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Market sizing with two product lines

Market sizing
New answer on Jun 17, 2024
5 Answers
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Anonymous A asked on Jun 14, 2024

Hi, I saw a prompt which asked for a market sizing while having two product lines. The product are two different pills that are sold to different customers. Pill one is sold to pregnant women, pill 2 to sick people. 

In such a case, would you do two different market sizing trees, one for pill 1 and one for pill 2 to not mix up things and then combining the end-result? Or how would you approach such a market sizing task? 

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Alberto
Expert
replied on Jun 14, 2024
Ex-McKinsey (5yrs) and Wharton MBA (GMAT 750) | Free intro call and dedicated preparation material

Hi! 

The client segments seem completely different, yet the product type is probably similar (both are pills, probably sold through the same channel). 

I would solve the case with two different “trees” (one per each product), yet I would expect the structure of both trees to be very similar (e.g., in both cases you start from segmenting the population, etc.). You would then add each market to get to an overall figure.

I hope that helps!

 

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Hagen
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Content Creator
replied on Jun 17, 2024
#1 recommended coach | >95% success rate | most experience in consulting, interviewing, and coaching

Hi there,

I would be happy to share my thoughts on your question:

  • First of all, yes, you basically have to size both markets separately and add them together.
  • Moreover, please keep in mind that most strategy consulting firms have not used stand-alone market size estimations for a long time. While this does not mean that it never happens, this type of case study question may not be very meaningful for both the candidate and the interviewer, as only a few skills are being tested. That being said, simpler market size estimations can still be part of a case study.

If you would like a more detailed discussion on how to best prepare for your upcoming interviews, please don't hesitate to contact me directly.

Best,

Hagen

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Florian
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replied on Jun 14, 2024
1300 5-star reviews across platforms | 500+ offers | Highest-rated case book on Amazon | Uni lecturer in US, Asia, EU

Hi there,

Yes, this is essentially two market sizing questions for the price of one…

The tree structure would likely be similar, yet the categories in the tree will be different as will be the assumptions to support your numbers.

If you want detailed feedback, think about it and post your result here in a new thread! :-)

Cheers,

Florian

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Cristian
Expert
Content Creator
replied on Jun 15, 2024
#1 rated MBB & McKinsey Coach

Interesting setup. 

I would need to understand the prompt in detail, but my hunch is that it would be best to approach each product line separately. Especially if they address a different target population.

Best,
Cristian

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Pedro
Expert
replied on Jun 17, 2024
Bain | EY-Parthenon | Private Equity | Market Estimates | Fit Interview

Yes, you would perform 2 different market sizings, as the pills neither target the same people nor provide a similar benefit.

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Alberto gave the best answer

Alberto

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