Does anyone have a more insightful/detailed/rigourous way to address the market size for the UK cake market, beyond my proposed approach below:
Total Rev = segmented by age demographics as most likely to influence purchasing decisions:
Total Rev = Rev[0-20 years] + Rev[20-40years + Rev[40-60years] + Rev[60+years]
Where Rev(i) = [No. people] x [% eating cake] x [% of those eating who actively buy cake] x [mean no. cakes bought per week] x [no weeks/year when cake is bought] x [mean price per cake]
Perform the above calculation for each age group with appropriate assumptions on above numbers and total.
Is there a more detailed/insightful/rigourous way to approach this (or is the above sufficient detail) - e.g. I could think of revenue segmentations by products within the cake market (e.g. large 'event' cakes + cake slices (e.g. in coffee shops)) or revenue segmentations per day of week (i.e. cake bought on weekend versus weekday etc.), or does this just add unneccessary complications?
And more generally across all market sizings of this type - how detailed should the approach be in terms of revenue segmentation, or is a typical segmentation per age demographic usually sufficient?
Thanks in advance for any inputs!!