Market Sizing & Demand Estimation
Knowing what the future holds has been a question which human-kind has asked since the beginning of history. For brands and organizations measuring the size of the current and future market and related opportunities is more than an existential question: it scopes the degree to which they can expect, plan for and pursue any business opportunity.
Acknowledging the critical importance of market sizing, particularly for the future, we have developed a rigorous scheme in order to guide clients as to their current and future potential on the core principles of scientific sampling, realistic predictive analytics and sound pricing analysis
Scientific Sampling and Past Trends
While desk research and published market information provide meaningful insights into the market size of any given industry, markets are constantly evolving. We therefore follow a dual approach for measuring market size in terms of consumer numbers and revenue volumes:
- Empirical analysis based on extensive desk research
- Adoption of large-scale quantitative surveys with consumers and enterprises – our sampling scientists determine optimal sample sizes, distribution, and randomized techniques to query respondents on usage patterns, spending levels, and future intentions.
Realistic Predictive Analytics
We gauge future market size and demand by projecting survey responses against empirical trends.
Our unique approach involves predictive analytics, measuring realistic fulfillment of future interest in products or services. Using our 20-year database and predictive questions, we create realistic purchase and spend scenarios to help clients answer critical questions.
- What will be total size of the market in 1,2 or 5 years time?
- What will be the total revenue volume of the market in 1, 2 or 5 years time?
- What market and revenue shares can we expect to have in the future?
- Can we expect different shares if we adjust our prices?
- How might our shares be affected by competitor activities and pricing changes?
- Does the future market size justify investing in a new product or service?
- What new product or service is the market most ready for?
- Are there any external factors that may disrupt future market predictions, and what are these?
- Will the market further grow in the foreseeable future as a result of technological changes?
Sound Pricing Analysis
Ultimately, future success of a brand, product or service – whether this be an existing one or a new launch – is inextricably linked to pricing aspects. Our approach towards market sizing for the future factors in pricing dimensions in order to address key challenges and position opportunities in the realms of:
- Consumer willingness to pay
- Consumer affordability and the ability to make their desired demand effective in the market, that is to both want and be able to pay
- Consumer price sensitivity
- Consumer willingness to pay premium prices for product or service categories or brands
- Income and country level economic indicators