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NPQ Analysis

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Estimate the qualified product or market potential
It has two methods to estimate the qualified product or market potential the first is NPQ formula and the second is market build-up approach. 1. NPQ formula
It uses an equation as follows:
Q = n × q × p
Q = total market demand
n = number of buyers in the market
q = quantity purchased by an average buyer per year
p = price of an average unit

With the data form ecommerce-magazine1, we know that at the present there are 28% or 18 million of Thai people use the smart phone. And it has an average of smart phone purchasing is 1.8 unit per year. In addition, price of an average unit which we have researched from dailynews2 is 10,000 baths. Then, we can calculate the solution from n= 18,000,000, q = 1.8 and p = 10,000 Q = n × q × p

= 18,000,000 × 1.8 × 10,000
= 324,000,000,000
Thus, Company demand is the company’s share of market demand is 324 million. It means that when our company starts into the business. We will measure the market demand from this result that how many the sums of all the trends customers buy the Smartphone in Thailand.

2. The market build-up approach ( In Thailand )

It still use the NPQ formula to find the solution however it evaluate for all regions on the basis of determined income range and age intervals which collect from Thailand mobile apps statistic3.

Income| n| q| p| NPQ|
Less than 15,000| 648,000| 1| 8,000| 5,184,000,000|
15,001-24,999| 558,000| 1.9| 12,000| 12,722,400,000|
25,000-49,999| 432,000| 1.9| 16,000| 13,132,800,000|
50,000-59,999| 72,000| 2.5| 16,000| 2,880,000,000|
60,000-79,999| 54,000| 2.5| 25,000| 3,375,000,000|
More than 79,999| 36,000| 2.5| 25,000| 2,250,000,000|
Total NPQ = 39,544,200,000| | |

The table show to scale of market demand of customer who has income in the range between 15,001-49,999 is the most effect to market build-up. Age

Age| n| q| p| NPQ|
Less than 15 years| 720,000| 8,000| 1.5| 8,640,000,000| 15-29 years| 2,340,000| 8,000| 1.5| 28,080,000,000|
20-24 years| 4,320,000| 12,000| 2.5| 129,600,000,000|
25-29 years| 7,200,000| 12,000| 2.5| 216,000,000,000|
30-34 years| 2,160,000| 12,000| 2.5| 64,800,000,000|
35-39 years| 540,000| 10,000| 1| 5,400,000,000|
40-44 years| 540,000| 10,000| 1| 5,400,000,000|
More than 45 years| 180,000| 10,000| 1| 1,800,000,000| Total NPQ = 610,920,000,000| The table show to scale of market demand of customer who is 20-29 year old in the range is the most effect to market build-up. That relate with the above table because the age range of the worker who start working or work till has financial stability. So, they are group of people will effect with market build-up.

Footnote

1ecommerce-magazine. URL : http://www.ecommerce- magazine.com/issue/167/November_2012_SP_Google [21 February 2013]

2dailynews. URL: http://www.dailynews.co.th/technology/183976 [21 February 2013]

3 Thailand mobile apps statistic. URL : http://www.bloggang.com/viewblog.php?id=kikapeo&date=14-09-2012&group=1&gblog=3 [21 February 2013]

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