Sample of Narrations

& Computations
(Chapter 3)
A. Market Size and Growth
The entire population of Letran has been used as basis for
the target population of this firm. This includes collegiate
students from all levels and departments. Based on the survey
results, 90% of the correspondents are willing to try the
companys ice cream products. Also from the survey, it
determines the number of frequency that each percentage of the
population in consuming ice cream. The following share of the
market:
35%- eats ice cream every day.
40%- eats ice cream every week.
15%- eats ice cream every month.
10%- eats ice cream in unspecified frequency. Averaging the
frequency results that one ice cream is consumed every 2
months.
The Following is the Historical for the past 3 years
Table 3. Historical Demand for the past 3 years in units.
YEAR POPULATION Demand POTENTIAL
(Students segment) (90%) DEMAND

2013 4178 3, 760 385, 024

2014 4466 4, 019 411, 545

2015 4841 4, 357 446, 157

 Table 3 show the population size from 2013 to 2014, it was
shown that the population growth rate greatly differs per year,
with the 2013-2014 growth rate being 6.4% and the 2014-2015
growth rate being 7.7%. The potential demand is computed by
computing for the number of shares of the demand according to
each frequency. Population source: Based on the 2013-2014 data
provided by the registrar.
Taking the 2013 data, the following computation is done:
2009 demand= 3, 760
35% of 3, 760= 1, 316 X 240 school days= 315, 840
40% of 3, 760= 1, 504 X 40 school weeks= 60, 160
15% of 3, 760= 564 X 12 months= 6, 768
10% of 3, 760= 376 x 6 months= 2, 256
Potential Demand= 315, 840+ 60, 160+ 6, 768+ 2, 256
Potential Demand= 385, 024
The formula is then done with the other demand per year as
to get the potential demand of that year. The computation of the
following years can be found at appendix A.
 Table 4. Projected Demand for the next 3 years.

YEAR POPULATION Demand POTENTIAL

(Students segment) (90%) DEMAND

2017 5, 547 4, 992 511, 181

2018 5, 938 5, 344 547, 225

2019 6, 357 5, 721 585, 831

 Table 4 presents the demand for the next
3 years in units. This includes both demand
and potential demand. The population is
based on the growth rate of 6.4% in 2014-
2015. Similarly, the demand and potential
demand follows the 6.4% growth rate.
Formulas
Demand
% of willingness to avail/try product/service x No. of
population

Potential Demand
Everyday
No. of demand x % of frequency (everyday) x 240 days (for
schools businesses)
No. of demand x % of frequency (everyday) x 365 days (for out
school businesses)
No. of demand x % frequency (weekly) x 40 weeks (for school
businesses)
Weekly
No. of demand x % frequency (weekly) x 40 weeks (for school businesses)
No. of demand x % of frequency x (weekly) 52 days (for out of school
businesses)

Monthly
No. of demand x % of frequency (monthly) x 10 months (for school
businesses)
No. of demand x % of frequency (monthly) x 12 months (for out of school
businesses)

Others
No. of demand x % of frequency (others) x 6 months (for school
businesses)
No. of demand x % of frequency (others) x 6 months (for out of school
businesses)

*Then add all the results for the year that you have computed
Projected Population
2016
% of growth rate (2014-2015) x no. of population (2015)

2017
% of growth rate (2014-2015) x no. of population (2016)

2018
% of growth rate (2014-2015) x no. of population (2017)

2019
% of growth rate (2014-2015) x no. of population (2018)