Market Potential Analysis Consultancy project: By Jakub Čech & Andrej Šišolák Note: Please after inserting your picture, “Right Click” on the picture and “Send it to Back” to get the “Gradient” effect. ‹#› J. Cech & A. Sisolak Our Agenda •Consultancy Project | Market Analysis 01 5 min Definition & Objectives 02 20 min Vertical – Top Down 03 20 min Vertical – Bottom Up 04 20 min Horizontal Definition & Objectives Market Potential Analysis By Jakub Čech & Andrej Šišolák Note: Please after inserting your picture, “Right Click” on the picture and “Send it to Back” to get the “Gradient” effect. ‹#› J. Cech & A. Sisolak Market Analysis Objectives •Consultancy Project | Market Potential Analysis | Definition & Objectives Profit Levels Relevant Potential Customer Needs Own Qualities Growth Trends Competitors Qualities Stánek obrys Quantitative Analysis Qualitative Analysis ‹#› Strategic Management Terms Definition •Consultancy Project | Market Potential Analysis Need Target customer’ needs, which should be fulfilled trough the business strategy Obsah obrázku exteriér, osoba, tržiště, scéna Popis byl vytvořen automaticky Location Target geographic location in which the business strategy will solve the fulfillment of selected customer needs Market is the place or environment where customers can fulfill their needs GMO obrys Glóbus obrys Note: Please after inserting your picture, “Right Click” on the picture and “Send it to Back” to get the “Gradient” effect. ‹#› Strategic Management Terms Definition •Consultancy Project | Market Potential Analysis Value The financial value of all the goods and services that all the customers can buy on the defined market Volume The total amount of all the goods and services that all the customers can buy on the defined market Market Potential Is a figure expressed in currency or measurable units that represents the total amount of goods or services that all the customers present in the defined market can buy within a specified time Dolar obrys Zlaté cihličky obrys Note: Please after inserting your picture, “Right Click” on the picture and “Send it to Back” to get the “Gradient” effect. ‹#› Strategic Management Terms Definition •Consultancy Project | Market Potential Analysis Homogenity Common needs and characteristics of customers within the segment. (Demographic, Geographic, Lifestyle etc. for B2C, Type of business, number of employees for B2B) Distinction Customer needs and behavior should be unique as much as possible in between the segment Market Segmentation Refers to aggregating prospective buyers into groups with common needs and characteristics. Připojení obrys Japonský symbol hněvu obrys Reaction Similar response to the market development or marketing incentive Cyklistika obrys Note: Please after inserting your picture, “Right Click” on the picture and “Send it to Back” to get the “Gradient” effect. ‹#› J. Cech & A. Sisolak Market Potential Calculation Methodologies •Consultancy Project | Market Potential Analysis | Definition & Objectives Horizontal ‹#› J. Cech & A. Sisolak Market Potential Vertical Methodologies •Consultancy Project | Market Potential Analysis | Definition & Objectives ‹#› J. Cech & A. Sisolak Market Potential Horizontal Methodology •Consultancy Project | Market Potential Analysis | Definition & Objectives Horizontal Vertical – Top Down Market Potential Analysis By Jakub Čech & Andrej Šišolák Note: Please after inserting your picture, “Right Click” on the picture and “Send it to Back” to get the “Gradient” effect. ‹#› J. Cech & A. Sisolak Top-Down Calculation Process •Consultancy Project | Market Potential Analysis | Vertical – Top Down High Level Data Collect all possible macroeconomic data that could show the chosen market's total value or volume Segmentation Define the relevant market segments and split the total market value into them Sample Analyze the potential for the sample group of the most typical applications or usages of the company's products or services in each segment. Calculation Set up a percentage share of the sample group's calculated potential and total market value. Apply the same coefficient for the whole segment. Sum up figures from all segments to get full market potential. 01 02 03 04 Kousky puzzle obrys Mikroskop obrys ‹#› J. Cech & A. Sisolak Market Potential Sika CZ Case Study •Consultancy Project | Market Potential Analysis | Vertical – Top Down CZ Macroeconomic Environment: Key Macroeconomic Indicators 2015 2016 2017 2018 2019 2020 2021 GDP (nominal) (bn. CHF) 194 202 215 227 242 236 247 Population (mn) 10,538 10,554 10,579 10,610 10,650 10,694 10,702 GDP per capita (TCHF) 17,829 18,575 20,636 23,415 23,494 22,912 23,980 GDP (real) growth (%) 5,4 2,5 5,2 3,2 2,3 -6,1 3,3 Unemployment rate (%) 5,1 4,0 2,9 2,2 2,0 2,6 3,5 Inflation rate 0,3 0,7 2,5 2,1 2,8 3,2 3,8 CZK|CHF (pavg) 24,9 25,1 21,9 22,9 23,3 24,3 23,7 CZK|EUR (pavg) 27,3 27,0 26,3 25,6 25,7 26,4 25,1 Year Construction work "S" total in it in the CR in it Abroad New construction, reconstruction and upgrade in it Repairs and maintenance Residential buildings Non-residential buildings not designed for production neNon-residential buildings designed for production Civil engineering works Water management works 2014 428 276 417 013 302 575 46 344 59 811 60 615 130 563 5 242 114 438 11 263 2015 459 051 446 104 326 340 51 603 56 185 62 155 151 693 4 704 119 764 12 947 2016 424 609 410 719 292 297 57 574 42 645 71 171 117 927 2 980 118 422 13 890 2017 p) 453 431 437 542 313 900 59 966 48 379 87 817 114 768 2 970 123 642 15 889 279 mld 287 mil 566 mld CZ Construction Activity By Project Segments: CZ Construction Activity By Company Size: CZ Construction Activity By Region: ‹#› J. Cech & A. Sisolak Market Potential Sika CZ Case Study •Consultancy Project | Market Potential Analysis | Vertical - Top Down CZ Construction Activity By Project Segments: ‹#› J. Cech & A. Sisolak Market Potential Sika CZ Case Study •Consultancy Project | Market Potential Analysis | Vertical – Top Down Bill of materials: ‹#› J. Cech & A. Sisolak Market Potential Sika CZ Case Study •Consultancy Project | Market Potential Analysis | Vertical – Top Down Bill of materials: ‹#› J. Cech & A. Sisolak Market Potential Sika CZ Case Study •Consultancy Project | Market Potential Analysis | Vertical – Top Down Sika potential in % of total investment: ‹#› J. Cech & A. Sisolak Market Potential Sika CZ Case Study •Consultancy Project | Market Potential Analysis | Vertical – Top Down Sika potential in different types of buildings: ‹#› J. Cech & A. Sisolak Market Potential Sika CZ Case Study •Consultancy Project | Market Potential Analysis | Vertical – Top Down Relevant Sika potential: Vertical – Bottom Up Market Potential Analysis By Jakub Čech & Andrej Šišolák Note: Please after inserting your picture, “Right Click” on the picture and “Send it to Back” to get the “Gradient” effect. ‹#› J. Cech & A. Sisolak Bottom Up Calculation Process •Consultancy Project | Market Potential Analysis | Vertical – Bottom Up Segmentation Split all potential customers to the segments based on the defined criteria. Main goal is to associate the customers based on their characteristics or behavior on the market Product basket Define the typical product basket for the customer segments based on customer analysis Calculation Calculate your potential based on the product mix and potential sales to the customers in each segment. As a percentage of the total customer turnover or total spending in the segment Aggregation Apply the calculation in each segment to all existing customers. This leads to a potential sales per segment. Put all segments together to get the relevant potential for your company on the market 01 02 03 04 Kousky puzzle obrys Hledání v inventáři obrys Daň obrys ‹#› J. Cech & A. Sisolak Market Potential Sika CZ Case Study •Consultancy Project | Market Potential Analysis | Vertical – Bottom Up Customer segmentation – segment definition: ‹#› J. Cech & A. Sisolak Market Potential Sika CZ Case Study •Consultancy Project | Market Potential Analysis | Vertical – Bottom Up Customer segmentation: ‹#› J. Cech & A. Sisolak Market Potential Sika CZ Case Study •Consultancy Project | Market Potential Analysis | Vertical – Bottom Up Product basket: ‹#› J. Cech & A. Sisolak Market Potential Sika CZ Case Study •Consultancy Project | Market Potential Analysis | Vertical – Bottom Up Product basket: ‹#› J. Cech & A. Sisolak Market Potential Sika CZ Case Study •Consultancy Project | Market Potential Analysis | Vertical – Bottom Up Potential calculation: ‹#› J. Cech & A. Sisolak Market Potential Sika CZ Case Study •Consultancy Project | Market Potential Analysis | Vertical – Bottom Up Potential calculation: Horizontal Market Potential Analysis By Jakub Čech & Andrej Šišolák Note: Please after inserting your picture, “Right Click” on the picture and “Send it to Back” to get the “Gradient” effect. ‹#› J. Cech & A. Sisolak Horizontal Calculation Process •Consultancy Project | Market Potential Analysis | Horizontal List Make a list of all relevant competitors which are active in all the chosen market segments and find their official sales figures in the trade register or annual reports Segmentation Based on the annual reports or information from the customers, split the total sales of each competitor into the selected market segments Calculation Calculate market potential for each selected market segment by aggregating the competitors’ sales allocated in each of them Aggregation Sum up the potential of the individual segments into the total market potential. 01 02 03 04 Kousky puzzle obrys Seznam obrys Dálkové studium – matematika obrys ‹#› J. Cech & A. Sisolak Market Potential Sika CZ Case Study •Consultancy Project | Market Potential Analysis | Horizontal Hard facts | Competitors’ list: ‹#› J. Cech & A. Sisolak Market Potential Sika CZ Case Study •Consultancy Project | Market Potential Analysis | Horizontal Allocation of the sales into the segments: ‹#› J. Cech & A. Sisolak Market Potential Sika CZ Case Study •Consultancy Project | Market Potential Analysis | Horizontal Total market potential: Summary Market Potential Analysis By Jakub Čech & Andrej Šišolák Note: Please after inserting your picture, “Right Click” on the picture and “Send it to Back” to get the “Gradient” effect. ‹#› J. Cech & A. Sisolak Summary Of Market Potential Calculation •Consultancy Project | Market Potential Analysis | Summary Top Down Total value of market potential calculated based on the statistic methodology Bottom Up Total value of market potential calculated based on customer’ product basket methodology Horizontal Total value of market potential calculated based on competitors methodology Euro se souvislou výplní Dolar se souvislou výplní Bitcoin se souvislou výplní Thank You For Your Watching Jakub & Andrej