Module 5 Assignment: Market Size of Yogurt - Brazil

Summary The goal is to understand the different steps in computing the size of a market (both in units of product and revenues) when planning the expansion to a new market (Brazil, in this case). The assignment consists of 4 steps as detailed following.

Below, you will find information about the population of Brazil. Table 1 depicts the population of Brazil by age and income brackets. In addition, Table 2 shows the average consumption of yogurt per Brazilian consumer by income bracket and the average retail price of yogurt in Brazil. Finally, you will also make the following assumptions: Average consumption in each income bracket is the same across age brackets (i.e., each age group in each income bracket consumes on average the same amount of yogurt). The yogurt market in Brazil is at a mature stage but still growing at about a +0.8% - +1.2% CAGR. That is, most consumers in the market consume yogurt, but at different average rates.

TOTALPOPULATIONIN2021:212,610,000
TOTALPOPULATIONOVER15:169,130,000
INCOMEBRACKETS	AGEBRACKETS	TOTAL	%
15-24	25-34	35-64	65+
>$40,000	331,862	380,574	731,391	206,173	1,650,000	1.0%
$25,000-$40,000	3,061,520	3,510,899	6,747,278	1,902,003	15,221,700	9.0%
$6,000-$24,999	11,905,911	13,653,497	26,239,414	7,396,678	59,195,500	35.0%
<$6,000	18,717,707	21,465,149	41,251,917	11,628,580	93,063,354	55.0%
	34,017,000	39,010,120	74,970,000	21,133,434	169,130,554
%	20.1%	23.1%	44.3%	12.5%
INCOMEBRACKETS	AGEBRACKETS	TOTAL
15-24	25-34	35-64	65+
>$40,000	0.2%	0.2%	0.4%	0.1%	1.0%
$25,000-$40,000	1.8%	2.1%	4.0%	1.1%	9.0%
$6,000-$24,999	7.0%	8.1%	15.5%	4.4%	35.0%
<$6,000	11.1%	12.7%	24.4%	6.9%	55.0%
TOTAL	20.1%	23.1%	44.3%	12.5%	100.0%
%

Table2.Annual averageconsumptionofyogurtinBrazilperincomebracket andAveragePrice(2021)

INCOMEBRACKETS	Annual Consumptionper consumer(Kgs)
>$40,000	66
$25,000-$40,000	21.5
$6,000-$24,999	14.75
<$6,000	5.47

Averageretailpriceofyogurt inBrazilis$1,423permetricTon.

QUESTION2(2points) The first step in the assignment is to estimate the total size of the yogurt market in Brazil in terms of metric Tons. Please enter the value in the corresponding box (in metric Tons). ______________?

QUESTION3(2points)

The second step is to estimate the total size of the yogurt market in Brazil in terms of US$. Please enter the value in the corresponding box (in Billion US$). ______________?

QUESTION4(3points)

Thethirdstepistoestimatethesizeoftheyogurt marketinBrazil(inmetricTons)foreachageandincome segment. Please enter the value for the size of each age and income segment (in metric Tons) in the corresponding cell.

INCOMEBRACKETS	AGE BRACKETS
18-24	25-34	35-64	65+
>$40,000
$25,000-$40,000
$6,000-$24,999
<$6,000

QUESTION 5

Pleaseuploadadocumentshowingcalculationsforyouranswer tothethreestepsoftheassignment you just completed.

QUESTION 6(3points)

Finally, based on your market size analysis results, which segment(s) offer the greatest potential? (Hint: pay attention to the total size of the segment(s), the potential revenue per customer and in total, andthelikelihoodofdevelopinganefficientmarketingmix[4P'sofproduct, promotion,place,andprice] to win consumers).