Market Analysis

Last Verified: 2007-10-24

Summary

Your Customers:

• Who are they? Age, sex, income?
• Where do they live, play, shop?
• How often do they buy? seasonal?
• Cash, credit or debit card?
• Can you afford to carry accounts receivable?
• How big in dollar terms is your market potential?

Your Products:

• Are they unique, eye appealing?
• Better designed, higher quality?
• What sizes, any special packaging?
• Is there a need for your products?
• Must you offer a guarantee?
• What will be your return policy?
• Must you stock parts for service?

Buying:

• How much of each will you buy? From whom?
• Are you getting the best deal?
• Is volume discount eaten up by slow turnover?
• Can you return unsold merchandise?
• Have you a stock control plan to avoid overstocks, understocks and out of stocks?
• Have you established a line of credit with each supplier?
• How must you pay? C.O.D.? 30 days? 60 days?

Your Competition:

• How big, how old, how strong?
• What percentage of the market do they have?
• How far away?
• What advantages do you have?
• What advantages do they have?

Pricing:

• Do you know what to charge to cover costs?
• Are your prices competitive?
• How important is low price?
• Is service more important?
• Must you give cash or volume discounts?
• What will discounts do to your markup?
• Must you include delivery cost in your price?

Advertising:

• How much is normal for your products?
• What media? How often? Seasonal?
• Do you have a logo or trademark? Is it registered?
• Is any free publicity available?
• Will you need an advertising agency?
• What is your product image?

Prepared by: Saskatchewan Regional Economic and Co-operative Development