It is important for a business to study and analyze the potential market. Like for example if you plan to sell a certain product or offer a particular service, you have to determine if there are potential clients or customers in your location site. Market feasibility study is used as a tool to identify problems or obstacle that you may encounter during the implementation phase of your project. It will include the sales projection as well as the project cost. Also, it will know if the proposed project will be successful in terms of marketability.
What to include in your Market Feasibility Study
It includes specific details of the project addressed by the market study as well as the objectives of this study.
– Site Analysis
It includes the description of your chosen location for your business such as the topography, environmental, zoning, and architectural factors. It should address the visibility and accessibility of the site.
– Market Description
It contains the description of your target market including prospective customer’s lifestyle information that involves their age, sex and habits. Identify the factors affecting in choosing of the products or services. Also, it should include that size of the total market as well as the market trends.
It analyzes the competitors such as their product lines and markets as well as the competitor’s strengths and weaknesses and compare your marketing strategies to your competitors.
It reviews the products or services cost including all variables and fixed expenses and make sure it will provides profits. Also, compare your prices with similar products or services in the industry.
It identifies the best effective method to distribute or getting your products or services to customers/clients in the target market.
It provides the potential promotion types or advertising method to be used including the media choices, project expenditure, and possible use of ad agency. Also, it describes your target audience.
– Sales Forecasting
It projects sales income for the next four quarters. It also involves sales history of your competitors based on research, recent sales trends in industry and seasonal adjustments.
It identifies the level of production/service necessary to meet the demand generated by marketing.
– Action Plan
It contains the list of all the marketing strategies and ranks all strategies by levels of importance.