Market Planning (Part 3) – Market Analysis

Now that you have a high-level market strategy fleshed out, the next phase of market planning is the development of the Market Analysis. Here, you will want to examine the strengths, weaknesses, opportunities and threats (SWOT) of your plan to market your craft idea. The market analysis should include an estimate of market size, competitor market share, and the number of prospective customers who would likely be interested in purchasing from you. Also, it should include a summary of the market opportunity and any key assumptions.

An example of a market opportunity summary is below—

We will begin displaying ZanyDoodles in consignment shops around the area in January of next year. We will attempt to position our product as the high-quality, moderately-priced alternative, stressing profit over market share.

In this example, we have alluded to who the target customer is, where the product will be sold and when, and to how the craft will be positioned to sell in the overall market. From here, it is possible to identify competitors, assess competitor market share, and strategize about how to gain a share of the market.

As you develop the SWOT analysis, you should consider how you intend to meet customer needs. You should prepare a customer analysis by outlining your prospective customer groups and their respective needs. Then, you will be able to assess the products and/or services that you will provide and detail the benefits of these products and services.

Once you know your customer, your product or service, and your competitors’ prices, market share, strengths and weaknesses, you can measure how you rank in these key areas against how each of your competitors rank. This will be the core of your assessment of your strengths, weaknesses, opportunities and threats. With the SWOT analysis complete, you should be able to articulate your competitive advantages and any areas that require improvement. You should identify ways to fill any gaps that would improve your craft’s marketability.

In Part 4 of this series on Market Planning, we will take a closer look at Sales Forecasting and the Marketing Budget.

Posted by: Tamboura Gaskins at 22 March 2011 8:31 am | Category: Business Plan | Tags: Business Management, Business Plan, Market Plan, marketing

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