Product Management Interview Prep

Chp 4: Guide on how to approach Case-based & Market Sizing Questions

The case interviews are questions where you have to perform a thorough analysis by asking right questions to isolate the precise problem, diagnose the causes and then provide a probable solution.

Let’s look at few question forms that interviewers generally ask.

Declining Profit – Sample Questions

  • You work for an e-commerce shoe company. The profits of the company have fallen this year. What could have happened?
  • You are a founder of SaaS-based Logistics solution. You see that the profits have been falling for 3 quarters. How would you find the cause? What metrics would you track?

Declining Revenue – Sample Questions

  • You are a Product Manager for a news publishing company. You notice that Advertising revenue coming from the website has fallen. What could have gone wrong?
  • You are a category manager of fashion for an e-commerce company. You notice that the sales have been falling. What would you do?
  • You own a SaaS company. You notice that subscription for a premium product has fallen but that of a standard product has increased. What might have happened?
  • You notice that revenue coming from a Google Adwords for a particular keyword has fallen in a region. Google asked you to figure out and tackle this. What would you do?

Decline in new customers / new visitors – Sample Question

  • You are a Product Manager for a salon booking company. You notice that number of new customers this month has fallen. What could be the cause? What would you do?
  • You own an affiliate website. You notice that number of new visitors coming from your site has dropped down. How would you tackle this?

Decline in traffic

  • You manage a publishing site and see that traffic has reduced by 10% this month? What could be the cause? What would you do?

Approach for answering Case Interview Question 

How to attempt Case Interviews

Framework for solving Declining Profit / Declining Revenue

Declining Profit/Revenue Framework

Framework for solving Declining Traffic / Declining Customers

Decline in Traffic Framework

Market Sizing / Estimation Questions

Answering Market Sizing / Estimation question requires two types of inputs:
Basis data — Quantitative data available from published resources or a previously conducted survey.
Relational data — The quantitative data that provides the link between the basis data and the target market size.

Market Size Estimation                                                         

There are two approaches for using the estimation (alternate)technique —
The top-down approach, where we generally consider broader data (population in a region or number of production facilities, etc) as our basis data and then postulate relational data based on fraction of the market of our interest; and vice-versa for the Bottom-Up approach.

Example of Top-Down approach: Say we want to estimate the market size of Home AC in India. This is how we estimate the market size —

Top-Down Estimation Approach                                   

Example of Bottom-Up approach: Say we want to estimate of Revenue from a Burger King Outlet. This is how we calculate the estimates —

Bottom-Up Estimation Approach

Prev –
Chp 1: Path to become a Product Manager
Chp 2: Guide on how to answer Behavioral Questions
Chp 3: Guide on How to answer product Questions

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