[Company Name] Market Analysis Worksheet [Date] Model Key
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General Information
Date of analysis 12/31/04 Rich Haddock Marketing manager Summary of market opportunity and key assumptions: We will begin selling product X to the retail market in January of next year. We will attempt to position our product as the low-priced alternative, stressing market share over pure profitability.
Product Market Analysis
Number of potential new customers Percentage of potential customers with adequate funds to purchase Number of available customers with budget Market share projections Estimated share of annual market Competitor #1 share Competitor #2 share Competitor #3 share No-buy decision Total Number of converted customers [Company Name] Competitors Total active customers Estimated number of remaining customers
Year 1 100,000 25.0% 25,000
Year 2 150,000 27.5% 41,250
Year 3 200,000 30.0% 60,000
Year 4 250,000 35.0% 87,500
25.00% 20.00% 15.00% 0.00% 40.00% 100.00%
25.00% 20.00% 15.00% 5.00% 35.00% 100.00%
30.00% 20.00% 15.00% 5.00% 30.00% 100.00%
30.00% 20.00% 10.00% 5.00% 35.00% 100.00%
6,250 8,750 15,000 10,000
10,313 16,500 26,813 14,438
18,000 24,000 42,000 18,000
26,250 30,625 56,875 30,625
Financial Projections
Channel mix Direct Indirect Average sale per direct customer Average sale per indirect customer Direct annual revenue Indirect annual revenue Direct gross margin % Indirect gross margin % Direct gross margin $ Indirect gross margin $
Year 1 80% 20% $200 $225 $1,000,000 $281,250 25% 28% $250,000 $78,750
Year 2 75% 25% $205 $233 $1,585,547 $600,703 28% 30% $443,953 $180,211
Year 3 75% 25% $215 $240 $2,902,500 $1,080,000 32% 35% $928,800 $378,000
Year 4 70% 30% $220 $243 $4,042,500 $1,913,625 36% 39% $1,455,300 $746,314
Annual Revenue
$4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000
$1,500,000
$1,000,000 $500,000 $0 Year 1 Year 2
Direct annual revenue
Year 3
Indirect annual revenue
Year 4
Gross Margin
$1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Year 1 Year 2
Direct gross margin $
Year 3
Indirect gross margin $
Year 4