Figure 5.5: Estimating Market Potential
| Product Category | |||
| Geographic Scope | |||
| Consumption Period | |||
| Buying Unit | |||
| Number Buying Units | |||
| Forcast Period (Years) | |||
| MARKET PERFORMANCE | CURRENT DEMAND |
FORECAST DEMAND |
MARKET POTENTIAL |
| Maximum Buying Units | |||
| Percent Buyers | |||
| Consumption Rate | |||
| Market Demand (units) | 3.0 | 11.25 | 40.0 |
| Average Transaction ($) | |||
| Market Potential (dollars) | $15.0 | $15.6 | $160.0 |
| Market Development Index (MDI) | 7.5% | 28.1% | 100.0% |
| Millions | |||
| Current Demand | $15.0 | ||
| Forecast Demand | $50.6 | ||
| Market Potential | $160.0 | ||
Instruction: Change any yellow cells in the Market Performance table to see Forecast Demand and Market Potential change compared to Current Demand.
Next Example: To create a new example, you need to define your market based on the five yellow cells in the top table. Then, fill the yellow cells in the Market Performance table below it for that market input. This will provide a profile of Current Demand, Forecast Demand, and Market Potential for the example you created.