Market Share

Market share represents the percentage of an industry or market's

total sales that is earned by particular time period.

a
company over a specified
Market share is calculated by taking the company's sales over the period and

dividing it by the total sales of the industry over the same period. This metric is

used to give a general idea of the size of a company in relation of its market
and its competitors. Based on the market research conducted, 20% is the
market share of the proposed business.

Market Share

10% Competitor A

Competitor B
15%
Competitor C
50%
4%% Competitor D

1%
Lomibao's Water Refilling
Station
20%
Other Competitors
Outside City of Dagupan

Figure 2.1
Market Share
Pice Study

'ng is truly one of the most

imortant apet of your bunet
The busess
piie tange gives yo Company competitive advanlage n ne

dustry sinesses usually lowe thein ices to altrat domer a

eventually gain market shae fronm his
competitors
There are three (3) C's that influences the setting of
prices o
different products/ services.
They are
Customes, Competitors and Costs.
Customers influence price through their demand for products/ services
based on factors such as quality and product features.
Competitors influence price through their
pricing scheme, producty
services features and production volume.
Costs -influence price because it directly affects the supply (the lower the

cost, the greater the quantity a firm is willing to supply)

As for the pricing strategies, like any other
firm, Lomibao's Water
Refilling Station, gathered information through surveying 100 people from

the area where the business will be located at. The survey was about the
type of water people in the area most likely used in drinking, nearby
refiling stations, and the pricing scheme of the nearby refilling stations.

Based from the survey, the researchers concluded prices that are not that
high so that it can compete with the nearby statlons. The rescarcher

carefully analyzed the pricing method and decided to offer a price according

to their affordability which based on the results of the survey they are
 Lyceum Northweste rn Unvers1ty page
Institute of (iraduate and P'rofessuonal Studes

willing to spend P25.00 for their drinking needs. The proponents consider

also the cost of the product as a basis of pricing plus 40% mark up, and the

price of the competitors.

Table 2.2
Forecasted Sales of Products
Products Unit Price Average Daily Average
Demand Daily Sales
Mineralized Water (350 ml) 12 40 480
Mineralized Water (500 mil) 18 50 990
Mineralized Water (650 ml) 20 30 600
Mineralized Water (1.5 liter) 25 30 750
Purified Water (1 jag) 25 100 3,500
Alkaline Water (1 jag) 50 50 3,250
Cubed Ice (per kilo) 10 35 450
Tubed Ice (per kilo) 10 35 450
Total 8,430

Sales Forecast

predicting the total sales with the

Sales forecast is the process of

purpose of determining the

business growth form the profit that is earned

ANNUALLY. Sales are computed based on the average daily demand of the

products being sold.

8,430
Total average sales per day
x 30
No. days in a month
month 252,9000
Total no. of sales in a
No. of month in a year x 12
Total sales in a year
3,034,800