Company Objective: Market Potential
Note: This is an electronically generated translation. It may not be 100% perfect.Read more.
What are the opportunities for your products and/or services
Are your plans to start a business the energy, time and financial resources you put into it worthwhile?
Is there a good chance that there is enough market to find and that profits can be made with the company?
Questions that must be answered before you plunges into the deep. How, market research can help you with this. Market research does have its limitations, but without market research you are completely in the dark and one has no idea what the possibilities or limitations are.
The base of each company is that they deliver products and/or services against payment to third parties. The size of the market plays a crucial role, market research is the only way to find out. If their are their no or insufficient customers for your products and/or services than the company has no reason to exist! How big is the market share for products and / or services you want to put in the market?
Market research by consulting sources
Market data gathering is done by consulting sources on the internet. You can get a good picture of the market size obtained by research sources.
Source research is to gather market information already in the past been carried out by certain authorities, these include for example trade organizations, central statistical office, chamber of commerce, etc. From the information available on the Internet you can select the sources where you can obtain market information, whether or not for payment. By analyzing the collected information can usually obtain sufficient understanding of market size. Market research is not limited to the market size, but the next step is to assess the market share that you could acquire. It includes a substantiation why you think you are able to actually achieve that market share. Do you have a unique product and / or service or are there other things you stand out against the competition?
How large is the number of competitors? You take a strong or just weak position with respect to the competition? Is it a growth or a declining market? Use the example above to determine your market position.
Example objective market size: these examples you use in your business plan.
- The company shall, after market research determine the market size for its products and/or services. Objective market size € … … (state information sources).
- The company, shall, after market research determine the average selling price of the products and/or services. Objective average selling pricet € ….. (state information sources).
- The company, shall, after market research determine the average cost of the products and/or services. Objective average cost price € ….. (state information sources).
- The company, shall, after market research determine the gross profit margin of the products and/or services. Objective gross profit margin …% (state information sources).
- The company aims. to acquire a market share of € … …, this corresponds to … % market share. Motivate your answer, why do you think you can achieve the market share? Does the company have a unique product and / or services that distinguishes the company from competitors?
In which country and/or region will you sell the products?
The determination of the segment is to determine where the products and / or services to be sold.
Here, too, it is important that the market segment where you want to sell your products and/or services is analysed. Whether you want to export or that you only sell locally, in both cases the market segment must be sufficiently analysed.
Collect for the countries or regions where you want to sell your products, information on sales and cost prices. Try to figure out the gross profit on the products. Using the example of the right to determine your market segment.
Competition analysis, take no half measures!
Market research should reveal how strong the competition with similar products or services in a country and / or region.
Are there enough potential customers and do you make a chance to acquire a market share? Do you know who your customer is and why they decides to buy? There are large differences in purchasing behaviour between countries and even between regions. It can not be stressed enough: Do your homework thoroughly! This prevents that you put a lot of energy into the wrong market segment. Only with concrete market segment it is possible to have an effective marketing policy in which the products and/or services can be deployed.
What is the position to the competitors, stronger or weaker? What the position in competitiveness with regard to customer orientation, quality, distinctive products, price level, technical support of product or service? Use the example above to determine your competitive position.
Example objective market segment: these examples you can use in your business plan.
- The company does market research on selling prices and gross profit in the countries and/or regions where the company wants to be active.
- The company analyses the price differences between countries and regions in which the company wants to be active.
- The average selling price of the products and/or services € ……. per country/region.
- The average cost of the products and/or services in € ….. by country/region.
- The average gross profit of the products and/or services in € ….. per country/region.
- After thorough market analysis, the company decides to become active the following ………………………………. countries / regions.