Market Feasibility Study By Sanj Sa njee eev v Ac Acha hary rya a LOGO Roll No. 28
What is Feasibility Study? Feasibility study is the process of determining the implement ability of the project ‘Feasibility st stud udy y is th thee ac acti tivi viti ties es/e /eff ffo ort rts/ s/an anal alys ysis is to measure the cost and benefit of a business in order to defi de fine ne th thee ef effi fici cien ency cy an and d ef effe fect ctiv iven enes esss of th thee project’s methods and tools. ’1
Acc cco ord rdin ing g to Wi Wiki kipe ped dia ‘A feasibility study is a preliminary study undertaken to determine and document a project’s viability. It is an analysis of possible alternative solutions to a problem and a recommendation on the best alternative’ 1. Prasanna Chandra (2006), Projects: Planning, Analysis, Selection, Financing, Implementation and Review Review,, India, Tata Mc Graw Hill
Feasibility Study Ideally, the feasibility study involves making rational decisions about a number of enduring characteristics characteristics of a project, project, including: 1.
What exactly is the project?
2.
Economic feasibility
3.
Technical feasibility
4.
Schedule Feasibility
5.
Customer Profile
6.
Determination of competitive advantage
7.
Operational Feasibility
8.
Current market segments
9.
Vision/mission statement
LOGO Technical Feasibility Financial Feasibility
Market Feasibility
Types of Feasibility Ecological Feasibility
Legal & Administrative Feasibility
Economic Feasibility
Market Feasibility Markett fea Marke feasib sibili ility ty study study is a lo logic gical al study study and a mar market keting ing plan plan abo about ut a course of action to be taken.
‘It studies the marketing viability of the project in terms of its ability to satisfy customers needs.’1 Information be collected & analyzed during market feasibility: Unmet
needs that could be addressed by a new product or service
Overall
demand for new products, services or ideas
Characteristics
of likely customers
How w Ho
compet comp etit itor orss ar aree li like kely ly to re reac actt wh when en ou ourr pr prod oduc uctt or se serv rvic icee is introduced How
your ne your new w pr pro odu duct ct or se serv rviice sh shou ould ld be de desi sign gned ed to bes estt me meet et customers’ needs How
best to market, advertise and communicate about product or service
Likely
barriers to successful introduction of your product or service
1. Prof. Govind Ram Aggrawal (2008), Project Management in Nepal, Nepal, Ekta Publication
Key steps in Market and Demand Analysis and their Inter-Relationships Collection of secondary Information
Situation analysis & specification of objectives
Demand Forecasting
Characteristics of the Market
Conduct of Market Survey
Market Planning
1. Situation Analysis & Specification of Objectives Before entering the market we should gather the following information: Who are the buyers of product? What are the current demand for product? How the market segment is selected? What will be the break even sales for different types of items? What prices are the customers willing to pay? In what basis the differentiation of product will be made as compared to different brands? How the products will be distributed to customers and what costs are incurred for it? Export and import trends Policies, Laws and Regulatory Initiatives in the Industry
2. Collection of Secondary Data There are various sources of gathering secondary data like Census of India, Nation Nat ional al Sam Sample ple Sur Survey vey Rep Report orts, s, Pla Plan n Rep Report orts, s, Sta Statis tistic tical al Abs Abstra tract ct of Indian Ind ian Union, Union, Indian Indian Year Book, Book, Eco Econom nomic ic Survey, Survey, Ann Annual ual Survey Survey of Indust Ind ustrie ries, s, The Sto Stock ck Exc Exchan hange ge Dir Direct ectory ory,, Pub Public licati ations ons of Adv Advert ertisi ising ng Agency, Industry Specific Sources and so on. Evaluation of secondary data is done on basis of : Who gathered the information? When was the information gathered? What was the objective? What was the target population? How was the sample chosen? How representative was the sample? How satisfactory was the process of information gathering? What was the degree of misinterpretation by respondent? How accurately was the information edited, tabulated and analyzed? Was statistical analysis properly applied?
3. Conduct the Market Survey Total demand and rate of growth of demand of products. Demand in different segment of the market Income and price elasticity’s of demand
Satisfaction with existing products Unsatisfied needs Attitude towards various products Distribution trade practices and prefer preferences ences Socio-economic Socio-econom ic characteristics of buyers
Various Steps of Conducting the Market Survey
1 2 3 4 5
Define the target population
Select the sampling scheme and sample size
Develop the questionnair questionnairee
Recruit the train field investigators Obtain inf Obtain inform ormati ation on as per the que questi stionn onnair airee fr from om the sample of respondents
6
Scrutinize the information gathered
7
Analyze and interpret the information
4. Characterization of the Market Based on the information gathered gathered from market survey and secondary sources the market for the product or services may be described in terms of the following:
5. Market Planning
Current Market Situation Opportunity and Issue Analysis
Objectives
Marketing Strategy
Action Programme
Bibliography Books: - Pr Pras asan ann na Chan and dra (2 (20 006 06), ), Pr Pro oje jeccts ts:: Pla lan nning, Analysis, Selection, Financing, Implementation and Review, India, Tata Mc Graw Hill Websites: -www.scribid.com - http://www.stingconsultants.com/pdf -http://www.slideshare.net/drobberecht -http://www.slideshare.net /drobberecht/idea/ideafeasibility-case-study-presentation http://businesstoday.intoday.in/index.php?issueid=&id=1236 &option=com_content&task=view§ionid=4
