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Market sizing - Digital parking marketplace launch in Germany - Top down estimation (1/2)

Market sizing New product
New answer on Oct 10, 2021
2 Answers
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Anonymous A asked on Oct 07, 2021

I was asked this question during my interview for a mobility-as-a-service company- Prepare an analysis for the launch of a digital parking marketplace platform in Germany.

For the market sizing part, they specifically mentioned to come up with a top down estimation. How to approach it?

No clarification on use cases was given and it was a take-home case. For example- B2B or B2C, parking for cars/bikes/e-scooters. How to make assumptions about it?

 

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Ian
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Content Creator
updated an answer on Oct 07, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

It's very simple: Do the approach the is the easiest for you given the question.

Fundamentally, you need to take the approach that just makes the most sense in that circumstance. Quickly think about the key assumptions / numbers required and whether you 1) Know them or 2) Can reasonably estimate them. If you can, go ahead!

An Example

Here is a good Q&A great market sizing question asking to estimate # of electric charging stations in a city in 10 years:

https://www.preplounge.com/en/consulting-forum/how-would-you-solve-this-market-sizing-question-from-roland-berger-7631

This one could be answered top-down (as I did) by estimating population of the city, # of drivers/ cars, etc. etc.

OR, it could be answered bottom-up by estimating # of stations you see per block (or # of gas/petrol tanks), % increase this might be over time (or # of EV stations that would be needed per gas tank given EV stations take 10 times as long), and # of blocks you'd estimate the city to have.

Here's another market sizing (with answers + explanations) to get you started:

https://www.preplounge.com/en/management-consulting-cases/brain-teaser/intermediate/taxis-in-manhattan-market-sizing-229

(edited)

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Antonello
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replied on Oct 10, 2021
McKinsey | NASA | top 10 FT MBA professor for consulting interviews | 6+ years of coaching

Hi!

Interesting case!

Why don't you post your solution here so that we could give you more specific feedback?

Best,

Anto

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Ian

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