New started

[bloodypure]

Apologies, title should say 'New starter'

Hi,

I am just looking into starting up a business but there are certain things which I have no idea how to do, e.g. work out market audience or estimate first year sales etc.

I will be in the soft drinks industry so personally I feel that could be targeted at all ages from toddlers up to senior citisens and when it comes to estimated sales!!!! if tesco wants to give me a call my estimated sales are about a million billion however if that does not happen it totally depends on how many people i can convince to part with there money...

Any tips or advice regarding this would be greatly recieved.

thank you very much in advance.

Berny

 

[AlexanderR]

You work out market audience and estimate your first year sales through market research.

You need to figure out how many people will like the taste, the brand image, the price, the chemical effect (if any), the package design, the product color and so many more details than I can be bothered typing right now.

Once you have this data, you work out what percent of them would consider buying, 50% of these people probably would. Then you research what percentage of the population falls into your demographic, and again, 50% of your demographic would probably purchase if you get your marketing done right.

What I mean about doing the right marketing, is getting your product in the right place, in front of the right people, at the right time, and at the right price.

Once you know that you have the right marketing strategy, then you know that 50% of your demographic would probably buy, so you can estimate your sales as price per product x the number of customers. I wouldn't worry about additional purchases in year 1, as you may find that in real life, only 20% of your demographic actually does buy, but they buy multiple times, and so the scale evens out.

Good luck!