The market potential of a product or service

What is the accessible budget of my target group?

The market potential is the budget spent by the households in a geographical area for a product or service. More specifically, SIRIUS Insight models the spending made by the consumers. The market potential is determined on the basis of detailed data such as income, population, spending in a specific category, Mosaic Belgium, family composition, employment, etc.

In this way, SIRIUS Insight calculates each year, for the 20,000 Belgian census districts, the market potential for numerous products and services such as food, clothing, energy, vehicles, organic products, restaurant visits, household appliances, etc.

This valuable information allows you to perform close monitoring of your market, as well as to estimate turnover for a new location, check performance, determine sales targets, etc. Finally, the geoconsumption model makes it possible to distribute this potential at local level.

How to read these maps?

The above maps represent different data used for calculating a market potential. In this case, data on household spending, household income, population and employment, as well as Mosaic Belgium information, are used to calculate and locate the market potential.

Five good reasons for calculating market potential:

  1. Analyse whether the points of sale are capturing the accessible market potential.
  2. Estimate the turnover of a new location.
  3. Determine sales targets on the basis of the locally accessible potential.
  4. Adapt your point of sale network according to the available potential.
  5. Evaluate the performance of your points of sale by comparing the theoretical turnover with the actual turnover.

Would you like more information about this study?

Movie: what is an optimal point of sale network?