The analysis of the market within the business plan must present a very clear image of the industry and the market in which you operate. During this section, you must present the results obtained from your research and your conclusions. More detailed aspects of the research conducted, such as the research report, the questionnaire used, graphs, and in-depth analyzes, should be included in the ANNEXES section of the business plan.
Usually, the Market Analysis section is included in the business plan after the Description of products and services.
What the market analysis should include
Industry description - Describe the industry in which you operate, including its size, growth rates, general trends, and any other characteristics that you consider relevant (for example stage in the life cycle of the product/service, growth estimates, etc.). Below schematically presented the main types of consumers (companies, public administrations, individuals).
Information about the target market. Delimit very clearly your target market so that you can serve it considering the resources you have. Many companies make mistakes at this stage because they try to expand in too many markets and lose focus. Once the target group is established, make sure you have as much information about it as possible. The plan should include the following information:
1. The main features. What are the specific needs of potential buyers? To what extent are these needs covered? What are the socio-demographic characteristics of the target group? Is there a certain seasonality of acquisitions? Who is the policymaker with goods to be purchased? Where is and how do you reach the goal group?
2. The size of the target market. Here you must present data on the number of potential customers, the number of purchases made by them, the frequency of purchase, the growth potential of this market.
3. Sources of information used. Present the main data sources that you will access to obtain information about the target market. They can be aggregators of online information, bulletins of the Chambers of Commerce, reports of some profile associations, press, etc.
4. The market share you can earn. What is the market share and the number of customers you expect to gain? Present the arguments for the given figures.
5. Pricing strategy and additions practiced. Establish your price structure, estimated addition, payment terms, and any other types of discount you intend to use. At this stage, you can significantly ease your work using an Excel application for business plans, a software created especially for entrepreneurs and for which you do not need extensive accounting knowledge to take advantage of it.
6. Media channel. List the media channels you will use to communicate with your target market. These can be various publications, the Internet, radio programs, TV, or any other type of channel that suits the specifics of your business.
Competition analysis. The competition analysis must identify your main direct and indirect competitors. Make sure you identify your competitors for each type of product or service sold. Among the elements to be included here are:
• Market share;
• Strengths and weaknesses;
• The importance I give to the target market;
• Communication strategies approached;
• Market barriers that affect you. These can refer to high launch costs, lack of qualified staff, the need for patents or patents, etc .;
To perform this analysis, you can use the templates: Competitors Benchmarking Matrix and Competitiveness Analysis.
Other restrictions. This should include any specific regulations or requirements that have a direct impact on your business and for which you need to find solutions. It is important to specify how long it takes to obtain all approvals and what are the costs involved in this activity.
For a good market analysis for your business, you should contact some of the best business plan writers.