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Market Size and Demand Estimation Study.
How can I estimate the market size & future demand for my products in the market?
- Our client, a leading manufacturer of toiletries supplying to the hospitality industry in India and abroad wished to increase their presence in the hotel and hospitality segment in India and explore collateral opportunities in this segment with their product range.
Followings were the questions to be answered…
- What is the target market?
- What are the categories / segments?
- What are the consumption / usage norms per segments?
- What is the requirement of various sub-segments?
- What is the current market size?
- What is the likely demand in the near future?
They commissioned Market Search India to conduct a research study on the Indian hospitality sector market for toiletries.
We adopted following approach –
Classifying the segments –
All the cities were classified into 3 major segments viz.
- Metro
- Mini-Metro and
- Other Cities.
Hotels were classified as per the following Star Ratings…
- Non rated / 1 star
- 2 star
- 3 star
- 4 star
- 5 star
- 5 star Deluxe
Combinations of City type Vs. Star Category were defined as the segments and 4 segments were identified.
| Economy |
> |
2 star and below across all cities + 3 star in non Metro cities |
| Business/Value |
> |
3/4 star in Metros and Mini Metos + 4 star in Non Metro cities |
| Luxury |
> |
5 star and above across all cities |
Assessing the market size for the toiletries –
For each hotel the following information was collected across India
- A - Avg. No. of rooms per segment
- B – number of items given per room
- C – replenishment per day
- O – Occupancy Ratio
- S – Avg. size of the pack (toiletry item)
- P – Avg. price of the pack (toiletry item)
- Z – No. Of Hotels per Segment
Face to face structured interviews were conducted among the sample representation in each segment & cities to gather the data on the above stated parameters.
An integrative model was created for estimating the overall market size
n
∑ § (s*r*z*e*a*b*c)*Z*365
i=1
Future demand was estimated on the basis of expected growth in hotel rooms in the coming years.
Besides assessing the market size & expected demand other information areas like hotel preference, buying behavior, brands supplied etc. were assessed so as to help our client in targeting different customer segments.
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