Market analysis

the process of evaluating the current market conditions in a particular industry or sector to
determine the viability of a product or service. The purpose of market analysis is to identify
opportunities and potential barriers to entry, assess the competition, and understand the
preferences and behavior of potential customers.

Market analysis

involves gathering and analyzing data on factors such as market size, growth trends,
consumer demographics, purchasing behavior, competition, and regulatory environment.
This information is then used to make informed business decisions and develop marketing
strategies that are targeted to the needs and preferences of the target market.

For example, if a company is considering launching a new smartphone, they would conduct
market analysis to determine the size of the smartphone market, the preferences and
behavior of potential customers, the competition, and the regulatory environment. Based on
this analysis, they would be able to make informed decisions about product features, pricing,
distribution channels, and marketing strategies to successfully launch the product in the
market.

EXAMPLE FORMAT OF A MARKET ANALYSIS FOR A LIQUID DISHWASHING LIQUID:

Introduction
Provide background information on the dishwashing liquid industry and its market potential
Define the scope of the analysis, including target market, product features, and competitors

Market Overview
Describe the overall market size and growth trends for liquid dishwashing liquid
Identify the key players in the industry, including major brands and their market share
Discuss the distribution channels for liquid dishwashing liquid and any regulatory factors that
may affect the market

Consumer Analysis
Describe the target market for the liquid dishwashing liquid, including demographic and
psychographic characteristics

Analyze consumer behavior and preferences, including product features and benefits that
are most important to consumers
Discuss any factors that may influence consumer purchasing decisions, such as price
sensitivity, brand loyalty, and advertising effectiveness

Competitive Analysis
Identify the major competitors in the liquid dishwashing liquid market, including their
strengths and weaknesses

Analyze their product offerings, pricing strategies, and marketing tactics

Compare their market share and distribution channels to those of the proposed product
SWOT Analysis
Conduct a SWOT analysis for the proposed product, including strengths, weaknesses,
opportunities, and threats

Consider internal factors such as product quality and distribution capabilities, as well as
external factors such as competition and market trends

Marketing Strategy
Based on the market analysis, develop a marketing strategy for the proposed liquid
dishwashing liquid

Define the product features and benefits that will appeal to the target market
Determine the appropriate pricing strategy, distribution channels, and promotional tactics to
reach the target market

Conclusion

Summarize the findings of the market analysis and the proposed marketing strategy
Recommend next steps for launching the product in the market, including any further
research or testing that may be necessary.

SAMPLE MARKET ANALYSIS OF LIQUID DISHWASHING LIQUID:

Introduction Liquid dishwashing liquid is a common household product used for cleaning
dishes.

The dishwashing liquid industry is highly competitive, with numerous brands vying for market
share. This market analysis will examine the liquid dishwashing liquid industry, including
market size, consumer preferences, and competition.

Market Overview

The liquid dishwashing liquid market is projected to grow at a CAGR of 3.7% from 2021 to
2026, reaching a market size of 10.2 billion by 2026. The market is primarily driven by the
increasing demand for household cleaning products, coupled with rising hygiene and
cleanliness concerns. The major players in the market include Procter & Gamble, Unilever,
Colgate-Palmolive, and Reckitt Benckiser, which collectively account for a significant market
share. Liquid dishwashing liquid is primarily sold through grocery stores, supermarkets, and
online channels.

Consumer Analysis

The target market for liquid dishwashing liquid includes households and commercial kitchens.
Consumers typically look for a dishwashing liquid that effectively removes food residue, has a
pleasant fragrance, and is gentle on their hands. Consumers are also increasingly
concerned with the environmental impact of cleaning products, leading to a rise in demand
for eco-friendly and biodegradable products.
Competitive Analysis

The liquid dishwashing liquid market is highly competitive, with numerous brands offering
similar products. Major brands such as Procter & Gamble and Unilever have strong brand
recognition and significant market share. However, smaller brands have been successful in
differentiating themselves by offering unique features such as eco-friendliness, natural
ingredients, or specialized formulations for different types of dishes.

SWOT Analysis

Strengths:
Effective in removing food residue
Pleasant fragrance
Easy to use

Weaknesses:
Harsh chemicals can cause skin irritation
May be harmful to the environment
Strong competition from established brands

Opportunities:
Increased demand for eco-friendly products
Growing market in emerging economies
Expansion into commercial cleaning applications

Threats:
Intense competition
Price wars with other brands
Threat of new competitors entering the market

Marketing Strategy

Based on the market analysis, the marketing strategy for a liquid dishwashing liquid should
focus on differentiating the product from competitors by emphasizing eco-friendliness and
natural ingredients. The product should be priced competitively with established brands
while offering unique features that appeal to environmentally conscious consumers.
Promotions could include social media campaigns and influencer partnerships to reach a
wider audience.

Conclusion

The liquid dishwashing liquid industry is highly competitive, but there is an opportunity for a
new product to differentiate itself by offering eco-friendly and natural ingredients.
Understanding consumer preferences and behavior, as well as the competitive landscape, is
critical for developing a successful marketing strategy.
EXAMPLE MARKET ANALYSIS OF A WELDING SHOP:

Introduction

A welding shop is a business that specializes in welding, fabrication, and repair services. The
market for welding services is highly competitive, with numerous small and large companies
vying for market share. This market analysis will examine the welding shop industry, including
market size, customer preferences, and competition.

Market Overview

The welding shop industry is projected to grow at a CAGR of 5.2% from 2021 to 2026,
reaching a market size of 26.2 billion by 2026. The industry is driven by the growth of various
end-user industries such as construction, automotive, and manufacturing. The major players
in the industry include Lincoln Electric, ESAB, Miller Electric, and Airgas, which collectively
account for a significant market share. Welding services are primarily sold through referrals,
repeat customers, and online channels.

Customer Analysis

The target market for welding shops includes individuals, small businesses, and large
corporations that require welding and fabrication services. Customers typically look for
welding shops that offer high-quality workmanship, competitive pricing, and reliable service.
Customers also look for shops that offer a variety of welding techniques, such as MIG, TIG,
and stick welding, to meet their specific needs.

Competitive Analysis

The welding shop industry is highly competitive, with numerous small and large companies
offering similar services. Major brands such as Lincoln Electric and ESAB have strong brand
recognition and significant market share. However, smaller shops have been successful in
differentiating themselves by offering specialized services such as custom metal fabrication,
mobile welding, and rapid prototyping.

SWOT Analysis

Strengths:
High-quality workmanship
Competitive pricing
Variety of welding techniques

Weaknesses:
Limited brand recognition
Limited service offerings compared to larger competitors
Difficulty in finding skilled labor
Opportunities:
Increased demand for welding services in various end-user industries
Expansion into other geographic regions
Diversification into related services such as metal fabrication or repair

Threats:
Intense competition from established brands
Fluctuations in raw material prices
Economic downturns that reduce demand for welding services

Marketing Strategy
Based on the market analysis, the marketing strategy for a welding shop should focus on
differentiating the business from competitors by emphasizing specialized services such as
mobile welding or custom metal fabrication. The business should also offer competitive
pricing and reliable service to attract and retain customers. Promotions could include
referrals and online marketing to reach a wider audience.

Conclusion
The welding shop industry is highly competitive, but there is an opportunity for a new business
to differentiate itself by offering specialized services and competitive pricing. Understanding
customer preferences and behavior, as well as the competitive landscape, is critical for
developing a successful marketing strategy.

AN EXAMPLE MARKET ANALYSIS OF A BOARDING HOUSE:

Introduction

A boarding house is a type of accommodation that provides lodging and meals to tenants.
The market for boarding houses is highly competitive, with numerous small and large
companies vying for market share. This market analysis will examine the boarding house
industry, including market size, customer preferences, and competition.

Market Overview
The boarding house industry is projected to grow at a CAGR of 3.8% from 2021 to 2026,
reaching a market size of 18.7 billion by 2026. The industry is driven by the growth of
urbanization and the rise of single-person households. The major players in the industry
include YWCA, Salvation Army, and YMCA, which collectively account for a significant
market share. Boarding houses are primarily sold through online channels, referrals, and
word-of-mouth.

Customer Analysis
The target market for boarding houses includes students, single professionals, and low-
income individuals who are looking for affordable accommodation. Customers typically look
for boarding houses that offer clean and safe living conditions, affordable pricing, and
convenient location. Customers also prefer boarding houses that offer additional services
such as Wi-Fi, laundry facilities, and social events.
Competitive Analysis
The boarding house industry is highly competitive, with numerous small and large companies
offering similar services. Major brands such as YWCA and Salvation Army have strong brand
recognition and significant market share. However, smaller boarding houses have been
successful in differentiating themselves by offering specialized services such as pet-friendly
accommodation, private rooms, and a community-like atmosphere.

SWOT Analysis

Strengths:
Affordable pricing
Convenient location
Additional services such as Wi-Fi and laundry facilities

Weaknesses:
Limited brand recognition
Limited service offerings compared to larger competitors
Difficulty in finding and retaining tenants

Opportunities:
Increased demand for affordable housing in urban areas
Expansion into other geographic regions
Diversification into related services such as meal delivery or transportation

Threats:
Intense competition from established brands
Fluctuations in the economy that reduce demand for boarding houses
Changes in government policies or regulations that affect the industry

Marketing Strategy
Based on the market analysis, the marketing strategy for a boarding house should focus on
differentiating the business from competitors by emphasizing specialized services such as
pet-friendly accommodation or a community-like atmosphere. The business should also offer
affordable pricing and convenient location to attract and retain tenants. Promotions could
include online marketing and social media advertising to reach a wider audience.

Conclusion
The boarding house industry is highly competitive, but there is an opportunity for a new
business to differentiate itself by offering specialized services and affordable pricing.
Understanding customer preferences and behavior, as well as the competitive landscape, is
critical for developing a successful marketing strategy.

Quiz
1. What is the purpose of market analysis?
A. To identify opportunities and potential barriers to entry
B. To develop marketing strategies without any data
C. To blindly launch a product in the market
 D. To ignore the competition
2. What factors are considered in market analysis?
A. Market size, growth trends, consumer demographics, purchasing behavior,
competition, and regulatory environment
B. Product features, pricing, distribution channels, and marketing strategies
C. Consumer feedback, employee satisfaction, and office environment
D. None of the above
3. What is the first step in a market analysis for a new product?
A. Identifying the competition
B. Defining the target market and product features
C. Conducting a SWOT analysis
D. Developing a marketing strategy
4. What is a SWOT analysis?
A. An analysis of a company's financial statements
B. An analysis of a company's product features
C. An analysis of a company's strengths, weaknesses, opportunities, and threats
D. An analysis of a company's marketing strategy
5. What is the target market for a liquid dishwashing liquid?
A. Teenagers
B. Senior citizens
C. Homeowners and renters who wash dishes
D. None of the above
6. What are psychographic characteristics?
A. Characteristics that describe a person's personality, values, and attitudes
B. Characteristics that describe a person's physical appearance
C. Characteristics that describe a person's income and occupation
D. None of the above
7. What are distribution channels?
A. The methods used to transport goods from the manufacturer to the consumer
B. The methods used to advertise a product
C. The methods used to price a product
D. The methods used to package a product
8. What are some regulatory factors that may affect the liquid dishwashing liquid
market?
A. Environmental regulations
B. Import and export regulations
C. Safety regulations
D. All of the above
9. What is brand loyalty?
A. A customer's preference for a particular brand
B. A customer's preference for a particular product feature
C. A customer's preference for a particular price point
D. None of the above
10. What is a key element in developing a marketing strategy?
A. Identifying the competition
B. Understanding consumer behavior and preferences
C. Conducting a SWOT analysis
D. All of the above
11. What is the appropriate pricing strategy for a new liquid dishwashing liquid product?
A. Charging the same price as the competition
B. Charging a lower price than the competition
C. Charging a higher price than the competition
D. None of the above
12. What are promotional tactics?
A. The methods used to distribute a product
B. The methods used to price a product
C. The methods used to advertise a product
D. The methods used to package a product
13. What is the purpose of a conclusion in a market analysis?
A. To introduce the topic of the analysis
B. To summarize the findings of the analysis
C. To make recommendations for future research
D. None of the above
14. What are strengths and weaknesses in a SWOT analysis?
A. Internal factors that affect a company's performance
B. External factors that affect a company's performance
C. Factors that affect a customer's purchasing decision
D. None of above
15. What is the purpose of market analysis?
a) To identify opportunities and potential barriers to entry
b) To determine the size of the company
c) To increase sales of a product
d) To develop irrelevant marketing strategies
16. What are the factors that market analysis focuses on?
a) Market size, growth trends, consumer demographics, and regulatory environment
b) Company history, employee satisfaction, and financial performance
c) Political climate, geography, and social media usage
d) None of the above
17. What is the first step in conducting market analysis?
a) Identifying the target market
b) Analyzing consumer behavior
c) Analyzing the competition
d) Gathering data on market trends
18. What is a SWOT analysis?
a) An analysis of the market size and growth trends
b) An analysis of consumer demographics and purchasing behavior
c) An analysis of a company's strengths, weaknesses, opportunities, and threats
d) An analysis of a company's financial performance

19. What is a key element of a market overview?

a) An analysis of consumer behavior
b) A description of the overall market size and growth trends
c) A comparison of pricing strategies
d) None of the above
20. What is a target market?
a) The entire market for a product
b) A specific group of consumers that a product is aimed at
c) The competition for a product
d) None of the above
21. What is a key element of consumer analysis?
a) An analysis of the competition
b) A description of the overall market size and growth trends
c) An analysis of consumer behavior and preferences
d) None of the above
22. What is a key element of competitive analysis?
a) An analysis of consumer behavior
b) A comparison of pricing strategies
c) A description of the overall market size and growth trends
d) None of the above
23. What is a key element of a SWOT analysis?
a) An analysis of the competition
b) A comparison of pricing strategies
c) An analysis of a company's strengths, weaknesses, opportunities, and threats
d) None of the above
24. What is a key element of marketing strategy?
a) A description of the overall market size and growth trends
b) An analysis of consumer behavior and preferences
c) A determination of the appropriate pricing strategy, distribution channels, and
promotional tactics
d) None of the above
25. What is the purpose of defining product features and benefits in marketing strategy?
a) To increase sales of a product
b) To make the product more expensive
c) To make the product less appealing
d) None of the above
26. What is the purpose of determining appropriate pricing strategy in marketing strategy?
a) To make the product less appealing
b) To make the product more expensive
c) To increase sales of a product
d) None of the above
27. What is the purpose of distribution channels in marketing strategy?
a) To make the product less appealing
b) To make the product more expensive
c) To increase sales of a product
d) None of the above

28. Which of the following is the purpose of market analysis?

a. To increase competition
b. To identify opportunities and potential barriers to entry
c. To develop products randomly
d. To ignore the preferences and behavior of potential customers
29. Which section of the market analysis discusses the overall market size and growth
trends for the product?
a. Introduction
b. Market Overview
c. Consumer Analysis
d. Competitive Analysis
30. Which section of the market analysis describes the target market for the product,
including demographic and psychographic characteristics?
a. Introduction
b. Market Overview
c. Consumer Analysis
d. Competitive Analysis