ketSharc 13. For the Canadian sneaker market, assun selling price of $70. Each c
ID: 387810 • Letter: K
Question
ketSharc 13. For the Canadian sneaker market, assun selling price of $70. Each consumer e that, 70 percent of the 34 million people would buy a pair of Canada? would buy one pair a ycar on average. What is the market potential for the sneaker in sneakersa every five years, and the cost of the same over the next l0 years. E eaters, 95 percent of them have 10 stools on average. The theaters typically replace a new stool is $250. In this mature market, we can assume that the selling price will stay about stimate the U.S. market potential for stools designed for theater 15. The current market demand for flat-panel TVs is 40 million households. If the market potential is 120 million households, what is the market development index? What does the index mean? Interpret the index 16. If 75% ofconsumers are aware of Toyota's Prius hybrid car, and 45%Of that group likes the products benefit and 44% of that group finds the price acceptable, and 5 1% of that group is able to easily buy the product in their local market and 75% of that group has a favorable service experience when dealing with Toyota and its dealers, then what is the market share index for the Prius? Lulu Lips market share should have been 8% n the lipstick market, but owing to a vanet of other factors, ts actual market share was only 59 Furthermore, it was estinated that the business, market share index potential would be 15% if the business achieved the desired level of customer response along the share development path What is Lulu Lip's Share Development Index 7Explanation / Answer
Answering the first 4 questions:
13. Market potential = No of buyers * Quantity purchased by average buyer * Cost of 1 unit of product
= (0.7*34)*(1)*(70) million = $1666 million
14. Market potential = No of buyers * Quantity purchased by average buyer * Cost of 1 unit of product
= (17000*0.95) * (10) *(250) = $40,375,000
15. Market development Index (MDI) = (Current market demand/Market Potential) * 100
= (40/120)*100 = 33.33%
MDI is the basic ratio between the current market demand and market potential. It is usually used to evaluate a market and estimate its market potential in future.
16. Market share index = (0.75*0.45*0.44*0.51*0.75) Market / Market * 100
= 5.6%
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