2) Break down the variables It may be helpful to review the purpose of the market sizing question, which is to see

whether or not you can break down and explain a seemingly complex concept in a simple way. You know your end goal (the case question), so you want to work backwards and use a straightforward approach to break down the relevant variables, which will be a mix of assumptions/commonly known assumptions and variables that you have to calculate from these assumptions. Pancake Example Blue is a number you assume/know, green is a number you calculate Goal: You want to figure out the number of pancakes eaten in New York last week Number of pancakes eaten last week = Number of pancakes eaten per day x Days per week (7) Number of pancakes eaten per day = Number of people who eat pancakes x Pancakes per person (3) Number of people who eat pancakes = Number of people who eat breakfast x % of people who eat pancakes (0.20) Number of people who eat breakfast = % of people who eat breakfast (0.80) x # of people in New York (10 million) As you see, working backwards in a methodical way can lead you to a set of straightforward calculations. Throughout the process, you will be using a mix of variables you estimate/know and variables that you calculate from the step before. Obviously you want to present the structure in the forward manner, as shown below. Sample dialogue: So our goal is to figure out to the total number of pancakes eaten last week, and heres how Im going to break it down: first well start with the population of New York, then well figure out the number of people who eat pancakes, and then after considering how many they eat a day and the 7 days per week, well be able to get the final answer. How does that sound? 3) Refine the process In part 2, you have the basic foundation to get you through the market sizing question. To really stand out, you want to refine the process by segmenting variables. This step both allows you to get more accurate estimations as well as to show off your creativity. This step is more of an art than science, since it depends a lot on the category of your case question. Pancake Example

Number of pancakes eaten last week = Number of pancakes eaten per day x Days per week (7) Refined-> Have a separate calculation for weekdays and weekends (brunch heavy days) Number of people who eat pancakes = Number of people who eat breakfast x % of people who eat pancakes (0.20) Refined-> Have separate calculations for different types of people, such as kids, adults (eat the least amount of pancakes by %), and elderly (eat the most by %). Why do I think structure is so important? During one of my Bain interviews, I laid out my structure, did one of the initial calculations, and then my interviewer stopped me and said I was done. He saw what he needed a structured approach, and the ability to do basic calculations. Obviously, we cant help you with the latter