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Market Potential

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Market Potential

Market Potential specializes in providing sustainability market support to help its clients reduce their environment impact and create significant market, appeal in the new green economy. In today’s market place, business and consumers are becoming savvy buyers. YouthSkin, will decided the price of the product and the geographic location of the market, that their customers will come from, who and where will the competitions. YouthSkin must calculate the portion of the market they can reasonably expect to capture. Market potential is an estimate of the amount of money YouthSkin can expect to make from the product they plan to market. YouthSkin estimate will only be as good as the information they use and the assumptions they make. There are seven steps to estimating market potential (YouthSkin) have already completed the first four steps. A. Define the market segment (Target) B. Define the geographic boundaries of the market (Japan and the United States). C. Define the Competition (Japan’s SYL, The Scrub shop by Velvet Scrubs, and IMOMOKO, In the United States Soap.com, Lalicious Sugar Soufflé Scrub, Ultra Beauty, Tree Shrew, Sugar Body and Alba Organic Hawaiian Body Scrub). D. Define the market size E. Estimate market shares F. Determine the average annual consumption G. Estimate an average selling price. In establishing the market shares or potential, this will allow YouthSkin to determine if their market will support their businesses by covering their loss and paying their salary. Generally the market potential is the highest estimated net revenue that Youthskin will realize from their enterprise. When estimating market potential and using the price calculated, they will see if they have covered their cost. One way for YouthSkin to use their market potential analysis is to change their assumptions and see if they can still cover their lost. In the event of loss YouthSkin can lower their expectation of the number of people who will buy from them or they can raise their prices . YouthSkin have identified the target market of the customers (US, & Japan).

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