Sample Business Plan

Topics: Marketing, Target market, Target Pages: 11 (1853 words) Published: August 25, 2012
3. Sample Business Plan - Market Analysis

The Market Analysis section should reflect your knowledge of your industry and present highlights and analysis of your market research. Detailed market research studies, however, should be presented as appendices to your plan.

A. Industry Description and Outlook
1.Description of your primary industry
2.Size of the industry
3.In five years
4.In ten years
3.Industry characteristics and trends
3.In the future
4.Major customer groups
B. Target Markets
1.Distinguishing characteristics of your primary target markets and market segments (Narrow your target markets to a manageable size. Efforts to penetrate target markets that are too broad are often ineffective.) 1.Critical needs

2.Extent to which those needs are currently being met
4.Geographic location
5.Purchase decision-makers and influences
6.Seasonal / cyclical trends
2.Size of the primary target market
1.Number of prospective customers
2.Annual purchases of products or services meeting the same or similar needs as your products or services 3.Geographic area
4.Anticipated market growth
3.Market penetration (Indicate the extent to which you anticipate penetrating your market and demonstrate why you feel that level of penetration is achievable based on your market research.) 1.Market share

2.Number of customers
3.Geographic coverage
4.Rationale for market penetration estimates
4.Pricing / gross margin targets
1.Price levels
2.Gross margin levels
3.Discount structure (volume, prompt payment, etc.)
5.Methods by which specific members of your target market can be identified 1.Directories
2.Trade association publications
3.Government documents
6.Media through which you can communicate with specific members of your target market 1.Publications
2.Radio / television broadcasts
3.Sources of influence / advice
7.Purchasing cycle of potential customers
1.Identification of needs
2.Research for solutions to needs
3.Solution evaluation process
4.Final solution selection responsibility and authority (executives, purchasing agents, engineers, etc.) 8.Key trends and anticipated changes within your primary target markets 9.secondary target markets and key attributes

3.Significant future trends
C. Market Test Results
1.Potential customers contacted
2.Information / demonstrations given to potential customers 3.Reaction of potential customers
4.Importance of satisfying targeted needs
5.Test group’s willingness to purchase products / services at various price levels D. Lead Times (amount of time between customer order placement and product / service delivery) 1.Initial orders

3.Volume purchases
E. Competition
1.Identification (by product line or service and market segments) 1.Existing
2.Market share
3.Potential (How long will your “window of opportunity” be open before your initial success breeds new competition? Who will your new competitors likely be?) 4.Direct
2.Their strengths (competitive advantages)
1.Ability to satisfy customer needs
2.Market penetration
3.Track record and reputation
4.Staying power (financial resources)
5.Key personnel
3.Their weaknesses (competitive disadvantages)
1.Ability to satisfy customer needs
2.Market penetration
3.Track record and reputation
4.Staying power (financial resources)
5.Key personnel
4.Importance of your target market to your competition
5.Barriers to entry into your market
1.Cost (investment)
4.Key personnel
5.Customer inertia (brand loyalty, existing relationships, etc.) 6.Existing patents and trademarks
F. Regulatory Restrictions
1.Customer or government regulatory requirements
1.Methods for meeting the requirements
2.Timing involved
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