market sizing

what is a geographic market worth to your business?

global vox populi will help you find the answer. Market potential can be expressed as a function of:

• the number of customers purchasing
• amount purchased
• frequency of purchase

In other words, market potential = (how many * how much * how often)

Market sizing is the process of measuring and estimating the potential of a market. Understanding the potential of a market is important for companies looking to launch a new product or service. Using a wide variety of secondary market research, primary market research and databases, global vox populi researchers synthesize results from previously published research and other data sources to help define:

• total size or potential size of a market
• major competitors in a market by category
• composition and profile of a target customer
• products/services available in the market
• most significant trends in the market

global vox populi – bottom up or top-down market analysis?

global vox populi advises on the best approach to sizing any market. We employ multiple methodologies and data sets to get you the answers you need.

a bottom up approach to market sizing starts with your customers

• how much and often do they buy?
• what is their profile?
• how many potential customers do you have in the market based on your customer profiles?
• how can you reach them?

A top-down approach starts with market and industry data. it takes a close look at a geographic market area and profiles the consumers and businesses to let you know their propensity to buy your products and services.

To estimate the potential of a market, we often use a “bottoms-up approach” by breaking the unknown pieces down into granular sets of assumptions and then roll it back up to an overall market size estimation. Due to the highly distinct nature of each market sizing research projects, they require a great deal of consulting and special attention to produce an accurate market sizing analysis.

global vox populi has expertise in both these approaches to market sizing. We also have a wealth of data sources through partnerships with the best reliable data providers in the industry. We can match the right data for market analysis to your business and market strategy.

cluster analysis for market sizing

We often use lifestyle clustering systems to size consumer markets. Clustering systems operate under the premise that “birds of a feather flock together” – which means people with similar buying behaviors and demographic profiles tend to live close together. This in return, helps you identify neighborhoods or markets where your potential is highest.

• cluster analysis identifies key target segments in the universal population who are more likely to purchase your products than the average consumer
• knowing in which clusters people reside, provides a reasonable means of understanding and predicting how they will behave
• understanding which clusters are more likely than others to purchase allows better targeting
• clusters are tied to geography, allowing you to identify and prioritize neighbourhoods, trade areas and markets