Question 1
A beverage company wants to estimate the annual “Addressable Market” (in ₹) for a new premium coffee brand in India. They purchase a national survey with 10,000 households and the following summary:
● 70% of households consume coffee at least once a week. ● 40% of coffee-drinking households have monthly household income ≥ ₹80,000. ● Among those higher-income coffee-drinking households, the average is: ● 20 cups of coffee per month per household, ● Expected willingness to pay of ₹50 per cup for premium coffee.
Assume this survey is nationally representative of 300 million households in India.
Which is the BEST first step to avoid overestimating the “Addressable Market” for this premium brand?
Multiply 70% of 300M households × 20 cups/month × ₹50 × 12 months.
Multiply 40% of 300M households × 20 cups/month × ₹50 × 12 months.
Multiply 70% × 40% of 300M households × 20 cups/month × ₹50 × 12 months.
Multiply 300M households × 20 cups/month × ₹50 × 12 months.
