How should I approach this market sizing?
Should I consider households + office + public places consumption? How do I size the office and public places consumption?
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Market Sizing - How much big is the coffee market in Sweden?
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Hi Anonymous,
I keep repeating it: Market sizing is not about coming up with a correct number, it's about coming up with a plausible way to number.
So your initial instinct to consider various segments (for example households, workplaces, gastronomy) does make sense. Then you could assume that an average person consumes x cups per week at home, y at work and z in public places.
Or you could start with average coffee consumption per consumer and then break it down by channel.
Also you should specify what is meant by "coffee market" - the market for coffee ground and beans? Or including gastronomy?
cheers
Elias
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Hi Anonymous,
the initial division in channels you proposed is indeed a good idea. As for the estimate of the office and public places consumption, a good structure would include the following steps:
- estimate the number of offices/bars
- estimate the average number of workers/clients that can be present/served in each of them
- estimate the percentage of the workers/clients that want to consume coffee
Hope this helps,
Francesco
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