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).

expert

97% Recommendation Rate

406 Meetings

USD 239 / Coaching

## Question merged

This question is read-only because it has been merged with Total Number of Gas Station/Restaurant Question.

2

# Market Sizing: How many X are there?

I stumbled upon the tipical how many gas station are there in paris question?

I generally understand how to solve market sizing questions, however, I struggle with questions such as how many gas stations or mc donalds restaurant etc.

The solution proposed by prep lounge to solve it via demand seems to take a lot of time and I'm trying to use a different approach. However, I don't get the same result anyway. It says in the solution that there are about 200 gast stations, however, the real number in paris is only about 60.

I'm trying to solve this question by using the supply side: divide the population by how many people per gas station are there. How many people per gas station = People per quarter(district) divided by amount of gas stations per quarter(district). I assume there are 2.2 M people living in paris and there are 20 districts (these are actually the real numbers), also I assume that I have 1.5 gas station per district. However, my final result is something like 7 which is obviously wrong. What am I doing wrong?

Best,

I stumbled upon the tipical how many gas station are there in paris question?

I generally understand how to solve market sizing questions, however, I struggle with questions such as how many gas stations or mc donalds restaurant etc.

The solution proposed by prep lounge to solve it via demand seems to take a lot of time and I'm trying to use a different approach. However, I don't get the same result anyway. It says in the solution that there are about 200 gast stations, however, the real number in paris is only about 60.

I'm trying to solve this question by using the supply side: divide the population by how many people per gas station are there. How many people per gas station = People per quarter(district) divided by amount of gas stations per quarter(district). I assume there are 2.2 M people living in paris and there are 20 districts (these are actually the real numbers), also I assume that I have 1.5 gas station per district. However, my final result is something like 7 which is obviously wrong. What am I doing wrong?

Best,

• Date ascending
• Date descending

Hi,

First of all marketsizing is not about geting the true numbers but rather about your approach. So if your marketsizing results are different from the numbers that you can google - it doesn't really matter. What matters is how you make the assumptions and justify them to the interviewer.

Secondly - your approach is good as well. Most probably you've uinderestimated the number of gas stations per disctrics / did not include the surbubs with gas stations for the trucks.

Best!

Hi,

First of all marketsizing is not about geting the true numbers but rather about your approach. So if your marketsizing results are different from the numbers that you can google - it doesn't really matter. What matters is how you make the assumptions and justify them to the interviewer.

Secondly - your approach is good as well. Most probably you've uinderestimated the number of gas stations per disctrics / did not include the surbubs with gas stations for the trucks.

Best!

Totally agree with Vlad - it's not at all about the true number, as long as your result is within the realm of possibility. If you say there are 7 or 70,000 gas stations in Paris I would question your judgment. But saying 120 or 300 and basing that on a solid set of assumptions is totally fine.

If I was the interviewee, with this specific case, I would actually try to steer the conversation into a different direction - how the number is changing due to the changes in urban transport (public transport, ride sharing, e-mobility...). Because that is a strategy discussion. Trained monkeys can count gas stations, and elementary school children can do the math for your assumptions. But only smart people can have a thoughtful strategy discussion. If you're face to face with the right interviewer, that might score you some points. If he just wants you to do basic math, then you can still go back to doing that...

BTW: Paris, in particular, is tricky, because the 2.2 Million refer to Paris "inter muros", so the actual city. The agglomeration is of course vastly larger, so much of the supply for the city might just be outside of the walls of the city (cheaper real estate, lower taxes etc.). Just like you don't have that many gas stations in Manhattan or the City of London...

Totally agree with Vlad - it's not at all about the true number, as long as your result is within the realm of possibility. If you say there are 7 or 70,000 gas stations in Paris I would question your judgment. But saying 120 or 300 and basing that on a solid set of assumptions is totally fine.

If I was the interviewee, with this specific case, I would actually try to steer the conversation into a different direction - how the number is changing due to the changes in urban transport (public transport, ride sharing, e-mobility...). Because that is a strategy discussion. Trained monkeys can count gas stations, and elementary school children can do the math for your assumptions. But only smart people can have a thoughtful strategy discussion. If you're face to face with the right interviewer, that might score you some points. If he just wants you to do basic math, then you can still go back to doing that...

BTW: Paris, in particular, is tricky, because the 2.2 Million refer to Paris "inter muros", so the actual city. The agglomeration is of course vastly larger, so much of the supply for the city might just be outside of the walls of the city (cheaper real estate, lower taxes etc.). Just like you don't have that many gas stations in Manhattan or the City of London...

(edited)

## Related BootCamp article(s)

2 Q&As

### Important Facts

It's essential to know some key figures regarding geographies, population, economies for your case interviews. We summarized them for you here.

1 Q&A

## Related case(s)

### Oliver Wyman case: Full Electrons Ahead

Solved 99.4k 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.
| 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 68.3k 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.
| 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 48.2k 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.
| 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

Solved 69.6k 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?
| 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 61.7k 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.
| 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