Framework for Calculating Market Size PPT

This PPT slide, part of the 36-slide Introduction to Market Analysis PowerPoint presentation, outlines various methodologies for calculating market size, emphasizing a structured approach to data gathering and analysis. It is divided into 4 distinct methods, each with specific actions and considerations.

The first method suggests utilizing publicly available data from government statistics, industry bodies, and market research documents. It stresses the importance of cross-referencing at least 2 sources to ensure reliability, while also cautioning that discrepancies between sources are common.

The second method focuses on gathering insights from industry experts. This approach highlights the necessity of validating these opinions with other experts and aligning them with management perspectives. This step is crucial for ensuring that the insights are not only credible, but also actionable.

The third method advocates for a "customer up" approach, where assumptions are built based on customer data. It recommends collecting information on the number of customers for specific products, assessing their spending behavior, and determining uptake rates. This method aims to create a more granular understanding of market dynamics.

The fourth method takes a "top-down" perspective, suggesting that macro-level data, such as the total wealth of a region, can be useful. It encourages making educated assumptions to break down this high-level data into more specific market segments.

Overall, the slide provides a comprehensive framework for market size estimation, blending quantitative data with qualitative insights. Each method serves a unique purpose, allowing for a well-rounded analysis that can guide strategic decision-making.

This slide is part of the Introduction to Market Analysis PowerPoint presentation.

This deck is created by ex-McKinsey, BCG, Deloitte, EY, and Capgemini consultants. Explains a framework used by global strategy consulting firms for Market Analysis. Also discusses Porter's Five Forces and Value Chain Analysis.

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