Cookie and Privacy Settings

This website uses cookies to enable essential functions like the user login and sessions. 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. GDPR, to your data being processed in the USA (by Google LLC, Facebook Inc., LinkedIn Inc., Stripe, Paypal).

Manage settings individually I accept
expert
Expert with best answer

Raj

100% Recommendation Rate

52 Meetings

868 Q&A Upvotes

USD 169 / Coaching

7

How to solve these market sizing quantitative question?

Hi,

How would you solve the next market sizing question:

- How many liters of beer is sold during a (international) soccer game?

I would take the following steps:

  • Estimate total number of attendants (+ - 50 000)
  • Segment into different categories according to generations 10 - 20 (assume: 12,5 % of attendants) 20 - 40 (assume 37,5 % of attendants) 40 - 60 (assume 37,5 % of attendants) 60 - 80 (assume: 12,5 % of attendants)
  • Next segment each generation into three categories: big (beer) consumers (avg 4 pints), normal beer consumers (avg 2), no consumer (avg 0)
  • Adapt percentage of big , normal and no consumer according to category (10-20 has more big consumers than 60-80 category)
  • 1 pint = 0,30L x number of pints consumed by all categories

Do you think this approach is structured and logical? Or would you calculate this in another way?

Hi,

How would you solve the next market sizing question:

- How many liters of beer is sold during a (international) soccer game?

I would take the following steps:

  • Estimate total number of attendants (+ - 50 000)
  • Segment into different categories according to generations 10 - 20 (assume: 12,5 % of attendants) 20 - 40 (assume 37,5 % of attendants) 40 - 60 (assume 37,5 % of attendants) 60 - 80 (assume: 12,5 % of attendants)
  • Next segment each generation into three categories: big (beer) consumers (avg 4 pints), normal beer consumers (avg 2), no consumer (avg 0)
  • Adapt percentage of big , normal and no consumer according to category (10-20 has more big consumers than 60-80 category)
  • 1 pint = 0,30L x number of pints consumed by all categories

Do you think this approach is structured and logical? Or would you calculate this in another way?

7 answers

  • Upvotes
  • Date ascending
  • Date descending
Best Answer
Book a coaching with Raj

100% Recommendation Rate

52 Meetings

868 Q&A Upvotes

USD 169 / Coaching

Book a coaching with Denis

100% Recommendation Rate

87 Meetings

1,912 Q&A Upvotes

USD 169 / Coaching

Looks like one way to solve it with one specific idea of segmenting the population in the stadium. Important for you to force yourself to think about other possible segmentations (e.g. first a layer of country A and country B participants perhaps with different preferences for beer). The approach is the important part, not really the precise numbers.

Also important, whatever number you get, please sense-check it. Make sure to just be able to tell the interviewer why your number could too high or too low. This can be done by stress-testing your numerous assumptions or by quickly testing an entire different approach (in this case you used a bottom-up population-based approach, however there are always supply-based (top-down) approaches too, such as estimating how many beer stations there are in the stadium). You could for example try to calculate how much money now is made with your beer or what volume we are talking about in terms of barrels or truck loads. If youre numbers reveal you earn a high double-digit MILLION USD in beer revenues for a regular game, i.e. XX USD per visitor, you know you are likely too high for instance).

Most important - as any case interview, market estimations require you to have a DISCUSSION with the interviewer (on your approach, variables / assumptions, your math, your result, and the sense-check, potential next steps to improve the quality of the result). Do not just pick one approach and engange in a 20 minute monologue.

Looks like one way to solve it with one specific idea of segmenting the population in the stadium. Important for you to force yourself to think about other possible segmentations (e.g. first a layer of country A and country B participants perhaps with different preferences for beer). The approach is the important part, not really the precise numbers.

Also important, whatever number you get, please sense-check it. Make sure to just be able to tell the interviewer why your number could too high or too low. This can be done by stress-testing your numerous assumptions or by quickly testing an entire different approach (in this case you used a bottom-up population-based approach, however there are always supply-based (top-down) approaches too, such as estimating how many beer stations there are in the stadium). You could for example try to calculate how much money now is made with your beer or what volume we are talking about in terms of barrels or truck loads. If youre numbers reveal you earn a high double-digit MILLION USD in beer revenues for a regular game, i.e. XX USD per visitor, you know you are likely too high for instance).

Most important - as any case interview, market estimations require you to have a DISCUSSION with the interviewer (on your approach, variables / assumptions, your math, your result, and the sense-check, potential next steps to improve the quality of the result). Do not just pick one approach and engange in a 20 minute monologue.

Book a coaching with Henning

100% Recommendation Rate

172 Meetings

5,146 Q&A Upvotes

USD 189 / Coaching

This does make sense, just one comment:

In the last bullet you write 1 pint = 0.3L - this is something you will want to specify with the interviewer. A US pint (assuming you're looking at US given the use of the word "Soccer") is closer to 0.5L that to 0.3L; UK pints are even larger.

So this one factor has the potential to double your results - which is a significant difference in this context.

This does make sense, just one comment:

In the last bullet you write 1 pint = 0.3L - this is something you will want to specify with the interviewer. A US pint (assuming you're looking at US given the use of the word "Soccer") is closer to 0.5L that to 0.3L; UK pints are even larger.

So this one factor has the potential to double your results - which is a significant difference in this context.

Book a coaching with Gaurav

100% Recommendation Rate

197 Meetings

6,460 Q&A Upvotes

USD 169 / Coaching

Hey A!

Your approach is a good one. But be sure to include some measurement errors to estimate exceptional cases and show that you consider the case from all points of view. That will help you to earn some extra points.

Sounds good?

GB

Hey A!

Your approach is a good one. But be sure to include some measurement errors to estimate exceptional cases and show that you consider the case from all points of view. That will help you to earn some extra points.

Sounds good?

GB

Book a coaching with Ian

100% Recommendation Rate

244 Meetings

21,359 Q&A Upvotes

USD 289 / Coaching

Hi there,

This is a good approach in terms of structure/breakdown.

The only point where you've "failed" a bit is in your "reasoning/judgements" category. 10-20 year olds cannot drink, let alone are they big drinkers!

18 is the minimum age to drink in Europe for example, so only 1/5 of your category here could even drink! Furthermore, they don't have much money, so, if they do drink, it will all be before the game (and with bottles snuck in)!

Hi there,

This is a good approach in terms of structure/breakdown.

The only point where you've "failed" a bit is in your "reasoning/judgements" category. 10-20 year olds cannot drink, let alone are they big drinkers!

18 is the minimum age to drink in Europe for example, so only 1/5 of your category here could even drink! Furthermore, they don't have much money, so, if they do drink, it will all be before the game (and with bottles snuck in)!

Book a coaching with Udayan

98% Recommendation Rate

95 Meetings

3,334 Q&A Upvotes

USD 239 / Coaching

Your approach makes sense. Account for legal age of drinking and religious beliefs if applicable and similarly account for other competing beverages. Other than that the trick with these is to not make it complicated.

Udayan

Your approach makes sense. Account for legal age of drinking and religious beliefs if applicable and similarly account for other competing beverages. Other than that the trick with these is to not make it complicated.

Udayan

Book a coaching with Clara

100% Recommendation Rate

55 Meetings

14,880 Q&A Upvotes

USD 229 / Coaching

Hello!

I think it makes a lot of sense, congrats :) Well articulated

Perhaps one thing that I would say to win extra points would be to include the beer of the poeple who will watch this broadcasted (e.g., bars, their own homes...) Or at least mentioning it to the interviewer, so they know you are on top of multiple workstreams

Hope it helps!

Cheers,

Clara

Hello!

I think it makes a lot of sense, congrats :) Well articulated

Perhaps one thing that I would say to win extra points would be to include the beer of the poeple who will watch this broadcasted (e.g., bars, their own homes...) Or at least mentioning it to the interviewer, so they know you are on top of multiple workstreams

Hope it helps!

Cheers,

Clara

Related case(s)

Oliver Wyman case: Full Electrons Ahead

Solved 100.2k times
Oliver Wyman case: Full Electrons Ahead 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 them on how to adjust the product offering.
4.6 5 6497
| Rating: (4.6 / 5.0)

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

Bain Case: Old Winery

Solved 69.0k times
Bain Case: Old Winery You have inherited the “Old Winery” from your grandfather, a winery which 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 the conventional way, i.e. they are not organically farmed and certified. The vine stocks are in a good condition regarding age and care. Overall, only ¼ of the harvest is made into wine by the winery itself; the rest is sold. Your grandfather never wanted to change the image of the winery and left the managerial and administrative task to a young and energetic wine-maker. Due to the not so well-known brand , the demand for the “Old Winery” wine is currently rather low. You do not intent to run the winery operatively, given your limited knowledge of wine making, but find the idea of owning a winery exciting. Your plan is to give the winery some fresh impetus.
4.4 5 1888
| Rating: (4.4 / 5.0)

You have inherited the “Old Winery” from your grandfather, a winery which 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 the conventional way, i.e. ... Open whole case

Roland Berger Case: Onlinestar

Solved 48.8k times
Roland Berger Case: Onlinestar 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 business) in Eastern Europe. The company sells its goods via Amazon and ebay, and recently via an online shop on its website. Despite this development, the financial ratios have deteriorated in recent years. In particular, gross profit margin decreased significantly. Combined with a significant increase in shipping costs, this led to a negative result for the first time in the recently ended fiscal year and a resulting strained financial situation. Against the background of expected stagnating sales for the current financial year, short-term action is required. The board of Onlinestar asks you for an analysis of the reasons for the negative result as well as a derived recommendation for action. As a consultant, you should bring in your knowledge in online trading and develop solutions. In addition, the management board would like to receive a sales and gross profit plan from you for the current financial year.
4.3 5 1029
| Rating: (4.3 / 5.0)

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

Nutripremium

Solved 69.9k times
Nutripremium 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-supplements for pregnant women Concentrated dehydrated aliments and vitamin pills for sick patients (with Diabetes or Cancer). The CEO of Nutripremium thinks that the market in Europe is starting to get saturated and wants you to analyze the Chinese market. What are the key areas you would explore to determine whether this is a good idea?
4.5 5 2243
| Rating: (4.5 / 5.0) |

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-su ... Open whole case

Children vaccine

Solved 62.0k times
Children vaccine 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 product next year. They are only interested in the overall sales revenue as they already know that the vaccine can be sold for a profit. This is more meant to show them how big the volume they have to supply is and what the revenue would be.
4.4 5 2243
| Rating: (4.4 / 5.0) |

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 ... Open whole case