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Feasibility Study (Proof Of Business Concept) Cont.

Market Environment

Target Market:
• Define and describe the target market(s). Distinguish between end users and customers.
• Be clear how end users and customers benefit, and how and why they would buy the product or service.
• What is the unmet need(s) your product or services fulfill so beautifully? And how big is the opportunity?

For business-to-business markets, include:
• The industry the target market is in, key players, frequency of product purchase, replacement needs vs. expansion, purchasing process (i.e. solicits bids, uses preferred vendor lists, goes through
committee or multi-level approval process, etc.), likely length of the sales cycle.
• Estimates of market size, initial targeted geographic area, company’s targeted market share.

For business-to-consumer markets, include:
• Demographic factors, such as income level, age range, gender, educational level, ethnicity.
• Psychographic factors.
• Relevant behavioral factors such as frequency of product purchase and shopping behaviour.

Competition

• Describe direct and indirect competition (as it pertains to the target markets only).
• For key competitors, give market share, resources, product and market focus, goals, strategies, strengths and weaknesses.
• List all key barriers to entry.
• Describe what is unique about the company’s product/service compared to the competition. Make sure this is consistent with the unmet need of the target market(s).
• State how difficult it will be for competitors to copy the company’s product/service.
• Describe how competitors will most likely react to the company’s product launch and the company’s response strategy. Include estimates of the time it might take a competitor to copy your product or service.

Industry

• Clearly define and describe the industry in which the company operates. Include the size, growth rate, and outlook. Define key industry segments and state where company fits in.
• Describe demand and supply factors and trends.
• Describe the larger forces that drive the market – innovation, cultural change, regulation, whatever.