CH08-EX01. Bean-to-Bar Chocolate — B2C Effective Market Sizing Example

• Related Chapter: CH08. From Qualitative to Quantitative — Effective Market Sizing and P×Qty
• Related MN/KM: MN07 / KM062

Think it through

This is a B2C case of bean-to-bar chocolate. The core target was narrowed to premium vegan customers, and the buyer is an individual consumer.

1. In B2C, which factors are multiplied together to build the rationale for Qty (units sold)?
2. What input values did this example use to calculate the effective market size?
3. How should these figures be treated?

Show answer and walkthrough

• What this example illustrates: how the rationale for Qty (units sold) in a B2C transaction is built as “price × number of target customers × annual consumption volume.”

Content

In the bean-to-bar chocolate example, the revenue structure was designed around an online D2C channel to absorb the high manufacturing cost, and the core target was narrowed to premium vegan customers. The effective market size was calculated by combining the product price, the number of target customers, and annual consumption volume. Because the buyer is an individual consumer, “at what price will how many people buy how often” becomes the core logic explaining Qty.

The example calculates the annual effective market size using a base-unit price of KRW 19,000, a vegan and potential-vegetarian population of about 1.5 million people, and an annual consumption volume.

This figure is not the most current market statistic as of today — it is the example value from when the manuscript was written, shown to illustrate what data the framework uses as Qty in a B2C context. Treat it as unverified/estimated.

Source

Price Is Strategy, B2C case “The Choice of Bean-to-Bar Chocolate”; the effective market sizing section of the B2C case.