GENERAL STEPS IN CONDUCTING DEMAND AND SUPPLY ANALYSIS

Note: You must have done the tabulation before you do this.

1. Calculate for the Average Annual Demand using the survey results.
Note: You will need the answers for the questions "How often do you purchase ********?" and "In w
Sample:
A. How often do you purchase **********?
Choices Equivalent # of Respondents
a. Once a week 52 60 3120
b. Twice a week 104 20 2080
c. Thrice a week 156 10 1560
d. Four times a week 208 10 2080
SUM 8840
88

B. In what quantity do you purchase ********?

Choices Equivalent # of Respondents
a. By piece 1 70 70
b. By pair 2 18 36
c. By half-dozen 6 7 42
d. by dozen 12 5 60
SUM 208
2

Average Annual Demand = 176 <-- Average number of purchase

2. Determine the population from year 2020 - 2024. (We will assume that you will start operating on Jan. 2020
Note: If data is available from the municipality, you don't need to do the forecast on your own. If data
Sample:
Year Population
2015 10,000 Given Growth Rate
2016 10,500
2017 11,025
2018 11,576
2019 12,154
2020 12,761 = 2019 population X 1.05
2021 13,399 = 2020 population X 1.05
2022 14,068 = 2021 population X 1.05
2023 14,771 = 2022 population X 1.05
2024 15,509 = 2023 population X 1.05

After you have computed the average annual demand and the population, you can
u purchase ********?" and "In what quantity do you purchase ********?"

SEQUENCE OF DOING T
<-- Calculated by 1. Average Demand and
multiplying the 2. Demand Analysis
equivalent by # of 3. Supply Analysis
respondents 4. Demand and Supply

<-- Divide by total respondents

<-- Average number of purchases per year

<-- Calculated by
multiplying the
equivalent by # of
respondents

<-- Divide by total respondents

<-- Average number of units purchased per year

<-- Average number of purchases per year multiplied by Average number of units purchased per year

will start operating on Jan. 2020)

the forecast on your own. If data taken is incomplete, you must have the historical population and growth rate.

5%

and and the population, you can now proceed in determining the DEMAND and SUPPLY
SEQUENCE OF DOING THIS PART:
1. Average Demand and Population
2. Demand Analysis
3. Supply Analysis
4. Demand and Supply Gap
DEMAND ANALYSIS

Note: To do the Demand Analysis, you need the answer from the question "Do you experience a problem in ***
Sample:
Do you experience a problem in *********?
Choices # of Respondents
YES 100
NO 100

Note: To do the Demand Analysis, you just need to multiply the Average Annual Demand by the Potential Custo

Year Population Demand Percentage Potential Customers

2015 10,000 50% 5,000
2016 10,500 50% 5,250
2017 11,025 50% 5,513
2018 11,576 50% 5,788
2019 12,154 50% 6,077
2020 12,761 50% 6,381
2021 13,399 50% 6,700
2022 14,068 50% 7,034
2023 14,771 50% 7,386
2024 15,509 50% 7,755
tion "Do you experience a problem in **********?"

---------> 0.5
---------> 0.5

ge Annual Demand by the Potential Customers.

Average Annual Demand Total Demand for the Year

176 880,000
176 924,000
176 970,200
176 1,018,688
176 1,069,552
176 1,122,968
176 1,179,112
176 1,237,984
176 1,299,848
176 1,364,792
SUPPLY ANALYSIS

Note: To do the Supply Analysis, you need the answer from the question "Do you consume ********* product?"
Sample:
Do you consume *********** product?
Choices # of Respondents
YES 70 ---------> 70%
NO 30 ---------> 30%

To get the Historical and Projected Supply in the market, you multiply the percentage of people who an

Year Potential Customers % Supplied Population Supplied

2015 5,000 70% 3,500
2016 5,250 70% 3,675
2017 5,513 70% 3,859
2018 5,788 70% 4,052
2019 6,077 70% 4,254
2020 6,381 70% 4,466
2021 6,700 70% 4,690
2022 7,034 70% 4,924
2023 7,386 70% 5,170
2024 7,755 70% 5,428
on "Do you consume ********* product?"

ou multiply the percentage of people who answered "YES" in the above question with the Potential Customers

Average Annual Demand Total Supply

176 616,000
<--- To compute these,
176 646,800 you multiply the
176 679,140 Population Supplied
176 713,082 by the Average
Annual Demand
176 748,686
176 786,078
176 825,378
176 866,589
176 909,894
176 955,354
DEMAND AND SUPPLY GAP

Note: You can only compute the Demand and Supply Gap if you have already calculated the Demand and Supply.
Note: You also need the answers for the question "Would you like to try to purchase/consume (your new product)?"
Sample:
Would you like to try to puchase/consume (new product)?
YES 80 equivalent to 80%
NO 20 equivalent to 20%

Year Total Demand Total Supply Demand-Supply Gap Acceptability Rate

2015 880,000 616,000 264,000 80%
2016 924,000 646,800 277,200 80%
2017 970,200 679,140 291,060 80%
2018 1,018,688 713,082 305,606 80%
2019 1,069,552 748,686 320,866 80%
2020 1,122,968 786,078 336,890 80%
2021 1,179,112 825,378 353,734 80%
2022 1,237,984 866,589 371,395 80%
2023 1,299,848 909,894 389,954 80%
2024 1,364,792 955,354 409,438 80%
To compute the D/S Gap,
D/S Gap = Total Demand - Total Supply

AFTER YOU'VE DONE ALL OF THESE, COPY-PASTE THE APPROPRIATE TABLES IN YOUR
 calculated the Demand and Supply.
urchase/consume (your new product)?"

ACCEPTABILITY RATE = PERCENTAGE OF THOSE WHO ANSWERED YES

TARGET MARKET SIZE

211,200 Etong target market size na yung
221,760 number ng possible customers nyo.
Computed as D/S GAP x
232,848 Acceptability Rate. Dapat, yung
244,485 units na kaya nyong ibenta e di
256,692 lalampas sa target market size, kasi
eto lang yung currently na may
269,512 malaking chance mabentahan.
282,987 Pwede na rin kayo gumawa ng
297,116 magiging market coverage ninyo
depending on your company's
311,964 capacity to produce.
327,550

TE THE APPROPRIATE TABLES IN YOUR DOCU AND YOU'RE ALMOST DONE.