Determine your share of the potential sales volume within the market area. A market area and your target market within it will support a certain level of sales of a given product or service. To sell your product or service, you need to understand how the market is divided and what portion you might obtain.
View the Example: Market Share
Action
To complete this Element you will need to have completed your primary and secondary market research and your sales forecast, then:
- Describe how you estimated your market share.
- Using the summary table below, estimate and enter your total market for Years One, Two, and Three.
- Determine the average expenditure per customer for Years One, Two, and Three.
- For each year, multiply the number of customers times the average sale to arrive at the Total Potential Market.
- Enter your Total Projected Sales for Years One, Two, and Three (from your Sales Forecast).
- For each year, divide your Total Projected Sales by the Total Potential Market to arrive at your market share percentage.
- Add any necessary clarifying points to help your reader understand how you arrived at your conclusions.