Market analysis

What do you need to know about the market?

What is market?

Market is the people to them you are offering the goods/service.

You need to identify your target group to serve.

Do segmentation analysis. (Check marketing book) this is for consumer markets. If

your business is targeted for business market, then read segmentation for
business market from marketing book)
You analyze segment to identify the most attractive segment.

Segmentation analyses are based on 4 bases.

Geography: which geographical area you choose to serve (example; male city, fuahmulah city,
Kulhudhuffushi, naifaru)

Demographic: which demographic characteristics (age group, gender, income level, social class, and
other ..check the text book and identify what other information you need about the consumers you
want to target)

Psychographics: interests, lifestyle, attitudes, beliefs, perception (check the book for additional
characteristics)

Behavioral: occasional buyer, buying decision, seasonal buyer… who influence on buying. (Check the
book for additional)

How this information will be gathered?

Develop a survey form in google forms. Include questions based on your information needs.
Share it with the people in the focused geographic location, demographic characteristics. and
collect information from approximately 30-50 respondents.
Use this information to identify or draw the segmentation profile.
Once you develop segmentation profile, check the population data, and identify how many
people are in that segment. And then you can calculate

To do this calculation you can include question in the questionnaire about the purchase intent
of your product or service.
 • Purchase intent, Percentage response, Rule of thumb reduction, Percentage deemed
likely to actually buy
• Definitely would buy = 27%
• RTR = multiply by .8
• PDLB = 27% x .8 = 21.6%
• Probably would buy 43%
• RTR = multiply by .3
• PDLB = 43% x .3 = 12.9%
• Might or might not buy 22% Count as zero
• Probably 8% Count as zero
• Totals 100% 21.6% + 12.9% = 34.5%

Target market
Based on the segmentation analysis describe the target market here and explain how attractive
it is … (read about target market from marketing book)

Sales forecast
Use the information from segmentation analysis and target market (when you
complete to the target market you must know the number of people you are
going to cater your product or service)
Prepare a sales forecast for a year. (Here you can include the number of products
you plan to sell based on demand)
1 2 3 4 5 6 7 8 9 10 11 12 Total
Product 20 30 35 39 40 40 43 44 42 41 35 30 369
TZ1
Selling 50 50 50 50 50 50 50 50 50 50 50 50
price of
TZ1
Sales 1000 1500 1750 1950 2000 2000 2150 2200 2100 2050 1750 1500 18,450
revenue
Selling price: must be calculated in marketing mix PRICE. To calculate this price,
you will need costing in financial plan. Variable cost and fixed cost per unit. Or
average variable cost or fixed cost per unit. And then by using an appropriate
pricing strategy, you must come up with a selling price.
For example, Mark up pricing. (Check form marketing book > marketing mix>
pricing)