how to estimate the market size
DESCRIPTION
market sizeTRANSCRIPT
HOW TO DO SALES FORECASTING
Step 1: Identify the competitors in the same industry
No. Name of company1 Dobi Lon2 Dobi Me3 Laundry Sparkle4 Dobi CT5 Junnaz Laundry
Step 2 : Estimate monthly sales for each companies
No. Name of company Monthly Sales Forecast(RM)
1 Dobi Lon 100002 Dobi Me 80003 Laundry Sparkle 50004 Dobi CT 60005 Junnaz Laundry 3000
TOTAL SALES 32000
Step 3 : Determine the total market size for one year
Example:
The calculation of market size can be estimated as below:Total market size for one year = RM32000 X 12 months: RM384 000
Step 4 : Determine market share
a) Previous sales and market shares
No. NAME OF COMPETITORS Sales forecast in a year (RM)
Market share (%)
1 Dobi Lon 120 000 312 Dobi Me 96 000 253 Laundry Sparkle 60 000 164 Dobi CT 72 000 195 Junnaz Laundry 36000 9
TOTAL 384 000 100
How to calculate market share?
Sales estimation for Dobi Lon X 100%
Total sales
120 000 x 100% = 31%
384 000
Market share estimation for 2010
No. Name of company Sales forecast for a year (RM)
Market share Estimation(%)
1 Dobi Lon 76800 202 Dobi Me 57600 153 Laundry Sparkle 46080 124 Dobi CT 49920 135 Junnaz Laundry 153600 40
Total 384 000 100
Step 5: Layout Your Sales Forecasting
SALES FORECAST FOR THE YEAR OF 2010
Bulan Product A Product B TOTAL1 Unit sold x sale price Unit sold x sale
price23456789
101112
TOTAL SALES 153600