IF YOU wish to carry out a business at a particular geographic location and for period of time, a market survey is necessary and must be professionally carried out before committing financial and human resources in the project execution and this article contains well detailed guide on how to carryout a market survey for a business plan.
This is to enable you understand the environmental factors and market size for the particular product. Social and religious barriers are always a hindrance for certain business niche.
In this article you will learn what are the important factors that affect your current market, what about the demand generators and your ability to meet them? Understanding your market will also enable draft out the market survey section of a business plan and also a key factor for success. In this article you will also learn how to get insight on the buying power of customer.
Market survey can be carried out by sharing a set of questionnaire to potential client within the business environment, also by carrying out personal interview and group discussion to know first-hand the interest of people in the business location.
CHECKLIST FOR CARRYING OUT MARKET SURVEY
Market survey involves a well detailed research on the potential customers and their demand preference, in terms of geographical conversation, market survey identifies the environment and location of customers relative to their spatial distribution.
Before your team of surveyor set out to execute a comprehensive market campaign, the following checklist should be considered and relevant answers on the business information.
- What feature of your product or service will appeal to different market segment?
2. A detailed description on how your product features meet the needs of your clients should be made.
3. How much your goods and services does may cost, is it affordable to your immediate clients,
4. Have you prepared a sales forecast?
5. What type of media will you use in your campaign?
6. What are your plans for sales promotion?
7. Do you have product liability insurance?
8. Is your style of packaging likely to appeal to your target market?
9. If your product is one you can patent, have you done so?
10. What are your distribution channel
OUTLINE ON HOW TO CARRY OUT MARKET SURVEY FOR A BUSINESS PLAN
- The objective:
outline the purpose for carrying out a market survey; also state the result of your survey and the name of the firm which the survey was carried out for, state the product and service.
2. Approach and method:
this section includes stating the methodology and the approach with which the market survey was executed. How data were acquired, the area expanse covered, the sources of data, the technologies use what you intend to do with these data, the data analysis.
3. Executive summary:
who is the target market, how big in terms of potential revenue is the target market, what is the major distribution channel, what are the product choices of potential customer, what is the buying power of customers, identify the major competitors, are there barriers to market entry.
4. Problem identification:
identify and state the problems facing growth of a business within the environment. The problem definition must state that suffice potential demand exist for the company’s product or services as proposed.
5. Market survey:
how large are the potential customers, and the available market. Define the target market, the analysis must describe and justify the basis for defining boundaries of the target market, the use of complete demographic and geographical factors is definitely encouraged. Secondary market areas may be delineated as a as a subset of the entire market.
Read more about market analysis here
6. Industry overview and characteristics:
the advantage for the injury sector to the community and the and the user reactions of the customers to the product or services being offered by the company.
7. Risk and challenges:
numerous risks and challenges exist for any comply entering the market. Identify all the risk available and the potential risk for the commodity.
8. Companies and product in the market:
most of the major players in the market are identified and listed
9. Conclusions and recommendation:
the analysis must state the professional opinion, regarding the subject development feasibility from a market perspective, and what effect the product and services would have on the existing market. the analyses must also specify the absorption period and time needed to reach market maturity.