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CH07-EX01. Bean-to-Bar Chocolate Case — How Qty Is Derived in a B2C Effective Market

  • Related Chapter: CH07 (Validating Business Feasibility and the Effective Market)
  • Related MN: MN07 Business Feasibility, Effective Market, and Projected Financials
  • Related KM: KM062-p-times-qty-by-transaction-type.md

What This Case Illustrates

This case shows what data is used to explain the basis for quantity sold (Qty) in a B2C transaction, when expressing Effective Market size as P (price) × Qty (quantity sold). It demonstrates, with a real case, the principle that when the individual consumer is the buyer, “at what price, how many people, and how often will they buy” becomes the core logic explaining Qty.

Case Details

In the bean-to-bar chocolate case, in order to absorb a high manufacturing cost, the revenue structure was designed around an online D2C channel, and the core target was narrowed to premium vegan customers. The Effective Market size was calculated by combining the product price, the size of the target customer base, and the annual consumption volume. The case combined three elements — a base-unit price of 19,000 won, an approximate vegan and potential-vegetarian population of 1.5 million, and an annual consumption volume — to derive the annual Effective Market size.

This figure is best understood not as the latest current market statistic, but as a case value illustrating what data the framework uses as Qty in a B2C context.

Implications of This Case

In calculating a B2C Effective Market, Qty only becomes an explainable number when you combine a narrowed target population that actually fits the product concept (premium vegan chocolate) — rather than the entire consumer population — with price and purchase frequency (annual consumption volume). This also shows that the choice to narrow the target itself is connected to earlier business-model decisions about channel (D2C) and price (19,000 won).

Source

Price Is Strategy, B2C case “The Choice of Bean-to-Bar Chocolate” and the B2C case’s Effective Market calculation section. (Reconstructed in KM062; the original source notes that the figures in the case are analytical values from the time the manuscript was written.)