How To Provide Market Sizing

©Andri Budiwidodo

as a baseline for providing better planning, prioritization and KPI

Why need market sizing

• To identify how many people as potential customers

• To allign with the current/future business case

• To predict the growth of potential customers

• As the one of criteria for prioritization

• As baseline figures to provide better KPI

• Rough figures were obsolete, getting figures more precisely are more needed

Andri Budiwidodo

How to provide market sizing

4

Raw data of current National Socio Economic Survey (Y2014) – SUSENAS (Survei Sosial Ekonomi Nasional), consist of raw data of individual and household (modul of expenditure and age cohort)

Raw data of current National Socio Economic Using SES (social economis status) classes, reflected by monthly household expenditure, which SES class leveling provided by Nielsen

Choose particular SES class as targeted market (low-mid-high classes)

Choose age cohort 15 – 65 years old as productive age, based on ILO recommendation

Overlaid by other parameters that may fit-in to identify and provide market sizing calculation (for example: GSM subscribers, etc.)

Andri Budiwidodo

Calculation Sequences

Current SUSENAS (Y2014)

Raw data of INDIVIDUAL

Consist of 1.3M respondents

(module of age)

Current SUSENAS (Y2014)

Raw data of HOUSEHOLD

Consist of 300K households (module of expenses)

Predicted total population of

Indonesia

Household expenditure & SES

classes in % (A1, A2, B, C1, C2, D & E)

Age cohort in % (0-14, 15 -65 and above 65

years old)

Processing of Market sizing (targeted market): - Chosen SES class as targeted

market - Age cohort : 15 –65 years old

National Targeted Market/Potential

Market

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What next?

National Targeted Market/Potential

Market

Break down by Province level

Break down by Kabupaten/Kota

(Regency/Municipality)level

Break down by Rural and Urban in

Kabupaten/Kota

One of criteria for

PRIORITIZATION

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Overlay with other parameters (this example by using GSM subscribers)

Break down by Province level

Break down by Kabupaten/Kota

(Regency/Municipality) level

+

Telco Provider A

Subscribers Detailed per sales

teritory

Telco Provider B Subscribers

Detailed per sales teritory

Extrapolation based on %

age cohort per regencies/mu

nicipalities (kabu/kota)

Regencies/Muni-cipalities (Kabu-

paten/Kota) Market Sizing + predicted GSM

users/subscribers

Telco Provider C Subscribers

Detailed per sales teritory

These all figures are useful as base line info for expanding or for extending. By having these figures, will assist you to know better on how to expand, how much the budget will be expensed and the KPI. Andri Budiwidodo

End of slide

Andri Budiwidodo