Market Sizing: No of bottles of coke drunk in Paris per day

Market sizing
New answer on Dec 31, 2021
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Anonymous A asked on Feb 13, 2019

Hi all, it might be a basic market sizing question but I'm somehow struggling with it. How would you solve it?

Thanks a lot for your help!

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Vlad
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replied on Feb 13, 2019
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi,

  1. Define the age groups (e.g. 10-20, 20-40, 40-80)
  2. Allocate the frequency per each age group (e.g. tens 10-20 drink x liters per week / 7 days)
  3. Find the size of the age group (Population / av life expectancy = # of people at each age (assuming they are distributed evenly). Multiply it by ages)
  4. For each group multiply the size of the group by consumption. Sum up the numbers

Best

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Thomas on Feb 13, 2019

Great, thanks!

Benjamin on Feb 13, 2019

Should we considerate the tourists ?

Vlad on Feb 18, 2019

Any additional use cases that you think are relevant

Ian
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Content Creator
replied on Dec 31, 2021
MBB | 100% personal interview success rate (8/8) and 95% candidate success rate | Personalized interview prep

Hi there,

Providing some market sizing thinking for anyone revisiting this Q&A:

Remember that there's rarely a "best" answer with market sizing. What's important is that you break down the problem the way it makes sense to you. Importantly, break it down so that the assumptions you make are the ones you're most comfortable in.

For example, do you know all the major brands? Great go with that. Do you understand all the segments of that country's population (either age or wealth or job breakdown)? Go with that. Do you know the total market size of the tourism (or hotel) industry? Then break it down that way.

Some tips:

  1. Just like in a case, make sure you understand the question - what are you really being asked to calculate
  2. Decide whether a top-down or bottom-up approach is best
  3. Figure out what you know you know, and what you know you don't know, but could estimate
    1. This helps you determine how to split out buckets
  4. Stay flexible - you can start with a "high-level" market sizing, but gauge your interviewers reaction....if it looks like they want you to do more...then go along level deeper in terms of your splits
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Vlad gave the best answer

Vlad

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