Use the metrics provided above to calculate the new market share predictions using the Fair Share Draw. 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 cas

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 exis

market share of those products.

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.

Click the icon to view the current and estimated sales data.

Use the metrics provided above to calculate the new market share predictions using the Fair Share Draw. $($Round to one decimal place.$)$

If the Fair Share Draw assumption is WRONG and the new product sales tend to come from Product $C$ more than Product A and $B,$ how should the

market share for Product A and B be adjusted?

Product A and B market share will decrease by less than predicted by the Fair Share Draw rule.