Paragraphs highlighted in green indicate diagrams or tables that can be shared in the “Case exhibits” section.
Paragraphs highlighted in orange indicate hints for you how to guide the interviewee through the case.
Suggested case structure:
Candidate should think about a structure first and explain this to the interviewer before starting to make assumptions.
When the structure is clear, candidate can start estimating by making his own assumptions without help from interviewer.
If candidate seems lost or needs help, interviewer can assist by giving hints below:
- First, assume total population of the UK.
- Secondly, think of which age group represents a heavy user of chewing gum or which age groups represent which consumption ratio.
- Thirdly, estimate how many gum-packs are being consumed per consumer (per week, month and/or year).
- Estimate price of a pack of gum and calculate total annual revenue.
We can make the following assumptions for our analysis:
- UK population is 80 m.
- Heavy user-group is between 10-20 years old and represents 20% of total population. Each user consumes 1 pack of gum per week.
- The remaining population of 80% consumes 1 pack of gum per month.
- Estimated price of a pack of gum is $0.80.
Heavy-user target group
- Heavy-user consumers: 80 m*20%=16 m.
- Heavy-user consumption per year: 16 m*52 weeks=832 m.
- Heavy-user market value per year: 832 m*$0.80=$665 m.
Rest of population
- Rest of population: 80 m*80%=64 m.
- Consumption per year: 64 m*12 months=768 m.
- Market value per year: 768 m*$0.80=$614 m.
Total market value
- $614 m+$665 m=$1.28 b
- Total estimated market value per year is $1.28 b.