CASE DESCRIPTION:-

Your client is a mid-sized sports equipment manufacturer. It produces equipment for Baseball, Rugby, and Soccer. Recently, your client has been wanting to expand into the market for Golf considering the rise in its popularity. However, your client is uncertain about the market for it. 

As a consultant, you have been tasked with figuring out the market size for Golf Balls in the United States. How will you calculate?

What factors will you consider to figure out the market size? 

Demand for other golf products? Demographics of players? Disposable income??

Let’s dive right into it:-

  • Estimate End-User Population: Begin by approximating the number of potential golfers in the U.S. population. Assuming a total population of 300 million, consider that roughly 2/3 of the population (approximately 200 million) falls within the age range of 20 to 70, a typical age group for golf enthusiasts.

  • Calculate Engaged Golfers: Estimate what proportion of these individuals within the age range engage in playing golf, considering factors like interest, accessibility, and other demographic parameters. Assume that about 1/5th of this group actively plays golf.
  • Determine Frequency of Play: Estimate the golfing frequency among these engaged individuals. The average golfer plays twenty times per year and uses three balls per game, resulting in a total of forty balls per person annually.

  • Calculate Market Size: Multiply the estimated number of engaged golfers by the average number of balls used per person annually to find out the number of golf balls demanded. Multiply it further with the average selling price per golf ball. This calculation will provide an estimate of the market size of golf balls in the US.

 

CONCLUSION:-

Thus, the Market Size for golf balls using the calculation above is:-

Market Size = Estimated end-user population X Engaged golfers   X Balls per game X Games per year     X Average price of a golf ball in the US 

   = 200 million X 1/5 X 3 X 20 X $1.20 

   = $2.88 billion

Note: Actual answers may vary. However, when presented with a similar case study, you must justify your assumptions and draw conclusions based on such assumptions. A confident and realistic answer can help you crack any case study interview in any consulting firm.

 

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[Disclaimer: This case study is entirely hypothetical and unrelated to real-world situations. It's designed for educational purposes to illustrate theoretical concepts and potential scenarios within a given context. Any similarities to actual events or individuals are purely coincidental.]