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Building a Market Model and
Market Sizing
1. Objectives of Market Sizing
2. Approach to Market Sizing
3. Drawing conclusions from Market Sizing
CONTENTS
This document is a partial preview. Full document download can be found on Flevy:
https://flevy.com/browse/document/building-a-market-model-and-market-sizing-376
Step1. Gather available sources
2. APPROACH TO MARKET SIZING
Industry Report
Competitor
Data
Client Data
General Sources
• AC Nielsen / Aztec
• IBIS / BIS Shrapnel /
Freedonia / Market
Research etc
• Broker report
• Industry Association
• Press Release
• Competitor Annual
Report
• Websites
• Yellow pages
• Client Financial
• Internal Study
• Customer survey
Interviews
Interviews are essential for gathering and validating data
• Experts
• Industry Association
• Ex- exployees • Marketing
• Field sales
• Workshop
543210
This document is a partial preview. Full document download can be found on Flevy:
https://flevy.com/browse/document/building-a-market-model-and-market-sizing-376
Step2. Decide the relevant details
2. APPROACH TO MARKET SIZING
B. Time Period
• Historical
• Forecast
C. Data detail required
• Market Volume
• Market Retail Sales Value (RSV)
• Market Wholesale Value (NSV)
• Market Profit (GM, EBIT, EBITDA)
Review point
• Strategic view
• MECE
• Large volume or value
• Fast growing
• Relative strength
• M&A target
• Data availability
A. Relevant Segments
• Product (Category)
• Channel
• Customer
• Geography
• Player
Segments must meet certain fundamental requirements: relevance, measurability,
accessibility, substantiality and durability.
543210
This document is a partial preview. Full document download can be found on Flevy:
https://flevy.com/browse/document/building-a-market-model-and-market-sizing-376
B. Time Period
• Historical
• Forecast
C. Data detail required
• Market Volume
• Market Retail Sales Value (RSV)
• Market Wholesale Value (NSV)
• Market Profit (GM, EBIT, EBITDA)
• Data availability
• Internal request
“Profit pools” are ultimately where business derive value
A. Relevant Segments
• Product (Category)
• Channel
• Customer
• Geography
• Player
Step2. Decide the relevant details
2. APPROACH TO MARKET SIZING
543210
This document is a partial preview. Full document download can be found on Flevy:
https://flevy.com/browse/document/building-a-market-model-and-market-sizing-376
NC% &
Total Market
NC
Total Market
Value (NSV)
Retailer
Margin
X
G&P AC Nielsen
XYZ Financial
Volume divided by
1
AC Nielsen 2 X 3
AC Nielsen RSV$/L
vs. XYZ NSV$/L
XYZ Financial NSV
4 X (1 – 5 )
XYZ Financial
Interviews
IC
AC Nielsen
Interviews
Market research
XYZ Financial
Volume divided by
1
AC Nielsen
XYZ NSV$/L applied
by Retailer Margin
2 X 3
AC Nielsen RSV$/L
vs. XYZ NSV$/L
Interviews
XYZ Financial NSV
4 X (1 – 5 )
XYZ Financial
Interviews
Licens
ed
AC Nielsen
Interviews
Market research
XYZ Financial
Volume divided by
1
AC Nielsen
XYZ NSV$/L applied
by Retailer Margin
2 x 3
AC Nielsen RSV$/L
vs. XYZ NSV$/L
Interviews
XYZ Financial NSV
4 X (1 – 5 )
XYZ Financial
Interviews
Y
G&P AC Nielsen
XYZ Financial
Volume divided by
1
4divided by 1
AC Nielsen applied
by XYZ volume
coverage
AC Nielsen RSV$/L
vs. XYZ NSV$/L
XYZ Financial NSV
4 X (1 – 5 )
XYZ Financial
Interviews
IC
AC Nielsen
Interviews
Market research
XYZ Financial
Volume divided by
1
AC Nielsen
XYZ NSV$/L applied
by Retailer Margin
2 x 3
AC Nielsen RSV$/L
vs. XYZ NSV$/L
Interviews
XYZ Financial NSV
4 X (1 – 5 )
XYZ Financial
Interviews
Licens
ed
AC Nielsen
Interviews
Market research
XYZ Financial
Volume divided by
1
AC Nielsen
XYZ NSV$/L applied
by Retailer Margin
2 x 3
AC Nielsen RSV$/L
vs. XYZ NSV$/L
Interviews
XYZ Financial NSV
4 X (1 – 5 )
XYZ Financial
Interviews
Suppor
t
Euromonitor
Canadean
Euromonitor Competitor Financial
Total Market
Value (RSV)
RSV$/L
Total Market
Volume
XYZ Market
Volume Share
by Segment
1 2 3 4 5 6 7
Key data for sizing (higher confidence level)
Step3. Build the framework and structure the model –Example for beverage
company current market share
2. APPROACH TO MARKET SIZING
• What is the key data?
• Is it included?
• Is it available?
543210
ExampleExample
This document is a partial preview. Full document download can be found on Flevy:
https://flevy.com/browse/document/building-a-market-model-and-market-sizing-376
A. Client Financial
• Financial Detail Mapping
B. Industry Report /
Competitor data
• Scan Data Mapping
• Filling up the gap
C. Interviews
• Build the scenarios
Which data has higher
confidence??
How reliable is it?
Who do I need to interview?
Which data is missing?
What do I need to ask?
Any data is against each other?
Is it covered same scope?
Step4. Complete the model & Step5. Check the integrity - Review the
data source before applying on the model
2. APPROACH TO MARKET SIZING
Model has to be validated / challenged both for integrity reasons and buy-in
543210
This document is a partial preview. Full document download can be found on Flevy:
https://flevy.com/browse/document/building-a-market-model-and-market-sizing-376
This document is a partial preview. Full document download can be found on Flevy:
https://flevy.com/browse/document/building-a-market-model-and-market-sizing-376
1
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PowerPoint Templates.
Flevy was founded under the principle that
companies waste a lot of time and money
recreating the same foundational business
documents. Our vision is for Flevy to
become a comprehensive knowledge base
of business documents. All organizations,
from startups to large enterprises, can use
Flevy— whether it's to jumpstart projects, to
find reference or comparison materials, or
just to learn.
Contact Us
Please contact us with any questions you may have
about our company.
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Building a Market Model and Market Sizing

  • 1. Building a Market Model and Market Sizing
  • 2. 1. Objectives of Market Sizing 2. Approach to Market Sizing 3. Drawing conclusions from Market Sizing CONTENTS This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/building-a-market-model-and-market-sizing-376
  • 3. Step1. Gather available sources 2. APPROACH TO MARKET SIZING Industry Report Competitor Data Client Data General Sources • AC Nielsen / Aztec • IBIS / BIS Shrapnel / Freedonia / Market Research etc • Broker report • Industry Association • Press Release • Competitor Annual Report • Websites • Yellow pages • Client Financial • Internal Study • Customer survey Interviews Interviews are essential for gathering and validating data • Experts • Industry Association • Ex- exployees • Marketing • Field sales • Workshop 543210 This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/building-a-market-model-and-market-sizing-376
  • 4. Step2. Decide the relevant details 2. APPROACH TO MARKET SIZING B. Time Period • Historical • Forecast C. Data detail required • Market Volume • Market Retail Sales Value (RSV) • Market Wholesale Value (NSV) • Market Profit (GM, EBIT, EBITDA) Review point • Strategic view • MECE • Large volume or value • Fast growing • Relative strength • M&A target • Data availability A. Relevant Segments • Product (Category) • Channel • Customer • Geography • Player Segments must meet certain fundamental requirements: relevance, measurability, accessibility, substantiality and durability. 543210 This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/building-a-market-model-and-market-sizing-376
  • 5. B. Time Period • Historical • Forecast C. Data detail required • Market Volume • Market Retail Sales Value (RSV) • Market Wholesale Value (NSV) • Market Profit (GM, EBIT, EBITDA) • Data availability • Internal request “Profit pools” are ultimately where business derive value A. Relevant Segments • Product (Category) • Channel • Customer • Geography • Player Step2. Decide the relevant details 2. APPROACH TO MARKET SIZING 543210 This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/building-a-market-model-and-market-sizing-376
  • 6. NC% & Total Market NC Total Market Value (NSV) Retailer Margin X G&P AC Nielsen XYZ Financial Volume divided by 1 AC Nielsen 2 X 3 AC Nielsen RSV$/L vs. XYZ NSV$/L XYZ Financial NSV 4 X (1 – 5 ) XYZ Financial Interviews IC AC Nielsen Interviews Market research XYZ Financial Volume divided by 1 AC Nielsen XYZ NSV$/L applied by Retailer Margin 2 X 3 AC Nielsen RSV$/L vs. XYZ NSV$/L Interviews XYZ Financial NSV 4 X (1 – 5 ) XYZ Financial Interviews Licens ed AC Nielsen Interviews Market research XYZ Financial Volume divided by 1 AC Nielsen XYZ NSV$/L applied by Retailer Margin 2 x 3 AC Nielsen RSV$/L vs. XYZ NSV$/L Interviews XYZ Financial NSV 4 X (1 – 5 ) XYZ Financial Interviews Y G&P AC Nielsen XYZ Financial Volume divided by 1 4divided by 1 AC Nielsen applied by XYZ volume coverage AC Nielsen RSV$/L vs. XYZ NSV$/L XYZ Financial NSV 4 X (1 – 5 ) XYZ Financial Interviews IC AC Nielsen Interviews Market research XYZ Financial Volume divided by 1 AC Nielsen XYZ NSV$/L applied by Retailer Margin 2 x 3 AC Nielsen RSV$/L vs. XYZ NSV$/L Interviews XYZ Financial NSV 4 X (1 – 5 ) XYZ Financial Interviews Licens ed AC Nielsen Interviews Market research XYZ Financial Volume divided by 1 AC Nielsen XYZ NSV$/L applied by Retailer Margin 2 x 3 AC Nielsen RSV$/L vs. XYZ NSV$/L Interviews XYZ Financial NSV 4 X (1 – 5 ) XYZ Financial Interviews Suppor t Euromonitor Canadean Euromonitor Competitor Financial Total Market Value (RSV) RSV$/L Total Market Volume XYZ Market Volume Share by Segment 1 2 3 4 5 6 7 Key data for sizing (higher confidence level) Step3. Build the framework and structure the model –Example for beverage company current market share 2. APPROACH TO MARKET SIZING • What is the key data? • Is it included? • Is it available? 543210 ExampleExample This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/building-a-market-model-and-market-sizing-376
  • 7. A. Client Financial • Financial Detail Mapping B. Industry Report / Competitor data • Scan Data Mapping • Filling up the gap C. Interviews • Build the scenarios Which data has higher confidence?? How reliable is it? Who do I need to interview? Which data is missing? What do I need to ask? Any data is against each other? Is it covered same scope? Step4. Complete the model & Step5. Check the integrity - Review the data source before applying on the model 2. APPROACH TO MARKET SIZING Model has to be validated / challenged both for integrity reasons and buy-in 543210 This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/building-a-market-model-and-market-sizing-376
  • 8. This document is a partial preview. Full document download can be found on Flevy: https://flevy.com/browse/document/building-a-market-model-and-market-sizing-376
  • 9. 1 Flevy (www.flevy.com) is the marketplace for premium documents. These documents can range from Business Frameworks to Financial Models to PowerPoint Templates. Flevy was founded under the principle that companies waste a lot of time and money recreating the same foundational business documents. Our vision is for Flevy to become a comprehensive knowledge base of business documents. All organizations, from startups to large enterprises, can use Flevy— whether it's to jumpstart projects, to find reference or comparison materials, or just to learn. Contact Us Please contact us with any questions you may have about our company. • General Inquiries support@flevy.com • Media/PR press@flevy.com • Billing billing@flevy.com