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Medium Market Entry Market Sizing

PestPro

#Property Services #Pest Control
ProHub Comment

This is a growth-focused market entry case emphasizing revenue modeling rather than profitability. The case requires candidates to understand a non-obvious business model (B2B pest control), analyze competitive dynamics across three markets, and build a market sizing model incorporating population, apartment penetration, treatment frequency, and pricing assumptions.

Estimated Time 15 minutes
Difficulty Medium
Source IESE
50 / 100
Your client, PestPro, is a leading B2B pest control company that works with large property management companies to service the apartment buildings in their portfolios. After experiencing strong growth in the U.S., PestPro is looking to expand internationally and enter a new market organically. They have identified three potential markets, the U.K., France, and Germany. The CEO has hired you to understand which market they should enter.

Clarifying Information

  1. PestPro signs contracts with property management firms that provide exclusivity to treat pest issues in the building as requested. Technicians drive to location and complete the service. PestPro charges clients on a per treatment basis and the scope of treatment/time needed drives the price
  2. The company directly employs their licensed technicians, they do not sub-contract the labor
  3. PestPro leases all vehicles (does not own any)
  4. PestPro would source the materials/chemicals within the local market
  5. This would be the company’s first international expansion
  6. They have identified these three markets because of the population, number of apartment buildings, and attractive industry growth rates
  7. The company wants to achieve at least 10 million euros in annual sales after three years