How to deal with B2B/B2C in market sizing - for instance, electric car market

Question

Hey,

I have this issue frequently when doing market sizing. It is quite straight forward to narrow a problem down in terms of the B2C market (age, demographics, income ... etc.) and then arrive at a first market estimate (let's say for electric cars sold). However, I then struggle how to walk through a second branch, such as B2B. Is there a common rule of thumb of how many business there are per person? I would assume for 20 persons, there is at least one business. Then I would have to segment the businesses by industry which can get quite daunting.

What is the way to go here?

Answer 1

Hi,

In general, you have two options of including different use cases in your market sizing (b2b. commercial, etc):

Calculate the private use first and then make an assumption re b2c / b2b ratio. E.g. calculate the private real estate in the city and then make an assumption about the commercial real estate as the relative % of private.
You can add the b2b use cases right at the beginning of your calculations. For example, if you need to calculate the tire market for light vehicles, you can assume that every 5th car in the street is commercial, thus the total number of cars = # of private cars / 4 * 5. After that, you can calculate the whole tire market

In your particular case, I would try to clarify what exactly b2b means. Are you talking about the companies that subsidize the rides for the employees? (Then you can use the % of your friends who have their rides subsidized. Although B2b, in this case, is already included in the private consumption). Or you are talking about the Uber drivers who use carsharing because they can't afford car ownership? (Make an assumption re the % of taxis).

Best

Answer 2

Hi there,

Your question has me slightly confused, and I think it's because you're confusing yourself.

In general, you either do B2C OR to B2B. Likewise, you either do bottom-up OR top-down.

It's bizarre to do both.

So, in the case of the EV market, I would very much to B2C and break it down by population segments (probably income). Once done, I have the total consumption of EVs. There is not need to do B2B at this point!

Answer 3

Hello!

This is one of the key clarifying questions at the beggining, when you are defining your population.

Should I focus in B2B, B2C, or both?

Hope it helps!

Cheers,

Clara

Answer 4

Hey there,

Have a look at these threads:

B2C Age Segmentation: https://www.preplounge.com/en/consulting-forum/segmenting-by-age-groups-for-market-sizing-8524
B2B Market Sizing: https://www.preplounge.com/en/consulting-forum/b2b-market-sizing-1950

I think that should answer it for you?!

Answer 5

Hi, in addition to the solutions proposed by the other coaches in the discussion, I would like to suggest similar cases in the platform to practice with:

https://www.preplounge.com/en/consulting-forum/how-much-would-you-charge-to-clean-all-the-windows-in-seattle-4965
https://www.preplounge.com/en/consulting-forum/market-sizing-milk-consumption-5087
https://www.preplounge.com/en/consulting-forum/how-would-you-calculate-the-value-of-a-cow-4982
https://www.preplounge.com/en/consulting-forum/estimate-number-of-traffic-lights-in-a-london-5692

Hope it helps,
Antonello

Answer 6

Hello there!

Some great answers above.
Have a look at this article on market-sizing, too:
https://www.preplounge.com/en/bootcamp.php/case-cracking-toolbox/identify-your-case-type/market-sizing

Do you need any further help?
GB