Demand Estimation - Calculators

Team Members:
 Dnyaneshwar Chakave
 Ritika Dayal
 Kitesh Jain
 Meghana Oak
 Binay Tiwari
Flow of Presentation
 What is Demand Estimation?
 Purpose of Estimation
 Steps in Demand Estimation
 Determinants of Demand
 Methods of Demand Estimation
 Criteria for Estimation method selection
 Demand Estimation Calculation
What is Demand??
 The amount of a particular economic good or service
that a consumer or group of consumers will want to
purchase at a given price

Ability Both
Willingness
What is Demand Estimation?

 It is Evolving Consumption pattern for a

desired time period.
 It determines approximate level of
demand for a product.
 Demand Estimation is an activity of
estimating the quantity of product or
service that consumers will purchase
Purpose of Demand Estimation

 Forward Planning and Scheduling

 Acquiring Inputs
 Making provision for finance
 Formulating pricing strategy
 Planning advertisement
Steps in Demand Estimation
TYPES OF CALCULATORS
Determinants of Demand
TARGET GROUPS
Methods of demand estimation
POPULATION CENSUS (in Mn)
YEAR UNDER 15 15-64 >65
YEARS YEARS
OLD OLD

2000 361 604 45

2005 368 673 51

2010 370 747 58

2015 372 819 65

2020 373 882 76

ASSUMPTIONS
 All commerce students need general calculators
 Though retailers and kiraana stores use
calculators these are not regular buyers and not
target as such
 70% of today’s youth reach up to 10th std
 Passing percentage for 10th std is 70%
 40% of students choose commerce
 Average student per commerce college 200
 Scientific calculators are used mostly used by
Engineers and MBA
DEMAND FOR GENERAL CALCULATORS
(students only)

METHOD 1
DEMAND FOR = youth of 15-20 age group

GENERAL *Students reached 10th std

CALCULATORS *Students passed 10th std
(For 5 years) *Students choosing
commerce stream
= 81mn *0.7*0.7*0.4
Average demand for general calculators
per year = 15/5 = 3mn
  
DEMAND FOR GENERAL CALCULATORS
(students only)

METHOD 1
DEMAND FOR = youth of 15-20 age group

GENERAL *Students reached 10th std

CALCULATORS *Students passed 10th std
(For 5 years) *Students choosing
commerce stream
= 81mn *0.7*0.7*0.4
Average demand for general calculators
per year = 15/5 = 3mn
  
DEMAND FOR GENERAL
CALCULATORS (FOR STUDENT)
METHOD 2
 DEMAND FOR = total commerce
GENERAL colleges in India
CALCULATORS *average capacity
*fraction of student
who need calculator
= 0.012mn*200*1
= 2.4mn
DEMAND FOR SCIENTIFIC
CALCULATORS

DEMAND = {no of MBA colleges

*average students per college
*ratio of potential students}
+
{*no of Engineering colleges
*average students per college}
= {1500*100*0.5} + {3500*350}
= 1.3 mn
THANK YOU