Market ,Demand Analysissituational Analysis and Specification of Objectives

Particular the importance of market and demand analysis,

it should carried out in an orderly and systematic manner.

The key steps involved in market and demand analysis are as follows:

1.      Situational analysis and specification of objectives

2.      collection of secondary information

3.      conduct of market survey

4.      Caracterisation of the market

5.      Demand forecasting

6.      Uncertainties in demand forecasting

7.      Market planning

In order to get a feel of the relationship between the product and its market the project

 anlyst may informally talk to customer, competitors, middlemen and other in the industry.

The objectives of the market and demand analysis in this case may be to answer the following  questions

1.      who are buyers of air coolers?

2.      who is the current demand for air coolers?

3.      How is demand distributed temporally and geographically?

4.      What is the break up of demand for air coolers of defferent sizes?

5.      What price will the customers be convince about the superiority of the new cooler?

6.      what price and warranty will ensure its acceptance?

7.      what channels of distribution are most suited for the air cooler? What trade margins will induce distributors to carry?

8.      what are prospects of immediate sales?