ENT300 - BUSINESS PLAN

Formula to calculate total MARKET SIZE per year:

1. Total sales per year for every firm in the industry
2. % x population x total consumption per year
3. % X population x price x unit x frequency x 12
Formula to calculate total MARKET SHARE per year:
% x total market size per year

MARKET SIZE (Total potential purchase of target market)

Method 1:
Total sales per year for every firm in the industry

Firm Total Sales Per Year (RM)

Firm A 100,000
Firm B 80,000
Firm C 60,000

Total Market Size per year = RM100,000 + RM80,000 + RM60,000

= RM240,000

Method 2:
% x population x total consumption per year

Total Market Size per year = 10% x 100,000 x RM240 per year
= RM2,400,000

Method 3:
% X population x price x unit x frequency per month x 12

Total Market Size per year = 10% x 100,000 x RM2.50 x 2 x 4 x 12

= RM2,400,000

MARKET SHARE (A comparative measure to assess performance against the competition)

% x total market size per year

Total Market Share per year = 15% X RM2,400,000

= RM360,000