Week 9

PLAN V: INDUSTRY AND MARKET ANALYSIS

CILOs

C2. Discuss in details the different components of a business plan.

C3. Use a range of approaches in conducting market research to determine the
feasibility of the business plan.
C6. Prepare a global business plan to guide key stakeholders and investorsfor
investment decisions.
C7. Present the accomplished global business plan in class in a clear and a
well-structured manner.
C8. With less supervision, collaboratively work with the group to present and
explain relevant information in persuasive manner orally and written
communications.
.
.3

LEARNING OUTCOME

• Analyze the market analysis of a particular market

• Analyze various types of research collection methods
• Analyze the factors affecting the areas of research
 PLAN V: INDUSTRY AND MARKET ANALYSIS
The market analysis section of your business plan comes after the Manufacturing and Production Section

It should provide a detailed overview of the industry you intend to sell your product or service in, including statistics to
support your claims.

In general, the market analysis section should include information about the nature of industry, your target market, your
competition and how you intend to make a place for your own product and service.
The market analysis section of your plan should include the
following parts:
Industry Description and Outlook: Detailed statistics that define the industry including size, growth rate, trends, and outlook.

Target Market: Who is your ideal client/customer? This data should include demographics on the group you are targeting
including age, gender, income level and lifestyle preferences. This section should also include data on the size of the target
market, the purchase potential and motivations of the audience, and how you intend to reach the market.

Market Test Results: This is where you include the results of the market research you conducted as part of your initial
investigation into the market. Details about your testing process and supporting statistics should be included in the appendix.

Lead Time: Lead time is the amount of time it takes for an order to be fulfilled once a customer makes a purchase. This is where
you provide information on the research you've completed on how long it will take to handle individual orders and large volume
purchases, if applicable.

Competitive Analysis: Who is your competition? What are the strengths and weaknesses of the competition? What are the
potential roadblocks preventing you from entering the market?
Defining Areas of Research
Nature of Industry

Target Market and Customers

Industry Forces that affect your business

The Competition
 Factors Affecting Areas of Research
NATURE OF INDUSTRY

Carrying Capacity: The ability of Industry to support new growth

Uncertainty: The degree of stability or instability in a given industry

Complexity: The number of diverse factors and contacts with which a business must deal

Industry Life Cycle: the current stage of industry (Birth, Growth, Maturity and Decline)

TARGET MARKET and CUSTOMER

Market segmentation: can be done based on

Geographic area, Demographics, Psychographics

Cont...
Geographic area – Region, country, area

Demographics – occupation, age, education, income etc

Psychographics – values, opinion, beliefs, attitudes, motivation, lifestyle etc

TARGET MARKET and CUSTOMER Should Be

Measurable, Large enough to be profitable, Reachable, Responsive.

Industry Related Factors Affecting New Business
Barriers to Entry – Conditions or circumstances that make it difficult or costly for outside firms or new firms to enter a
market

Eg... Ship Building, Aeroplane Industry, etc

Threats from substitute products

Sources of supply

Buyers ability to bargain

Technology

Economies of Scale

Brand Loyalty
THE COMPETITION
Market Share – A portion of total sales generated by all competing companies in a given market (Batelco – 38%)

Niche – A small specialized segment of the market based on customer needs discovered in market research

Market positioning – The act of identifying a specific market niche for a product

Competitive advantage – A feature that makes a product more desirable than its competitors
Marketing Analysis
The marketing strategy section of your business plan builds upon the market analysis section.

This section outlines where your business fits into the market and how you will price, promote and sell your product or
service.
Key information in the marketing strategy section of a
business plan using the 4 Ps of Marketing concept.
Product: Product refers to either a physical product or services you plan on offering. Some of the product areas that
should be included in this section are:

Brand name

Related products or services

Functionality

Packaging

Quality

Warranty
Contd..
Promotion: This section covers the various aspects of how you plan on marketing your product or service. The areas you
will need to address include:

Advertising

Marketing budget

Promotional strategy

Publicity and public relations

Sales force

Sales promotion
Cont...
Price: The pricing section addresses the way you plan on pricing your product or service. The aspects of pricing you will need to address
are:

Bundling (if you have related products/services)

Pricing flexibility

Pricing strategy

Retail price

Seasonal Price (if applicable)

Wholesale (volume) price

When you’re determining your pricing, you should have plenty of data to back up your decision. Include industry reports, competitor ads,
and comparisons that show the research you conducted and how to came to the conclusion that you are pricing your product or service
correctly.
Cont..
Place: Also known as Distribution, this section is all about the delivery of your product or service to your customer. Here are the areas
you will need to cover:

Distribution centers

Distribution channels

Inventory management

Logistics

Order processing

Transportation

Type of distribution

Warehousing
Market Research
Market research is the process of

assessing the viability of a new good or service

through research conducted directly with the consumer

which allows a company to discover the target market and

record opinions and other input from consumers regarding interest in the product.

It is the collection and Analysis of information aimed at understanding the behaviour of consumers in a certain market. –
MARKET RESEARCH
Types of Market Research
Exploratory – The initial collection and analysis of information used when very little is known about a subject, it forms a
foundation for later research
Types of Market Research
Descriptive – The collection of information to determine the status of something such as in developing
a customer profile. Describe as the facts are now (current opinions, attitudes etc)

Focus Group: - A group of people whose opinions are studied to determine the opinions that can be
expected from a large population

Historical research : The study of the past to explain present circumstances and predict future trends
Research Process
Identify your problem or business needs

Obtain previous information from secondary sources

Collect Primary Data

Analyse the data

Make interpretation

TYPES OF DATA NEEDED OR USED

Primary Data – First time data

Secondary Data – Data Already available

 the market analysis section should include
information about the nature of industry,
END OF WEEK 9 your target market, your competition and
how you intend to make a place for your
own product and service.