Skip to main content

[Reddit Gaming Hot Post] Market Estimation.

Hi guys, i'm back with another market estimations case. The following question was asked in a interview and i solved the case in the following way. Now tell me as an interviewer of mckinsey or some other top consulting firm would you genuinely be satisfied with this answer and hire me. Or would you expect a much better answer.

Q. What is the size of mattress market in India?

Answer.

  1. MY CLARIFYING QUESTIONS WERE AS FOLLOWS.

a. Are we trying to calculate value or volume.

b. what type of mattresses are we considering here. is it single mattress or double mattress or spring mattress.

c. are we considering mattresses sold to households or even mattresses sold to businesses.

The interviewer replied saying we are trying to arrive at the result in value and we are considering all type of mattresses. Consider only mattresses used by households.

  1. SOLUTION

a. The population in India is close to 140 crores. Almost everbody owns some kind of mattresses except for the people who belong to the below poverty line. So i would like to assume that the people under below poverty line would be around 10%. Therefore, the penetration rate of the mattress market is 90%.

b. Assuming 50% of the population are families and considering 4 members per family on an average. The family would require 3 beds, one for the couple and one each for the kids. So on an average it's 0.75 bed per person. Therefore no of beds in use for this segment of popullation would be 126 crores * 50% * 0.75 = 47 crore beds.

c. Another 20% of the population are married and unmaried couples living together. They use one bed. so average bed per person would be 0.5. Therefore the number of beds in use would be 126 * 20% *0.5 = 12 crore beds

d. Rest 30 % population are singles. They require 1 bed per person. Therefore, the beds in use = 126 * 30% * 1 = 37

TOTAL NUMBER OF BEDS IN USE = 47 + 12 + 37 = 100 CRORES BEDS ( ROUNDED OFF TO NEAREST MULTIPLE OF 10)

e. The life span of beds is somewhere around to be 5 to 7 years. so i would like to take a replacement rate of 20%( 1/5*100) and growth rate to be 1%. Therefore the number of beds sold equals to = 100 crore beds * 21%( 20+1) = 21 crore beds sold per year.

f. As there no data with the interview w would assume that Price of a singe mattress in india is around 5000 INR, double mattress is 10000, spring mattress is around 20000. Therefore the average price of a mattress equals to (5k+10k+20k)/ 3 = around 10000 INR( rounded off to the nearest multiple of 10000).

g. Market Size of mattress would be = 21crores beds * 10000 = 2100 billion rupees.



Submitted May 06, 2023 at 05:18PM by KeenlyCurious https://ift.tt/7lsDbym
Labels:

Comments

Post a Comment

Popular posts from this blog

Case Study of Narayana Murthy

  Narayana Murthy is the co-founder of Infosys, one of the largest providers of business consulting, information technology, software engineering, and outsourcing services in the world. He played a crucial role in the growth of the company since its inception in 1981. One of the notable case studies involving Narayana Murthy is his role in turning around Infosys during his second tenure as CEO. In 2013, Infosys was facing several challenges including slow growth, high employee turnover, and a lack of direction. Narayana Murthy was brought back as the Executive Chairman to help turn the company around. He focused on re-igniting the company's entrepreneurial spirit and culture by encouraging innovation and risk-taking. He also worked to improve the company's relationships with clients and boost employee morale. Under his leadership, Infosys saw a significant increase in revenue and profits, and the company was able to regain its position as a leader in the industry. Narayana Murt...
Post a Comment
Read more

Case Study on Tata: A Creative Story

 Case Study on Tata: A Creative Story The Rise of Tata The sun rises over the horizon, casting a golden light on the vast lands of Tata. Founded in the early 19th century, the company has grown to become a global giant in the world of business. From humble beginnings, it has become a leader in its field. The success of Tata is rooted in its commitment to innovation and customer satisfaction. From introducing groundbreaking products to providing world-class services, the company has set the industry standard for excellence. Its commitment to sustainability and ethical practices has earned it the respect of its peers. Tata has made a lasting impact on the world, and its success is a testament to the power of hard work and dedication. With a bright future ahead, the company is poised to continue its impressive growth and expand its reach across the glob The sun rises over the horizon, casting a golden light on the vast lands of Tata. Founded in the early 19th century, the company has ...
Post a Comment
Read more

[Reddit Gaming Hot Post] *CASE STUDY W/ GEN ALPHA

Hello everyone my name is Elaine and to be honest I'm just going right in... I know this is COMPLETELY almost impossible at this moment but due to the circumstances of parents having their Gen Alpha children at this stage. I believe is crucial to break the confusion of "Do I give my children a cellphone at 5? Or do I isolate them from the developmental process until they're all enough?  This is a heavy controversial debate and of corse very broad which brings me to do this experiment and see (of course, not from the children at the moment) from the parents how do they feel about giving their children technology from birth or later on.  I'm going to break it down as GROUP A can be the parents who gave their children phones from an early age and what has been the outcome so far & GROUP B as the parents who gave their children the technology later on and how has that affected their developmental process.  If you have any other ideas don't hesitate to share, I...
Post a Comment
Read more