Market research is critical to business success.
It addresses concerns such as how you will convey your service or product's features, benefits and uniqueness; who your potential customers are and how you will attract them; how you will deal with competitors; and how you will develop customer loyalty that will generate repeat business and referrals.
Which geographic area does your business serve? What are the demographics of the customers you intend to reach?
What are the psychographics of your target customers? Psychographic characteristics include purchasing motivations, lifestyles and values. As in so many other sections of your business plan, you must be very specific. A potential lender or investor will not take you seriously if you define the target market for your grocery store as "All people, because everyone needs to eat.
They seek healthy, organic, locally grown food and are willing to pay a significant premium to feel good about their purchase and obtain higher quality items.
How many consumers are in this market? Then, what percentage of that market will you attempt to gain as customers — how large is your segmented available market? Finally, what share of that market will you realistically reach?
Demonstrate a thorough understanding of your target market as gained from both primary and secondary sources. Primary sources include any market research your business conducts, such as interviews, surveys, focus groups and market testing.
Secondary sources include data and publications produced by trade and industry groups, government agencies, chambers of commerce, merchants associations and so on. To understand the qualities that make for a great company, investors must dig deep into "soft" metrics.
What Makes A Company Great? Direction and Image What is your business's ultimate goal? Investors will be curious about your long-term plans. Do you just want to have just one very successful store, or do you hope to expand — and if so, how broadly and how quickly, and under what circumstances?
For example, Coca-Cola's mission statement in its " Vision " is: To refresh the world Inspire moments of optimism and happiness Create value and make a difference. Coca-Cola then elaborates on this simple mission statement by explaining its vision, goals, priorities and metrics. Your business plan should do the same.
In fact, the "about us" and "company profile" sections of corporate websites can be great sources of inspiration when writing your business plan.The Customer Analysis section of the business plan assesses the customer segments that the company serves.
In it, the company must 1) identify its target customers, 2) convey the needs of these customers, and 3) show how its products and services satisfy these needs. Oct 23, · The marketing and sales plan section of your business plan details how you plan to reach your target market segments, how you plan on selling to those target markets, what your pricing plan is, and what types of activities and partnerships you need to make your business a success/5().
One of the most critical sections of your business plan is your market analysis. Find out just what information you need to know about your potential customers. One of the most critical sections of your business plan is your market analysis. Find out just what information you need to know about your potential customers.
Your growth strategy entails more than just demonstrating how your revenue will grow. The growth strategy section of your business plan is about proving to others that you have a plan for bringing your product to new customers and new markets, and perhaps even introducing new products.
In general terms, potential customers are the people in the market segment you plan to target. Say you sell jet skis; anyone under the age of 16 and over the age of 60 or so is unlikely to be a.