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In this estimation question we have analysed the market size of the annual size of sport shoes in India. Check out the step-by-step answer created by Mobiprep experts.
Estimation Question Step-1: Segmentation
Population of India = 140 crores
Estimation Question Step-2: Solution
Weighted average = 10% + 20% + 12% + 8% + 10% = 50% (approx)
Weighted mean of all percentage = 80% x 50% x 55%
= 20% (approx)
Therefore, total number of sport shoes = 20% x 140 crores = 28 crores
Life of a sport shoes is assumed to be 10 months.
So, = 28 crores x 12/10 = 33.6 crores
So, weighted average price of market = 0.60x500 + 0.30x1500 + 0.10x3000
= Rs. 1000 (approx)
Therefore, total revenue generated by = 33.6 crores x 1000 = 33600 crores or 336 billion sport shoes anually (approx)