market feasibility
DESCRIPTION
Market FeasibilityTRANSCRIPT
LOGO
By
Sanjeev Acharya
Roll No. 28
Market Feasibility Study
What is Feasibility Study?Feasibility study is the process of determining the
implement ability of the project
‘Feasibility study is the activities/efforts/analysis to
measure the cost and benefit of a business in order to
define the efficiency and effectiveness of the project’s
methods and tools.’1
According to Wikipedia ‘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,
India, Tata Mc Graw Hill
Feasibility StudyIdeally, the feasibility study involves making rational decisions about
a number of enduring characteristics of a 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
Market Feasibility
FinancialFeasibility
Technical Feasibility
Ecological Feasibility
Legal &Administrative
Feasibility
Types of Feasibility
Economic Feasibility
Market Feasibility Market feasibility study is a logical study and a marketing plan about 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 competitors are likely to react when our product or service is
introduced
How your new product or service should be designed to best meet
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
Conduct of
Market
Survey
Characteristics
of the Market
Demand
Forecasting
Market
Planning
1. Situation Analysis & Specification of Objectives
Before entering the market we should gather the followinginformation:
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 ofitems?
What prices are the customers willing to pay?
In what basis the differentiation of product will be made ascompared to different brands?
How the products will be distributed to customers and whatcosts 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,National Sample Survey Reports, Plan Reports, Statistical Abstract ofIndian Union, Indian Year Book, Economic Survey, Annual Survey ofIndustries, The Stock Exchange Directory, Publications of AdvertisingAgency, 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 preferences
Socio-economic characteristics of buyers
Various Steps of Conducting the Market Survey
Define the target population
Select the sampling scheme and sample size
Develop the questionnaire
Recruit the train field investigators
Obtain information as per the questionnaire from the
sample of respondents
Scrutinize the information gathered
Analyze and interpret the information
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4. Characterization of the MarketBased on the information 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
Opportunity and Issue Analysis
Objectives
Marketing Strategy
Action Programme
Current Market Situation
Bibliography
Books:
- Prasanna Chandra (2006), Projects: Planning,
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/idea-
feasibility-case-study-presentation
-
http://businesstoday.intoday.in/index.php?issueid=&id=1236
&option=com_content&task=view§ionid=4