Mini Case: Assessing Market share after the Entrant of a New Product When a new product enters a market, it is important to estimate what the effect will be on the market share of all other existing products. In most cases, when a new product enters a market, the new sales of that product will come from two sources: (1) Some of the sales will come from entirely new purchases that would have never been made if the new product didn't come to market. (2) Some of the sales will come from the new product taking away purchases from the existing products. Perhaps the easiest way to estimate what will happen to the market share of other competitors is use an approach called the "Fair Share Draw." The Fair Share Draw rule make the assumption that the new product's sales that come from existing competitors will come in direct proportion to the existing market share of those products. LOADING... Click the icon to view the way the Fair Share Draw assumption calculates the effect of a new entrant on an existing product's market share. LOADING... Click the icon to view the current and estimated sales data. Use the metrics provided above to calculate the new sales and market share predictions for all products. First calculate the current market share values for existing products. (Round to one decimal place.) Current Market Share Sales ($) Market Share Existing Product A $200 Existing Product B $600 Existing Product C $200 Total $2000 100% Now use the Fair Share Draw to calculate the new sales for existing products. Use the formulas provided above. (Round to the nearest dollar.) New Estimated Market Share Sales ($) Existing Product A $ Existing Product B $ Existing Product C $ Calculate the new product sales and new total sales values. (Round to the nearest dollar.) New Estimated Market Share Sales ($) Existing Product A Existing Product B Existing Product C New Product Total