Case Statement:
Client runs a chain of hospitals across India. They want to open specialized maternity care centers. Estimate the market potential and the number of centers to be launched.
I: Client runs a chain of hospitals across India. They want to open specialized maternity care centers. Estimate the market potential and the number of centers to be launched.
C: What is the motivation behind launching this service?
I: It is part of a long-term business expansion strategy. Competitors are offering the service in parts, but no end-to-end package exists.
C: Understood
I: How will you do market sizing?
C: •Start with Indian population. Segment into urban and rural market.
•This kind of premium service should be targeted at tier-1 cities.
•Further, rich people in tier-1 cities will be able to afford this kind of service.
•This will lead to ‘0.3 %’ of population of India.
I: This will help you identify the no. of individuals. How will you proceed further if official data can be directly accessed?
C: Client can directly access the data for child births per year across India, if available.
And then target ‘0.3 %’ of child births per year. This will help us identify the total market size that we can target.
I: We have identified the market potential. How to identify the no. of centers to be launched?
C: No. of centers = Child births per year (from above data)/365 divided by Child births/center/day (from current market understanding)
Child births/center/day will be dependent on factors such as size of client’s facility, no. of doctors available, etc.
No. of centers should also be double checked against the total area of the city to ensure proximity of center in case of customer need.
Background Information
Client: Current business model like Fortis
Competitor: none (direct)
Service details: End-to-end (pregnancy to couple’s training to initial months nursing)
Price: 4 lakhs per package
Case Tips
Urban/rural and income segmentation are some of the quickest ways to achieve an approximate number in a guesstimate approach.
Clearly drawing the structure and mentioning the formula makes it easy for the I as well.
