Understanding Market Potential and Market Share Estimations for Monster Energy Drinks

Lucas' Projections for Monster Energy Drinks in the Fitness Market

Lucas is marketing manager for Monster, a producer of energy drinks. A primary market segment targeted by Monster is the fitness market. Lucas estimates that the size of this market exceeds $6.3 billion per year. In addition, Lucas estimates that Monster can garner 12% of this market, worth about $.756 billion.

The upper estimate of $6.3 billion is ________ .

Answer:

The market potential for all energy drinks.

Explanation:

The market potential for any product or service (including Monster energy drinks) is the total market for that particular type of product or service measured in money. The market potential includes the total sales volume of a product times the average price of the product.

Final answer:

The upper estimate of $6.3 billion is the highest value projected for the size of the fitness market targeted by Monster. Lucas predicts that with a 12% market share, Monster could potentially earn around $0.756 billion.

Explanation:

The question asks us to define what the upper estimate of $6.3 billion refers to in the context of Lucas's projections for Monster's market share in the fitness market. The upper estimate is the highest expected or potential value for the size of the fitness market as estimated by Lucas. Since he is a marketing manager for an energy drink company, it is important for Lucas to estimate the potential revenue that could be generated if Monster is successful in capturing a segment of this market. With the estimated market size of $6.3 billion and Monster aiming for a 12% market share, Lucas anticipates that Monster could earn approximately $0.756 billion from this segment.