‘How many customers could you truly win?’ said Shari addressing the market demandingly

Estimating market size is challenging with the Caution Cup because the customer market is not fully developed – success of the cup depends on the success of date rape awareness campaigns.

There is a demand for faster, more discrete, automatic, and more accurate date rape drug detection technology but the size is difficult to quantify. There are many testimonials on competitor websites saying how these more obvious and manual technologies have helped them to feel safer and have awoken them to dangerous situations. These products though are not widely distributed or easily available. Due to the advantages of the Caution Cup over competitors like the Drink Safe Coaster we believe we can overtake the awareness movement our competitors have started and reach more customers. We were unable to acquire any data on the units sold each year or any financial data on our competitors so we could not compare the data to our projections.

We believe the addressable market are females 18-25, parents of females age 18-25, and people who throw college-aged parties (frats, sororities, student governments, etc.). To calculate our market size we assumed we would start at two colleges, and would scale the success to other colleges of similar size to pitch the technology to cup manufacturers. Of these colleges we calculated how many were female, and how many drank at least once a week. We then assumed we could reach 3-5% of those students. This neglects customers we may get who throw parties (frats, sororities), college aged girls who don’t go to college, and the potential for parents. There are a lot of potential customers but we had to focus on the easiest and most reachable customer base for phase 1 of our business plan (manufacturing single lot).

As awareness of the dangers and product solutions gain momentum the customer base will increase but by this time our company hopes to be licensing the technology. Due to this, once we have real customer data and a customer base we must extrapolate the numbers to define a national customer base for our licensees.

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One Response to “‘How many customers could you truly win?’ said Shari addressing the market demandingly”
  1. I think that targeting the fraternities and sororities is a great idea – I think that besides bars, most college date rapes could be traced back to frat parties (no research behind that, just an assumption). Assumping that the girls were sober enough to think to look in their cup before they took a sip, of their drink I really think that the Caution Cup could help reduce the number of date rape cases on college campuses.

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