To see how the market size estimation process works, consider a relatively recent venture called Casper, which introduced a new mattress, shipped directly to customers. Casper intended to bypass the existing retail channels. Customers would order online, Casper would stuff the mattress in a small box (the mattress is made from a viscoelastic, foam material), and it would be delivered to the customer's doorstep. Prices were well below existing comparable quality mattresses, and Casper offered a 100 day, money-back guarantee. Q How would you assess the opportunity identified by the founders? Here is some information about the US market in 2014. US Population: 276 million Average mattress price (All types): $1,100 Median Household Income: $53,657 Current market shares by mattress type: . 60% Spring mattresses 25% Foam Mattresses 11% Airbeds . Number of mattress manufacturers: 429 Top three manufacturer market share: 47% Distribution channels: 47% Specialty Stores 38% Furniture Stores Average time to buy new mattress: 8-10 years Total annual revenue: $8.7 billion