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Market Sizing Evaluating the Opportunity

Market Sizing Evaluating the Opportunity. School of Management Strategy & Innovation Department. It’s the most common engagement question. Cricket is huge in India and the UK . How large is the market in the US. How large could this market be? No known data source

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Market Sizing Evaluating the Opportunity

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  1. Market Sizing Evaluating the Opportunity School of Management Strategy & Innovation Department

  2. It’s the most common engagement question Cricket is huge in India and the UK . How large is the market in the US • How large could this market be? • No known data source • Limited awareness of the need • Market doesn’t exist yet

  3. Sales Funnel – TAM SAM SM CM • Total Available Market • Affected Population • Served Available Market • With the need • Served Market • and capability to buy • Covered Market • covered by Sales Channel TAM SAM SM CM USAGE X

  4. Start with what you know • Population • US • EU • BRIC • Indonesia • Volume Weight • Gallon of Water • Liter of Water • Round the numbers so that they’re easily divisible by ten. • Current Prices • Relative Size

  5. What is the total Available Market for Cricket Balls in the United States? • What Questions did you ask? • How did you determine the number of people that might potentially have the need? • Did you round it to 300 million not 313.9 million Total Available Market

  6. Of the 300 million residents how many of them have a need? • What Questions did you ask? • Did you use an elimination technique or work from an assumption up? • Did you note your assumptions clearly? Served Available Market

  7. Of the 1 million residents how many of them have the capability to buy? • What Questions did you ask? • Does the price of a cricket ball make a difference? • Did you note your assumptions clearly? Serve Market

  8. Why do you treat Need (want) before the Capacity to buy? • Path dependency • Greater degrees of freedom • Treat pricing as a distinct assumption and avoid simultaneous equation

  9. Assessing the critical role of channel of distribution? • What Questions did you ask? • Sales Logic – Customers will not buy: • That which they don’t know (build awareness) • That which they can’t physically get (channel) • Did you note your assumptions clearly? Covered Market

  10. Existing Market case questions often hinge on USAGE • What Questions did you ask? • Replacement logic • Churn logic • Recidivism • Did you note your assumptions clearly? USAGE

  11. What did you conclude? The size of the cricket ball market in the United States is _____________

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