In global marketing practice, there are only 3 types of market capacity: potential, actual, and available. Each of them can be calculated in rubles, pieces, as well as kilograms, liters, meters, etc.
Types of market capacity
Let's describe each of them in more detail.
Potential market capacity
Potential capacity is the size of south korea email list the market, which is based on the maximum level of demand for a specific product or service among the population. That is, it means that at the current moment there is a peak in consumer demand for a given product or service: consumers use this product as often as possible. When all potential customers purchase a specified category of product or service, this will be the maximum possible market volume, i.e. its potential capacity.
Actual market capacity
Real, or actual, capacity refers to the current level of demand for a product or service, i.e. how many consumers currently know about the product, buy it, and use it.
Available market capacity
This is the name given to the size of the market that a company can cover by producing a product with specific characteristics, a certain price and audience, and having a set of its own resources. That is, when calculating the indicator of available market capacity, the manufacturer considers its potential buyers not all consumers, but only those who fall under the definition of the target audience.
Case: VT-metall
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Let's look at a real example of how to calculate the market capacity for a company producing electric toothbrushes, and what criteria to use to determine its potential, actual and available types.
So, the potential capacity should be calculated based on the following assumptions (below are the assumptions from the manufacturer that will form the basis for calculating the potential market capacity; you can include in the calculation those assumptions that reflect your current assessment tasks):
the average price for one unit of goods corresponds to the value of the current average price of the producer;
all real consumers, based on the manufacturer's recommendations, change brushes regularly - at least once a month;
Potential buyers prefer electric toothbrushes over regular ones.
The actual market share is determined based on the established culture of product consumption. As a result of a survey of potential clients, the following indicators are identified:
Current average price of electric toothbrushes;
the actual frequency of purchase of electric toothbrushes by real customers. That is, how many times a year a person purchased a toothbrush;
the actual level of consumption of the product "electric toothbrushes" by the population of a certain region or a specific percentage of the total number of potential consumers who prefer this type of product.
In order to make the calculations of the available market capacity more accurate, it is worth taking into account not the entire audience, but only the target segment. This could be, for example, men and women aged 20 to 45 years.