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MenuHow can I estimate the market size for a platform business that combines product information with consumer behavior information?
The platform uses a barcode reading mobile app to combine product information with consumer behavior (with full information). We are struggling to understand what is the size of our potential market (BeNeLux + EU), given that we want to sell market reports to brands, on the real drivers behind consumer choice - FMCG and retail in particular.
Any suggestion helps, and I would be happy to talk further!
Thanks!
Answers
If your market is 'market research' then you can easily top € 1BN in EU alone. If you're creating a new market then to calculate total addressable market I'd look at similar products and multiple their price x number of prospects, or calculate the financial cost/upside for your prospects x number of prospects. In NL alone there are about 1500 FMCG suppliers I believe
Related Questions
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Do you think this can be a successful business venture?
I have several years of experience in marketing and optimization in the eCommerce space for one of the largest online jewelry retailers in the U.S. I also have several year of experience working with online retailers that operate under a subscription models. In order to answer your question, you will need to consider the following: Will your subscription revenue generate enough income to maintain the operational strains of this business model and be profitable? If you do not know the answer to this, you need to work backwards to arrive at the monthly pricing for your subscription service. Some things to consider: 1. Cost associated with operational logistics like shipping and fulfillment (assuming customers have to receive and ship the jewelry back to you) 2. Carrying costs associated with holding on to inventory on consignment. (assuming you will not own the jewelry outright) This may come with other contingencies like having to carry insurance and the operational aspects that will help you handle recovery of lost / unreturned inventory, etc. 3. Costs associated with building a transactional platform that is built for the monthly activity you will have with a subscriptions service. If you take Macy's for example, most customers place online orders 4 times per year or so. In your case, the nature of your model requires a different platform as you will be taking recurring payments, arranging returns, maintaining credit card / payment information, etc. In short, its a different animal that your startup eCommerce type platform. If you'd like to get more details or insights I'd be happy to hop on a call and chat.MP
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I started an all natural dog cupcake business w/ my sis that gained popularity fast, but we don't know what the best business model is for us to grow?
Having 4 dogs and being a former sugar addict, I love the idea of dog cupcakes, kudos! My wife and I are currently solving a very similar issue with her t-shirt business. We don't have a freshness issue to deal with like you do, however we do have a scalability and growth issue that we are tackling. Understand, there isn't really anything that remarkable about dog cupcakes, it's cool concept but it would be very easy for someone to deconstruct and create their own recipe and brand. So you'll need to focus on how you sell your cupcakes. What value you offer your customers? Why your recipe is unique? Is there any portion of your product, formula or service that could be trademarked or patented? Do you have a memorable name, tagline and mascot? Are the health benefits to your product? I know that in some cases pet food can be highly regulated so you may not be able to make specific health claims. Next, I think you should look at a three pronged approach that is scalable: 1. Continue to develop your local market, treating it like a test kitchen. Work on new recipes, concepts, products, ideas and test them locally. Build a unique product line and a unique system for creating those products. 2. Develop a strong network of pet owners, pet shops, boutiques, organizations and so on. 3. Market your dog cupcake system and sell it as a turnkey package. This could be as simple or as fancy as you want to make it. The simple way would be to sell one time "starter package" with upgrades on a subscription model. This would include order forms, marketing plans, marketing materials, new product ideas, training videos, shopping lists, ingredients and so on. The expensive way would be to lawyer up and create an actual franchise but this can be very very expensive. I hope this was helpful and I'd be happy to work with you further on developing your business. Good luck and I look forward to buying Sadie, Charlie, Nixie and Sachi some tasty treats from you in the near future!SM
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Is anyone familiar with consignment deals with retailers?
Walmart calls it "Pay from Scan." Also "Guaranteed Sales." Sam's Club calls it a "Road Show."MF
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What are average profit margins in Ice Cream store business?
Hi! I am owner of an ice crean chain with 45 stores in Chile. We have stores in shopping centers, streets and also karts that you can put in events and parks. The average cost margin of ice cream (depends on the amount of materials you use in producing the ice cream) is around 40%. This is italian gelatto where you serve the ice cream without a specific measurement so your costs can vary due to the size of each portion you serve. About the brand you should focus on your unique value proposition and what kind of ice cream you are selling. We import the pastry from Italy and the fruits and milk from our country. Your ROI depends on your sales price and costs. If you focus on high market ice cream you can charge high and keep costs down.MF
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What are the best strategies or resources for selling B2B to independent stores in the consumer products space?
Based on the details mentioned by you it seems that you want to break the status-quo of your business. I would advise you to revisit your business model than just looking at enhancing sales. That means, you should pen-down your top 3 business problems/challenges, analyze modern technology and platforms that could be leveraged, and map your business with appropriate solution (s). Larger part of above exercise will be to develop an "Integrated Growth Plan" with monetization enhancement as the hub. Do ensure not to just look at "Sales" number as the problem as well as solution. That may end you up with burning too much capital for too many things with too little solutioning potential. In my decade of experience working with entrepreneurs I've seen people often confusing symptom to a disease, only to cure the symptom and let disease prevail. Hope above helps!! All the best!! Need to discuss anything further? I am just a clarity away.SB
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