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In your initial assessment you may have already developed your ﬁrst basic Market Analysis worksheet
for analyzing potential customers. It will help you deﬁne your market and understand your key
market segments. As you complete your market analysis, look at your segmentation critically and
strategically. Is this the best segmentation? Be sure to revise and polish your numbers. The Market Analysis Table
As part of the business plan, you should generate enough information to develop a basic Market
Analysis table. The illustration below gives you an example of a list of market segments, implemented
as a spreadsheet table. Each segment is a group of customers that are classiﬁed according to the
market segments you deﬁne. MARKET ANALYSIS TABLE This table shows a simple classiﬁcation of market segments, each segment deﬁned by its total
potential customer count and its estimated growth rate.
To calculate compound average growth rate (CAGR), the standard formula is:
(last number/ﬁrst number)^(1/periods)-1
You can see that formula at work in the illustration, in the formula shown in the edit bar of the
spreadsheet, calculating the CAGR from the two numbers. Average growth in the Consumer segment
during that period was 2%.
In the illustration you can see how the spreadsheet works. It is pointing to cell H5, and the formula in
the edit bar is the formula in that cell. It identiﬁes the last year in row-column notation as G5, and the
ﬁrst year as C5. The growth rate calculation produces the number showing in H5, 2%. CHAPTER 12: YOUR TARGET MARKET FORECAST 12.3 As you can probably guess, the formulas in the rest of this row take the growth rate assumption in
column B and apply it to the other cells, after the initial value in column C. You add 1 to the growth
rate and multiply it by the previous year to get the next year’s calculated amount.
You can create a simple market analysis by estimating the number of potential customers for each
segment and the growth rate, as shown in this example. Once you...
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