Resources to practice market sizing

Market sizing
New answer on Aug 18, 2020
6 Answers
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Anonymous A asked on Feb 17, 2020

Are there any recommended resource that consolidates market sizing questions and detailed sample answers? I am currently using case books and preplounge as practice source but I want to specifically enhance my market sizing approach. Thanks in advance!

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Vlad
Expert
Content Creator
replied on Feb 17, 2020
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi,

It's less about the quantity, but rather about the tools that you use:

1) First of all, there are 2 ways to structure market sizing:

  • Formula - basically a math formula to come up with a solution. The problem with the formula is that it is easy to forget something or get lost.
  • Tree - same as with regular cases you build a tree. A very simple example: you need to calculate the number of dogs on manhattan. A number of dogs = share of households having a dog * # of households. # of households = population / average household size. In the end, you'll have a pyramid where you have to fill the numbers on the base of the pyramid. This approach is much easier and help you track all the numbers

2) You should learn the key market sizing techniques:

  • Making assumptions based on personal experiences (Use the example of your house where out of 100 apt-s 10 have dogs)
  • Adjusting numbers (NY is a busy city thus fewer people have dogs)
  • Sanity check - try to apply your calculations to the real environment
  • etc.

3) You should learn the key tools:

  • Using age even age split (suppose life expectancy is 80 years. Assuming even age split we have 4 mln people in US of each age)
  • Using 80/20 split (suppose 20% people earn 80% wealth and the average salary is xx...)
  • Using approximations (Length of NY-SF flight and plane speed to calculate US length)
  • etc.

4) Learn key numbers: populations, gas price, gas consumption, Boeing speed and nmber of seats, average salary, # of gates in the airport, GDP growth rate, inflation, etc.

5) Practice 10-15 cases and you'll be fine. Almost all casebooks have good market sizing examples and the solutions

Feel free to PM for clarifications

Good Luck!

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Antonello
Expert
Content Creator
replied on Feb 29, 2020
McKinsey | MBA professor for consulting interviews

If useful I attached some good solutions of common market sizings:

  • https://www.preplounge.com/en/consulting-forum/how-much-would-you-charge-to-clean-all-the-windows-in-seattle-4965
  • https://www.preplounge.com/en/consulting-forum/market-sizing-milk-consumption-5087
  • https://www.preplounge.com/en/consulting-forum/how-would-you-calculate-the-value-of-a-cow-4982
  • https://www.preplounge.com/en/consulting-forum/estimate-number-of-traffic-lights-in-a-london-5692

Best,
Antonello

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Luca
Expert
Content Creator
replied on Feb 28, 2020
BCG |NASA |20+ interviews with 100% success rate| 120+ students coached |GMAT expert 780/800 score

Hello,

You can find a lot of examples even in this forum, with experts giving their advice in the answers.

Feel free to text me if you want some examples coming from real interviews.

Best,
Luca

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Anonymous replied on Aug 18, 2020

Dear A,

You can find many expamles of cases in a Case Library here on Preplounge, or in every case book has a dedicated chapter. Just practice 1-15 cases.

I aslo have some material to practice with my mentee, if you are interested, just feel free to drop me a line.

Best,
André

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Tan
Expert
Content Creator
replied on Jun 30, 2020
Ex BCG | 4+ years experience as interviewer

Hi,
It is super easy to find a market sizing exercise. Just look at things around you in your life. E.g. if you go exercise, what is the market size of your sports shoes? If you order food delivery, how would you calculate the market size of food delivery? If you pass a building on the road, what is the total glasses sold to for building purpose every year?
You can practice anytime anywhere, on as many topics as you want. After you think them through thoroughly, check your thoughts with some of your peers/friends or occasional a coach to get feedback for improvement. Practice and iterate is the best way to improve.
Best,
Emily

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Clara
Expert
Content Creator
replied on Feb 17, 2020
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

Market sizing are normally part of cases, that emcompass also other topics such as structuring, mathematical agility and calculations, etc.

Best way to practice is to (1) do these kind of cases -in which you are also practicing hollistically- and (2) practice directly market-sizing brain teasers -to focus specifically in this-. You can find endless pages in Google with those, and they are fun to practice even among friends (e.g., you don´t need a consulting-specific setup, which can be sometimes difficult to have).

Hope it helps!

Cheers,

Clara

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Vlad gave the best answer

Vlad

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McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
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