Research and Markets: The 2009-2014 Outlook for Antiseptic First Aid Creams, Sprays, and Wipes in the United States

DUBLIN–(BUSINESS WIRE)–Research and Markets (http://www.researchandmarkets.com/research/654a37/the_20092014_outl)

has announced the addition of the “The

2009-2014 Outlook for Antiseptic First Aid Creams, Sprays, and Wipes in

the United States” report to their offering.

WHAT IS LATENT DEMAND AND THE P.I.E.?

The concept of latent demand is rather subtle. The term latent typically

refers to something that is dormant, not observable, or not yet

realized. Demand is the notion of an economic quantity that a target

population or market requires under different assumptions of price,

quality, and distribution, among other factors. Latent demand,

therefore, is commonly defined by economists as the industry earnings of

a market when that market becomes accessible and attractive to serve by

competing firms. It is a measure, therefore, of potential industry

earnings (P.I.E.) or total revenues (not profit) if the United States is

served in an efficient manner. It is typically expressed as the total

revenues potentially extracted by firms. The market is defined at a

given level in the value chain. There can be latent demand at the retail

level, at the wholesale level, the manufacturing level, and the raw

materials level (the P.I.E. of higher levels of the value chain being

always smaller than the P.I.E. of levels at lower levels of the same

value chain, assuming all levels maintain minimum profitability).

The latent demand for antiseptic first aid creams, sprays, and wipes in

the United States is not actual or historic sales. Nor is latent demand

future sales. In fact, latent demand can be either lower or higher than

actual sales if a market is inefficient (i.e., not representative of

relatively competitive levels). Inefficiencies arise from a number of

factors, including the lack of international openness, cultural barriers

to consumption, regulations, and cartel-like behavior on the part of

firms. In general, however, latent demand is typically larger than

actual sales in a market.

For reasons discussed later, this report does not consider the notion of

unit quantities, only total latent revenues (i.e., a calculation of

price times quantity is never made, though one is implied). The units

used in this report are U.S. dollars not adjusted for inflation (i.e.,

the figures incorporate inflationary trends). If inflation rates vary in

a substantial way compared to recent experience, actually sales can also

exceed latent demand (not adjusted for inflation). On the other hand,

latent demand can be typically higher than actual sales as there are

often distribution inefficiencies that reduce actual sales below the

level of latent demand.

As mentioned in the introduction, this study is strategic in nature,

taking an aggregate and long-run view, irrespective of the players or

products involved. In fact, all the current products or services on the

market can cease to exist in their present form (i.e., at a brand-, R&D

specification, or corporate-image level) and all the players can be

replaced by other firms (i.e., via exits, entries, mergers,

bankruptcies, etc.), and there will still be latent demand for

antiseptic first aid creams, sprays, and wipes at the aggregate level.

Product and service offerings, and the actual identity of the players

involved, while important for certain issues, are relatively unimportant

for estimates of latent demand.

Key Topics Covered:

INTRODUCTION

  • Overview

  • What is Latent Demand and the P.I.E.?

  • The Methodology

  • Step 1. Product Definition and Data Collection

  • Step 2. Filtering and Smoothing

  • Step 3. Filling in Missing Values

  • Step 4. Varying Parameter, Non-linear Estimation

  • Step 5. Fixed-Parameter Linear Estimation

  • Step 6. Aggregation and Benchmarking

SUMMARY OF FINDINGS

REGIONAL OVERVIEW

DISCLAIMERS, WARRANTEES, AND USER AGREEMENT PROVISIONS

For more information visit http://www.researchandmarkets.com/research/654a37/the_20092014_outl