So w Question 1 Assumptions: Forecasted Industry Growth Rate = 15% Companies Market Share Post Types 2019 Sales 40% Square $400 M 40% Round $400 M 20% Square $200 M Totals 100% N/A $ 1 B 60% Post Innovations (a new entrant in the post market) wants to capture 20% of the Square Post Market by 2022. Post has developed a very cost effective post material that does not rot when exposed to water or termites. 10 Assumptions (cont) The SAM % / TAM % ratio is expected to remain constant over the period 2020 to 2022. Post Inno. Prod. Ramp Capability = 400% Year over Year (YoY) This means they can quadruple production year over year. Average Selling Price (ASP) is $10.00/unit in 2020 through 2022. Forecasted Growth Rate is 15% YoY from 2020 to 2022. A) What is the Total Available Market (TAM) in $? B) What is the Serviceable Market (SAM) in $? 2019 TAM SAM 1 B 600 M 2020 1.15 B 690 M 2021 1.32 B 790 M 2022 1.52 B 910 M So w Question 1 Assumptions: Forecasted Industry Growth Rate = 15% Companies Market Share Post Types 2019 Sales 40% Square $400 M 40% Round $400 M 20% Square $200 M Totals 100% N/A $ 1 B 60% Post Innovations (a new entrant in the post market) wants to capture 20% of the Square Post Market by 2022. Post has developed a very cost effective post material that does not rot when exposed to water or termites. 10 Assumptions (cont) The SAM % / TAM % ratio is expected to remain constant over the period 2020 to 2022. Post Inno. Prod. Ramp Capability = 400% Year over Year (YoY) This means they can quadruple production year over year. Average Selling Price (ASP) is $10.00/unit in 2020 through 2022. Forecasted Growth Rate is 15% YoY from 2020 to 2022. A) What is the Total Available Market (TAM) in $? B) What is the Serviceable Market (SAM) in $? 2019 TAM SAM 1 B 600 M 2020 1.15 B 690 M 2021 1.32 B 790 M 2022 1.52 B 910 M