SCENARIO:

Adobe Valley Construction Company $($AVCC$),$ located in Medford, Oregon, specializes in new home

construction. As part of its strategic planning, the company is developing a business plan for the future.

Part of the business plan it is developing is the estimation or forecast of the size of the annual market for

new home construction in Jackson County where the company is operating. Further, the company wants

to estimate and develop a forecast of its annual share of the new home construction in the county. In

other words, AVCC wishes to develop a target market potential $($TMP$)$ given the specific product $($in this

case new home construction$)$ based on certain criteria $($e$.$g$.$ demographics$)$ below.

Target Population for TMP:

Home construction for $55+($almost retired and retired$)$ people whose annual income is at least

$$150,000.$ Geographical market area: Jackson County. Assume there are five construction companies in

the county who specialize in this target market. The median price of homes purchased by this target

customers is $$450,000.$ In $2021,$ of the total number of owner$-$occupied units in the county, $900$ new

housing permits were issued in $2021.$ Fifty percent of the $900$ housing permits issued were for new

home constructions valued at least $$450,000.$

Requirement:

$1.$ Using the target market potential template $($TMP Template$)$ from this link and the data provided

below, develop a target market potential for the business $($AVCC$).$

$2.$ Evaluate the reasonableness of the resulting market projection. Is it feasible? If it is not, why not

and what assumptions will you change to make the projection feasible and reasonable?