Calculating the capacity and assessing the company’s market is a key step in the analysis that helps a business understand the volume of demand and possible sales potential. There are several approaches to the calculation, and each is suitable for different situations and purposes. Let’s look at three main methods: top-down, bottom-up, and the sales-base method.
1. “ Bottom-up “
The simplest and most popular method, which can be calculated, for example, by an entrepreneur on an individual basis. To calculate the market capacity gambling data mexico using this method, you only to know the number of target audiences in your geographic area, the average cost of the product, and the degree of regularity of purchases (consumption rate).
The data can be found, as a rule, in open sources (especially the target audience and the average cost of the product). The consumption rate can be determind independently or marketing research can be considerd. The formula will look like this:
2. “ Top-down “
This method is associate with the search for analytical crms vs lead generation tools: a comparison and statistical data from large companies, analytical agencies. To find out the market capacity, you to collect and summarize information on contact lists product sales for all the largest companies in your region for the year. It is not necessary to search for each company and its reporting. It is enough to have an idea of 80% of the volume of the entire market (only the largest representatives).
The method itself is quite complex and time-consuming. And its main drawback is that it does not work in all markets, since such information is not available everywhere.
3. From actual sales
The essence of the method is to collect data on actual sales of products basd on customer receipts. This approach allows you to obtain accurate information on the consumption of certain categories of goods or services.
This is an extremely accurate, but very complex and expensive method, which can only be implementd by large companies with a reputation and connections. To conduct such a study, you nee to agree with representatives of large retail chains. Stores and chains will collect data from receipts for the necessary products and transfer it to the company.