Question: The total market size for Bell-bottom, Straight-fit, Cropped, Ripped and Low-waist in India are in the ratio 1 : 5 : 3 : 4 : 2. What percentage of revenue is generated by A by selling ‘Ripped’ jeans?
Explanation:
Ratio of market size of each of these 5 categories is given.
Let the market size of Bell-bottom, Straight-fit, Cropped, Ripped and Low-waist be 100, 500, 300, 400 and 200 respectively.
∴ These 5 manufacturers account for 80%, 60%, 90%, 75% and 40% respectively in each of these 5 categories.
∴ Market share of these 5 manufacturers is 80% of 100, 60% of 500, 90% of 300, 75% of 400 and 40% of 200 i.e., 80, 300, 270, 300 and 80 respectively.
Manufacturer A has 30%, 20%, 10%, 35% and 20% share across these categories.
∴ Market share of these manufacturer A is 30% of 80, 20% of 300, 10% of 270, 35% of 300 and 20% 80 i.e., 24, 60, 27, 105 and 16 respectively.
∴ % revenue from Rippped jeans for A = 105 24 + 60 + 27 + 105 + 16 × 100 = 45%.
Hence, option (c).