Question

Sunshine Juices sold $18.1 million in the U.S. pomegranate juice drink market last year, but the 9.9 million customers who bought from Sunshine Juices spent a total of $30.5 million in this market. Across the whole marketplace, 61.7 million buyers contributed to total industry sales of $197.9 million of pomegranate juice drinks. Calculate usage index for Sunshine Juices' customers in the U.S. pomegranate juice drink market. Report your answer as a percent, and round your answer to the nearest tenth of a percent. Report 27.5%, for example, as "27.5".

Answer 1

Market Share = Share of Penetration x Usage Index x Share of Requirements

So Usage Index = Market Share/ (Share of Penetration x Share of Requirements)

Market Share = Brand Sales/Total Category Sales

= 18.1/197.9 = 9.1%

Share of penetration = number of households that buy your brand /number of households buying any brand

= 9.9/61.7 = 16.0%

Share of requirement = Total purchases of the brand by households that buy the brand /total purchases in the category by those households

= 18.1/30.5 = 59.3%

Usage Index = Market Share/ (Share of Penetration x Share of Requirements)

= 9.1%/(59.3%*16.0%)

= 96.051%

=96.1 (rounded to nearest tenth of percent)