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Starting a market sizing case

Market sizing marketsize
New answer on Dec 31, 2021
2 Answers
3.9 k Views
Anonymous A asked on Jan 15, 2019

Hi all,

I’m struggling with how to start a market sizing case (and so not a market sizing question within a wider case):

  1. Do I have to start directly to brainstorm/find the right drivers to estimate the market size and then ask questions/information during case about the drivers you found?
  2. Do I have to start first with preliminary questions about the market and then keep going on with brainstorming and cracking the case? If yes, what kind of questions since you do not have precise information?

Thanks a lot.

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Sidi
Expert
replied on Jan 15, 2019
McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 350+ candidates secure MBB offers
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Ian
Expert
Content Creator
replied on Dec 31, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

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:

  1. Just like in a case, make sure you understand the question - what are you really being asked to calculate
  2. Decide whether a top-down or bottom-up approach is best
  3. Figure out what you know you know, and what you know you don't know, but could estimate
    1. This helps you determine how to split out buckets
  4. 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
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