# Advice 1: How to estimate market size

Market size or market capacity is the amount of goods and services sold or consumed in a certain area for a certain period of time. Typically, the market volume is determined on a significant area of the territories (city, region, country) over a sufficiently long time (month, year, quarter).
Instruction
1
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.
2
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.
3
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.
4
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.

# Advice 2 : How to calculate market size

The volume of the market is the indicator telling you how much goods or services consumed in a geographical area per unit time. The concept of "volume" of the market is often confused with its "capacity", the difference being that the capacity is evidence of effective demand, the volume of really sold products or services.
Instruction
1
First you need to define the geographic area described by the market (or segment) and sources of information – as a rule, the results of surveys, studies, expert opinions, statistics etc. Determine the period of time that will be (usually the month, quarter or year) and the units in which you will measure the volume of the market. Can be in pieces or litres (when it comes to certain groups of goods), but rather in monetary units.
2
Evaluate possible sources of information and collect in sufficient for your needs, the amount of opinions of experts, statistics, survey data. You need to find the most accurate and, most importantly, check the data. In some cases, will have to do analytical work, comparing the disparate pieces of information and bringing all data into a common format (say, in rubles). There may be a number of difficulties, for example, the amount of market goods in General easier to calculate than market services. Also much easier to estimate the amount of the market or a sector in General, the volume of the market of a single product or (especially) services; in this case, most likely you will have to resort to methods of indirect assessment.
3
The resulting "raw" data you need to present several important indicators. The first is the total volume of the market in a given time interval, the dynamics of its changes in two or three preceding time interval and the forecast or trend the next. The second is the distribution of the total volume between territories, as a rule, show the share of large cities in the total volume), their dynamics and trends. The third indicator is the volume distribution of the market between the leading players (and therefore how varied their share in the past, what is the prognosis). The fourth – largest selling products or product groups and their share, respectively, the dynamics and prognosis. And finally, the fifth indicator (it is not necessary, because it requires a separate study, but very significant) – the ratio in the total volume of the market and its capacity.

# Advice 3 : How to estimate market size

Market size or market capacity is the amount of goods and services sold or consumed in a certain area for a certain period of time. Typically, the market volume is determined on a significant area of the territories (city, region, country) over a sufficiently long time (month, year, quarter).
Instruction
1
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.
2
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.
3
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.
4
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.
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