ACADEMIC TASK-I

Academic task-I will consist of:

Part A. Business Idea, Business Canvas and Market feasibility (Market sizing) study –
20 Marks + Peer rating *(Marks distribution available in Rubric).
Part B. Students Individual performance- 10 Marks *(Marks distribution available in
Rubric)
Details:
Business Canvas (Detailed business canvas already mailed to faculty)

Market Feasibility
Market sizing (For more details please refer to ‘Identifyng target segments and market sizing’
transcript)
Step 1. Define your target customer
Step 2. Estimate the number of target customers
Conduct top-down market sizing.
Look at the total market for your product or service, and then establish a realistic estimate for your
market share. Take, for example, the hospitality industry. U.S. travelers spent $23 billion on vacation
rentals in 2012 -- if Marriott International accounted for $13.8 billion of that spend, it would probably
be a stretch to count the remaining $9.2 billion as yours for the taking.
Follow with bottom-up analysis.
Determine where you’ll sell your products, how many locations will stock them and how many
comparable products typically sell. Try to be as objective as possible -- it’ll help you figure out where
realistic growth could take you in five years. Then, compare your numbers with the overall
addressable market. If it’s 1 to 5 percent of the pie, you have a realistic plan.
Step 3. Determine your penetration rate (The penetration rate is a function of the nature of your
product. For example, smartphones have a very high penetration rate)
Step 4. Calculate the potential market size: Volume and value
Market volume
To find the overall market potential (that is, the potential market volume), multiply your number of
target customers by the penetration rate.
Market volume = Number of target customers × Penetration rate
Market value
To calculate the monetary value of the market, multiply the market volume by your average value
(that is, price expectations).
Market value = Market volume × Average value
Step 3: Competitor Analysis
Step 5. Getting a detailed understanding of your competition is critical when determining your
market size.
Your available market depends significantly on the amount of direct competition you face in your
industry. If you face lots of competition but their products are outdated, their customer service terrible
and prices expensive, then you can position against their weaknesses and start attracting some of their
customers.
On the other hand, if there are a handful of excellent competitors in your space doing lots of things
right, it’s going to be harder to break into that market, so you’ll really need to dig into their customer
bases and look for areas in their products that frustrate their customers. You can then position your
product to start winning some of those frustrated customers over using the correct marketing mix.