CIVIL ENGINEERING

PROJECTS
L E VE L S O F C O N D U C T I N G A F E AS I B I L I T Y S T UDY

LEVELS OF CONDUCTING A FEASIBILITY

STUDY

Market Analysis/ Analysis of the Current System

Technical Feasibility
Economic and Financial Feasibility
Operation and Management Feasibility

MARKET ANALYSIS
Market analysis results in information about the
market potential, which is the basis for accurate
sales forecasts and, marketing strategy.
If one cannot substantiate through research that
adequate sustained demand for a product or
service exists, or if one cannot obtain sufficient
quantity to meet expected demand, then the
project is not feasible.

MARKET ANALYSIS
The basic components of market analysis include:
an estimate of the size of the market for the
product/service
projected market share
information about your target market; and
analysis of the competition

MARKET ANALYSIS
The Key questions that must be answered:
Do prospective customers have a need for
your product or service?
Will the business be able to compete?
Is the proposed location of the business
adequate

MARKETING CONCEPTS USED FOR

FEASIBILITY STUDIES

Target Markets
Competition analysis
Demand Analysis
Market Size and Share

TARGET MARKET
In order to serve your customers, you have to
know who they are, where they live and what
their behavioral characteristics are.
Identifying a target market allows you to focus
your efforts on marketing to a distinct class of
customers. This is also called market
segmentation. It is the act of dividing a large
potential market into smaller groups, which are
more easily approached.

TARGET MARKET
Target Market can be describe in terms of:
Geographic Characteristics. Do your customers
live primarily in a certain area or region?
Demographic Characteristics. (Age, sex, family
status, education, income, class, occupation,
education; and, if relevant, religion and race.)
Psychographic Characteristics. (Life style,
personality types; attitudes; interests, and buying
motives.)

COMPETITION ANALYSIS
Competitors are very important to the success or
failure of a new business and the entrepreneur
should recognize that there are different types of
competitors.
This is conveniently done using a SWOT
analysis,

COMPETITION ANALYSIS
Competitors are very important to the success or
failure of a new business and the entrepreneur
should recognize that there are different types of
competitors.
This is conveniently done using a SWOT
analysis,

COMPETITION ANALYSIS
S -

STRENGTH

W -

WEAKNESSES

O -

OPPORTUNITIES

T -

THREATS

COMPETITION ANALYSIS
The SWOT technique involves looking at each
aspect of the new business and comparing it to
other producers, particularly type and brand
competitors.

DEMAND ANALYSIS
Here, following two types of information are
needed:
1) Information about the product and its quality
and
2) Information about how much people will buy,
how often and for what price.

DEMAND ANALYSIS
Demand can be described by the following:
1. population,
2. income,
3. employment,
4. market trends,
5. relative prices,
6. taxes,
7. interest rate,
8. down payment requirements, and
9. future expectations.

DEMAND ANALYSIS
The factors affecting demand for a potential
development are those which describe the scale
and purchase patterns of market participants. By
examining the factors, the analyst attempts to
quantify the total level of demand.

MARKET SIZE AND SHARE

.For a business idea to work, you must have
enough customers willing to spend enough
money on your product or service to provide sales
revenue that covers your expenses and,
hopefully, earn you a profit. Accordingly,
determining how many potential customers exist
might be an essential part of discovering whether
your business idea is going to work.

MARKET SIZE AND SHARE

The first thing consumers usually do when they
hear of a new product or service is compare it to
existing alternatives. Customers through
comparison will buy from a new business only if
they perceive that the value provided by new
business is greater than the value provided by
existing competitors. Perceived value is a
judgment.

MARKET SIZE AND SHARE

Next, determine whether or not you can
communicate your competitive advantage simply
and convincingly to the marketplace. It is not
enough just to be betteryou have to convince
potential customers that you are better.

QUIZ
DESCRIBE THE DISTICTION OF THE TWO STAGES
OF CONDUCTING A FEASIBILITY STUDY.
WHY DO WE NEED TO CONDUCT FEASIBILITY
STUDY
HOW IS SWOT ANALYSIS BEING DONE?
BRIEFLY EXPLAIN THE PROJECT LIFE CYCLE.

MARKET
RESEARCH/
DATA GATHERING

TWO MAIN CATEGORIES OF RESEARCH

Primary research is that which collects new data
through market surveys and other field research
-- specific studies that are conducted on behalf of
your company
Secondary research includes gathering preexisting information from published sources.

THERE ARE PRIMARILY THREE TYPES OF

RESEARCH THAT CAN BE UTILIZED:
Informal Research
Secondary data research
Primary Data Research

INFORMAL RESEARCH
a. Canvassing: This can be done informally by
simply approaching potential customers or clients
and discussing their needs in regard to the product
or service the new business will offer.
b. Observation: Observing current businesses and
potential customers can be a very insightful way of
gaining valuable information into the market.
c. Word of Mouth: Listening to people, such as
potential suppliers, advisors and people, who are
already in the business, is also a valuable tool.

SECONDARY DATA RESEARCH

a. Newspaper articles: Newspaper articles on established businesses, current issues affecting
business, statistical and demographic information.
b. Public filings: Annual reports, patents, copyrights, trademarks, business names.
c. Government agencies: Local, State, and Federal Government Agencies such as the Dubai Chamber
of Commerce and Industry (DCCI) and Dubai Economic Department, Bureau of the Census etc.
d. Commercial publications: Telephone books (access information about who your potential
competitors are through advertisements in the yellow pages, and community information pages).
e. Trade journals: These journals specialize in issues and trends affecting different industries in the
region, for example Gulf Business Review, it provides other current information as well. For
industrial projects, industrial journals of the specific industry, provides very useful and updated
information about the trends, new technological advances, and any environmental aspects of the
proposed project.
f. Trade associations: The research departments at trade associations collect data on sales, expenses
shipments, stock turnover rates, bad debt losses, collection ratios, returns and allowances, and net
operating profits.
g. Public libraries: A wealth of information on various topics related to business including laws,
industry and market information, trade publications etc.
h. Commercial banks and financial institutions: Information about economic factors influencing
communities.
i. Internet: Provides access to current information on marketing opportunities and connects with
various government agencies, businesses or sites for many of the sources listed above.

PRIMARY DATA RESEARCH

Surveys - Demographics, psychographics, geographic location,
pricing, the most effective means of media for reaching your
target market, household income, and if there is a need for your
product all these aspects can be determined through following
types of primary surveys:
a. Personal interviews: Personal interviews with prospective
customers are a great way to find out information about your
product, competitors, pricing and the market.
b. Telephone surveys: Telephone surveys are very similar to
personal interviews but are more anonymous.
c. Written questionnaires distributed by mail or by other means:
Written questionnaires may be a more cost effective means of
obtaining survey results, but response rates to unsolicited
mailings are typically low.