Calculating Market Demand The Industry Demand Analysis will help the Marketing and Production Departments understand future demand. Marketing can use the total demand for each segment els it creates a sales forecast. Production can use the results when making capacity buy and sell decisions. You will need: The Segment Analysis reports (pages 5-6) of the Foundation FastTrack for Round 0 . The Industry Conditions Report. On the Segment Analysis page you will find each segment's statistics. The top line is the total demand for the segment for last year (the FastTrack reports last year's data). The fourth line tells you next years growth rate for the segment. To find out the coming years total demand, simply apply the growth rate to last years total demand. For example, in the Low Tech segment analysis, Total Demand is 5040 and next years growth rate is 10.0%. Low Tech Segment Analysis Low Tech Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 5,040 5,040 70.0% Next years demand is calculated as follows (see Total Segment Demand table). Total Segment Demand Next Year's Segment Growth Rate 10.0% Total demand 5040 + Growth (Total Demand x 10.0%) 504 The above growth and demand figures are for example only. Your industry growth rates and demand may differ, but the process to calculate next years total segment demand is identical. Total Segment Demand next year (rounded to nearest whole number) 5544 Industry Demand Activity For your purposes, complete the form with the "average" scenario. Assume the Round 1 growth rates will continue into the future unchanged. This The above growth and demand figures are for example only. Your industry growth rates and demand may differ, but the process to calculate next years total segment demand is identical. Growth (Total Demand x 10.0%) 504 Total Segment Demand next year rounded to nearest whole number) 5544 Industry Demand Activity For your purposes, complete the form with the average scenario. Assume the Round 1 growth rates will continue into the future unchanged. This will give you some idea for potential market size. If you have time, try a worst case and best case scenario for Rounds 2 through 8. For worst case, assume, say, half the growth rate. For best case assume, say, 1.5 times the growth rate. Use the information in the Fast Track to calculate the Round Tydemand for each of the segments. Once you have successfully entered the correct demand for Rounds 0 and 1, then the rest of the table will fill automatically, Incomplete Low Tech Rnd Demand High Tech Rnd Demand Rate (%) Rate (%) 0 0 Incorrect value entered D 0 Incorrect value entered 1 0 Incorrect value entered 1 0 Incorrect value entered 2 2 2 3 3 4 0 Incorrect value entered 0 Incorrect value entered 5 5 6 6 7 7 8 8 Calculating Market Demand The Industry Demand Analysis will help the Marketing and Production Departments understand future demand. Marketing can use the total demand for each segment els it creates a sales forecast. Production can use the results when making capacity buy and sell decisions. You will need: The Segment Analysis reports (pages 5-6) of the Foundation FastTrack for Round 0 . The Industry Conditions Report. On the Segment Analysis page you will find each segment's statistics. The top line is the total demand for the segment for last year (the FastTrack reports last year's data). The fourth line tells you next years growth rate for the segment. To find out the coming years total demand, simply apply the growth rate to last years total demand. For example, in the Low Tech segment analysis, Total Demand is 5040 and next years growth rate is 10.0%. Low Tech Segment Analysis Low Tech Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 5,040 5,040 70.0% Next years demand is calculated as follows (see Total Segment Demand table). Total Segment Demand Next Year's Segment Growth Rate 10.0% Total demand 5040 + Growth (Total Demand x 10.0%) 504 The above growth and demand figures are for example only. Your industry growth rates and demand may differ, but the process to calculate next years total segment demand is identical. Total Segment Demand next year (rounded to nearest whole number) 5544 Industry Demand Activity For your purposes, complete the form with the "average" scenario. Assume the Round 1 growth rates will continue into the future unchanged. This The above growth and demand figures are for example only. Your industry growth rates and demand may differ, but the process to calculate next years total segment demand is identical. Growth (Total Demand x 10.0%) 504 Total Segment Demand next year rounded to nearest whole number) 5544 Industry Demand Activity For your purposes, complete the form with the average scenario. Assume the Round 1 growth rates will continue into the future unchanged. This will give you some idea for potential market size. If you have time, try a worst case and best case scenario for Rounds 2 through 8. For worst case, assume, say, half the growth rate. For best case assume, say, 1.5 times the growth rate. Use the information in the Fast Track to calculate the Round Tydemand for each of the segments. Once you have successfully entered the correct demand for Rounds 0 and 1, then the rest of the table will fill automatically, Incomplete Low Tech Rnd Demand High Tech Rnd Demand Rate (%) Rate (%) 0 0 Incorrect value entered D 0 Incorrect value entered 1 0 Incorrect value entered 1 0 Incorrect value entered 2 2 2 3 3 4 0 Incorrect value entered 0 Incorrect value entered 5 5 6 6 7 7 8 8
