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Number of Paracetamol tablets sold in Delhi

Updated: Nov 18, 2022

Mobiprep has created step by step solution to estimation questions for all product management and consulting interview questions to help you with the mastering placement interviews. So let’s get started with the estimation questions.

Our team has curated a list of the most important product management frameworks asked in interviews such as Google, Deloitte, McKinsey, Microsoft, EY, ZS and many more. The frameworks are created from the best practices adopted by previous year candidates.

In this estimation question we have analysed the market size of the number of Paracetamol tablets sold in Delhi. Check out the step-by-step answer created by Mobiprep experts.

Estimation Question Step-1: Segmentation

Segmentation of places where Paracetamol is sold

In my ward, I can estimate that are roughly 20 Chemist shops

Delhi (7 Parliament Constituency)

-> 70 Legislative Constituency

-> 235 Wards

No. of Chemist shops = 235 * 20 = 4700 shops

Each shop at an Avg. may sell 10 strips (100 tablets)

Therefore, total tablets sold :

= 4700 * 100

= 4,70,000 or 470k tablets -----(a)

Estimation Question Step-2: Solution

Population of Delhi = 1.5 Crores

Let there be a bed for every 5000 persons = 1,50,00,000/5000 = 3000 Beds

Let there be 30 beds per hospital = 3000/30 = 100 Hospital

If at an Avg. a hospital sell 100 strips (1000 tablets), then

tablets sold by hospital = 100 * 1000 = 100k -----(b)

Total number of tablets sold = 470k + 100k

= 570k tablets

Note parameters like number of beds/ 1000 person or so on are also general parameter which can help us to determine the quality of healthcare in the country.

If the question was number of paracetamol sold in India, then assume that India has:

550 Constituencies -> 5000 state council seat (approx.)

-> 35,000 Municipal wards -> 20 Chemist shops/wards

= 700k chemist shops

Similarly , Delhi has better medical facility than the national avg. Hence we can take 10,000 persons/bed to estimate hospitals.

Further notice that these variations are in general present for developing nations.

Developed Nation do not have these many discrepancy in their data.

If we, for e.g. had to estimate for the state of California, then

U.S. Population= 350 Million -> 50 States -> Avg. Population per state = 7 million

But since California is a Industrial State and near Coastline, its population will be slightly higher than the avg. mean value. So, begin by taking 8 million citizens.

Also, we can estimate that one bed for 500 persons may be available in California or one bed per 1000 persons as its medical facilities will be better than Delhi.

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