Business plan section industry analysis

General description of the company. An industry analysis process for small and medium-sized businesses. Business goals. Description of products and services. General description of the market and its target segments. Determining the demand for products and services. Demand assessment methods. Analysis of competitors. Marketing plan: the purpose and objectives of the section. Sales forecasting methods. Building a sales guide and a sales plan. Marketing strategy development. Formation of the main strategic objectives, development of a marketing complex and marketing program. Determination of business expenses.

Contents

Market analysis [edit]

The "Market Analysis" section demonstrates the level of knowledge of the sales market, its assessment, marketing research is carried out, a marketing strategy is formed, the volume and prices of product sales are determined. Based on these data, a production plan and calculation of the economic indicators of the project are formed [1] [2].

Marketing Research [edit]

In practice, marketing research is carried out using [2]:

• regular studies (periodic studies);
• repeated studies - studies carried out with the aim of clarifying, confirming the previously obtained information;
• single observations (targeted studies).

• armchair method;
• field method.

• continuous surveys;
• sample surveys;

- by the method of obtaining information:

• survey (ascertaining the opinions of the target audience);
• observation (without any influence on the subject of observation);
• experiment (controlled changing one or more factors and tracking their influence on the object of study);
• imitation modeling (a mathematical model that reproduces the behavior of the object of study);
• expert assessments (obtaining information from specialists, its analysis and generalization).

Used sources of data for marketing research [2]:

4. Market research and analysis (analysis of the business environment of the organization)

Research and analysis of the sales market is one of the most important stages in the preparation of business plans, which should provide answers to questions about who, why and in what quantities buys or will buy the company's products.

Domestic and foreign experience shows that poor knowledge of the market is one of the main reasons for the failure of many commercial projects. Among the main tasks of the enterprise, solved in this section of the business plan, is the determination of the demand and capacity of each specific market for each type of goods (services). These indicators will characterize the possible sales of goods (services). The success of an enterprise in the market and the time during which it can maintain its position on it will depend on how carefully the level and structure of demand are studied and determined, as well as the tendencies of its change.

For Russian entrepreneurs, drawing up this section of a business plan is extremely difficult. It is very difficult to find reliable consolidated market research. Foreign entrepreneurs can obtain the required data from their local chambers of commerce, as well as from their industry and trade associations. Such associations - free unions of entrepreneurs of a particular industry or trade - are widespread throughout the world. Here they are making their first steps.

Meanwhile, the small apparatus of such an association is constantly doing very useful work to summarize the conditions for the supply, production and marketing of products manufactured by enterprises - members of the association. All members of the association provide information voluntarily and free of charge, and also for free (all expenses are paid by membership fees) receive regular summary reviews: how the demand for the industry's products is changing, what changes have occurred or are outlined in its structure, what is happening with the prices of resources purchased by the industry.

Since the collection, processing and analysis of market information is a rather complex process, it is advisable to involve specialized organizations in the research, which may require significant costs, which in most cases are justified. Experience shows that the failure of most commercial projects that fail over time is due precisely to poor market research and overestimation of its value.

The process of market research should begin by defining its type for each product or service, while the business planning process can rely on the following approaches to classifying markets.

1. By the sphere of social production:

1) the market of goods of material production (raw materials, food, machinery, equipment);

2) the market for goods of spiritual production (achievements of science, technology, works of art, books).

2. By the nature of the end use:

Previous Steps of the Guide to Starting Your Own Business

Before continuing to familiarize yourself with the sixth element of the instruction "How to make a business plan" according to the Entrepreneur-Pro version, let's remember what we have already prepared. So, we have prepared a "Cover Sheet", "Content and Summary", "About Business and Company", "Product Description" and "Business Model Description". It's time to take advantage of our analytical skills. We come to a very important part of our business plan.

Market and industry analysis will provide a bridge for the practical entry of products and / or services to market. Here we will try to briefly outline the basic scheme for carrying out this analysis.

What should be included in market and industry analysis?

Brief introduction

As with any other section of a business plan, it is advisable here to provide an introduction to what will be contained in it.

Industry Analysis

This subsection should answer the following questions:

• Which industry is the business?
• What is the history of the industry?
• What are the trends in the industry?
• Who are the buyers in industry?
• Who are the competitors in the industry?
• Who are the suppliers in the industry?
• What products and services are offered in the industry?

This is how the execution key for this process looks like.

Market analysis is one of the most important components of any startup strategy. Conduct a correct market analysis, and you will have a clear idea of ​​the path along which you need to move your business. In addition, a good market analysis will allow you to interest investors, bypass the pitfalls in your path and, most importantly, attract customers.

However, keep in mind that all companies are different and, accordingly, they may all have different approaches to preparing business plans and developing strategies, due to different reasons and different target audience. So, if your business is rather small, and you know your client well, then market analysis can be a waste of time for you. If you are developing a business plan for internal use, and you do not need to study industry-wide data to confirm your forecasts, then in this case, market analysis can also be dispensed with. Therefore, before you start researching your market, be sure to evaluate how valuable the information that you will receive during the research will be for you.

But if you're looking for funding, market analysis will be key to convincing your audience that your business idea is backed by hard numbers and specific facts.

Well, we've already figured out whether we need market analysis or not, now let's move on to the analysis itself.

What is market analysis

Market analysis is essentially the identification of features that are unique to a particular market, followed by an analysis of these very features, which is aimed at making the right decisions about your business. By conducting market analysis, you can collect valuable data that will help you get to know your customers better, determine appropriate pricing, and identify competitive weaknesses.

Market analysis and business plan

Including market analysis in your business plan is the right approach, especially during the startup phase. Even if you are a sole trader and are not looking to seek funding to successfully start your business, it is still important to have a clear plan in front of you. It is important to understand that market analysis is not just another section of a business plan; sometimes it itself becomes a real basis for further writing a business plan.

If you need to get a bank loan or convince an investor that your idea is really capable of making a profit, then market analysis is simply necessary in order for lenders or investors to see how attractive your idea will be in the market. Either way, a solid business plan with market analysis will be invaluable. When you need to identify your potential customers and attract investors, a clear idea of ​​which way to conduct your business now and in the future will help you here. The time that you spend on market research will return to you many times over in the form of profit. By analyzing your market, you become a professional in the marketing environment and thus you will be able to outperform competitors who did not bother to pay any attention to market analysis.

What to include in market analysis

Market analysis should include industry overview, target market research, competitor analysis, proprietary predictions for the business and various rules to be followed.

Industry Overview

This is where you need to look at the current state of your industry and determine where your industry is heading as a whole, and illustrate this with key industry metrics such as size, trends, life cycle and projected growth or decline. This approach will allow the bank or investor to see that you know your business, and, having done your homework, come prepared to present your business idea.

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Higher professional education

"MOSCOW STATE OPEN UNIVERSITY"

Department of "Economic theory, marketing and management"

Section "Market" in the business plan

plan marketing market competitiveness

1. General characteristics of the "Marketing" section