Product: Holter Monitoring Device aka (portable electrocardiogram) (ECG)
Country: Spain
NAICS: 334510 Diagnostic equipment, electromedical, manufacturing
SIC: 3845 Electronics, High-Tech, Manufacturing
Background: MediCorp, Inc. wishes to enter into a new market in a new country i.e. Holter Monitoring Device (portable electrocardiogram) (ECG). MediCorp wants to conduct a market forecast for the first 3 years in business, which is 2020-2023.
Facts that will help solve the questions below:
- Spain's population: 46,754,778
- Cardiovascular disease (CVD) is the number one attributing factor in cause of death in which it claims 120,000 deaths per year
- CVD affects 37% of the adult population
- Price of Holter monitoring device = $324 (this number was made up. It is 3 dollars cheaper than that average price of Holter monitoring devices. This is because our product is supposed to be slightly cheaper than our competitors
- Small and medium Small and medium sized companies make up 90% of the market but only account for 40% of the sales. Meanwhile, large companies (i.e. competitors) make up an estimated 8% of the market but generate approximately 60% of the sales (International Trade Administration, n.d.)
Task: Answer the provided questions below
1. Who are my potential customers?
a. In this step I took the population (because anyone could have CVD) * 37% (that is the percentage that affects the population) = b. Took population again- from b = potential customers. I was not sure if this was correct or not
46,754,778 * 37.0% = 17299267.86 %
46,754,778 - 17299267.86 = 29,455,510 Potential customers
2. What is the size of the addressable market in Spain?
a. Year 1, 2 , & 3
3. What % of that market do you expect to capture from your strategy and your plan in year 1, 2, & 3
4. Prepare market share estimates for MediCorp's product in the selected country & revenue forecasts for the next three years
a. Assuming the size of the market is in dollars, then it's simple, it's for example: 15% of a billion dollars / by the number of the price for that market
b. identify the number of units to be sold, and size of the market, what percent market share you expect to capture for year 1,2, & 3 then divide the dollars revenue from that / that by the price per unit that I'm selling the product. From there I should have a forecast and the number of units I expect to sell & then market in years 1, 2, & 3
i. Take revenue and divide it by price per unit = give the number of units expected to sale
ii. Revenue = number of units sold x Price per unit
c. Two types of measure that will be used when evaluating in this case strategy
i. Lag measures are really kind of like financial reporting and focused on things that have happened. The measure accomplishments that had been made or not. - Focuses on results
ii. Lead measures, on the contrary, or a little bit different. They are focused on an organization, what an organization must do well to accomplish the results. - The "if" component of an "if" "then" statement. I.e.: If we perform this activity better, then we will achieve this outcome