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Target Market Size
Estimated Market Population:
The PuzzleIt markets towards children in the United States who are part of moderately wealthy families.
Starting with the USA’s population of about 335 million, we can begin lowering the target population. According to an article by Rakesh Kochhar and Stella Sechopoulos, an estimated 71% of Americans are in our target economic market: middle to upper class. Of those, 9.2% are in our target age market, below the age of 5.
Multiplying these statistics grants us the total population of Americans eligible for the PuzzleIt and modules: roughly 22 million children.
As expressed as a formula:
Total Population of the USA * Percentage in the target economic class * Percentage in the target age = Total market population
Estimating Total Profit:
Assuming our worst-case scenario, where a mere 10% of the target market purchases the PuzzleIt and its modules, the PuzzleIt team projects an overall profit of 268 million USD.
As expressed as a formula:
Total market population * Estimated percentage purchased (10%) * Profit from each module (Totals to $119) = Total potential profit
We can ascertain our yearly profit by taking a percentage of our potential profit. Assuming that our company increases in sales yearly, we can form the following formula:
(Customers last year * estimated increase) * Profit per unit = Potential profit for the year.
Assuming only 10,000 customers purchase the PuzzleIt and its modules, and our customers increase yearly at a rate of x1.89, we estimate that after our 5th year of business, we will make upwards of 75 million USD.