Quick tips for market sizing?

Market sizing
Recent activity on Jan 15, 2019
2 Answers
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Anonymous A asked on Jan 14, 2019

Hi guys - I've got an last minute interview arranged for this week that I know is going to include a market sizing element. Are there any essential tips / approaches / frameworks for market sizing cases that I should be aware of? I'm trying to do some rapid prep before the end of the week. Best

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Luca
Expert
replied on Jan 14, 2019
Bain and BCG experience - Industry hire experience - 150+ cases

Hi,

1) first of all every market size can be a bit different, but the most important thing is that you should be able to understand and figure out a specific driver...

for example if the product/ service is connected to the average use from people... you can use the population as main driver; instead if it is something connected to a geographical distribution (eg number of taxi or newsstands in New York City) you can think about the number of blocks and then position a reasonable number of items suing the blocks

2) once you have figured out the main driver, you can think about a segmentation (eg by age brackets...)

3) then you need to make reasonable hypothesis to convert a number (eg number of people or number of shops...) into a yearly revenue figure. Important here to remember that the market size is usually an yearly figure and not a monthly one...

lets try to make as much granular thinking as possible, while not exceeding 15/20 minutes.

its usually a good strategy rounding numbers

let me know if I can help you more!

cheers

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Sidi
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replied on Jan 15, 2019
McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 300+ candidates secure MBB offers
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Luca gave the best answer

Luca

Bain and BCG experience - Industry hire experience - 150+ cases
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