3.4 Sales Forecasting (Figure 3-20 ) 1. How would sales and the MDI change if sales growth were adjusted downward to 3% annually? 2. What would be the sales impact if the business could hold prices at $1,000 per unit over the 3-year planning period but lost 0.5 share points each year? FIGURE 3-20 USING MARKET AND SHARE METRICS TO BUILD A SALES FORECAST Sales Forecast Market Potential (units) Market Share Index Share Potential Index 2,000,000 10.0% 24.6% Base Year Year 1 Year 2 Year 3 5.0% 1,000,000 5.0% 1,050,000 53 5.0% 1,102,500 55 5.0% 1,157,625 58 50 Market Growth Market Demand Market Development Index Market Share Plan Market Share Index Share Development Index Volume Sold (units) Average Net Price Sales Revenues 8.0% 10.0% 41 8.5% 11.0% 45 9.5% 12.0% 10.5% 13.0% 49 53 80,000 $1,000 $80,000,000 89,250 $975 $87,018,750 104,738 $950 121,551 $925 $99,501, 100 $112,434,675