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Tag: "Market sizing"
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Market sizing

    How would you triangulate/sense check this Market sizing question of Annual Revenue of a Petrol Station in UK?

    Market sizing
    Most recent answer on Jul 26, 2021
    <p>Hi! I have a full 45 minute interview for market sizing and I was practising this question- Annual revenue of an average petrol station in the UK. </p> <p>I calculated Revenue per day:</p> <p>PETROL REVENUE: No of pumps x avg. spend x frequency </p> <p>+</p> <p>CONVENIENCE STORE REVENUE</p> <p>X 360 (to get annual revenue)</p> <p>How would you triangulate this answer? or sense-check it?</p> <p>Also what sort of follow-up questions do you think they could ask?</p> <p>Thanks a ton for any advice!</p>
    Hi there! I always like to reiterate -- there is never a RIGHT answer, mostly in consulting interviews, the interviewer is trying to understand HOW you think and if the LOGIC you apply can be rationalized or reconsidere ... (read entire answer)
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    on Jul 26, 2021
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    Market Sizing - EV Charging Stations

    Market sizing
    Most recent answer on Jul 24, 2021
    <p>I was recently asked in one of the interviews to do sizing for number of EV Charging stations required in the next 10 years. Can somebody suggest me ways in which I can go about it?</p>
    Hi there, Ultimately, you should try this yourself before asking - you'll learn a lot more! That said, see below for a related market sizing that should give you guidance on how to solve this one. SIMILAR SOLUTION - ... (read entire answer)
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    on Jul 24, 2021
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    Was asked to size the total addressable market of robots in an interview, how would one go about that?

    estimation Market sizing
    Question edited on Jul 21, 2021
    Anonymous A asked on Jul 20, 2021
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    on Jul 21, 2021
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    Market sizing layers

    Market sizing
    Most recent answer on Jul 17, 2021
    <p>How many levels on average should you have in your market sizing approach (I know this varies by case but I'm just looking for an average on what's not "deep enough") ..would 3-4 work or is it more 5-6? (Eg population, age group, income, purchasing preference, replacement rate, $ value of service/product) </p>
    Hey there, This depends a bit on the nature of the question. I would not overcomplicate things and as a matter of fact, your answer will not be more precise with 6 levels rather than 4. Although it might create the im ... (read entire answer)
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    on Jul 17, 2021
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    Why population / Life Expectancy?

    Market sizing
    Most recent answer on Jul 12, 2021
    <p>This question is about what Fernando is refering to as "Replacement Concept" in estimating the number of babies born per year: </p> <p>I get that he is assuming that the # of people born = number of people dead per year to keep the population balanced at 7B according to his assumption but then he assumes that the number of people dead per year = 7B (population) / life expectancy (70 yo). Why is that? </p> <p>I am trying to tie it to how we calculate the % of people falling into an age group following a uniform distribution: % of people between 15 yo and 45 yo with a life expectancy of 70 yo is (45-15)/70 = 3/7 and then *100 we get the %. </p> <p><u><strong>OR</strong></u></p> <p>does it stem from the concept of replacing the 7B every 70 years so what would be the number of people being replaced (the dead are replaced by the born) per year and that is 7B / 70 years ? </p> <p>Any helpful explanations? Thanks</p>
    Hi there, If life expectancy is 70 years, then what're the odds of dying in a given year? The answer is 1/70... So...any given person has a 1 in 70 chance of dying in a given year. Therefore, if each person in a pop ... (read entire answer)
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    on Jul 12, 2021
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    Market Sizing Question: Paper cup market in the US

    Market sizing
    Most recent answer on Jul 11, 2021
    <p>Hi all,</p> <p>I've got a case interview coming up next week and one of my friends told me that this has recently been a common theme of the interview.</p> <p>I'm quite stuck as to how to approach this though, I'm thinking perhaps I could estimate how many on average people use a paper cup on a daily/monthly basis?</p> <p>So it'd be [ Population * Average paper cup consumption * Price ].</p> <p>However, I feel like this would require me to make a pretty vague assumption on the "average paper cup consumption" part, and also this does not really capture the paper cups that are yet to be used. (Eg. Inventory in a cafe.)</p> <p>I'd appreciate it if you could give me some insights / guide me in the right direction.</p> <p>Thanks.</p>
    Hi there, If you're going to break it down by population consumption, make sure to do an additional split (i.e. city vs rural and/or income bands). Break it down in the time unit that you personally can most relate ... (read entire answer)
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    on Jul 11, 2021
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    Number of traffic lights in London- how would you calculate the number of intersections?

    Market sizing
    Most recent answer on Jul 08, 2021
    <ul> <li>Start from the London population = 8mn</li> <li>Calculate the households estimating the n. of people per household (e.g. 2) = 4mn </li> <li>Calculate the number of residential buildings assuming the n. of houses in a building (e.g. 20) = 200k buildings </li> <li>Calculate the number of blocks estimating the n. of buildings per block (e.g. 10) = 20k blocks</li> <li><strong>Calculate the number of intersection ?</strong></li> <li>Calculate the number of traffic lights, assuming 4 main traffic lights per intersection + 8 pedestrian traffic lights (if needed to be included)</li> </ul>
    I think an approach not linked to population might work better.  I would approximate London with 3 squares with perpendicular roads. THe numbers are very first guess and you might plug in different ones, but direction ... (read entire answer)
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    on Jul 08, 2021
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    market sizing for baby bottles in america

    consulting Market sizing United States
    Most recent answer on Jul 06, 2021
    <p><strong>how many baby bottles bought everyday in the US?</strong></p> <p>My guess would be to first estimate the population of the U.S. 320 million </p> <p>We can split that into age groups with an life expectancy of 80 that is 4 million per age group. Assume baby bottles are consumed by up until you are two years old? Does that mean target market would be 8 million. Assume 90% of babies use bottles. That leaves us with 7.2 million. Then assume that there are different bottle sizes and that a baby usually has to switch bottles around the time they turn 1? Assume the average baby has 3 bottles of each (which means they buy 3 bottles a year). 7.2 million times 3 = 21.6 billion. If we divide that by 365 days. Here can I divide by 400 days? Is that ok? Math would be tough in head. That would equal to 54,000 bottles sold a day.</p>
    Hi there, Overall I think this is pretty good! You may want to segment by income as well (poorer households may not buy a single bottle...they may use/make their own or use hand-me-downs).
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    on Jul 06, 2021
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    Bottom-up Market Sizing

    Bain & Company Market sizing
    Most recent answer on Jul 06, 2021
    <p>Hi! Can anyone please give me few examples of bottom-up market sizing questions and how they would solve it please? I am really struggling so any help would be much appreciated. </p>
    Hi there, Here are a few ones I like (feel free to message if you'd like to talk through the answers...it takes a while and is difficult to type!). Estimate the daily revenue of your nearest starbucks store How ... (read entire answer)
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    on Jul 06, 2021
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    Size of Wine Market in the UK

    Market sizing UK
    Question edited on Jul 06, 2021
    <p>Not sure on the last steps here. Can someone help please?</p> <ol> <li>UK Population - ask for UK Population </li> <li>65 million - life expectancy 81/82 </li> <li>Let’s assume there are the same number of 1 year olds than 82 year olds.That would mean there’s approximately <strong>800,000</strong> people per age number </li> <li>800,000* 18 = 14.4 million. Population below the drinking age </li> <li>50.6 million people left - for clarity make it 50 million - older will have more purchasing power</li> <li>Segment by population - 3 different groups… 18-34 (12.5 million), 34-50 (12.5 million), 50+ (25 million)</li> <li>Ask about split between out-of-home and in-home. Out-of-home has 2 to 3 times markup </li> </ol> <p>I’m a little confused on how to continue… I would ask the interviewer for more information but would it be correct to assume that older people consume more expensive wines? </p>
    Hello!Y Overall it's good.  I don't agree with other comments here saying that you must not ask for hte population in the UK. Unless this is a interview in the London office, it's totally okay to ask (or give an est ... (read entire answer)
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    on Jul 06, 2021
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    Market size difference by revenue vs by volume

    BCG Case Interview BCG McKinsey and Bain Framework Market sizing
    Most recent answer on Jul 04, 2021
    <p>I cant grasp the meaning and the difference between the two when it comes in market sizing questions</p>
    Volume is the number of sold unit, for example the number of passenger cars sold in Europe in the year 2020 Revenue is the money all participants earned with selling the units, for example the revenue all call manuf ... (read entire answer)
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    on Jul 04, 2021
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    Regarding the replacement concept I wonder when to use average number of households & when to use a view per person?

    Market sizing
    Most recent answer on Jul 02, 2021
    <p>1) E.g. Average number of household seems accurate to estimate number of cars sold in the US in one year or for number of light bulbs because you look at it from a household perspective. What about number of laptop or smartphones? In my opinion, I would use a view per person here and say for example that every person has a smartphone except childern and maybe elderly people (depending also on the country).</p> <p>2) In the two videos about the replacement concept (cars and light bulbs): are we accurate when estimation the total number of existing light bulbs/cars by only considering households. There is also rental cars, business cars, taxis etc. which we don't include? Same for light bulbs: what about restaurants, hotels, offices etc.</p> <p>Thanks for your help. Really appreciated</p>
    Hi Catrina, Great questions! 1) Yes, some items are bought at a household level (cars, beds, lightbulbs, etc.) and some items are bought at an individual level. Use your judgement here, and segment accordingly. Lapt ... (read entire answer)
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    on Jul 02, 2021
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    Commodity products assumption

    Market sizing
    Most recent answer on Jun 28, 2021
    <p>Is it fair to assume commodity products like food, personal care or smartphones are accessible and affordable to majority of the population in a country for market sizing calculations, so you don't need to segment by age group or income level? You can assume 20-30% don't have access or can't afford it but the rest can?</p>
    Hi there, If you're doing this, then what will you segment by? I'm a bit confused by your approach and highly recommend that you stick to segmenting by age/income for "commodity" products (by the way, personal care an ... (read entire answer)
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    on Jun 28, 2021
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    Market sizing Qs for post-mba roles

    Market sizing
    Most recent answer on Jun 28, 2021
    <p>Are market sizing Qs asked in post mba level interviews at MBB or is this meant more for entry-level staff?</p>
    Hey there, For McKinsey, market sizing is only relevant as part of a case but will never be the whole case. Every McKinsey interview consists of 3 question types 1. Structure 2. Chart 3. Math If market sizing is req ... (read entire answer)
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    on Jun 28, 2021
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    Bain market sizing

    Market sizing
    Most recent answer on Jun 28, 2021
    Anonymous A gave the best answer on Jun 27, 2021
    <p>Could you please estimate how much did poultry consumption decline because of covid-19 in 2020? <br> I am not sure how to solve this sizing problem. Maybe break down to direct consumer vs processed chicken (restaurant type) and the later was badly influenced?</p> <p>Hope you guys have better approaches:)</p>
    I would start with population of country - assume x% eat poultry - normal frequency of consumption (eg 1kg/week, 1kg/month, 1kg/6 month)- change of frequency in consumption (for eg if normally 50% people ate it 1x per ... (read entire answer)
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    on Jun 28, 2021
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    Which is the best resource for Market Sizing drills?

    Bain Market sizing
    Most recent answer on Jun 24, 2021
    <p>I have tried Rocketblocks and I don't like the fact that they don't show their answers as a proper framework/issue tree. </p> <p>Does anyone recommend any other resources to practise Market Sizing? I am looking for drills, wherein I draw my structure and then I compare to the expert's structure/issue tree. </p> <p>Let me know if you have any leads!</p>
    Hi, have you checked this? https://www.preplounge.com/en/bootcamp.php/case-cracking-toolbox/identify-your-case-type/market-sizing Best, Antonello
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    on Jun 24, 2021
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    What do you understand by a bottleneck on market sizing questions?

    Market sizing
    Most recent answer on Jun 22, 2021
    <p>Hello everyone!</p> <p>I'm currently studying Market Sizing type of cases and I have seen some websites recommend to segment using the bottlenecks, however I don't understand well what do they mean by this?</p> <p>For example: When market sizing the revenues of your closest starbucks, you can segment it on # customers and average spend per customer. On the # customers side, they segment it by # of cashiers and # customers per cashier, they say this is the bottleneck, however I don't understand well what are they and how to find them. </p> <p>I would appreciate if you could clarify it for me.</p> <p>Thank you very much. </p>
    Hi,  it's about identifying the variable that caps the maximum potential revenue of a business. Very common examples are cashiers, tables, seats, ... In your example the bottleneck is the number of cashiers, because s ... (read entire answer)
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    on Jun 22, 2021
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    How should I approach "Estimate the size of the market for student loans"?

    market estimation Market sizing
    Question edited on Jun 20, 2021
    Hi there, The best way to learn is by doing :) Post your approach here and we can provide feedback! Remember that there's rarely a "best" answer with market sizing. What's important is that you break down the proble ... (read entire answer)
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    on Jun 20, 2021
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    Market sizing for non-personal usage

    Market sizing
    Question edited on Jun 14, 2021
    <p>When you do market sizing (say for # of dogs in city or # of cars ), let's say you start by estimating the personal use markets (people who own dogs as pets or cars used for personal use since this can be tied to population for easy math)..now once you calculate that and want to factor in non-personal use (eg commercial purpose cars or stray dogs) , can I assume an additional x% (eg 20%) of this population is non-personal use and then just add it in? You could justify with a personal example (like you've seen 2 stray dogs on the street for every 10 pets or something)..Just wondering if there is an easy way to factor in non-personal use without having to size it separately from scratch.</p>
    Hi there, Yes you absolutely can! Now, of course I'm assuming you've done some segmentation etc. for the "personal use" market, but, absolutely you can say "I also have to add in x item and I think it's x% of what I'v ... (read entire answer)
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    on Jun 14, 2021
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    How to estimate no of books in canada?

    Market sizing
    Question edited on May 21, 2021
    Hi there, You'll really get the best out of this exercise if you try it yourself. Why don't you post what you're thinking and we can help? Hint: Do you think this makes more sense top-down or bottom up? Gene ... (read entire answer)
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    on May 21, 2021
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