Secondly, there are those factors which have a more qualitative impact on markets. These are less easy to predict. Supply side factors include advertising expenditure, new product development, retailing trends and other competitive issues. The table below shows forecast sales of each segment within the Pasta, Pizza and Rice market from 1993-97. The total market size is forecast to reach pounds 473m in 1997.
Sales are to the UK and overseas customers.
The profit margin is pre-tax profits given as a proportion of total sales. It represents the net result of costs and prices. One indication of the risk involved in a particular business is the degree to which the profit margin fluctuates. This is the total level of sales divided by the number of employees. This provides an indication of labour efficiency and productivity.