Date: 01/03/2025
Time: 3:00 pm
Instructor: No instructor found
Assigned Student: Ralph Sawaya
Session Status: Completed
Session Materials: No materials available
Instructor Note:
Session 1: Market Sizing
In this session, we tackled a market sizing case: “How many chocolate eggs did Lindt sell this Easter?” This exercise was designed to enhance our ability to estimate market sizes logically and systematically, a crucial skill for consulting interviews and business decision-making.
We explored two fundamental approaches to market sizing:
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Top-Down Approach – This method starts with a broad, high-level figure, such as the total population of a country or the overall chocolate market size. From there, we apply relevant assumptions and segmentation (e.g., world population, percentage of people who celebrate Easter, average chocolate consumption per person, Lindt’s market share …) to progressively narrow the estimate down to the final answer.
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Bottom-Up Approach – This method begins with the smallest unit of analysis, such as a single Lindt factory’s production capacity or the number of stores selling Lindt chocolates. We then scale this number upward by incorporating factors such as the number of factories, distribution channels, and estimated demand per store to arrive at a reasonable estimate (starting with one factory, number of people working in the factory, working hours, number of chocolate eggs produced per person, then number of eggs per factory, then number of factories in the world)
Cases to solve for next time:
- how many kg of meat the restaurant five guys needs per year in the US?
- KSA just allowed women to get driving licenses. how many licenses will be issued this year?
