For example, when estimating the number of capsule coffee machine, it's probably widely used in office buildings rather than households. How should I approach the segment?
For example, when estimating the number of capsule coffee machine, it's probably widely used in office buildings rather than households. How should I approach the segment?
Hi,
identify different segments in a market sizing is great and often needed. In your example, you can divide the problem into 2 different parts or simply state that at work there will be x% of the total capsules.
Here you can find other examples of:
- commercial products vs household: https://www.preplounge.com/en/consulting-forum/how-much-would-you-charge-to-clean-all-the-windows-in-seattle-4965
- 2 different use of a product: https://www.preplounge.com/en/consulting-forum/market-sizing-milk-consumption-5087#a11020
Best,
Antonello
Hi,
I recommend the following:
To give you an example:
Once in the interview, I was Calculating the B2C tire market assuming that the new cars already have tires (sold via B2B channel). E.g. if the avg. lifetime of a car is 10 years, the replacement rate is 1/2 and the replacement rate per car is 4/10, since the first 2 years are covered by the tires from the b2b market.
Calculating b2b market included calculating the tires for the new cars (B2C market of the new cars * (4 tires + 1 extra)) + commercial vehicles * (avg number of tires per commercial vehicle).
Best