Feasibility Analysis: Part 3 Market & Competitive Analysis (Product/Service)

1. Feasibility Analysis: Part 3Market & Competitive Analysis (Product/Service) Paper #3 Entrepreneurship & Innovation

2. 6 Steps of Feasibility Analysis • Determine which Industry to choose • Capture & Assess the Business Idea • Research the market and customers • Gather Competitive Intelligence • Estimate Price & Profitability • Future Action Plan

3. Ask the Experts: • http://www.youtube.com/watch?v=tEKyKKK7OPc&NR=1 • Who would buy this? http://www.youtube.com/watch?v=fIAWL0Bt_V8&feature=related • Some very cool stuff http://www.youtube.com/watch?v=l53gGkvuyoE&feature=related

4. Kawasaki’s Rules of Branding Chapter 9 • Create a “Contagion” • Lower Barriers to Adoption • Recruit “Evangelists” • Foster a Community • Achieve Humanity • Focus on Publicity • Talk the Walk

5. I.Market Can Be Recognized And Measured • Customers could be just about anyone; targeting a group not easy. • I have potential customers; I need more research to find target market. • I have identified my potential customers; they will be difficult to reach due to demographics/buying patterns. • With effort, I can use my customers’ demographics/buying patterns to find them. • My potential customers are easy to find because of their demographics/buying patterns.

6. Business Type Size (revenues) Geography (where & # locations) # Employees Business Stucture Individual Age Income Sex Occupation Family size Culture Education Develop your Customer Profile Your First Business Plan

7. II. Existing competition has identifiable weaknesses. • lots of competition who have been in this business longer than I. • no competition! I wonder why? • I have identified my competition, but I do not know their weaknesses. • I know my competition and their weaknesses, but I need more research. • limited competition, and I know their weaknesses. http://www.llrx.com/features/ciguide.htm

8. Beers Ice cream Tea Regular colas Diet lemon limes Diet-Rite cola Wine Product form competition: Diet colas Diet Pepsi Diet Coke Juices Fast food Fruit flavored colas Product category competition: Soft drinks Video rentals Lemon limes Bottled water Generic competition: Beverages Coffee Baseball cards Budget competition: Food and entertainment Describe the Competition

9. III. Distribution system is established and receptive. • I must develop a brand new distribution system. • My current distribution system offers only limited options. • distribution system already established with several options. • Several distributors seem receptive to carrying my products/services. • Distributors want to carry my products/services.

10. IV. Customers purchase frequently . • Customers will only buy once / must find new customers all the time. • Most customers will only buy once from me. • Customers will buy more than once, but not frequently. • Some customers will purchase products/services frequently. • Customers purchase products/services very frequently.

11. V. Business has great news value. • business has zero news value. • doesn’t seem to have great news value. • I can come up with an angle to get some publicity. • I can get some good media coverage if I work at it. • business is so new and interesting that getting in news is very easy.