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    8 Market Identification and Analysis

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    John Kerby Enmanuel
    The document provides guidance on conducting a market analysis for a business plan. It outlines that a market analysis should assess the size, customer segments, competition, and economic factors of the target market. It also emphasizes that entrepreneurs must understand their market by identifying entry points, key factors, global opportunities, the competitive landscape, and defining an exit strategy. Finally, it provides steps to take which include analyzing demographics, the target market need, competition, barriers to entry, and relevant regulations.

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    8 Market Identification and Analysis

    Uploaded by

    John Kerby Enmanuel
    345 views23 pages
    The document provides guidance on conducting a market analysis for a business plan. It outlines that a market analysis should assess the size, customer segments, competition, and economic factors of the target market. It also emphasizes that entrepreneurs must understand their market by identifying entry points, key factors, global opportunities, the competitive landscape, and defining an exit strategy. Finally, it provides steps to take which include analyzing demographics, the target market need, competition, barriers to entry, and relevant regulations.

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    The document provides guidance on conducting a market analysis for a business plan. It outlines that a market analysis should assess the size, customer segments, competition, and economic factors of the target market. It also emphasizes that entrepreneurs must understand their market by identifying entry points, key factors, global opportunities, the competitive landscape, and defining an exit strategy. Finally, it provides steps to take which include analyzing demographics, the target market need, competition, barriers to entry, and relevant regulations.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    345 views23 pages

    8 Market Identification and Analysis

    Uploaded by

    John Kerby Enmanuel
    The document provides guidance on conducting a market analysis for a business plan. It outlines that a market analysis should assess the size, customer segments, competition, and economic factors of the target market. It also emphasizes that entrepreneurs must understand their market by identifying entry points, key factors, global opportunities, the competitive landscape, and defining an exit strategy. Finally, it provides steps to take which include analyzing demographics, the target market need, competition, barriers to entry, and relevant regulations.

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    Technopreneurship 101

    Market Identification and Analysis


    Market Identification and Analysis
    What is a market analysis?

    A market analysis is a quantitative and qualitative


    assessment of a market. It looks into the size of the
    market both in volume and in value, the various
    customer segments and buying patterns, the
    competition, and the economic environment in terms
    of barriers to entry and regulation.
    Market Identification and Analysis
    The objectives of the market analysis section of a
    business plan are to show to investors that:

     you know your market


     the market is large enough to build a
    sustainable business
    Market Identification and Analysis
    Why Entrepreneurs Must Understand Their
    Market Before Entering It???

    1. Identify market entry points and develop


    an entry strategy.
    Market Identification and Analysis
    Why Entrepreneurs Must Understand Their
    Market Before Entering It???

    2. Determine key market factors: Cost,


    Consumer Demographics, Challenges,
    Opportunities.
    Market Identification and Analysis
    Why Entrepreneurs Must Understand Their
    Market Before Entering It???

    3. Identify global market opportunities.


    Market Identification and Analysis
    Why Entrepreneurs Must Understand Their
    Market Before Entering It???

    Here are a few tips on how to prepare for international business:

    1. Become knowledgeable on the customs and business etiquette of the new market.
    2. Understand the economic situation of a country, as well as their currency value
    fluctuation and import and export timelines and regulations.
    3. Be an expert on the country’s business laws and regulations.
    4. Research the country’s consumers and culture to understand how your product will
    be viewed by the locals.
    5. Understand your new competition in that country.
    Market Identification and Analysis
    Why Entrepreneurs Must Understand Their
    Market Before Entering It???

    4. Analyze the current competitive landscape.


    Market Identification and Analysis
    Why Entrepreneurs Must Understand Their
    Market Before Entering It???

    5. Define an exit strategy.


    Market Identification and Analysis
    Primary market research covers the
    following:
    o Monitoring the effectiveness of sales
    o Ascertaining the quality of services provided by
    competitors
    o Understanding the channels of communication used
    by competitors
    o Assess the active competition within the market
    Market Identification and Analysis
    Secondary market research covers the
    following:

    o Published company reports data


    o Existing surveys and studies
    o Newspaper reports
    o Government data
    Market Identification and Analysis
    There are four important steps to any
    successful market research study:

    o Investigate whether similar research has previously been


    carried out
    o If so, analyze the existing relevant data that meets your
    objectives – providing it meets your budget
    o How will the existing data be used and by whom?
    o Do you need to conduct your own primary market research
    too? If so, with whom?
    Market Identification and Analysis
    Understanding the types of customer
    you’ll encounter:

    o The ‘savvy’ purchaser


    o The industry influencer
    o The end-user
    Market Identification and Analysis
    How to do a market analysis for a
    business plan?
    Market Identification and Analysis
    How to do a market analysis for a
    business plan?

    1. Demographics and Segmentation


    2. Target Market
    3. Market Need
    4. Competition
    5. Barriers to Entry
    6. Regulation
    Market Identification and Analysis
    Imagine that you have the opportunity to open a shop either in Town A or in Town B:

    1. Demographics and Segmentation


    Table: Town A vs. Town B

    Town A B

    Market value Php 200m Php 100m

    Potential customers 2 big companies 1,000 small companies

    Competition 2 competitors 10 competitors


    Market Identification and Analysis
    2. Target Market

    The target market is the type of customers


    you target within the market.
    Market Identification and Analysis

    3. Market Need

    This section is very important as it is where you


    show your potential investor that you have an
    intimate knowledge of your market. You know
    why they buy!
    Market Identification and Analysis
    4. Competition
    Table: side by side competitive analysis

    Competitor 1 Competitor 2 Competitor 3


    Company (Small shop) (Small shop) (Chain) My Company

    Revenues Php 750,000 N.A. Php 1,500,000 Php 400,000


    (year 1 target)

    Nb. employees 10 5 20 5

    Size 1 shop in Iloilo 1 shop in Iloilo 3 shops in Iloilo 1 shop in Iloilo


    City, City City City
    1 shop in Passi
    City

    Price Low Average Average High

    Quality Low Average Average Superior

    Choice Large Low Very large Average

    Delivery No Php 50 Free from Php Free


    100
    Market Identification and Analysis
    5. Barriers to Entry

    This section is all about answering two questions from your


    investors:

    1. what prevents someone from opening a shop in front of


    yours and take 50% of your business?
    2. having answered the previous question what makes you
    think you will be successful in trying to enter this
    market? (start-up only)
    Market Identification and Analysis
    5. Barriers to Entry

    Here are a few examples of barriers to entry:

     Investment (a project that requires a substantial investment)

     Technology (sophisticated technology a website is not one, knowing how to process


    uranium is)

     Brand (the huge marketing costs required to get to a certain level of recognition)

     Regulation (licenses and concessions in particular)

     Access to resources (exclusivity with suppliers, proprietary resources)

     Access to distribution channels (exclusivity with distributors, proprietary network)

     Location (a shop on Regent's Street)


    Market Identification and Analysis
    6. Regulation

    Exercise where you explain the main regulations


    applicable to your business and which steps you are
    going to take to remain compliant.

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