[Company Name and Logo] <--insert user's company name & logo

Market Evaluation Tool

[Prepare by: (Name & position]<--insert name & porsition
[Date]<--insert date of entry
How to use this template:
Model Key Note: You may want to print this information to use as reference later. To
Numbers in white cells are entered by user. delete these instructions, click the border of this text box and then press the
Numbers in gray cells are calculated for you. These generally should not be altered. DELETE key.

About this template

General Information The Market Evaluation Tool is designed to help marketing, sales, and finance
Date of analysis dd/mm/yy teams forecast the market share for a new product or service. than 12
months). You can use the template to forecast annual revenue and gross
Marketing manager Rich Haddock margin based on the market share forecast, and to generate charts that
Summary of market opportunity and key assumptions: illustrate revenue and gross margin trends.
We will begin selling product X to the retail market in January of next <--This box allows you to fill in
year. We will attempt to position our product as the low-priced the summary of your market Technical Tips:
alternative, stressing market share over pure profitability. opportunity and key 1. WHITE cells indicate areas which are to be filled in by the user and NOT
assumptions the grey cells. The GREY cells indicate areas which the template will display
its calculations.
2. Mistakes can be undone by pressing the CTRL key and the Z key together.
3. The empty space below "Summary of market opportunity and key
Product Market Analysis Year 1 Year 2 Year 3 Year 4 assumptions" is meant for the user to insert his/her own summary.
Number of potential new customers 100,000 150,000 200,000 250,000
Explanations of terms (Terminology):
Percentage of potential customers with adequate funds to
purchase 25.0% 27.5% 30.0% 35.0% Competitor - Other companies vying for the same market share as the user
Number of available customers with budget 25,000 41,250 60,000 87,500
Converterd customers - Customers who have decided to sway their decision
Market share projections to involve the products of the user's company
Estimated share of annual market 25.00% 25.00% 30.00% 30.00%
Competitor #1 share 20.00% 20.00% 20.00% 20.00% No-buy decision - Customers who have decided not to subscribe to the
Competitor #2 share 15.00% 15.00% 15.00% 10.00% subject product.
Competitor #3 share 0.00% 5.00% 5.00% 5.00%
Direct - This concerns customer who are directly involved in the sales results
No-buy decision 40.00% 35.00% 30.00% 35.00% of the user's company
Total 100.00% 100.00% 100.00% 100.00% . For e.g. customers who respond to BRE (business reply envelop) and buy
the product direct from the source..
Number of converted customers
[Company name] <--insert user's company name 6,250 10,313 18,000 26,250 Indirect - This concerns customers who are indirectly involved in the sales
Competitors 8,750 16,500 24,000 30,625 results of the user's company. For e.g. purchasing the product via a re-seller
or ageny.
Total active customers 15,000 26,813 42,000 56,875
Estimated number of remaining customers 10,000 14,438 18,000 30,625 NOTE:
Template also puts user's Annual Revenue and Gross Margin into easy-to-
Financial Projections Year 1 Year 2 Year 3 Year 4 read charts in the following two tabs at the bottom. Click on either tab to view.
Channel mix
Direct 80% 75% 75% 70%
Indirect 20% 25% 25% 30%
Average sale per direct customer $200 $205 $215 $220
Average sale per indirect customer $225 $233 $240 $243
Direct annual revenue $1,000,000 $1,585,547 $2,902,500 $4,042,500
Indirect annual revenue $281,250 $600,703 $1,080,000 $1,913,625
Direct gross margin % 25% 28% 32% 36%
Indirect gross margin % 28% 30% 35% 39%
Direct gross margin $ $250,000 $443,953 $928,800 $1,455,300
Indirect gross margin $ $78,750 $180,211 $378,000 $746,314
 Annual Revenue
$4,500,000

$4,000,000

$3,500,000

$3,000,000

$2,500,000

$2,000,000

$1,500,000

$1,000,000

$500,000

$0
Year 1 Year 2 Year 3 Year 4
Direct annual revenue Indirect annual
revenue
 Gross Margin
$1,600,000

$1,400,000

$1,200,000

$1,000,000

$800,000

$600,000

$400,000

$200,000

$0
Year 1 Year 2 Year 3 Year 4
Direct gross margin $ Indirect gross margin
$