Market Sizing for your Venture

Name: Sarath chandra Reddy Voggu

Email ID: sarathvoggu@gmail.com

Startup Idea To provide a platform for startups to fulfill their software needs using students.

Assumptions Average money they paypay for a software=Rs.7800

Growth rate=25%, Total number of startups=900
Target Segment Age group 18 and above
Men and women social classification:any class
Potential Customers Emerging startups,Established startups and new and innovating startup ideas.

Total Market Size Formula Total demand=average software cost*(new demand+replacement demand)
2. New Demand = (Total number of startups) x (Growth Rate)
Components Used Estimated or total number,growth rate,time for new update to the software

Market Size Calculations Toatal number of startups=900 growth rate=25% avrage software cost=Rs.7800

Total Market Size New Demand=900*0.25

225
Replacement Demand=900*12
10800
Total Demand=7800*(225+10800)
Rs.85995000
ing for your Venture

ng students.

tartup ideas.

Replacement demand=(Total number of startups)/(time for new update to the so

software

ftware cost=Rs.7800 time for new update to the software=1 month

me for new update to the software)
Startup Idea Retail business of stylish and premium quality customized fitness clothing and accessories base
Assumptions 1. No sales in the Rural Market and Low Income Group
2. Average Price of Fitness Product : Rs. 1,000
3. Growth Rate of Demand = 10%
4. Total Number of Families = 75 million
Target Segment 1. Social Classification : Middle class and Upper middle class (Urban Areas)
2. Age : 18-55 years
3. Gender : Men and Women
Potential Customers 1. Urban consumers interested in fitness and sport
2. Urban Consumers interested in athletic leisure wear
3. Urban Consumers seeking guidance on working out, diet and fitness products
Total Market Size Formula 1. (Average Price of Item) x (New Demand for Fitness Items)
2. New Demand = (Estimated Number) x (Growth Rate)
Components Used 1. Total Population
2. Distribution of Population in Urban / Rural Areas
3. % of Population in Upper Class
4. Average Price of Fitness / Sports Apparel

Market Size Calculation Percentage of Number of

Population Families (In
Millions)

Upper Class 2% 1.5

Upper Middle 8% 6.5

Class
Lower Middle 50% 37
Class
Low Income 40% 30
Total 100% 75

New Demand (Estimated Number) x (Growth Rate) = 247.5 x 0.1 = 24.75 millions
Total Market Size (Average Price of Product) x (New Demand) = 1000 x 24.75 = Rs. 24750 millions

Total Market Size Rs. 2475 crores

itness clothing and accessories based on body type, activity and weather

ss (Urban Areas)

and fitness products

s)

Number of Total Number of Total Number of Number of Total Number of

Members per People (In People (in Items bought Items sold (In
family involved Millions) Millions) per person per Millions)
in Fitness year
Activity

2 3 3 10 30

1 6.5 6.5 5 32.5

1 37 37 5 185

1 30 30 0 0
Total = 247.5

millions
5 = Rs. 24750 millions
Startup Idea Social media platform for motorcycle users, one stop solution for service, maintenance, parts an
1. Total Number of Families = 75 million
2. Growth Rate of Demand = 8%
3. Lifespan of a Motorcycle = 10 years
Assumptions 4. Average spending per annum per customer on Acccessories = Rs. 1000
1. Social Classification : Middle class and Upper middle class (Urban Areas)
2. Age : 20-35 years
Target Segment 3. Gender : Men and Women (Men being majority share)
Potential Customers Smartphone Users who own premium motorcycles
1. (Average amount spent by the potential customer per annum) x (New demand + Replaceme
2. New Demand = (Estimated Number) x (Growth Rate)
Total Market Size Formula 2. New Demand = (Estimated Number) x (Growth Rate)
1. Total Population
2. % of Population in Upper Class, Middle Class, Lower Middle Class and Lower Income
Components Used 3. Average Price of Product
Market Size Calculation Urban Areas

Number of
Percentage of Families (in Motorcycles
Population Millions) per Family

Upper Class 2% 1.5 0.05

Upper Middle
Class 8% 6 0.3
Lower Middle
Class 50% 37.6 1
Low Income 40% 30 0.5

Assuming Outreach to Urban consumers is 70%, market is 0.7 x 39.475 =

Grand Total Urban Bikes + Rural Bikes = 27.63 + 10.8 = 38.43 million

Total Market Size New Demand = 38.43 x 0.08 = 3.07

Replacement Demand = 38.43 / 10 = 3.84
Sum = 3.07 + 3.84 = 6.91 million

Total Market Size = 6.91 x 1000 = Rs. 691 crores

*Not Applicable because the products and services being offered won't cater to Lower Income G
on for service, maintenance, parts and accessories of premium motorcycles

ries = Rs. 1000

ss (Urban Areas)

num) x (New demand + Replacement Demand)

ddle Class and Lower Income

Rural Areas
Total Number of
Motorcycles in Number of
Families (in Percentage of Families (in Motorcycles
Millions) Population Millions) per Family

0.075 Upper Class 1% 1.8 0.05

Upper Middle
1.8 Class 10% 17.5 0.3
Lower Middle
37.6 Class 35% 61.3 0.5
Not Applicable* Low Income 54% 94.7 0
Total = 39.475

0.7 x 39.475 = 27.63 Assuming Outreach to Rural consumers is 30%, market is 0.3 x 35.99 =

ffered won't cater to Lower Income Groups

 Total Number of
Motorcycles in
Families (in
Millions)

0.09

5.25

30.65
Not Applicable*
Total = 35.99

0.3 x 35.99 = 10.8

Startup Idea To provide independent dentists the cost advantages of scale by giving them the power of colle
1. Total Number of Dentists
2. Commission charged = 7%
Assumptions 3. Average Expenditure Incurred by a New Dentist
1. Age : 22-55 years
Target Segment 2. Gender : Men and Women
1. Independent Dental Practitioners
2. Post Graduate Dental Students
3. Dental Materials Suppliers
Potential Customers 4. Dental Labs and Other Service Providers
Component I + Component II + Component III
Component I : (Number of Practicing Dentists) x (Monthly Membership Fee) x (12)
Component II : (Average Monthly Expenditure on Dental Materials & Equipments) x (Number o
Total Market Size Formula Component III : (One Time Costs borne by New Dentists) x (Number of new dentists each year
Components Used 1. Number of Dentists
2. Dental Expenditures
Market Size Calculations

Total Number of
Dentists in
India 2,29,000

Number of New
Dentists Added
Each Year 24,500 Formula

Average
monthly
Expenditure on
Dental
Materials &
Equipments (in Sum (in
Rs.) 25,000 millions)

Average one
time
Expenditure on
Dental
Materials &
Equipments (in
Rs.) 3,00,000

Monthly
Membership
Fee (in Rs.) 500
Commission 7%

Total Market Size Rs. 670 crores

ale by giving them the power of collective buying

Membership Fee) x (12)

aterials & Equipments) x (Number of Dentists) x (Commission) x (12)
(Number of new dentists each year) x (Commission Fee)

Component I Component II Component III Total

25,000 x
2,29,000 x 500 x 2,29,000 x 0.07 3,00,000 x
12 x 12 24,500 x 0.07

1374 4809 514.5 6697.5