مدیران امروز

When an entrepreneur decides to set up his/her enterprise, he/she has a choice of setting up:

  ‑   A manufacturing unit    

 ‑   A service enterprise   

 ‑   A trading enterprise

 (a)        Setting up a manufacturing unit means that one has to organise many things like, acquiring land, building and machinery, arranging for technical know‑how, purchasing raw material, recruiting employees and very importantly, arranging for finance, etc.

 

(b)        A service enterprise can either be simple or complex, depending on what kind of service you intends to provide.

 

(c)        Trading may not be as complicated as manufacturing. It involves planning, purchase of goods, stock control, personnel and financial management.

 

Therefore, the first thing a potential entrepreneur has to do is to decide what area of business he/she would like to undertake ‑ industry, service enterprise or trading.

 

If one opts for a manufacturing unit, then you have to decide which industry‑group or sector you would like to go in for.  There are number of industry sectors, like

  ‑ Chemicals

 ‑ Pharmaceuticals

 ‑ Plastics

 ‑ Electronics

 ‑ Electrical

 ‑ Textile

 ‑ Food

 ‑ Mineral-based

 ‑ Ceramics

 ‑ Agro-based

 ‑ Paper

 ‑ Glass and so on

 Besides, every industrial sector has various sub‑sectors.  For example, in textiles, one can think of spinning, weaving, processing, knitting, etc.  In any given sub‑sector, you can develop several business ideas. The list can almost be endless. Similarly, the service industry also provides varied services.

 Thus, the process of identifying opportunities requires intensive efforts and specialized skills.  You eventually face a bewildering variety of ideas, which can be a bit confusing too. You may not be able to decide and there are some points to help you.

Look at Yourself

You are the one who is going to establish and manage business yourself. There are many questions for which you must have answers before you look for and identify a business opportunity.  These include important areas like:

 

*          Educational qualification

*          Work experience in and/or exposure to any industry or business

*          Financial resources

*          Technical skills

*          Preference for any industrial sector or sub‑sector

*          Expectations about returns from the business

*          Reasons for setting up an enterprise

*          Contacts in industry and financial sector

*          Your attitude to a particular industry.

 

The answers to these questions can help you towards identifying an opportunity.

 

Springboard for a Business Idea

While trying to identify an opportunity, look at the following five springboards:

 -           Natural resources

-           Existing/expected enterprises

-           Market extension/modification in product

-           Creative effort

-           Export/retail ideas

 

There are natural resources, which can be, commercialized (e.g. paddy into rice bran, rice husk into chemical, husk board, etc.). There can be existing enterprises or enterprises in the pipeline to which you can supply items or services.

 

There might be certain existing enterprises doing so well that you may like to manufacture the products being manufactured by them.  But you should remember that one man's meat could be another man's poison. 

 Or there might be some products or services for which the demand is likely to increase.  Your work experience can also suggest some business opportunity to you.

 Creative efforts mean that you can also conceive product ideas by trying to solve problems in your area.  For example, you can invent an energy saving device for textile processing units, which consume considerable energy, or manufacture reasonably priced equipment to stop emission of effluents by chemical units.

 

Taking a Decision

Having explored the ideas, the decision process may involve following steps:

(a)        Understanding the Industry Group and its sub‑sector you would like to go in for.

(b)        Knowing the present environment and industrial climate.

(c)        Assessing the flexibility and possibilities of diversifying in future.

 selection of Specific Project

 Once you have decided on the industry group, the next step is to select a specific product.  How do you go about it?

 

(1)        Decide the size of the project:

This depends on your own investment capacity and possibilities of getting financial assistance.

 

(2)        Check the policy of the government for that particular industry:

-           What are the types of permissions and licenses required?

‑           What regulations and controls exist for required raw material, price of end product and how it would affect operation of the unit?

‑           Whether the project selected by you is on the discouraged or banned list of government?

 

(3)        Own Strengths & Weaknesses:

While selecting the project, you should assess your own strengthens and weaknesses in relation to the project.

 

(4)       Compare all the advantages and disadvantages:

You, as an entrepreneur, should assess the prospects of the project too, i.e. about its future scope and feasibility. This would include:

(i)         Complexity of technology

(ii)        Return on Investment

(iii)       Market potentiality

 

At this stage, the above criteria can help in arriving at a tentative decision. Subsequently, a detailed feasibility study can be done.  So, at this stage, you could have two or three projects on your short‑list.

 

Final Selection of Project

This would involve assessment of all major criteria of viability viz., technical, financial, market and commercial.

 

A Word of Caution

Ø  Do not plunge into a project only because someone else is doing well manufacturing it or someone has assured you that he will buy your product when you make it.

Ø  A project idea may look good, but it cannot be developed into a saleable product. Consult experts and other people, but the final decision should be yours.

Ø  It is wiser to start with a common product rather than go in for a very specialized, innovative product unless you have done a proper survey of the market.  Otherwise, chances are that you might not be able to sell it.

Ø  Think of long term possibilities of success and select the project, which has some flexibility of diversification.

 Summary:

Factors to be considered while identifying and selecting a business opportunity are:

1.         Look at yourself ‑ your strengths, weaknesses, resources, skills, education qualifications, attitudes, aptitudes, contacts reasons for setting up an enterprise, and expectation about returns.

 

2.         Springboards for idea ‑There are five springboards to identify a business opportunity:

          

o   Natural resources, e.g., minerals, marine products, agriculture

o   Existing/expected enterprise

o   Market extension/modification in product

o   Creative effort

o   Export/retail ideas

 

3.         Government policy for the particular industry

 

4.         Compare all advantages and disadvantages

 

Final selection of the product would involve assessment of all major criteria of viability, viz., technical, financial, market and commercial. A project idea may look good, but it cannot always be developed into a saleable product.

HOW TO SELECT THE RIGHT BUSINESS OPPORTUNITY

 Entrepreneurial activity is essentially person‑oriented. Therefore, the make‑up (strengths, weaknesses, preferences, values etc.) of the entrepreneur will affect his choice of business opportunity. An entrepreneur is, therefore, advised to be aware of his own self-all the time.

 Business opportunity and entrepreneurial response to it together form the foundation on which the superstructure of a new venture rests. If the foundation is weak or defective, the super structure may well collapse or require extensive repairs and support efforts in course of time. So, all the care and efforts, time and trouble taken to select right business opportunities will repay themselves multifold in course of time.

 A new entrepreneur must take special care in selecting a business opportunity as it is a one‑time decision for him and all his subsequent efforts and plans will be decided on the basis of his decision about the product selected.  For an entrepreneur, selecting the right product is as good as answering half the questions before he reaches the final decision of selecting a product. This section aims at helping new entrepreneurs in understanding the process of making this important decision.

 

1.         Identifying a Business Opportunity

           

            An entrepreneur is said to be an opportunity seeker. For the potential entrepreneur his/her first task is to identify, explore and then select an attractive and viable business opportunity.     

 

           Defining `Opportunity'

           

            In simple terms, opportunity may be defined as an attractive and viable project idea, which an entrepreneur accepts as a basis for his investment decision.

            A mere "possibility' is to be distinguished from business "opportunity". Good business ideas must be capable of being converted into feasible projects. Thus, ideas become business opportunities if they have a chance to be successful.

 

            Therefore two major ingredients of a business opportunity need to be highlighted:

 

1)      good market scope i.e. gap between present or likely demand and supply; and

 

2)      An attractive/acceptable return on investment.

 

            Apart from these two criteria, a business opportunity needs to be analyzed from other viewpoints for its viability such as technical, production, commercial and managerial. These criteria are inter-linked and a decision about one affects others. This is presented graphically in the Chart shown underneath:

                                                      

 

Viability: A Basic Statement

 

For an entrepreneur the process may appear to be like a merry‑go‑round. He may be confused as to where to start and where to end. It is worthwhile here to quote an interesting example. When I was traveling with a successful entrepreneur, I was tempted to ask, "How did you selected your project?" His reply came. "It is very simple. I select a project where raw material was not easily available.

           

            Surprised by the answer, I asked for an explanation. He replied, "Once I have found out how to procure the raw materials I am not worried about the market, because it will always be good as not many people will go in this line on account of the scarcity of raw materials." And I learnt he had his own strength in procuring raw materials! Hence the "availability" of raw material was the starting point of the project idea for him. 

 

The case is a classic example of an entrepreneurial decision‑making for selecting a product. What it indicates is that out of many criteria one has to select only those where one's own strengths become highly relevant. And secondly, one may not get an idea, which is attractive on all counts. If the market is very good, technology may be complicated or if returns are very good, investments may be high, and so on.

 

The Process of Selection

 

            The process of selection of product and the stages through which an entrepreneur has to pass before reaching the final decision, needs to be carefully understood.

 

            Selection of right business opportunity demands:

 

            a)         Understanding of one's own capabilities, strengths, limitations and preferences;

            b)         Exploring all possible and suitable opportunities available within existing (given) conditions and environment;

            c)         Taking final decision about product, after comparative analysis of opportunities available, consistent with entrepreneurial capabilities and their relative benefits.

                        Whether a business opportunity is for manufacturing a product or for providing services, one generally begins by concentrating on one line of activity.     

           

            d)         Thinking of new products/services not existing in the town, area/country

           

            e)         Developing existing products/services available in the market in terms of design, specifications etc

           

            f)         By selecting products/services which are already being manufactured.

 

            Though ideally new entrepreneurs will be tempted to go for the first group of ideas, it needs to be underlined that these involve a high degree of risk. Hence for the first‑timer entrepreneurs who do not have much business experience, it is advisable to take low risk in the initial stage and start their selection process from criteria (c) to (a). On the other hand, criteria (e) to (f) could be pointers to new ideas that are to be developed. Choose the one that appeals you the most.

 

            Exploring Opportunities

 

            The process of identifying opportunities requires intensive efforts and specialized skills. However, certain indicators or guidelines may help to identify as also assess opportunities.

 

(i)                 Environment:

 

                        ‑           Basic features of an area and its resource inventory         

‑           Population, its composition, occupational pattern, socio‑economic background etc.

           

(ii)               Current Business Scene:

 

                        ‑           Present pattern of trading and business activities in the area with reference to inter‑regional flow of commodities, local consumption and needs for industrial goods as also services.

                        -           Emerging trends and patterns of trading and business activities in terms of new demands for consumption of goods and services in the area.

                        (a)        Analysing trade inflows and outflows         

(b)        Study of Socio‑economic trends         

(c)        By understanding problems of the area and trying to solve them

          

(iii)             Technology Change:

 

                        Anticipating new opportunities because of technology change like electric engines, computers etc. To help in identifying business opportunities some of the idea sources are short‑listed below:

            

a)                  Resource based ideas:

                                    i)          Industries based on mineral, agricultural, marine and forest resources.  

                                    ii)         Waste‑based products such as agro‑waste, wood‑waste, metal‑waste etc.

b)                 Linkage related ideas:

                                    i)          Industries arising out of various types of linkages such as backward and forward integration from existing lines of manufacture.

                                    ii)         Ancillary development of projects.

                                    iii)        Industries based on substitution i.e. products, which are either obtained from outside the region or the country at large.

                        c)         Export/Import related ideas:

                                    i)          Export oriented activity                  

ii)          Import substitution

     

                        d)         Market shift or growth related ideas:

                                    Consumer and industrial products that have growth potential as a result of increased population or changes in composition of population, purchasing power, changes in living styles etc

 

                        e)         Special product ideas:

                                    i)          Research and invention‑based products                  

ii)         Skill/knowledge based products                 

iii)        Products based on Institutional / Government purchases, 

Hospital/Schools etc                  

iv)                Foreign collaboration             

 

f)                   Service Sector ideas:

                                    Household repair and maintenance, service facilities/workshops / establishments to cater to industrial and household needs

 

g)                  Government policies, priorities and plans:

                                    By exploring these sources, the entrepreneur will have an inventory of various project ideas.

 

It will be possible to identify such business opportunities on the basis of readily available data/information. The initial process would involve collecting and co‑coordinating relevant information from the right sources.

 

2.      Taking a Decision

 

            Having explored the ideas, the decision process would involve following steps:

 

            Step 1: Understanding the Broad Industry Group

 

           (i) What type of industry you would like to go in Engineering / Plastic Chemicals etc.

 

           (ii) Should you select -?

           

            Consumer Products    OR      Intermediate Goods   OR          Capital Goods

            (Being used and                      (Goods used to                       (Goods which need  

Consumed regularly                manufacture other                   for further processing

and directly e.g.                      products: printing                    by  other to get     

detergent, cloth                       m/c., components ;                  final product,   such as

            etc.)                                         etc.)                                         Chemicals, bright  bars etc.)

 

           (iii) What is the present environment and industrial climate with reference to above        product?

         

            (iv) What kind of flexibility and possibilities of diversifying in future do you want?

          

            (v) What are your preferences, technical capabilities and familiarity or possibility of        support by others?

 

On the basis of the above factors, entrepreneurs may select broad industry group like plastics, engineering, and chemicals and prepare a basket of ideas.

 

Step 2: Selection of Specific Project

             Having decided the industry group and a basket of ideas, the next step is to select a specific project. The suggested process is as follows:

 

(1)               Decide the size of the project:

Depending upon your own investment capacity and possibilities of getting financial assistance, overall investment size of the project must be decided.

 

(2)               Check government policy:

Before finalizing your project it is very essential to check:

 

i)          What types of special permissions and licenses are required and whether they will be available easily.

ii)         What regulations and controls exist for required material, price of end product and how it will affect operation of the unit; and

iii)        Whether the proposed project is the discouraged or banned list of government?

 

(3)        Own strengths & limitations

            While selecting the project, the entrepreneur will have to continuously assess his own strengths and capabilities to undertake the specific project. An easy way to make decision is a "go or not‑go" decision. Decide what is not suitable, by eliminating unwanted projects, which will give you, more desirable products.

(4)        Comparing relative advantages & disadvantages:

            The assessment of prospects means your general assessment about future scope and feasibility of undertaking the project. This would include: 

            i) Complexity of Technology

            ii) Return on Investment

            iii) Market Potentiality

As such detailed techno‑economic feasibility alone could help in making the final decision, but at this stage these three criteria can help in arriving at a tentative selection, to be subsequently followed by detailed feasibility study.

 

Thus, at the end of this stage, the entrepreneur will have two or three projects, which are worth considering for investment.

 

Step: 3: Final Selection of Project

 

The final selection would involve assessment of all major criteria of viability, namely technical, financial, market and commercial.

 

It is important to note that this stage-wise process enables entrepreneurs to avoid unnecessary, wasteful and frustrating efforts in exploiting projects that may later on be found unsuitable.

 

A Word of Caution

1)         Do not plunge into a project only because someone else is doing well or someone has assured you to buy your product. Someone's assurance may be a good reason to start, but not good enough to survive.

2)         It is important to generate product ideas, but one must accept that a good number of these product ideas may be found incapable of developing into a saleable product.

3)         By all means consult experts and other people, but remember that you are making the decision, and hence it is your shirt that may be lost in the bargain.

4)         It is advisable to start with a common product, rather than go for a very specialized product.

5)         It is advisable to check if many similar projects are coming up.

6)         Think of future and long-term possibilities of success and select the project, which has some flexibility for diversification.

Summary:

The process of selecting a suitable project/product involves:

 Identifying a business opportunity. `Opportunity' can be defined as an attractive and viable project idea, which you can accept as a basis for investment decision.

 Viability: A basic statement

 Selection of right business opportunity

 Exploring opportunities

            ‑    Environment

            ‑    Current business scene

            ‑    Technology change

 

ENSURING YOUR MARKET ‑ MARKET SURVEY & RESEARCH

 

Why Market Survey?

 

The era of seller's market has gone. Now it is market driven economy and hence, to understand a customer and his needs and motives becomes very important.  An entrepreneur has to understand his customers' behaviour, demands and desires. He has to satisfy their desires if he wants to get a sizeable share of the market. For an entrepreneur, the risk of setting up an enterprise and managing it successfully, depends mainly on how he makes his decisions in conditions of uncertainty which involve both risk and opportunity.  An entrepreneur should know his market and customers well so he can avoid risks and takes maximum advantage of the opportunities.

 

Markets are becoming increasingly dynamic and competitive. Their successful exploitation calls for greater investment and more INNOVATIONS. Decision‑making, therefore, must be faster and less susceptible to many of the needless errors of INTUITIVE judgment.  It is advisable that detailed market survey is undertaken to understand the `market' and feasibility of `marketing the product' instead of taking a hasty decision to start a venture.

 

What Does Market Research/Survey Involve?

 

Market Research or Survey may be defined as an objective and systematic collection, recording, analysis and interpretation of existing or potential markets, marketing strategies, tactics and interaction between markets, marketing methods and currently available products or services. It helps to apply a truly analytical approach to decision‑making and assists in the evaluation of the effect of decisions, which have already been taken.

 

The following six basic questions can give us information about buyers or potential buyers:

 

1.         What do they buy?                 (Which product or service)

2.         Why do they buy?                  (The reason for buying the product)

3.         Who does the buying?            (Young or Old, Man or Woman, etc.)

4.         How do they buy?                  (In Bulk or Units, Cash or Credit)

5.         How much do they buy?        (Quantity, how many times, etc.)

6.         Where do they buy?                (Shop/Agent/Mail Order/Direct, etc.)

 

The objectives of the survey should be to enable you to answer the following questions:

 

1.         What is the size of the market and the share anticipated for my product/service in terms of volume and value?

2.         What is the pattern of demand?

3.         What is the market structure?

4.         What is the buying habits and motives of the buyers?

5.         What will be my strong points in marketing my product or service?

6.         What are the past and future trends?

 

For a new entrepreneur like you a major problem in conducting market survey is lack of knowledge of sources of information and contacts.  You should, however, try to gather the above information as without it, trying to market a product is just like shooting in the dark without knowing where the target is.

 

The process of a market survey involves the following steps:

 

1.         Defining objectives of the study and specifying information required.

2.         Working out details of the study:

(a)        Identifying sources of obtaining information

(b)        Time and cost involved

(c)        Working out methodology and action plan

3.         Selecting samples and deciding contacts and visits

4.         Preparing questionnaire and plan for survey and interviews

5.         Collection and analysis of data

6.         Preparation of a report with findings of the survey

 

Market Segment

 

A market is composed of different sections like the teenagers' market, adults' market, rural market, urban market, upper class market and so on. Each section is known as a `Market Segment'.  A new entrepreneur while conducting market survey should try to fully study the market segment at which his/her product is targeted.

 

The operational work can be divided into three major areas:

 

(a) Table Work

(b) Field Work

(c) Report Writing

 

To have a qualitative or quantitative assessment of the market, you must rely on data, which may be:

 

(1)        Primary Data               : Information to be collected for the first time

(2)        Secondary Data          : Information that already exists (e.g. printed matter).

 

How to Collect Primary Data

 

(1)        Observation Method: By observing customers' behaviour, responses and movements, one can get partial answers to many questions related to marketing of a particular product. (E.g. how people respond to words like, SALE, DISCOUNT, FREE, or the effect of a particular colour or shape.

 

(2)        Experiment Method: In this method, a market situation is created and then a study of market is made (e.g. having a display of clothes and noting the reaction of a customer).

 

(3)        Survey Method: This is the most common method because it provides much more information. It is expensive but reliable if the research objectives are clearly defined. If the aim is not clear then the objective is not fulfilled.

 

 

Mode of Survey

There are two main methods of selecting samples from people:  (i) non‑random or judgment sampling and (ii) random or probability sampling.  In Random Sampling, anybody can have a chance of being chosen in the sample. In Non‑random (judgment) Sampling, personal knowledge and opinion are used to identify people that are to be included in the sample.

 

Systematic Sampling:

In systematic sampling, you select samples at a uniform level that is measured in time, order or space.

 

Stratified Sampling:

To use this method, you divide people into relative homogenous groups. You either select at random from each group or you draw an equal number from each group.

 

Cluster Sampling:

In cluster sampling, you divide people into groups or clusters and then select a random sample of these clusters.

 

Convenience Sampling:

In this sampling, you choose the samples on the basis of `convenience' or `accessibility'. This method should be used only for special situations in marketing.

 

Quota Control Sampling:

Here, you attempt to ensure that the sample selected is representative of your target market segment on the basis of certain parameters like, age, sex, and occupation, etc.

 

Area Sampling:

This, of course, is self‑explanatory.

 

Secondary Data Sources

The data, which already exists, may be used for investigation purpose. This information may be obtained from those who are indirectly involved (e.g. Traders or Manufacturers' Associations or published data).

 

Tips for Conducting Market Survey

 

It is very important for an entrepreneur to make a proper survey and gather relevant information.   It can happen that persons who are in a position to supply information may not realize the value or importance of keeping this in mind.  An entrepreneur has to work tactfully to gather the data in such a way that he can obtain the information he requires.  Following tips can help him in conducting the survey effectively and systematically.

 

1.         Do not be prejudiced or status conscious. Your own prejudices about education, caste, community and your own status‑consciousness can act as a negative factor in collecting information from various levels of people.

2.         Arguments should be avoided. The objective of the survey should be getting information and not personal opinions.

3.         Don't misconstrue assumption or personal opinion as data or information.  Keep your cool and patience during the survey.

4.         See that the person who provides you the information is in no way inconvenienced or harmed.

5.         Make a habit of writing down the information.

6.         Avoid asking direct personal questions which can hurt the person's feelings or invade his privacy. He may not like to answer questions about his income or profit or marital life.

7.         Sequencing of questions, your involvement and commitment to get information are the key factors for your success.

8.         The best way to approach your competitors is to go there as their client or customer.

9.         Don't ask, "Will you buy our product?"  Mostly, the answer will be "Yes".  This will misguide you.  Try to indirectly know his interest in your product and double check before you consider that information.

10.       Don't forget to thank the people whom you have approached for information.

 

At the end of the survey, detailed report on the findings must be prepared in a written form.  If possible, use computer for tabulation and calculation.

 

This market survey report will not only help you in assessing the feasibility of marketing your product, but will also act as an important document to convince the financial institutions about your understanding of the market and chances of success.

 

QUESTIONNAIRE FOR MARKET SURVEY

 

The following questions and information will help you as entrepreneurs to collect information and in turn enable you to understand the nature of your business. Here, the market survey has been suggested with a broader perspective so that may have all‑rounded commercial information.

 

1.                  For Raw Materials

 

a)         Who are the major manufacturers/suppliers of the materials?

b)         What time is required to get the materials after ordering? Which terms of supply prevail? (Tax structure, price, packing, payment terms, etc.)

c)         What is the standard/minimum packing or minimum order quantity?

d)         Is the material freely available?

e)         Are there any shortages (created) in the market at any particular time of the year?

f)         What was the trend of price changes and availability in the past? (Atleast for the last two years)

g)         Will any government decision affect the availability and the price of the material?

h)         Will it be advantageous to procure the material locally or purchase from outside?

 

2.         For Machinery/Equipment's

 

a)         Who are the manufacturers/suppliers?

b)         What capacity, specifications and makes (brands) are available in the market?

c)         What are the prices of machines? (Consider all applicable taxes, transport, accessories, etc.)

d)         What electrical equipment's like motor, starter, switches, etc., are required?

e)         What guarantee/warranty of performance does manufacturer give?

f)         What is the normal repair/maintenance cost per year? Which spare parts would be frequently required?

g)         What are the terms for ordering - payment, advance, delivery time, etc.?

h)         Before taking delivery of machine whether inspection can be done at their factory?

i)          What is the market standing of the manufacturers and list of parties to whom same type of machines have been supplied?

j)          Will special type of transport and handling be required?

k)         What are the overall outer dimensions of machines and working (floor) area requirements?

l)          What average (maximum) quality standards and output (production) can the machine/s give?

 

3.  For Market

    A.    From Manufacturers‑Competitors:

 

            a)         What is the general factory layout and space occupied?

b)         Their range of products, installed capacity and utilized capacity and selling price.

c)         Their normal terms of business.

d)         What is their future plans for expansion/diversification?

e)         Salient features of the units like technical skill finance other resources, etc.

f)         Their market area and practice.

g)         Any other special problems faced by the units?

 

B.        From Supplier (Trader):

a)         Who are the present principal traders in the item? Range of products dealt with and general business terms, commissions, etc.

b)         His market area and annual turnover estimates.

c)         Duration and type of his relations with principal.

d)         Possibility of trading with him and his expected business terms.

e)         Normal level of stock he is maintaining and any specific problems he might have in stocking goods.

f)         His future predictions/comments on business conditions.

 

C.        From Consumers (Customers):

a)         What is the annual consumption and requirement?

b)         What are the present sources of supply?

c)         Customers' loyalty to brand (make) and preferences like price, quality, payment terms, etc.

d)         Whether he is satisfied or dissatisfied with present product and supply?

e)         What are his purchasing criteria and what purchasing power he holds?

f)         What is the consumption pattern? (Basis of calculating his requirement)

g)         What changes in his future consumption is expected? In quality due to changes in technology, etc.

h)         What is the size of his average order quantity and at what time and frequency he places orders?

 

 

KEY COMPONENTS OF YOUR MARKET SURVEY REPORT

 

Introduction                            *          End products

*          End users

*          Suitability and strength of selecting particular product

Product                                   *          Specifications, sizes, brands, packing, selling price, etc.

 

Assessment of Demand          *          Class and type of consumers/clients

                                                *          Patterns of consumption and frequency of purchase

                                                *          Product life cycle and present status

                                                *          Past demand pattern

                                                *          Future anticipated demand projections

                                                *          Buying criteria and influencing factors

Supply Position                       *          Current availability and production capacity Vs utilization

                                                *          Present indigenous and imported supply sources, their price comparisons, services, etc.

Marketing Practices                *          Present prevailing marketing practices

                                                            ‑  Distribution

                                                            ‑  Packing/Forwarding

                                                            ‑  Credit Policy

                                                            ‑  Delivery, After Sales Services

                                                *          Selling price, taxation structure and commission patterns

                                                *          Purchasing procedures, time and practices prevailing

Own Marketing                       *          Own market share of supply‑demand gap

Plans and Strategies                *          Strength and special services to be offered if any

                                                *          Possible clientele and their likelihood of buying from you