Evaluation of market capacity

Market capacity is an important criterion, showing the state of demand for a particular product. Many leading companies periodically determine the size of the market in order to obtain a leading position. Retailers use this parameter to increase sales and production organizations - in order to optimize the production plan.

Market capacity is an important criterion, showing the state of demand for a particular product. Market capacity can be defined as a common solvent consumer demand at a given price level.
Market capacity and potential is real. The actual size of the market, shows the actual sales and the potential - the maximum under favorable circumstances.

Many leading companies periodically determine the size of the market in order to obtain a leading position. Retailers use this parameter to increase sales and production organizations - in order to optimize the production plan. Also, the market capacity is a fundamental parameter for the calculation of other variables, equally important in the procedure a complex analysis of the market. For example, market share, degree of saturation of the market, and so on. D.

There are several ways to determine the capacity of the market.

Estimation of market size based on the volume of production

This group of methods for determining the market capacity is repelled by the plans of leading manufacturers and the existing production level.
For example, it can be made selective analysis of leading manufacturers, representing great value for a large number of production enterprises producing the same product. For the purpose of this method, calculated as the proportion of large, medium and small producers as a percentage, after which each share multiplied by the sample rate within each category. The sum of the values ​​obtained and supports the capacity of the market.
For example, the share of large enterprises is 10%; proportion of average - 5%; the share of small - 0.1%. sampling ratios are equal to 6, 2, 1, respectively.
The market capacity is equal to 70.01% (10% x 6% + 5 x 2 + 1 x 0.01%).

Estimation of market size according to the norms of consumption and expenditure

This method is based on the current level of consumption and is more suitable for the determination of the potential market capacity. With this method, the market capacity is calculated as the product of multiplying the volume of human consumption, a predetermined time in months and the number of people using the product. Rates of consumption are determined on the basis of market researchFor example, the volume of commodity consumption per person is 20 kilograms per year. The number of people using item 500. Thus, the market capacity will be equal to 120,000 kilograms (20 x 12 x 500).

Estimation of market size on the basis of sales volumes

When using this method for the base taken the sales volume of all trading companies to test product. This analysis should involve at least 80% of organizations, and should appear in the calculation only actual goods sold excluding balances of warehouses and returns.
The market capacity will be equal to the total volume of sales in the study area or region, multiplied by 12 and divided by the analyzed period of time in months.
For example, the total volume of sales in the study area was 562 600 Mill. Rubles for two years. The market capacity will be equal to 281 300 Mill. rubles (562 600 x 12/24).

Evaluation of market capacity on the basis of an assessment according to the nomenclature, price and advertising

This method is based on a comparison of the sum of all the nomenclature items to sell their businesses. A similar procedure applies to prices and advertising. The result will be more accurate when compared to an identical range.

Evaluation based on a comparison with the previous period capacity

This method takes as its basis the fact that the value established in the previous period will be stable while maintaining the same sales conditions. In this case, the test period, the market capacity will be equal to the market capacity of the previous time slot.