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Market sizing - nbr of hairdressers in Berlin

Anonymous A

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

Thanks

Vlad replied on 06/24/2018
McKinsey / Accenture / Got all BIG3 offers / More than 300 real MBB cases / 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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