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Market Analysis

By Katherine Perry,2014-03-13 08:44
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Market Analysis is a very crucial part of your venture plan. You will be using your knowledge obtain through class to help create a successful venture.

    Unit 2 Venture Plan Summative

    Market Analysis & Marketing Plan

    Market Analysis is a very crucial part of your venture plan. You will be using your knowledge obtain through class to help create a successful venture. In this section you will be expected to complete the following:

    - Primary Research You will need to create a survey and conduct the

    survey to help support your venture Part A & B

    - Secondary Research Part A & C

    - Identify your Target Market Part A & B

    - Complete a Competitive Analysis Part D

    - Identify your expected Market Share Part E

    - SWOT Analysis Part F

Part A

    1. Using data supplied by Statistics Canada (www.statscan.ca) or other sources,

    determine the following about your market segments:

    a. Population

    b. Income

    c. Education

    d. Family characteristics

NOTE: try and use the most up to date information.

2. Create and conduct a Marketing Research Survey 10 15 questions include:

     Demographics

     Psychographics Consumer buying habits

     Geographic

    3. Choose the segment(s) whose needs your product or service is most likely to meet and develop a profile of this segment. THIS IS YOUR TARGET MARKET.

Part B

    Research the types of products or services your target market customers are likely to buy and explain how this relates to your venture. This is where you use research to prove what your customers want and what your customers need.

For example: if you’re opening a restaurant your

    research might include:

    ? How often people eat out

    ? What types of foods are popular today

    ? Why people go to restaurants

    ? What your customers want in a restaurant

    ? What your customers need in a restaurant

Part C

    Conduct research to find out trends that suggest that this is the right time to

    introduce your product or service.

For example: if research shows that a major trend is that people are eating

    healthier, opening yet another fast food restaurant may not be successful.

Helpful Websites for Marketing Research

Canadian Fitness and Lifestyle Institute

    http://www.cflri.ca/cflri/pa/surveys/2001survey/2001_on.html

Retail Trends

    http://www.btmny.com/reports/research/comment/cs1200.pdf

Marketing to the Masses

    http://www.harrisinteractive.com/news/newsletters/sportainment/HI_SportTainme

    ntNews2001Vol1_iss6.pdf

Statistics Canada

    www.statcan.ca

Entrepreneur.com

    www.entreprenuer.com

Statistics Canada Business Data

    http://commerce.statcan.ca/english/commerce

Molly Maid

    http://www.mollymaid.com/news/sbi01.html

A list of links to numerous companies

    http://www.mcgrawhill.ca/school/booksites/exploring+business+for+the+21st+cen

    tury/student+resources/_chapters/web+index.php

Canada Business Magazine

    www.canadabusiness.com

Canadian Market Statistics

    http://www.trendexna.com/trendex_canada.htm

Canadian Market Research Sources

    http://www.gdsourcing.com/works/conmarket.htm

Part D

    Conduct research to find out who your competitors are. Competitors can be divided into two groups:

     Direct Competition: Businesses that offer the same products or services

     For example: Harveys is a direct competitor with McDonalds they both

    offer the same types of food for roughly the same price that is prepared quickly

     Indirect Competition: Businesses that offer similar products or services

     Subway is an indirect competitor of McDonalds-Subway offers subs not burgers and fries however their subs are prepared quickly and are in the same price range as the food at McDonalds.

From your research, you should be able to describe:

    ; The name and location of your competitors

    ; How long they have been in business

    ; The products and services they offer

    ; The prices they charge

    ; Their service philosophy

    ; Their total sales for the previous year

    ; Their Mission and Vision Statement

    ; The strengths and weaknesses of your

    competitors

    ; How successful your competitors are (attempt to estimate how much of

    the market they own)

    NOTE THIS MAY BE BEST DONE IN A CHART FORMAT. For each of you major direct(pick 5-6 direct competitors) and indirect competition(pick 3-4 indirect competitors.

    (Name of Competitor or Indirect Competitor)

    Information

    Location of Company

    How long have they been in business

    Product & services they offer

    Prices for product and services

    Their philosophy business model

    Their mission statement

    Their vision statement

    Total sales

    Strengths & Weaknesses

    Their market share

Part E

    Conducting Market Share Expectations See notes below for help

What is Market Share?

    ; The percent of the market that you think you can “steal” away from the competition

    based on the strengths of your product/service

How do we determine Market Share?

    ; There are two different ways to estimate market share. One is in terms of the number of

    people who will buy your product/service and the other is in terms of the percent of sales

    you can “steal” from the competition

    ; You need to choose which situation is better for you!

Total Number of People Method:

    ; You’ve estimated the total number of people in your market and determined how

    successful your competition is.

    ; Based on this information, estimate, per month, the percent of the market (the number

    of people) you believe will buy your product or service. Be sure to back up your belief

    with your research.

Percent of Sales Method:

    ; You’ve researched your competition and determined how successful they are.

    ; Take your top five competitors and determine their total sales for last year (or take an

    average of the past few years).

    ; Based on the quality of your product or service and what you have to offer compared to

    the competition, estimate how much of the market you can “steal” away from the

    competition

    ; Your market share is expected to be fairly low for the first few years as your

    product/service will not be well known

    In your report, you will want to include a graph indicating how much of the market you expect to have versus your competition in years 1-3.

Part F

    SWOT Analysis

    Review your notes(IKEA Case Study) and PowerPoint from Class to help you with conducting your SWOT Analysis.

    Include in your SWOT the proper procedure for conducting expected market Share. (See below)

    1. Primary Problem

    2. Secondary Problems

    3. Implications of the Problem For the Organization

    4. Implications of the Problem For the People in the Organization

    5. SWOT

    6. Alternative Solutions

    7. Best Solution

    8. Implementation of the Best Solution

    Marketing Plan

    Develop five marketing objectives that will help lead to your successful venture. Create a Marketing Mix Matrix Snap Shot for your venture using your detailed Marketing Mix.

    Marketing Mix Matrix

    Product Price

    Place Promotion

Product

     What features of your product/service will you emphasize?

     Is it something customers will want or need? (Be realistic.)

     What are the features and benefits of the product/service and how does

    this help with your USP

     How do you plan to make your product/service different or better than

    that of your competitors?

Price

     Identify your Pricing Strategy; indicate how and why you would like to use

    this strategy for your Venture. (may want to do a google look up for more

    detailed description of each strategy)

     Must be attractive to customers, but also high enough to cover your costs

    and make a profit.

     Must be at a level that is equal to the value of it, as perceived by the

    customer. (Ex. Brand names are usually higher.)

     What is your pricing strategy and why?

     May have to adjust price as the economy changes (i.e. during a recession).

Place

     Where will the product be sold or where should the service be provided?

     How will the product/service get to the consumer?

     When should the product or service be in stock or ready?

     Must be convenient and relative to your target market.

    Ex. Grocery store in a mall

    Promotion

     How will customers be made aware that the product or service is available? Must consider various forms of promoting, such as advertising, sales

    promotion, e-marketing, and personal selling.

     If you are advertising, you must consider the mediums you will use (Ex.

    print, Media and Viral) and the cost of each.

1. Print Advertisement with Company Logo

    You will design a company logo using Corel Draw, Photoshop, or Logo

    Creator. You will then incorporate that logo design in 2 separate

    advertisements (pick 2 of the following 3 options);

    ; Magazine Ad select appropriate magazine for the product, target

    audience, slogan, etc.

    ; Company flyer 3-fold flyer, handout, or insert includes company

    background, philosophy, bios, product information, etc.

    ; Billboard Advertisement desired location, target audience, slogan

    Rationale At least one paragraph that describes the design process,

    from conception through to final design, and includes the meaning of your

    logo and the message you are hoping it conveys.

    ; Submit logo/advertisement printed in colour, and save on the G

    Drives of at least 2 different members of the production team. 2. MEDIA: Television Commercial & Radio

     Create one of the following based on what you may think would have

    a greater reach of targeted consumers.

    ; Must include the following paperwork; a script and storyboard

    (Storyboards are a visual that will allow the process of the

    commercial to transcend to video. To be placed in apendecies)

    ; Selection of time, place and program you want your viewers to see

    your commercial. Keeping in mind your target market/audience,

    you will need to pick 3 different TV programs during which you

    would want your commercial to air.

    3. Viral Marketing

     This is one of the fastest tool in which small businesses can compete

    with larger companies for market share and awareness.

     Create a Social networking atmosphere and viral world through tools

    such as Twitter, Facebook, 10 second advertisement placement.

     There are several ways you can use this tool but must create at one to

    complete the Venture plan promotion plan.

     Must decide what aspect of the product you are promoting (i.e. price,

    place, or product).

     Will your product require packaging? If so, it should reflect environmental

    concerns.

    Remember to always be creative, use your vision and mission statement to help with your direction and how you want your consumers to perceive your Venture and company.

Branding and Logo

     Brand identity helps fit the market to the target market

     It is how the product is seem in the eyes of the consumer

     Allows the use of Colors to establish a recognizable brand

     Logo allows consumers to develop a connection to your product and

    companies creating instant consumer awareness.

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