IN BEESTHO VILLAGE, there are 20 people who wash dishes with ash.
They get this ash from the fires that they use to cook their food absolutely free of cost.
WHAT IS THE MARKET SIZE (IN UNITS) OF DISHWASH IN BEESTHO VILLAGE? (ASSUMING ONE PERSON BUYS ONE UNIT IN ONE YEAR)
WHAT IS THE POTENTIAL MARKET SIZE OF DISHWASH (ALSO KNOWN AS MARKET POTENTIAL) ?
COMPLETE THE SET OF INFORMATION (Given + Assumptions) before you give any answers.
TOTAL TURNOVER
How many Can use it (and buy it) THE PRODUCT CAN FULFIL HOW MANY CONSUMERS NEEDS
How often they can use it (and buy it)
EXAMPLE
HAIR STYLING GELS What is the market potential ?
GEOGRAPHIC
Indian/Urban
BEHAVIORAL
Likes to groom himself Fond of partying, going out, trying new looks (uses gel in these occasions)
PSYCHOGRAPHIC
Identifies with Bollywood contemporary machismo
Average Consumption per month Rs 50 Total Consumption per year = 2.4 million * Rs 50 * 12
Rs 144 crore
SENSITIVE TOOTHPASTE
SMART PHONES
CARS
SUVs
CAR PERFUMES
BIKES
SPORTS BIKES
BIKE HELMETS
NO
WANTS THE PRODUCT?
NO YES
AFFORD THE PRODUCT ?
NO YES
HAVE ACCESS TO THE PRODUCT ?
NO YES
AWARE OF THE PRODUCT?
PRODUCT
PRICE PLACE
YES
PART OF MARKET
PROMOTION
BACK TO OUR VILLAGE! WHAT IS THE MARKET POTENTIAL WHEN YOU HAVE THE FOLLOWING INFORMATION?
8 people eat their meals on Banana Leaves Out of the 12 people who have utensils, 2 people are below the poverty line cannot spend on dishwash. 20% of the population can afford to spend more than Re. 1 for dishwash.
Now lets revisit the market potential thing we were doing with some information.
BUT THIS IS NOT THE SAME AS MARKET SIZE! MARKET POTENTIAL IS What it can be and MARKET SIZE IS What it is
WHAT IS THE MARKET SIZE? (ASSUME COMPANIES HAVE STARTED DISTRIBUTING AND USERS HAVE STARTED USING)
This guy doesnt want to buy dish wash
This guy shops from a modern retail store the companies do not distribute there
CASE (interview/GD questions) A product X is not doing well in the market. How will find out what is wrong? Answer : 4 P Analysis A Product Y has low market share how will you gain market share? Answer : 4 P Analysis A Product Z was launched and failed what could be the problem and how will you solve it?
Answer : 4 P Analysis
PRICE
Is it too expensive Is it PERCEIVED to be expensive/cheap
PLACE
Is it available Is it Visible where available
PROMOTION
Does the communication convey the right message Does the communication ride the proper channels Does communication influence purchase
LET US SAY THAT OUR AWESOME UNDERSTANDING OF 4Ps HAS HELPED US WIN 100% MARKET SHARE IN BARS and a 75% SHARE IN POWDERS.
MARKET SIZE = How many people Use the product Format * How much they use in on usage occasions * Number of Usage Occasions.
Can I make these people Use Powder rather than Ash? Can I Make these people Wash their Kitchen Sink with powder as well?
Market Share Gain or Market Development? If MD then what type MORE USERS? MORE USAGE ? TRADING UP ? Identify :