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Market Potential - Group 1
Market Potential - Group 1
1627607
Karthik Krishnan S
1627615
Aarohi Nagarkoti
1627632
Shristi Mishra
1627657
Abhishek Agrawal
1627501
Daris Jose
1627505
Praneta Bhatt
1627550
Trimester III M1
INTRODUCTION:
The objective of this assignment is to estimate the market potential for a given product.
Market Potential: It is the entire size of the market for a product at a specific time. It represents
the upper limits of the market for a product.
MP = N x P x Q
PRODUCT DESCRIPTION:
The product for which the market potential is to be found out is
Home Solar Panel with batteries. The system provided is a 5kW
system that is capable of running a number of appliances at a
time including a fridge, multiple televisions, multiple air
conditioners and a lot more for 24 hours a day, 7 days a week.
The two main components of the system are the solar panels
and the batteries.
-- Rs,1,50,000/-
The 20 sets of individual panels producing 255W each are stacked besides each
other to form the entire unit. The life of a panel is considered to be 20-22 years
although some companies give a warranty of 25 years.
COST COMPARISON:
As mentioned above in the product description the Home solar system is suitable for those
households which consume around 800 units of electricity per month.
Fixed Charges:
For 1 Kw
Rs 30
Rs 40
Variable Charges:
0-30 Units
Rs 3.00
31-100 Units
Rs 4.40
101-200 Units
Rs 5.90
Rs 6.90
Monthly Cost for consumption of 800 units while using a 5Kw system Rs 5583 (Including 5%
tax)
Inverter is a must in a city like Bengaluru, so we have to add the cost of that.
Average Annual cost of 1 KVA inverter
Rs 10000
Rs 9500
Rs 1625
Rs 7208
Rs 14,285
Cost of battery
Rs 50,000
Rs 64,285
Rs 5357
From the above calculations we can see that the cost of using a Home solar system is around
25% less than the cost of conventional system.
Rs 50000
Annual savings
Rs 86,496
Rs 36,496
Rs 4, 37,952
SEGMENTATION:
The Home solar system is targeted at the segment of the population that lives in a household and
consumes around 800 units of electricity per month.
Total number of household where the main source of lighting is electricity 51, 25,655
To calculate the number of Potential buyers who consume around 800 units of electricity per
months, we will use a survey method.
SURVEY:
After calculating the specific costs of the two options, electricity from the board and
the solar panel kit, we went out the survey to find out how many people consume
more than 800 units of electricity. The main agenda of the survey was to find out
what percentage of independently owned households would come in our potential
market based on the amount of electricity they consume.
The main questions asked were:
No. of
No. of No
Yes
83
71
Are you aware of the solar option for household electricity? (Total
51
32
19
62
respondents=83)
Do you consume over 800 units of electricity in a month? (Total
respondents=83)
If your consumption is over 800 units would you want to switch to the
14
solar panels which would provide you with huge cost savings and a
payback period of less than 9 years?
(Total respondents=19)
ANALYSIS:
Based on the survey results we found out that 19 out of 83 (i.e. 22.89%) is the number of
possible buyers. By generalising this to the actual number of independent households in
Bengaluru, The number of potential buyers is,
22.89% of 51, 25,655 = 11, 73,262 (N)
CONCLUSION:
From the above approach we have found out that the market potential for home solar system in
Bengaluru is Rs 7542, 39, 85,714/- only.
REFERENCES:
1. Bengaluru census data
2. https://www.bijlibachao.com/electricity-bill/electricity-duty-and-tax-onelectricity-bills-in-india.html
3. http://www.gogreensolar.com/products/5kw-diy-solar-panel-kit-microinverter
4. http://bescom.org/wp-content/uploads/2016/05/Electricity-Tariff-for-FY-17pdf.pdf