McKinsey / Accenture / Got all BIG3 offers / More than 300 real MBB cases / Harvard Business School
Book a coaching

Recommendation for market sizing case

Someone asked on Oct 06, 2018 - 4 answers

Preplounge!

If you do a market sizing or another case were it does not feel natural to give a recommendation at the end; how do you round up such cases? Any suggestions to a structure for the recommendation of a case like that?

  • Upvotes
  • Date ascending
  • Date descending
Vlad replied on Oct 06, 2018
McKinsey / Accenture / Got all BIG3 offers / More than 300 real MBB cases / Harvard Business School

Hi,

You still have an objective - calculate the number of X. That's how you start:

  1. Our objective was to calculate the number of x
  2. Based on our analysis it will be Y
  3. There is a number of drivers that influence that number: a,b,c
  4. Additionally, if we had more time we can calculate more precisely... / we can make a sanity check / we can calculate from the supply side and triangulate

Best

Alessandro
Expert
replied on Oct 06, 2018
Bain & Company | University of Cambridge | CV/Resume writing | 770 GMAT

Hey there,

In a market sizing case, there often is no "recommendation" per se - rather you would summarise the answer briefly, how you got there, and importantly, make a sense check.

For example:

"Based on our analysis, the market size of rubber bands in the US is approximately $Xbn. This is based on 3 key assumptions: 1..2..3.. In order to sense check this, I can look at what it implies the average american spends on rubber bands per year"...

Then, if based on your sense check, it seems reasonable, you can happily conclude. However, if it seems too high or too low, you should either:

1) if it's simply way too high or too low, you might consider going back to check if you either made any math mistakes, or if you have forgotten to take something major into account

2) Suggest where you may have made simplifying assumptions that could increase/decrease your final number away from it's "true" value.

Jakob
Expert
updated his answer on Oct 09, 2018
Oliver Wyman | Approach: Convince in BOTH personal and case fit | 150+ real life interviews | Communications expert

Hi, good question !

As you are a consultant and not a scientist - you want to make sure that the "final" answer (better: answers) is seen:

a) in the light of the assumptions that you took

b) how a change in those assumptions would affect your answer and

c) how you would go about to sense-check or precise your answer going forward (this builds trust with clients and offers opportunity for next business!).

So how could a final solution look like?

1) There are about 45-55 mn bicycles in Europe (as with recommendations, jump straight into the result, no need to talk about anything else here)

2) ...based on a bottom up (45mn) and a top down appraoch (55mn)

3) ...approach 1 seems more exact due to x, y , z, hence the result is more skewed towards 45mn

4) The answer is most sensitive to assumption x. That means that a change of #% in x would alter the answer by y%

5) ...In order to precise the answers going forward, there are 2 possibitlies:

...precise estimate of x by means of xyz

...conduct a 3rd approach (time consuming) and then "triangulate" about the results.

Hope that helps!

Best Jakob

(edited)

Benjamin replied on Oct 08, 2018
ex-Manager - Natural and challenging teacher - Taylor case solving, no framework

Hi,
If you're doing a pure market sizing case, then of course there's no recommandation here.
When concluding if you are prompted to, you can summarise you work :

- starting with the result of the market sizing

- explaining then at high level the methodlogy and hypothese you developped to achieve this results

- highlting the potential weaknesses in your hypotheses.

hope this helps

Best

Benjamin

Related BootCamp article(s)

Important Facts

It's essential to know some key figures regarding geographies, population, economies for your case interviews. We summarized them for you here.

9 Comment(s)

Market Sizing

Market Sizing Cases are used to test your quantitative and reasoning skills. The interviewer evaluates your structure, numbers-handling and business sense.

18 Comment(s)

Related case(s)

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 ... Open whole case

Bain Case: Old Winery

Solved 25.2k times
4.4 5 680
| Rating: (4.4 / 5.0)

You have inherited the “Old Winery” from your grandfather, a winery which 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 the conventional way, i.e. ... Open whole case

Roland Berger Case: Onlinestar

Solved 14.3k times
4.3 5 287
| Rating: (4.3 / 5.0)

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 ... Open whole case

Nutripremium

Solved 46.3k times
4.5 5 1430
| Rating: (4.5 / 5.0) |

Nutripremium is a very well-known premium nutrition food company in Europe (€1 billion revenue last year). It is based in Spain and has an excellent market share not only in its home country but also in Portugal, France, Italy and Germany. Nutripremium has two main lines of products: Vitamin-supp ... Open whole case

Children vaccine

Solved 41.9k times
4.4 5 1381
| Rating: (4.4 / 5.0) |

Beyer, one of the biggest pharmaceutical companies in the world, just invented a very reliable vaccine against Chickenpox, a disease that affects children in the age from 2 to 16 years. Beyer came to you wondering what their potential sales in Europe in the first year would be if they launched this ... Open whole case