Single Cup of Coffee
#Consumer Goods
#Beverage Service
Practice this intermediate market sizing case interview question in the Consumer Goods sector. Includes detailed problem prompt, clarifying questions, structured framework, and expert recommendation. Part of ProHub's 835+ consulting case library.
ProHub Comment
This case requires candidates to build a bottom-up market sizing model starting from U.S. population demographics, narrowing to office workers, then estimating coffee consumption patterns. The case tests mathematical accuracy, logical framework building, and ability to make reasonable assumptions about consumer behavior in a B2B context.
Estimated Time
26 minutes
Difficulty
Medium
Source
ROSS
10
/ 100
Our client is a PE firm who is considering making an investment in a coffee equipment company that services office buildings. The company makes machines that use single cups (same thing as K-Cups) and sells the pods needed to make coffee. What is the market opportunity for this investment?
Clarifying Information
- The company looks to service all office buildings nationally (U.S. only)
- The target market are white collar professionals
- The PE shop has experience working in the beverage service market
- Price of each single pod is $0.75 a pod
- Price of a coffee machine is $100
- The company currently offers a machine that can only make coffee. There is a variety of coffee flavors