Published Industry Data

To get some idea of the total market for a particular product, you might begin by examining pertinent industry research. For example, to estimate the demand for jogging shoes among consumers ages sixty-five and older who live in retirement communities in Florida, you could look at data published by the National Sporting Goods Association ( http://www.nsga.org). This organization collects extensive data annually, compiles the data, creates reports on various topics, and sells the reports on its website to its members and other interested buyers. You might be particularly interested in four of the organization’s reports: (1) “Sports Participation in the U.S.” (provides overall statistics on the current and future state of the sporting goods industry), (2) “Sports Participation State-by-State” (reports sports participation statistics for each state, including Florida), (3) “Sports Participation: Lifecycle Demographics” (details participation in sports by various demographic variables, including age and geographical location), and (4) “Sports Participation, Single Sport” (reports detailed participation figures for a variety of sports, including running and jogging).

Now, let’s say that your research turns up the fact that there are 3 million joggers older than sixty-five and that 600,000 of them live in Florida, which attracts 20 percent of all people who move when they retire. How do you use this information to estimate the number of jogging shoes that you’ll be able to sell during your first year of business? First, you have to estimate your  market share Company’s portion of the market that it has targeted.: your portion of total sales in the older-than-sixty-five jogging shoe market in Florida. Being realistic (but having faith in an excellent product), you estimate that you’ll capture 2 percent of the market during your first year. So you do the math: 600,000 pairs of jogging shoes sold in Florida × 0.02 (a 2 percent share of the market) = 12,000, the estimated first-year demand for your proposed product.

Don't use plagiarized sources. Get Your Custom Essay on
Published Industry Data
Just from $13/Page
Order Essay
ORDER NOW »»

and taste our undisputed quality.