Overview

Market feasibility studies provide information critical to evaluating the potential of new markets, based on a complete review of the market dynamics, products/services, customers, competition, distribution, pricing, and promotional efforts. This information can be used to evaluate short and long-term market potential, the cost of market entry, return on investment, and strategies related to market entry.

Since each company and market is different, Perspectives Consulting Group, Inc. focuses on identifying and providing relevant information for each client using a customized research process. This process may include techniques like telephone interviews, mail surveys, industry expert interviews and customer response systems. Once the information is obtained, Perspectives Consulting Group, Inc. analyzes the information and provides direction for making informed and effective decisions.

Market Feasibility Studies

Generally, market feasibility studies profile seven areas:

• Market Dynamics - General information on the market
• Products/Services - What products/services are available
• Customers - Who currently purchases the products/services
• Competition - Who provides the products/services
• Distribution - How do the products/services get to the customers
• Pricing - What pricing levels are used with the products/services
• Promotion - How are the products/services promoted and sold to the customers

Perspectives Consulting Group, Inc. primarily uses secondary information sources such as trade periodicals, databases, government statistics, news publications, and industry association reports to uncover basic information about an industry or market. Often the most productive information is found by digging beneath the surface to uncover information about the market directly from customers and competitors. Surveying and interviewing industry experts, customers, and competitors provides this enhanced information, which is tailored specifically to the needs of the client.

Market Feasibility Study Outline

The following outline lists topics that could be included on a market feasibility study:

Market Dynamics

• Overall market size in volume and sales
• Market activity - growth/decline/stagnant
• Market entry/exit - companies entering or leaving the market
• Projected market or industry changes

Products/Services

• Products/services available
• Key product/service attributes such as sizes, colors, materials, ratings, etc.
• Factors impacting future products/services
• Ranked importance of key product/service attributes

Customers

• Current customers - number, names
• Satisfaction with current products/services
• Satisfaction with current suppliers/providers
• Willingness to switch suppliers/providers or consider new products/services

Competition

• Primary competitors - number, names
• Market share of direct competitors and alternatives
• Market focus - price leadership, volume leadership, technology leadership
• Competitive intelligence - competitor plans and activities
• Competitive evaluation - customer perception of the competition, strengths/weaknesses

Distribution

• Distribution channels
• Geographic coverage
• Push vs. pull market strategy
• Satisfaction with sales relationship such as salesforce, retailers, etc.

Pricing

• Price levels and structures for products/services
• Customer price sensitivity

Promotion

• Advertising/promotional media and methods
• Focus or goal of advertising/promotion
• Methods for attracting new sales