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
Quick tips for market sizing?
Overview of answers
Upvotes
Best answer
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
Was this answer helpful?
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:
- Just like in a case, make sure you understand the question - what are you really being asked to calculate
- Decide whether a top-down or bottom-up approach is best
- Figure out what you know you know, and what you know you don't know, but could estimate
- This helps you determine how to split out buckets
- 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
Was this answer helpful?
Hi Anonymous!
Please refer to this excellent article on Preplounge: https://www.preplounge.com/en/bootcamp.php/case-cracking-toolbox/identify-your-case-type/market-sizing
Cheers, Sidi
Was this answer helpful?
Related Cases
Company case by Oliver Wyman
Style:
Your client, large automotive OEM WyCar, has developed its first fully electric vehicle (EV) and introduced it as a pilot on the Austrian market last year. However, sales have been far below the expected numbers. The management has engaged you to support them in understanding the reasons and advise
...
Your client, large automotive OEM WyCar, has developed its first fully electric vehicle (EV) and introduced it as a pilot on the Austrian market last year. However, sales have been far below
...
(Open whole case)
121.3k
Times solved
Intermediate
Difficulty
Company case by Bain & Company
Style:
You have inherited the “Old Winery” from your grandfather, a winery that has been family-owned for five generations and can be dated back to the 16th century.Half of the eleven hectares are used to grow white grapes, the other half to grow red grapes. They are grown in a conventional way, i.e. they
...
You have inherited the “Old Winery” from your grandfather, a winery that has been family-owned for five generations and can be dated back to the 16th century.Half of the eleven hectares are
...
(Open whole case)
118.1k
Times solved
Intermediate
Difficulty
Company case by Roland Berger
Style:
Onlinestar, an online retailer of furniture and garden products (core business), has grown significantly in recent years as a result of an expansion of its product portfolio. The company mainly imports goods from Chinese manufacturers but also operates its own production of cat lavatories (special b
...
Onlinestar, an online retailer of furniture and garden products (core business), has grown significantly in recent years as a result of an expansion of its product portfolio. The company mai
...
(Open whole case)
92.2k
Times solved
Intermediate
Difficulty
Company case by RWE Consulting
Style:
RWE has reliably supplied people and companies with electricity for more than 120 years with activities around the world with a clear focus on growth. The company is pushing the energy transition to climate neutrality with focus on renewable energy sources like offshore or onshore wind as well as ph
...
RWE has reliably supplied people and companies with electricity for more than 120 years with activities around the world with a clear focus on growth. The company is pushing the energy trans
...
(Open whole case)
16.3k
Times solved
Intermediate
Difficulty
Company case by E.ON Inhouse Consulting
Climate change has become one of the biggest challenges in the 21st century, and with roughly 75% of all CO₂ emissions coming from energy, this sector plays a key role in the transition to a reduced carbon footprint. E.ON has taken up on the challenge to promote more sustainable and efficient energy
...
Climate change has become one of the biggest challenges in the 21st century, and with roughly 75% of all CO₂ emissions coming from energy, this sector plays a key role in the transition to a
...
(Open whole case)
5.0k
Times solved
Intermediate
Difficulty
Bain and BCG experience - Industry hire experience - 150+ cases
8
Meetings
33
Q&A Upvotes
2
Awards
2 Reviews