How to Write a Market Feasibility Study

Topics: Juice, Laundry, Supply and demand Pages: 19 (5992 words) Published: January 15, 2013
How to Write a Market Feasibility Study
Purpose of Lesson: To assist business women in identifying market competition, potential markets, and market analysis to assess a business idea. What is a Market Feasibility Study and How Does a Market Feasibility Study Differ From a Marketing Plan? All feasibility studies should look at how things work, if they will work, and identify potential problems. Feasibility studies are done on ideas, campaigns, products, processes, and entire businesses. Feasibility studies assess something and consider both pros and cons. They analyze potential business scenarios. A Marketing Plan maps out specific ideas, strategies, and campaigns based on feasibility study investigations, that are intended to be implemented. Think of market feasibility studies as a logistical study and a marketing plan as a specific, planned course of action to take. What Should be Included in a Market Feasibility Study?

Things to Include in a market feasibility study include:
* Description of the Industry
* Current Market Analysis
* Competition
* Anticipated Future Market Potential
* Potential Buyers and Sources of Revenues
* Sales Projections



The discussion pertains to the nature of the product, its components and its purpose. It describes, also, the features, including the characteristics and attributes.

Discussions should be elaborate and comprehensive.


This component deals with the presentation of the industry where the market thrives. Where economic indicators affecting this project are available, presenting them in this heading will be very enterprising.

Discussions are elaborated following the sub headings as indicated below:

A. Industry Background

This is a description of the existing market, the practices and characteristics that are presently observed from the suppliers and the market as well as their reactions to the changes in supply and demand characteristics.

Under this heading, the locale (market area) is stated and described. It could be a block, four blocks, one barangay or even a district in a city or progressive town. This locale is specified given the limited budget that will be funding the project.

B. Demand Consideration –

This component discusses the nature and attributes of the market. It provides emphasis on the attributes of the market and its behaviors in relation to the various product/service qualities that are offered. It provides comprehensive discussions on the historical values of purchases and consumptions, including the trends in consumptions.

Historical values are presented and trends discussed. Values could be presented weekly, monthly, quarterly, etc., provided that at least seven periodic values are presented.

C. Supply Consideration

This component discusses the nature and attributes of the supply. It provides details on the number of suppliers in the locality or in the community where the project will hopefully be operating. It also describes the attributes, including the scale (sizes) of the operation

Historical values of supplies will be presented in tabular form and the trend analyzed. D. Price
The price of the product is covered under this heading. Prices are analyzed for the period covered in the demand and supply consideration. Historical prices will be presented and trend analyzed. E. Historical Supply, Demand and Price Matrix

The basic information that are derived from the preceding discussions are summarized under one table to depict the market consideration.
These historical information are subjected to statistical calculations, using four specified statistical tools to determine the appropriate equations that closely describe the individual trends (for demand, supply, and price).

The statistical review that generates the lowest standard deviation (and the highest...
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