1. What Is Market Size for Alcoholic Beverages on Domestic Flights in the US?
Assumptions:
1. Since the US is a big country, it is assumed that the country has 16 companies that
operate domestic flights.
2. The average fleet size is assumed to be 50 and that each plane of the airline on an
average flies 8 times domestically (4 flights to and fro per day)
3. No. of seats per aircraft is assumed to be 150 with 70% occupancy at a given point
4. 20% passengers per flight are high drinkers (3 bottles), 30% are moderate drinkers (2
bottles), 50% are non-drinkers
Category No. of Seats No. of Passengers No. of drinkers (
Business Class 30 21 15
Economy 120 84 42
(At 70% occupancy, there will be 105 passengers)
Total no. of passengers per flight who drink = 57
Daily flight operations per company = 50*8 = 400
Total number of passengers who drink on domestic flights per day = 57*400 = 22800
High drinkers = 20% of 22800 Medium Drinkers = 30% of 22800
= 4560 = 6840
No. of bottles consumed = 4560*3 No. of bottles consumed = 6840*2
= 13,680 = 13,680
Price per bottle = $5
Total = 5*(13680+13680)*365*16
=$15.7 billion
2. What is the Market Size for Golf Balls in the U.S.?
Assumptions:
Population of US = 300 Million
Uniform distribution across age groups (25%, life expectancy = 80 years)
Age group Golf penetration Affordable for
0 -20 75 million 0 -
20 - 40 75 Million 11.25 Million (15%) 3.3 M (30%)
40 - 60 75 Million 18.75 Million (25%) 7.5 M (40%)
60 and above 75 Million 7.5 Million (10%) 1.5 M (20%)
Total 12.3 Million
An average person buys a dozen of golf balls per year
No. of golf clubs per US state = 50, US states = 50
A club needs 5 dozen balls each month
Price per dozen golf balls = $50
Calculation:
Total no. of individuals who buy golf balls = 12.3 M
Balls bought per year = 12.3 M dozen
Total demand in US $ by individuals = 12.3 M * 30 = $ 615 M
Total golf clubs in the country = 2500
Golf balls needed by each club annually = 60 dozen
Total golf balls needed by all the clubs annually = 150000 dozen
Total demand in US$ by golf clubs = $7.5 Million
Total demand of Golf balls in US = $622.5 Million
3. MCC Enters U.S. Market by Lending Production Capacity
4. Fosun to Sell 80% of Its Aluminum Alloy Wheels to U.S.
5. What Is Market Size of Hand Knitting Yarn in the U.S.?
Assumptions:
Considering yarn that is needed for hobby type knitting
There are 2500 stores in US that sell knitting yarn
Assuming the expenses of a store include rent, labour, and advertising.
We can estimate it to be around $36000 ($15000 a year for labor + $ 6000
rent per year + $ 15000 for ads and other expenses) a year. Assuming
products are sold with a 50% margin.
Apart from specialty stores, hand knitting yarn would also be available in
supermarkets. Assume, its available in 4000 stores. Each store sells
$10000 worth of yarn per year
Calculation
Annual sales per store would be = 36000*2 = $72000
Stores = 2500
Total annual sales by stores = 72000*2500
= $180 Million
Sales by other stores annually = $ 40 Million
Total sales of hand knitting yarn = $220 Million
6. DuPont Evaluates Business Potential of Pet Diapers
Assumptions:
Total US population = 300 Million
Pets are owned by people from Upper Class, Upper Middle Class, and
Middle Class People
Class % age of pop % owning pet % who would
use a pet
diaper
Upper Class 40% ( 120 M) 80% ( 96 M) 70% ( 67.2 M)
Upper 20% ( 60M) 70% ( 42 M) 50% ( 21 M)
Middle Class
Middle Class 20% ( 60M) 50% ( 30 M) 20% ( 6 M)
Others 20 % (60 M) -
Total 94.2 M
No. of pet houses in US = 200
Dogs per pet house = 10
60% of pet houses would use a pet diaper i.e. 120
120*10 = 1200 diapers a day by all pet houses combined
Let’s assume there are 400 police stations and each one has 2 dogs each
70% of police station would be okay to use pet diapers i.e. 280 police
station
280*2 = 560 diapers daily
Therefore, daily demand for pet diapers in US would be 94.2 Million +
1200+560 = 94.2 Million diapers daily approx
Annual demand for diapers = 34.3 Billion pet diapers
7. Procter & Gamble to Take Its Deodorant Products Global
8. 24 Hour Fitness Considers Entry into UK Market
9. P.F. Chang’s to Open 3 More Restaurants in Houston
10.How Many Hotel-sized Bottles of Shampoo & Conditioner?
Assumptions –
Hotel Sized bottles of shampoo and conditioner are also used in gift packs
and as samples(5% of total)
200 countries in the world
Each country has 10 big cities
Each city has 20 hotels that provide bottles of shampoo and conditioner
Each hotel on an average has 70 rooms with 60% occupancy
There is one bottle of shampoo and bottle of conditioner in each room
One bottle of shampoo is needed per 2 occupied days and one bottle of
conditioner per 3 occupied days
Calculation:
No. of big cities in the world = 2000
No. of hotels in these cities that provide shampoo and conditioner = 40000
With 60% occupancy, rooms occupied in hotels annually = 40000*.60*365 =
8760000
No. of shampoo bottles needed = 8760000/2= 4380000
No. of Conditioner bottles needed =8760000/3 = 2920000
Including bottles needed for gift packs and samples
No. of shampoo bottles = 4610526 i.e 461 million bottles approx.
No. of conditioner bottles = 30737 i.e 307 million bottles approx.
11.Size of the annual U.S. chewing gum market?
Assumptions:
Total US population that chews gum = 300 million
Heaviest users of chewing gum are people aged between 10-20
Price per pack of chewing gum is $1
Age Total Chewing Total packs Packs
number of gum packs consumed consumed
people consumed / per week per year
week
10 – 20 45 million 2 90 M 3285 M
(15%)
20 - 30 75 million 1 75 M 2737.5 M
(25%)
30 and 180 million .5 90 M 3285 M
above (60 %)
Total 9307.5 M
Annual sales of chewing gum in US would be $9307.5 Million
12.What is Market Size of Acoustic Pianos in New Hampshire?
Assumptions:
Only residential demand of acoustic pianos is being considered
Population of New Hampshire is estimated to be 1.5 Million
Assuming each household has 4 members
Total households = 0.37 Million i.e 375000
Since acoustic piano is considered a luxury, it is assumed only 10% of the
households (upper class) own a Acoustic Piano i.e. 37500
Price per acoustic piano is assumed to be $1000
Market size of Acoustic Pianos in New Hampshire = 1000*37500 =$37.5 Million
13.What is Annual Demand for Cigarettes in Moscow?
Assumptions:
Population of Moscow – 12 million
Legal smoking age in Russia – 18 years (We assume that 80% population is 18
years and above)
Of this 80%, 60% prefer smoking and 40% don’t smoke
High smokers (50%) smoke 1 pack of cigarette in 2 dayw, Low smokers (50%)
smoke 1 pack a week
No. of cigarettes in a pack = 10
Price per pack of cigarette in US$ = $3
Calculation:
Total people who are eligible to smoke: 9.6 M
People who prefer smoking: 5.76 M
No. of high smokers: 2.88 M and No. of Low smokers: 2.88 M
No. of packs needed by high smokers per year: 365/2 =183 approx
Total packs needed by all high smokers = 183*2.88 M = 527 M packs
No. of packs needed by low smokers per year: 52
Total packs needed by all low smokers = 52*2.88 = 150 M approx.
Total packs needed annually = 677 M
Total annual demand for cigarettes = $ 2031 M = $2.3 Billion Approx.
14.Monsanto to Enter Artificial Turf Business
15.Advent International Considers Buying Bike Helmet Company
16.What is the Market Size of Pianos in the United States?
Assumptions:
There are two types of piano consumers – Household and Institutional
Piano buyers can be – first time buyers, buyers who are upgrading, buyers
who are buying a second piano
Population of USA is assumed to be 300 Million
Per household 3 members
Total households = 100 Million
Assuming that 25$ of these households have an annual income of $75000
and above i.e. 25 million
Assuming 7% of the household already have a piano i.e. 1.75 M pianos
Assuming 3% would buy a new one i.e. 750 K pianos
Assuming there are 1.5 Million institutions of which 20% would want a
piano i.e. 300 K institutions. Of these 5% buy a piano every year i.e. 15K
pianos
Calculations
Average price of a new piano is taken as $8000 and for a used piano to be
$4000
We can assume a 1:4 ratio for used and new pianos
Total new pianos sold =( 750K + 15 K)*.80 = 612K
Total used pianos sold = (750K+15K)*.20 = 153 K
Market size for pianos = 612K*8000 + 153 K*400
= $4.86 Billion
17.How Many Piano Tuners Are There in Chicago?
Assumptions:
Population of Chicago – 2.7 Million
Per household members = 3
No. of Households = 900,000
Assuming uniform distribution for income levels
Income Level No. of households % which own a
piano
High Income 225000 45000 (20%)
Medium – High 225000 22500 (10%)
Income
Medium 225000 11250 (5%)
Low 225000 -
Total 78750
High income household tune piano once a year, medium – high once
every three years and medium once in every four years
(45000 + 22500/3 + 11250/4) = 55312
Assuming a piano tuner tunes piano 300 days a year, and 4 pianos in a day
55312/300 = 185 approx
185/4 = 47 piano tuners
18.How Many Skis were Sold in U.S. Last Year?
19.How big the market for surfboard wax is in Hawaii.
Assumptions:
Assuming a daily footfall of 150000 people at beaches in Hawaii in
summer and 50000 during winters.
10% of people prefer going for surfing
Assuming a typical can be used to wax 5 surfboards and each can costs
%60
Calculations:
Annual Footfall = (150000*180)+(50000*180) = 36 million
% age of people surfing = 3.6 million
Surfboard wax cans consumed during the year = 3.6/5 = .72 million
Market size of surfboard wax in Hawaii = $ 36 million
20.What is Market Size of Snowboards in Colorado?
Assumptions:
Population of Colorado = 6 Million
Price of a snowboard is assumed to be $400
Average life of a snowboard is estimated to be 5 years i.e. only 1/5 of
snowboarders buy a snowboard an year
It is assumed that 1 out of 10 people would use a snowboard as skill is
needed to use a snowboards and it is also not extremely affordable
Therefore, 10% of the population uses snowboards i.e. 600000
Out of these 20% buy snowboard a year i.e. 120,000
Market Size of Snowboards in Colorado annually would be 120000*500
= $60 Million
21.How Many Pairs of Skis Can a Market New Entrant Sell?
Assumptions:
Population of USA – 300 Million
Assuming only 10% of these people can Ski i.e. 30 Million
It can be said 6 people per state if we take 50 states (some states won’t
have people who ski and some will have more, so it averages out)
Company is present in 18 states
% of people who can ski, take part in ski activities, and afford to buy ski
are assumed to be 50%
Assuming there are total 10 players in the market who sell ski including
the new entrant
Calculation:
30 M*6/50*18*.05*1/10
=324000 Pairs of Skis
22.How Many Beer Bottles Are in Circulation in the U.S.?
Assumptions:
The US population is assumed to be 300 M
10% of the population cannot drink (Kids)
Population that can drink = 270 M
Assuming that 70% of these people drink i.e. 190 M approx
Assuming equal proportion between men and women among beer
drinkers
Assuming a man consumes 4 bottles a week and a woman consumes 2
bottle a week on an average
Total Bottles consumed by Men in a week = 380M and Total bottles
consumed by women in a week = 190M
23.Fidelity To Assess The Impact of Retirement Funds
24.Michelin Evaluates Tire Market Potential in India
25.Burger Palace to Open a Restaurant Inside Midway
26.AMEX Considers Dropping Charge Card Annual Fee
27.Actavis to Expand into Vaccines Business
28.How Big is the U.S. Market Size for Band-Aids?
Assumptions:
Band Aids are sold to households, offices, healthcare places
29.estimated market for Sleep enhancing device
Assumptions:
Population of US = 300 Million
Uniform distribution across age groups
Age Group No. of people People who need this device
0-20 75 M 7.5 M (10%)
20-40 75 M 22.5 M (30%)
40-60 75 M 26.25 M (35%)
60 and above 75 M 18.75 M (25%)
Total no. of people who need this device = 75 million
Assuming only 30% want and can afford it, which gives us 22.5
Million
Price per device = $25
Market size = 25*22.5 Million
= $ 563M approx
30.Bosch Household Appliances to Enter Chinese Market
Population of Shanghai – 24 Million
Avg Household size = 3
Total No. of Households = 8 Million
Assuming 1 machine per household, total no. of machines in Shanghai
market would be 8 million
Assuming that the machine is replaced every 10 years
Demand for machine in a year would be 8 million/10 = $0.8 Million
Machines are also used for commercial purposes
Type No. of Stores Machines Total
required
Small 60 2 120
Big 20 8 160
Medium 40 5 200
Assuming that for commercial users, machines are replaced every 5 years
Therefore demand per year = 96 machines
Total annual demand for washing machines = 800,096
Price per machine is assumed to be $1200
Total Market = $960 Million approx
31.Kmart to Place Kodak Picture Kiosks in Stores
32.Iberdrola to Enter into Electric Vehicles Business
Assuming population of Spain to be 46 Million
Assuming 3 members per household , there are approx. 15 million
households
% age of households having cars = 30%
Assuming on an average every household has 1.5 cars and cars are
replaced every 5 years
Therefore total cars required in a year = (15 Million *.30*1.5)/5 = 1.3
million
Assuming of the total cars, 5% are electric i.e. 67500 electric cars
Assuming each household has 1 motorcycle, percentage of household
with a motorcycle as 40% and on an average and is replaced every 7 years
Total motorcycles required in a year = (15 Million*.40)/7 = 0.857 M
Electric motorcycle assumed to be 2% of total motorcycles, i.e. 17140
Therefore, total no. of electric vehicles required = 67500 +17140 = 84640
33.California-Based Republic ITS to Expand into Manhattan
Assuming number of signals in Manhattan are 2500
New signal is installed every 15 years
Price per installation of signal = $100,000
Revenue generated from installation = (100,000*2500)/15 = $16.6 million
Maintenance per signal =$3000
Revenue from maintenance = $7.5 million
Total revenue that can be generated by ITS from Manhattan = 16.6 + 7.5 =
$24.1 Million
34.Toyota Develops Next-Gen Hydrogen Fueled Car Engine
35.What is the Market Size for Internet Routers in U.S.?
Assumptions:
Total companies in the USA – 8 Million
Companies spend around 5% of their revenue on IT
Networking spend is about 20% of a company’s IT spending
Internet Routers make up about 8 % of amount spent on networking
Dividing companies by revenue on the basis of employees
No. of No. Of Revenue IT Networking Spent on
employees companies spending Spend Routers
20–50 2000000 $20 Million $1 M $.02 M $.016 M
employees (25%)
50-200 3600000 $ 40 Million $2M $0.4 M $.032 M
employees (45%)
200-500 200000 $ 200 Million $10 M $2 M $.16 M
employees (10%)
500–1000 16000 (5%) $500 Million $25 M $5 M $.4 M
employees
1000 and above 16000 (5%) - - - -
Total $0.608 M
36.What is the Market Size for Gas Tanker Trailers
37.How Many TV Sets Are Sold in the UK Each Year?
Assumptions and Calculation:
Population of UK = 65 Million
Average household size = 3, thus number of households = 22 M approx
UK TV buyers can be categorized as Residential Users and Commercial
Users
Assume that each household on an average owns 1.5 TV Sets, which gives
total TV sets in UK households as 33 million
Assuming a new TV set is bought by an household every 5 years, then
demand in one year would be 6.6 Million
Commercial users are assumed to be 3 times the residential users.
Therefore for them demand would be 19.8 million
Therefore, total TV sets sold per year in UK = 26.4 million
38.What is Worldwide Demand-Supply for Consulting Jobs
39.How Much Tea is There in China?
40.How to Assess World Demand for Knitting Machines
