J0704-Business Plan Market and Competition Session 10-11.

J0704-Business Plan

Market and Competition

Session 10-11

J0704-Business Plan

Your market has a free choice and only by supplying what the market wants, and not by your – Michael J. Ferguson

Help your investors know how you will compete

J0704-Business Plan

The Elements of an Market and competition

•Market and competition summary

•Market description-segments and target markets

•Market size and trends

•Competition identification

•Main competitor

•Competitor analysis

•Market share

•Customer needs

•Market obstacles

•Market opportunities

J0704-Business Plan

Market Description-Segments and Target Markets

• To write market description, you will need to develop a market analysis.

• A market analysis helps you understand:– Who your customers are– Why they use your products or services– How many customers are in your market– How can reach them

J0704-Business Plan


• Market Segmentation– Most market tend to be segmented in

different ways, such as by price point, product or services features, product function, specialty, sales method, delivery method, geography, consumer groups, or any combination of these

J0704-Business Plan


• Target Market – To identify tour target market, you must match what

you sell at what price and how you sell it with the needs of consumers in your targeted market segments.

• Consumer profile– Four tools available to get close-up your consumer

profile :• Customer analysis• Consumer demographic analysis• Consumer psychographic analysis• Consumer geographic analysis

J0704-Business Plan


• Customer Analysis– From your research, obtain an

estimate of the percentages of your total market for each of the customer types

– Example :• Customer types

– Commercial

» Business 12%

» Institution 6%

– Consumers 82%

Total 100%

J0704-Business Plan


• Customer Analysis– Commercial : institution

• Government offices 2%

• School 3%

• Hospitals 1%

• Subtotal 6%

J0704-Business Plan


• Consumer Demographic analysis

– Typically, these are • gender,

• age,

• Marital status

• Family size

• Annual household income

• Occupation

• Education level

• Residential location

• Home ownership

J0704-Business Plan


• Consumer Psychological analysis– Less objective– The result can show the indirect and intangible

benefits your purchaser derives from the product or service or indirect and intangible need it fulfills

– Help to understand consumer buying pattern and buying decisions

J0704-Business Plan


• Consumer Geographic analysis

– Describe are that you intend to serve and identifies the density of your customers in those areas.

– Areas can be national, regional, city,etc

J0704-Business Plan

Market Size and Trend• Begin this segment with the current, overall

population on your area• Describe percentage of population that match

your consumer and customer profiles• Make comparison of population, anticipated

numbers of customers and overall area in square miles of your sales area

• Express any trend in your market you can forecast

J0704-Business Plan

Competition Identification

• It is necessary to find as much accurate data as possible about the competition-for your marketing strategy

• Get data such as :– Name of competitors– Total number of sales for each or even the

number of employees per business

J0704-Business Plan

Main competitor

• Identify main competitor and concentrate on them

• Answer these questions :– Who are the major competitors?– What are the keys to their success ?– What are their strength and weakness ?– How do you compare with them ?

J0704-Business Plan

Competitor Analysis

• Compile a list of factors that would work best for your type of business

• You can make up a worksheet for each competitor

• Be objective• Consider intangible

factors

J0704-Business Plan

Market Share

• A percentage estimate of your company’s expected share of the total industry sales in your sales area

• Per capita estimation

• Analyze the census

J0704-Business Plan

Customer Needs

• Identify the different benefits your buyer will derive from your products or services

• Consider tangible and intangible benefit

J0704-Business Plan

Market Obstacles

• Explain the obstacles new competitors must overcome to enter your market

• Some examples of possible obstacles for new competition are substantial start-up costs, lack of suppliers and distributors, patent, insufficient market and market saturation, including price wars

J0704-Business Plan

Market Opportunities

• Examine your market research for areas in the market that can be developed by applying some of the market-driven strategies

• Can you find a new market that is untapped by your competitors to provide a product or service for an unfulfilled need ?

J0704-Business Plan Market and Competition Session 10-11.

Documents

Transcript of J0704-Business Plan Market and Competition Session 10-11.