Market Share

1. Estimate Market Share – Complete the chart below, to one decimal place. (16 marks)

Outline 3 things that you observe from these numbers. (3 marks)

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1.  Estimate Market Demand (6 marks)

Spin Master Toys would like to introduce a new battery-powered adventure toy called “Bongo Bumper”, targeted to boys aged 5-9 years old in Canada. It is a unique toy that is expected to be a hit this year.  The toy will sell for $25 each.

Using the following information, forecast the market demand in dollars for the new “Bongo Bumper” toy in Canada for its first year of launch. Please state any assumptions you make. Show formulas and show your calculations.

• A Spin Master survey estimates that 80% of boys who see the toy in action would ask their parents for one.
• Past experience indicates that 65% of boys in Canada would either see advertising or learn about the toy from friends within its first year of launch.
• Spin Master has learned that 50% of parents will purchase a Spin Master toy that their child requests, as Spin Master has a reputation for toys with lasting play value.