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Penetrated market
Market demand ( Primary & Secondary) Market Minimum Market Potential Product Demand
Understanding 'Markets'
PENETRATED MARKET
Step4 : Market to which the company offers the product. ( Target market)
Step 5: Those who actually purchase the TV Set ( penetrated market)
Qualitative Methods
Quantitative Methods
Delphi Technique
( Opinion of Panel of experts in the industry)
Correlation Method
Exponential Smoothing
Market Build up
(# buyers in a market) x
(annual quantity purchased by a buyer) x (average price paid for a unit)
2. Product Demand in Rupees = Product Demand in units x Avg. price point of the firm
Unit Share
Rupee Share
Category Marketing Expenditure Market demand in Rupees = Market Demand in units x Avg. retail price point in the market
Penetration Index
Primary Penetration Index Market Penetration Index Market Demand # consumers in potential market
Demand for Toned Milk Of Mother Dairy In Urban Households of Delhi during a year
Estimating the demand for toned milk in Delhi for a given year
1. First, define the scope of the problem is consumer or institutional consumption? It is assumed that only milk consumed by households is being considered, and not milk purchased by institutions such as schools, restaurants, etc. or milk used to make other products like cheese 2. What is the number of households in Delhi and estimated milk consumption per household? According to Government estimates, there are 28.82 Lakhs households, out of them 2.94 lakh Rural and 25.88 lakhs Urban. It is assumed that only urban households are being considered 3. Households with children probably consume 14 or more liters of milk per week, but other households probably consume around 5-7 liters since few adults drink milk as a beverage. If we averaged these two types of households together, the typical household consumes 10 liters of milk per week. 4. With 25.88 lakh urban households, there would be 258.8 lakh liters per week consumed in the city.
8. The product demand in Rupees is 16.2 crores multiplied by Rs 26 which is 421 crore market .
However, a market sizing done for a business plan or consulting project needs much more verification than what the above approach
Group Assignment
Fair & Care, an Indian cosmetic company has been around for last 20 years predominantly into skin care products with a good brand following amongst women. However, market trends show a gradual shift towards emergence of the male skin care products. At the same time one wonders whether Indian men are ready for skin cares. This is the dilemma in the mind of Dr Harikrishnan, General Manager, Fair & Care.
Measuring Markets
Can we make an attempt to calculate the market for Men Fairness Cream?
Demand for Mens Fairness Cream Of Fair & Care In Urban Households of India during a year assuming the market share of Fair & care to be 40%