Market Analysis

[Company Name] Market Analysis Worksheet [Date] Model Key Numbers in white cells are entered by user. Numbers in gray cells are calculated for you. These generally should not be altered.

General Information Date of analysis 12/31/04 Marketing manager Rich Haddock Summary of market opportunity and key assumptions: We will begin selling product X to the retail market in January of next year. We will attempt to position our product as the low-priced alternative, stressing market share over pure profitability.

Product Market Analysis Number of potential new customers Percentage of potential customers with adequate funds to purchase Number of available customers with budget Market share projections Estimated share of annual market Competitor #1 share Competitor #2 share Competitor #3 share No-buy decision Total Number of converted customers [Company Name] Competitors Total active customers Estimated number of remaining customers

Year 1 100,000

Year 2 150,000

Year 3 200,000

Year 4 250,000

25.0% 25,000

27.5% 41,250

30.0% 60,000

35.0% 87,500

25.00% 20.00% 15.00% 0.00% 40.00% 100.00%

25.00% 20.00% 15.00% 5.00% 35.00% 100.00%

30.00% 20.00% 15.00% 5.00% 30.00% 100.00%

30.00% 20.00% 10.00% 5.00% 35.00% 100.00%

6,250 8,750 15,000 10,000

10,313 16,500 26,813 14,438

18,000 24,000 42,000 18,000

26,250 30,625 56,875 30,625

Financial Projections Channel mix Direct Indirect Average sale per direct customer Average sale per indirect customer Direct annual revenue Indirect annual revenue Direct gross margin % Indirect gross margin % Direct gross margin $ Indirect gross margin $

Year 1

Year 2 80% 20%

Year 3 75% 25%

Year 4 75% 25%

70% 30%

$200 $225

$205 $233

$215 $240

$220 $243

$1,000,000 $281,250

$1,585,547 $600,703

$2,902,500 $1,080,000

$4,042,500 $1,913,625

25% 28% $250,000 $78,750

28% 30% $443,953 $180,211

32% 35% $928,800 $378,000

36% 39% $1,455,300 $746,314

Annual Revenue $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0

Year 1

Year 2 Direct annual revenue

Year 3 Indirect annual revenue

Year 4

r4

Gross Margin $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0

Year 1

Year 2 Direct gross margin $

Year 3 Indirect gross margin $

Year 4