Market sizing in the case

Question

Hi everyone,
could you please tell me where 5.6 jars consumption per household per year comes from? I didn't see it as an additional information…

Jars per year = 1.8m * 5.6 = 10,080,000 jars/year

I would be grateful if you could help me understand this number (5.6).

Best regards,
Dominika

Answer 1

Hi Dominika,

Thanks for solving my case! In terms of your question:

Q: I would be grateful if you could help me understand this number (5.6).

As mentioned by Ian, you can find how the number is calculated from the table in Part 3 of the case:

Please note that this is a possible estimate, therefore your estimate could be different from the one reported.

Best,

Francesco

Answer 2

Hi Dominika,

It comes from the weight average of the estimates!

Remember though, you should not have gotten this answer….because…everyone will estimate differently!

Answer 3

Hi Dominika,

I think this is an interesting question that may be relevant for many people. I would be happy to share my thoughts on it:

First of all, I completely understand that it might be irritating to understand where the 5.6 jars/year come from since the case study seems to lack guidance at this point.
While distributing the population into the different customer segments seems logical, estimating the frequency of purchase would require additional information, which essentially is the method for calculating the weighted average of 5.6 jars/year.

If you would like a more detailed discussion on how to best prepare for your upcoming interviews, please don't hesitate to contact me directly.

Best,

Hagen