In most developing countries the decision to invest in the manufacture of a product is often prior to any assessment of the market for the product. This lack of appreciation for market analysis in project appraisal can seriously affect the success of a project.
The importance of the potential market and the need to develop a suitable marketing strategy cannot be over-emphasized. Hence efforts are made to:
• Examine the reasonableness of the demand projections by utilizing the findings of available surveys, industry association projections, Planning Commission/DGTD projections, and independent market surveys (which may sometimes be commissioned)..
• Assess the adequacy of the marketing infrastructure in terms of promotional effort, distribution network, transport facilities, stock levels, etc.
• Judge the knowledge , experience, and competence of the key marketing personnel.
In order to make proper market appraisal, the borrowers are required to furnish:
Persent state of the industry
Consumer preferences
Market requirements
Market segments distribution channels
Market characteristics of the product
Export prospects and international markets
Marketing and selling arrangements
Trend in prices during the last 5 years.
CIF and FOB prices and landed cost of the proposed product.
Marketing plan should be included in the Project and contain answers to the questions outlined below.
1. Who are your customers? Define your target market(s).
2. Are your markets growing? Steady? Declining?
3. Is your market share growing? Steady? Declining?
4. If a franchise, how is your market segmented?
5. Are your markets large enough to expand?
6. How will you attract, hold, increase your market share? If a franchise, will the franchiser provide assistance in this area? Based on the franchiser’s strategy? How will you promote your sales?
7. What pricing strategy have you devised?
The importance of the potential market and the need to develop a suitable marketing strategy cannot be over-emphasized. Hence efforts are made to:
• Examine the reasonableness of the demand projections by utilizing the findings of available surveys, industry association projections, Planning Commission/DGTD projections, and independent market surveys (which may sometimes be commissioned)..
• Assess the adequacy of the marketing infrastructure in terms of promotional effort, distribution network, transport facilities, stock levels, etc.
• Judge the knowledge , experience, and competence of the key marketing personnel.
In order to make proper market appraisal, the borrowers are required to furnish:
Persent state of the industry
Consumer preferences
Market requirements
Market segments distribution channels
Market characteristics of the product
Export prospects and international markets
Marketing and selling arrangements
Trend in prices during the last 5 years.
CIF and FOB prices and landed cost of the proposed product.
Marketing plan should be included in the Project and contain answers to the questions outlined below.
1. Who are your customers? Define your target market(s).
2. Are your markets growing? Steady? Declining?
3. Is your market share growing? Steady? Declining?
4. If a franchise, how is your market segmented?
5. Are your markets large enough to expand?
6. How will you attract, hold, increase your market share? If a franchise, will the franchiser provide assistance in this area? Based on the franchiser’s strategy? How will you promote your sales?
7. What pricing strategy have you devised?