Market sizing: number of baby strollers, spectacles and skis in Germany

estimation market sizing market size Market sizing
New answer on Oct 01, 2019
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Anonymous A asked on Sep 30, 2019

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Vlad
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updated an answer on Sep 30, 2019
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi,

The chances are higher that someone will help you if you provide at least your initial thoughts instead of just throwing 3 different MS cases in the topic. Happy to review your approach

Best

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Udayan
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replied on Oct 01, 2019
Top rated McKinsey Case & PEI coach/Multiple real offers/McKinsey EM in New York /6 years McKinsey recruiting experience

As Vlad suggested, someone here can help you with the approach. As an overall guide, all of these have somewhat similar approaches -

  • At first you need to identify the relevant population or addressable market for each of these items (e.g., addressable market for baby strollers in Germany is by and large the number of children under the age of 5, with majority for those under 2 (~90% of market)).
  • Then you estimate the proportion for whom it would apply (e.g., 90% of babies accounting for say cultural differences or affordability),
  • Account for those purchasing a stroller to replace an older one as well and not just first time buyers (so new and repeat purchases - let's say 20% are repeat purchases to replace older ones for various reasons such as theft or breakage)
  • Then you see if there are any other factors to consider (people that use hand me down strollers, those purchasing 2nd hand strollers, other products similar to strollers in use - maybe 20 - 30% of market ) and apply that discount to get to a rough estimate of the number of new items (strollers) sold
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Vlad gave the best answer

Vlad

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