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

Ian

100% Recommendation Rate

266 Meetings

23,062 Q&A Upvotes

USD 289 / Coaching

5

How would you go about this market sizing question: 'How many barbershops/hairdressers are there in the UK?'

Hi,

I was practicing market sizing questions, and came across this question:

How many barbershops/hairdressers are there in the UK?

I went about about this question through these steps:

1) Population (65m)
2) Working age adults (I estimated this to be 33m as I made the assumption that 0-19 and 60-80 do not work and/or they do but at negligible rates)
3) Proportion of working age adults that are hairdressers/barbers (I estimated 1%)
4) Average number of workers in a barbershop/hairdressers (I estimated 10)
5) Divide the total no. of hairdressers by average number of workers in a barbershop/hairdresser

This got me to an answer of 33,000.

I would be grateful for any suggestions as to how to approach this question and whether my approach can be improved!

Hi,

I was practicing market sizing questions, and came across this question:

How many barbershops/hairdressers are there in the UK?

I went about about this question through these steps:

1) Population (65m)
2) Working age adults (I estimated this to be 33m as I made the assumption that 0-19 and 60-80 do not work and/or they do but at negligible rates)
3) Proportion of working age adults that are hairdressers/barbers (I estimated 1%)
4) Average number of workers in a barbershop/hairdressers (I estimated 10)
5) Divide the total no. of hairdressers by average number of workers in a barbershop/hairdresser

This got me to an answer of 33,000.

I would be grateful for any suggestions as to how to approach this question and whether my approach can be improved!

5 answers

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

100% Recommendation Rate

266 Meetings

23,062 Q&A Upvotes

USD 289 / Coaching

Hi there,

Sorry to be so blunt, but you already failed at step 2.

Remember, market sizing isn't about coming to the exact right answer insomuch as it's about assessing your ability to have structured thinking and ability to think reasonably. You didn't do this :/

Wrong approach - You cannot just randomly guess what % of your total pop is hairdressers in order to figure out how many hairdressers are in the UK. This is not breaking down a problem into logical segments in order to make more reasonable assumptions. You literally just said "ah, maybe x% multiplied by the total population!"...that's not strategic thinking...sorry!

Ok, so, how to we fix this? Well, we have to look at what ways I can break this down into more reasonable steps/assumptions!

So, let's thinking about:

  1. # of people in the UK
  2. # of haircuts per person per year
    1. Think monthly
    2. Break down population into reasonable segments that affect frequency of haircuts
  3. Throughput of an average barbershop/hairdresser
    1. Think hourly and expand out
  4. Calculate # of shops needed (by # of haricuts and throughput)

And viola! Much more reasonable to make these kinds of assumptions!

Hope this helps, but feel free to message with any questions!

Hi there,

Sorry to be so blunt, but you already failed at step 2.

Remember, market sizing isn't about coming to the exact right answer insomuch as it's about assessing your ability to have structured thinking and ability to think reasonably. You didn't do this :/

Wrong approach - You cannot just randomly guess what % of your total pop is hairdressers in order to figure out how many hairdressers are in the UK. This is not breaking down a problem into logical segments in order to make more reasonable assumptions. You literally just said "ah, maybe x% multiplied by the total population!"...that's not strategic thinking...sorry!

Ok, so, how to we fix this? Well, we have to look at what ways I can break this down into more reasonable steps/assumptions!

So, let's thinking about:

  1. # of people in the UK
  2. # of haircuts per person per year
    1. Think monthly
    2. Break down population into reasonable segments that affect frequency of haircuts
  3. Throughput of an average barbershop/hairdresser
    1. Think hourly and expand out
  4. Calculate # of shops needed (by # of haricuts and throughput)

And viola! Much more reasonable to make these kinds of assumptions!

Hope this helps, but feel free to message with any questions!

Book a coaching with Clara

100% Recommendation Rate

58 Meetings

15,687 Q&A Upvotes

USD 229 / Coaching

Hello!

Like the approach!

You can also think it by population who needs a haircut, extrapolating by the number of barbrshops you konw there are in an area, etc.

However, yours works
​Hope it helps!

Cheers,

Clara

Hello!

Like the approach!

You can also think it by population who needs a haircut, extrapolating by the number of barbrshops you konw there are in an area, etc.

However, yours works
​Hope it helps!

Cheers,

Clara

Book a coaching with Vlad

97% Recommendation Rate

410 Meetings

11,435 Q&A Upvotes

USD 239 / Coaching

Hi,

I would rather go with demand:

  1. Population (men, women, age split)
  2. Frequency of haircuts by group
  3. Average capacity and occupancy of a barbershop
  4. Number of barbershops by dividing total demand and supply of one barbershop (adjusted by av occupancy)

Best

Hi,

I would rather go with demand:

  1. Population (men, women, age split)
  2. Frequency of haircuts by group
  3. Average capacity and occupancy of a barbershop
  4. Number of barbershops by dividing total demand and supply of one barbershop (adjusted by av occupancy)

Best

Book a coaching with Adi

100% Recommendation Rate

74 Meetings

6,739 Q&A Upvotes

USD 159 / Coaching

Book a coaching with Gaurav

100% Recommendation Rate

198 Meetings

6,592 Q&A Upvotes

USD 169 / Coaching

Hi there,

Interesting question! Thank you for sharing.

I agree that it makes more sense to build your reasoning starting with the demand.

Don't forget that haircut is not the only reason people go to hairdressers.

Was it helpful?

GB

Hi there,

Interesting question! Thank you for sharing.

I agree that it makes more sense to build your reasoning starting with the demand.

Don't forget that haircut is not the only reason people go to hairdressers.

Was it helpful?

GB

Related case(s)

Oliver Wyman case: Full Electrons Ahead

Solved 101.4k 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 6534
| 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 70.0k times
Bain Case: Old Winery 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 are not organically farmed and certified. The vine stocks are in a good condition regarding age and care. Overall, the 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 winemaking, but find the idea of owning a winery exciting. Your plan is to give the winery some fresh impetus.
4.4 5 1912
| Rating: (4.4 / 5.0)

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. the ... Open whole case

Roland Berger Case: Onlinestar

Solved 49.6k 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, the 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 1044
| 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 70.3k 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 2255
| 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 62.5k 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 2271
| 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