Marketing Analysis Toolkit

Market Size And Market

Share Analysis
Estimation of Market Size
Existing Products Sales Forecast
New Product Assessment of Market
Opportunity
Calculate
Market penetration rates
Product penetration rates
Market Share
Market
Potential Market Set of consumers who
possess some interest in a product OR whom
the product is potentially relevant.

Available Market Consumers Interest,

Income and access to market

Target Market Part of available market

company wants to pursue
Market demand (for
product)
Total volume that can be brought by
particular
Customer group
Time period
Marketing environment
Marketing program

estimation as appropriation for certain

level of marketing investment
Market forecast
The market demand corresponding to certain
level of marketing expenditure sis called
Market Forecast

Primary Demand Product Category e.g.

razors
Secondary Demand Specific brand or
product.- e.g . Gillette
Demand forecast
Estimation based on total of expenditure by
firms
Constraints:
Market Minimum Level of demand without
marketing spend
Market Potential Further spend on marketing
expenditure ineffective for corresponding
incremental increase in demand
Market Potential dependent on external factors
 Market Potential

Market
Demand Market Forecast

Market Minimum

Category Market Expenditure

Market demand As Function of Marketing Expenditure

Market Demand in Dollars =
Market Demand in Units*Avg retail
cost
Product Demand
Post estimation of Market demand share of
own product
Depends on
Level of expenditure versus competitors
Efficiency and effectiveness of marketing
expenditures
Calculating Market Share
Your part of Pizza

Unit Demand = Product Demand in Unit

Market Demand in Units

Dollar Share = Product Demand in Dollar

Market Demand in Dollar
Market Vs Dollar Share

15 5
10
Private Label
40
Shick Private Label
25 Bic Shick
Gillette 50 Bic
30 Gillette
20
Market Penetration
Set of consumers who are currently buying

Market Penetration Index = Market

Demand
# of
consumers in potential
market

Low market penetration index Room to grow

Product Penetration
Percentage of consumers in target market
who are purchasing particular brand.

Product Penetration Index = Product

Demand
# of consumers in
target market

Low Penetration Index Opportunity to grow

Market Build Up Methods
Market Demand = # of Buyers in Mkt*
(Annual purchase qty)*
(average price)

Build Up Procedure by decomposing in parts