Market sizing - nbr of hairdressers in Berlin

Market sizing
Recent activity on Jun 24, 2018
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Anonymous A asked on Jun 23, 2018

Hi all, how would you resolve this market sizing question: estimate the nbr of hairdressers in Berlin?

Thanks

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Vlad
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replied on Jun 24, 2018
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi,

  1. I would clarify first whether its hairdressers for men / women / both
  2. Estimate the corresponding population size (probably discount very young kids)
  3. Adjust the population size by the tourists, people coming from closer cities, etc.
  4. Estimate the average frequency of services per person (depending on the segment - men, women, etc)
  5. Estimate the total demand of services per day (Average frequency * population / number of days between the haircuts)
  6. Calculate the capacity of the average Hair Dresser (8 hours / 1 hr per haircut)
  7. Take into account idle time (e.g. your actual Hairdresser occupancy = total capacity / 2 assuming 50% idle time)
  8. Divide the total demand by the occupancy of 1 hairdresser

Best

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Vlad

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McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
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