum/estimate-number-of-traffic-lights-in-a-london-5692

Hope it helps,
Antonello

Was this answer helpful?
4
Book a coaching
Gaurav
Expert
Content Creator
 replied on Dec 10, 2020
#1 MBB Coach(Placed 750+ in MBBs & 1250+ in Tier2)| The Only 360 coach(Ex-McKinsey + Certified Coach + Active recruiter)
Was this answer helpful?
3
Book a coaching

Related Cases

Company case by Oliver Wyman

Oliver Wyman Case: Full Electrons Ahead

Style:
Candidate-led (usual style)
Topics:
Growth strategy, Market analysis, Market sizing, Operations strategy Growth strategy, Market analysis
Rating:
4.4
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 ... 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 ... (Open whole case)
121.5k
Times solved
4.4
6.6k Ratings
Intermediate
Difficulty
Company case by Bain & Company

Bain Case: Old Winery

Style:
Candidate-led (usual style)
Topics:
Growth strategy, Market analysis, Market sizing, Mergers & Acquisition Growth strategy, Market analysis
Rating:
4.3
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 ... 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 ... (Open whole case)
118.2k
Times solved
4.3
2.0k Ratings
Intermediate
Difficulty
Company case by Roland Berger

Roland Berger Case: Onlinestar

Style:
Candidate-led (usual style)
Topics:
Growth strategy, Market analysis, Profitability analysis Growth strategy, Market analysis
Rating:
4.3
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 ... 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 mai ... (Open whole case)
92.4k
Times solved
4.3
1.1k Ratings
Intermediate
Difficulty
Company case by RWE Consulting

RWE Consulting Case: Floating Wind in Japan

Style:
Interviewer-led (McKinsey style)
Topics:
Market analysis, Market entry, Market sizing, Profitability analysis Market analysis, Market entry
Rating:
5.0
RWE is an international renewables company with a proud heritage of more than 125 years in the energy business. Recently, during the Capital Markets Day in 2023, RWE’s CEO renewed the company’s 2030 vision of being a global leader in green energy. To achieve this, additional substantial investments ... RWE is an international renewables company with a proud heritage of more than 125 years in the energy business. Recently, during the Capital Markets Day in 2023, RWE’s CEO renewed the compan ... (Open whole case)
16.3k
Times solved
5.0
< 100 Ratings
Intermediate
Difficulty
Company case by E.ON Inhouse Consulting

E.ON Inhouse Consulting Case: E-Mobility

Style:
Interviewer-led (McKinsey style)
Topics:
Market analysis, Market entry, Market sizing, Profitability analysis Market analysis, Market entry
Rating:
3.8
Climate change has become one of the biggest challenges in the 21st century, and with roughly 75% of all CO₂ emissions coming from energy, this sector plays a key role in the transition to a reduced carbon footprint. E.ON has taken up on the challenge to promote more sustainable and efficient energy ... Climate change has become one of the biggest challenges in the 21st century, and with roughly 75% of all CO₂ emissions coming from energy, this sector plays a key role in the transition to a ... (Open whole case)
5.1k
Times solved
3.8
< 100 Ratings
Intermediate
Difficulty

Related Case Interview Basics article(s)

Case Interview Basics

Market Sizing

Learn more about Market Sizing Questions and how to approach them in Case Interviews. The Case Interview Basics at PrepLounge offer you everything you need!

6 related questions

Similar Questions

Market sizing - EVs in KSA

3 answers

Guesstimates

2 answers

Market Sizing: Volume Versus Value

3 answers
Vlad gave the best answer
Show information

Vlad

McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
429
Meetings
12,232
Q&A Upvotes
127
Awards
4.9
186 Reviews
Book a coaching
Visit the profile of Vlad

Similar Questions

Market sizing - EVs in KSA

3 answers

Guesstimates

2 answers

Market Sizing: Volume Versus Value

3 answers
Cookie and Privacy Settings
This website uses cookies to enable essential functions like the user login and sessions. ... (Read more) We also use cookies and third-party tools to improve your surfing experience on preplounge.com. You can choose to activate only essential cookies or all cookies. You can always change your preference in the cookie and privacy settings. This link can also be found in the footer of the site. If you need more information, please visit our privacy policy.
Data processing in the USA: By clicking on "I accept", you also consent, in accordance with article 49 paragraph 1 sentence 1 lit. a GDPR, to your data being processed in the USA. The USA is not considered to have adequate data protection legislation. If you need more information please view the individual settings.
I accept
Manage settings individually
Questions or Feedback?
Select category
  • Select category
  • Case Interview Preparation
  • Coaching
  • Technical Problems
  • Other
Your name
Your email address
Cancel