Market and Demand Analysis

Situational analysis and Specification of Objectives

Collection of Secondary Information
Census
National Sample Survey Reports
Planning Commission Reports
Central Stastical Org
India Year Book
Stastical Year Book
Economic Survey
Guidelines to Industry
Annual Survey of Industries
Annual Report of the Developmental Wing , Min of Com and Ind
Annual Bulletin of Stastistics of Exports and Imports
Techno Economic Surveys
Industry Potential Surveys
The Stock Exchange Directory
Monthly Studies of Production of Selected Industries
Monthly Bulletin of RBI
Publication of Advertising Agencies
Other Publications.
Industry Specific Secondary Information

Conduct of Market Survey

Sample survey
Why? Total Demand and rate of growth of demand
Demand in Different segments of the market
Income and Price Elasticity of Demand
Motives for Buying
Purchasing plans and intentions
Satisfaction with existing products
Unsatisfied needs
Attitudes towards various products
Distributive trade practices and preferences
Socio-economic characteristics of buyers.

Steps Define the Target Population

Select the Sampling Scheme and Sample Size
Develop the Questionnaire
Receuit and Train Field Investigators
Obtain info from sample of respondents
Scrutinise the info gathered
Analyse and Interpret the info
Problems Hetrogenity of India, Languages, Education

Characterisation of the Market

Effective demand in the past and present
Breakdown in Demand
Price
Methods of Distribution and Sales Promotion
Consumers
Supply and competition
Demand Forecasting
Qualititative Methods
Jury of Executive Method
Delphi Method
Time Series Projection Methods
Trend Projection Methods
Exponential Smoothing Methods
Moving Average Methods
Causal Methods
Chain Ratio Methods
Consumption level method
 End use Method
Leading Indicator Method
Econometric Method
Uncertainities on Demand Forecasting
Demand Forecasts are subject to error and uncertainity due to
Data about past and present market
Lack of Standardisation
Few Observation
Influence of Abnormal Factors
Methods of Forecasting
Unability to handle unquantifiable factors
Unrealistic Assumptions
Excessive Data Requirement
Environmental Changes
Technological Changes
Shift in Government Policy
Developments on the International Scene
Discovery of new sources of raw materials
Vagaries of Monsoon.
Coping with Uncertainity
Integrity of Data
Ignore outlaiers
Critically evaluate assumptions and model appropriateness
Monitor Environment changes
Use Judgement
Conduct Scensitivity and Scenario Analysis
Market Planning
Current Market Situation
Market Analysis
Competitive Situation
Distribution Situation
Macro-environment
Opportunities and issues analysis
SWOT

Objectives
BEP
Sales
Brand Recall
Retail Reach
Marketing Strategy
Target Segment
Positioning
Product Line
Price
Distribution
Sales Force
Sales Promotion
Advertising

Action Programme
Action programmes operationalise the strategy
Objective of Advertising Spend
Outlets
Dip stick