For Clear Segment (CS) company TAM is 500K with the Premium Segment being 20% of the market, the Midsegment being 25%, and the Budget Segment 55% of the market. The premium version of CS’s offering is sold for $1000 with a 60% UCM; the middle version is sold for $600 with a 35% margin, and the budget version is sold for $300 with a 20% margin. Calculate the market sizes, Product UCMs, and possible contributions of each segment.

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
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For Clear Segment (CS) company TAM is 500K with the Premium Segment being 20% of the
market, the Midsegment being 25%, and the Budget Segment 55% of the market.
The premium version of CS’s offering is sold for $1000 with a 60% UCM; the middle version
is sold for $600 with a 35% margin, and the budget version is sold for $300 with a 20% margin. Calculate the market sizes, Product UCMs, and possible contributions of each
segment.

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