Market research/Analysis

Question 1

Market Research

Answer 1

Systematic process of collecting, analyzing and interpreting information. The information could be about a targetmarket, consumers, competitors and the industry as a whole.

Question 2

Market Research activity

Answer 2

prioritizing -information needs
1. priotize your information( frame relevant questions)
2. identify stake holders- customers
3. Conducting primary research and secondary data review
analye the data
4. interpretation- review and revise assumptions, assess viability

A simple market research process starts with prioritizing information needs for the selected business idea or the project. Entrepreneurs can have prepared set of questions/information they need and from whom (identify the stakeholders-customers, suppliers, experts etc.).
When information needs are prioritized, entrepreneurs can do field survey, gather data and information. And accordingly generate desired information for their business projects.

Question 3

outlines / market analysis steps

Answer 3

1. Target market-Analyzing target market is essential for the business.
   Target market could be geographical locations where the business will make their products available.
   It can be areas where your customers, either live, work or shop.
   To identify the target market segment (use target market selection table), mention the names of the districts, towns, etc. and justify why do you think they are the best places for you to sell your product(s)?
2. Target customers-
   Amongst the selected target markets in target market selection table, identify to whom do you plan to sell the products - individual customers or institutional customers or both?
   If individuals, write whether they would belong to any age group, income group, living area, family size etc.
   If institutions, describe the key features and basis of segmentation.
3. Demand and supply Gap analysis-
4. Usage rate
   (Volume) - This refers to the quantity purchased for consumption during a particular period. Period could be a day, month, or year.
   (Value) - This refers to the amount spent for purchasing the particular product during a particular period. Period could be a day, month, or year.
5. Quantity demanded
   This refers to the total figure, which is derived by multiplying.
   𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦 𝐷𝑒𝑚𝑎n𝑑𝑒𝑑 = 𝑈𝑠𝑎𝑔𝑒 𝑅𝑎𝑡𝑒 (Volume)𝑥 𝑁𝑜.𝑜𝑓 𝑇𝑎𝑟𝑔𝑒𝑡 𝐵𝑢𝑦𝑒𝑟𝑠 𝑖𝑛 𝑡ℎ𝑒 𝑡𝑎𝑟𝑔𝑒𝑡 𝐴𝑟𝑒𝑎
   (Volume) (Volume)
   Supply analysis
   To ascertain demand for your product/service, it is essential to assess current market by identifying the competitive offering and the market coverage.
   First, identify your existing and potential competitors.
   Next, find out how much they supply to the market per day/month/quarter/year.

Gap analysis
Demand supply gap indicates that a new product/process/ service has market potential.
Conduct gap analysis using your demand and supply analysis tables. The gap which exists between demand and supply per day/month/quarter/year.

4. competitor analysis-
   Understanding competitor, competitive offerings and strategies are key to development of business strategies.
   Product strategy
   What special features do your competitors’ products have in order to make them sellable? You can focus on quality, branding, packaging, customer service etc.

Distribution strategy
How do your competitors make their products available to the customers and through what channels?

Promotion strategy
How do your competitors communicate about their products to the target buyers? Do they use advertising, personal selling, sales promotion, direct marketing or publicity?
Price strategy
What pricing strategies do your competitors’ adopt in pricing their products? Is it demand-oriented, cost-oriented or competitor-oriented?

5. price determination
6. income and revenue forecasting