Segment Performance for Recipe Books (Both Digital and Print)

Segment	Growth 2017-2018	2018	2019	2020 (Projected)
Urban professionals (recipe books for home use)	1%	35,000	35,400	35,900
Chefs running own restaurants	28%	8,000	10,500	14,100
Trainee chefs enrolled in culinary schools	3%	2,210	2,250	2,275
Total		45,210	48,150	52,275

The following projections are related to segment viability for 2020.

Segment	Urban Professionals	Chefs Running their Own Restaurants	Trainee Chefs Enrolled in Culinary Schools
Segment Adoption Rate %	25%	20%	40%
Purchase Behaviour ($)	250	500	1000
Profit Margin %	15%	15%	25%
Fixed Marketing Costs ($)	250,000	200,000	100,000

a) Calculate market share % for the three segments for 2018, 2019 and 2020. Show your work. Present your answers in a table format.

b) Calculate market growth % of the three segments for 2018-2019, 2019-2020. Show your work. Present your answers in a table format. [Consider the growth % provided for 2017- 2018 for decision making]

c) Calculate the profitability of the three market segments for year 2020. Show your work.

d) Answer the following i. Compare the potential between market segments in terms of size, growth and profitability based on your calculations.

ii. Describe OTHER quantitative and qualitative factors will you consider when comparing these three segments? iii. Taking MARKET SEGMENT DATA and OTHER factors into account, recommend the most promising market segment Spice House Restaurant should pursue. Explain your reasons in detail.