The market capacity you can calculate both in physical terms (pieces, tons, litres, etc.) and cash. Mathematically, the market volume can be determined as follows:
E = M x C, where
M – the number of traded goods in natural expression;
– Unit price of the realized goods.
But you have to remember that there are different types of markets, and hence approaches to the definition of capacity will be different. The most common method is the General assessment of the market capacity. Use it to count the maximum volume of demand for goods. At first, take the total population and average level of income per person. Calculated this way, the volume gradually shrink. First select from the obtained volume of the part of income that goes to buying food from it – the part that goes to the purchase of semi-finished products from them, canned vegetables and then potato products.
In the second phase of the study find, what is the maximum proportion of the available potential market can be mastered by the firm. In this case, use data on the market, the number of consumers of potato semi-finished products and volume of products produced by competitors. On this basis, draw a conclusion about the maximum possible volume of realization of goods. Remember that its exceeding leads to the firm's unsold inventory.
You can calculate the total market volume in the following way (for example, the market dumplings with beef):
E= N × PP x To x SP x PG x TS, where
N - the population aged 5 years and older;
PP - percentage of people consuming dumplings;
It is the average amount of consumption of one user per year;
SP - the average consumption of pelmeni consumers for the 1st time;
PG - percentage of consumers who prefer dumplings with beef;
C - the average price of a serving of dumplings with beef.