Your access to competitive information will vary. Competitors that are publicly traded may have a significant amount of information available.
Town B Although Town B looks more competitive 10 competitors vs. The definition of a potential customer will depend on your type of business. For example if you are opening a small shop selling office furniture then your market will be all the companies within your delivery range.
Business plan competition analysis marketing would however factor it when assessing the value of the market. Market value Estimating the market value is often more difficult than assessing the number of potential customers.
The first thing to do is to see if the figure is publicly available as either published by a consultancy firm or by a state body. It is very likely that you will find at least a number on a national level.
If not then you can either buy some market research or try to estimate it yourself. Methods for building an estimate There are 2 methods that can be used to build estimates: The bottom up approach consist in building a global number starting with unitary values. In our case the number of potential clients multiplied by an average transaction value.
We would first factor in the size of the businesses in our delivery range in order to come up with the size of the desks park. Then we would try to estimate the renewal rate of the park to get the volume of annual transactions. Finally, we would apply an average price to the annual volume of transactions to get to the estimated market value.
Here is a summary of the steps including where to find the information: You can get the number and size of businesses in your delivery area from the national statistics.
Your accountant should be able to give you the useful life of a desk but you should know it since it is your market! You can compare the desk prices of other furniture stores in your area. As a side note here: The top down approach consist in starting with a global number and reducing it pro-rata.
When coming up with an estimate yourself it is always a good practice to test both the bottom up and top down approaches and to compare the results. If the numbers are too far away then you probably missed something or used the wrong proxy. Once you have estimated the market size you need to explain to your reader which segment s of the market you view as your target market.
Target Market The target market is the type of customers you target within the market. For example if you are selling jewellery you can either be a generalist or decide to focus on the high end or the lower end of the market. This section is relevant when your market has clear segments with different drivers of demand.
In my example of jewels, value for money would be one of the drivers of the lower end market whereas exclusivity and prestige would drive the high end. Now it is time to focus on the more qualitative side of the market analysis by looking at what drives the demand.
Market Need This section is very important as it is where you show your potential investor that you have an intimate knowledge of your market. You know why they buy!
Here you need to get into the details of the drivers of demand for your product or services. One way to look at what a driver is, is to look at takeaway coffee. One of the drivers for coffee is consistency.
The coffee one buys in a chain is not necessarily better than the one from the independent coffee shop next door. Whereas you know that the coffee from the chain will taste just like in every other shop of this chain.
Hence most people on the move buy coffee from chains rather than independent coffee shops. From a tactical point of view, this section is also where you need to place your competitive edge without mentioning it explicitly.A competitive analysis is a critical part of your company marketing plan.
With this evaluation, you can establish what makes your product or service unique--and therefore what attributes you play. Aug 13, · Free competitive analysis examples that can help your company's business and marketing plans/5(4). Including a competitor analysis in your business plan, for example, shows investors that you are aware of the competition, that you understand your marketplace and that you have plans in place to compete at the same level as established competitors.
The competitive analysis section of a business plan is a vital component. It shows investors that you are aware of the competition, that you understand your marketplace and that you have plans in.
Learn how to find out about your competition and develop a competitive advantage when writing the Competitor Analysis section of the business plan. Learn how to find out about your competition and develop a competitive advantage when writing the Competitor Analysis section of the business plan.
Your Small Business Have a Marketing Plan? Find the answer by reading this article which explains how to do a market analysis for a business plan. the competition, and the economic environment in terms of barriers to entry and regulation.
How to do a market analysis? (the huge marketing costs required to get to a certain level of recognition).