Estimating the Lockdown Jump in Home Hair Clipper and Trimmer Sales

Quick Overview

A product manager estimation question asking how much sales of hair clippers and trimmers changed during the COVID-19 lockdown. It tests defining a no-pandemic baseline, breaking the change into demand drivers, labeling assumptions with round numbers, and sanity-checking the final estimate.

Estimating the Lockdown Jump in Home Hair Clipper and Trimmer Sales

Company: Philips

Role: Product Manager

Category: Product / Decision Making

Difficulty: medium

Interview Round: Other

Estimate how much sales of hair trimmers and clippers changed during the COVID-19 lockdown, compared with what they would have been without the pandemic. Lay out your approach, state your assumptions, do the arithmetic and check whether the answer is reasonable. ```hint Two forces, not one Define the change against a no-pandemic baseline. Then think about who suddenly needed a device they did not own, and what during a lockdown could have held sales back at the same time. ``` ### Clarifying Questions - Which market: one country, such as the US, or worldwide? Should the answer be in units, revenue or both? - Which period counts as "the lockdown": the first strict stay-at-home months, or the whole period of restrictions? - Does the category include beard and body trimmers, or only clippers used to cut hair? - Is the delta for the whole market or for one manufacturer's own sales? ### What a Strong Answer Covers - A precise definition of the delta: market, period, unit, and the no-pandemic baseline it is measured against. - A baseline grounded in ownership and replacement behavior. - Separate drivers for the change, including the forces that pushed sales down or capped them, not only the surge. - Labeled assumptions with round numbers, correct arithmetic, a sanity check, and a view of which assumption matters most. ### Follow-up Questions - Which single assumption moves your estimate the most, and what data would you use to pin it down? - What happens to sales in the months after barbershops and salons reopen? - How would you turn the market estimate into a production and inventory plan for one manufacturer?

Overview: A product manager estimation question asking how much sales of hair clippers and trimmers changed during the COVID-19 lockdown. It tests defining a no-pandemic baseline, breaking the change into demand drivers, labeling assumptions with round numbers, and sanity-checking the final estimate.

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Philips
Jun 8, 2024
mediumProduct ManagerOtherProduct / Decision Making
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Estimate how much sales of hair trimmers and clippers changed during the COVID-19 lockdown, compared with what they would have been without the pandemic. Lay out your approach, state your assumptions, do the arithmetic and check whether the answer is reasonable.

Clarifying Questions Guidance

  • Which market: one country, such as the US, or worldwide? Should the answer be in units, revenue or both?
  • Which period counts as "the lockdown": the first strict stay-at-home months, or the whole period of restrictions?
  • Does the category include beard and body trimmers, or only clippers used to cut hair?
  • Is the delta for the whole market or for one manufacturer's own sales?

What a Strong Answer Covers Guidance

  • A precise definition of the delta: market, period, unit, and the no-pandemic baseline it is measured against.
  • A baseline grounded in ownership and replacement behavior.
  • Separate drivers for the change, including the forces that pushed sales down or capped them, not only the surge.
  • Labeled assumptions with round numbers, correct arithmetic, a sanity check, and a view of which assumption matters most.

Follow-up Questions Guidance

  • Which single assumption moves your estimate the most, and what data would you use to pin it down?
  • What happens to sales in the months after barbershops and salons reopen?
  • How would you turn the market estimate into a production and inventory plan for one manufacturer?