this is related project

1. Facets of Project Analysis
Market Analysis
Technical Analysis
Financial Analysis
Economic Analysis
Ecological Analysis

2. Market and Demand Analysis
Collection of Demand
data forecasting
Situational
Analysis &
Characterization
Specification
of the market
of objectives
Conduct Market
Market planning
survey

3. Situation analysis and objectives
specification
 A process that studies customer
preferences and their purchasing capacity
and strategies of competing firms and
intermediaries
 Adequate informations are generated
through informal talks and feels adequate
present and future demands can be
generated, then a formal study can be
done. Otherwise the idea can be dropped
 Before going to formal study the project
manager needs to define the objectives of
the study.

4. Collection of data
 Data are of two types
Primary data
Secondary data
 Primary data is the data collected for a specific purpose and for the
first time
 Primary data can be obtained from both internal and external
 Internal primary data-past and current sales of the firm, observations
of employees etc
 External primary data is obtained from the opinions of the dealers,
feedback of the sales personnel and sales trends etc
 Secondary data is the data that is already available but might have
been collected for some other purpose or by some other institutions
 Secondary data is considered to be more useful in market analysis as
it is easy to obtain and is also economical
 Some of the secondary data sources are-Census of India, National
Sample Survey Reports, Plan reports, Statistical Abstract of the Indian
Union, India Year Book, Statistical Year Book etc
 Evaluation of secondary data is an important task to know its
reliability, accuracy and relevance for the purpose under consideration

5. Conduct Market Survey
 Secondary information, though useful,
often does not provide a comprehensive
basis for market and demand analysis
 There is a need to be supplemented with
the primary information through market
survey
 A market survey is useful in determining
the total market demand, demand growth
rate in different segments of the market,
understanding the inner motives of the
customer and measuring the unsatisfied
needs of the customers

6. Steps involved in market survey
 Defining the target market
 Selecting the sample
 Developing the questionnaire
 Recruit and train the field
investigators/surveyors
 Recording the information
 Scrutinize the information gathered
 Analyze and interpret the information

7. Some problems-market survey in India
 Heterogeneity of the country
 Multiplicity of Languages
 Design of questionnaire

8. Characterization of market
 Based on the information obtained from
secondary data and market survey, the project
manager describes the marketability of the
project idea in terms of
Effective demand
Breakdown of demand
Price
Consumers interest
Methods of distribution and sales promotion
Supply and competition
Government policy

9. Demand Forecasting
 Using information obtained from
secondary data, market survey and
market characterization/description
 Forecasting methods can be divided
into 3 categories-Qualitative
methods, Time series projection
method, and Causal methods

10. Qualitative Methods
 Rely essentially on the judgment of
experts to qualitative information
into quantitative estimates
 Important qualitative methods are
Jury of executive opinion method,
Delphi method etc

11. Time series projection methods
 Generates forecasts on the basis of
an analysis of the historical data
 The important methods are-Trend
projection method, Exponential
smoothing method, moving average
method

12. Causal method
 More analytical than the preceding
method
 Seek to develop forecasts on the basis of
cause-effect relationships specified in an
explicit, quantitative manner
 Important methods are-Chain ratio
method, Consumption level method, End
use method, Leading indication method,
Econometric method

13. Uncertainties in demand forecasting
 Data about past and present market
 Methods of forecasting
 Environmental change

14. Market planning
 Refers to planning and designing the four P’s of
marketing namely, Product, Price, Place, and
Promotion
 Product-product variety, quality, design, features,
brand name, packaging, sizes, services,
warranties, returns
 Price-list price, discounts, allowances, payment
period, credit terms
 Place-channels, coverage, assortments, locations,
inventory, transport
 Promotion-sales promotion, advertising, sales
force, public relations, direct marketing

15. Economic Analysis and
Ecological Analysis

16. Economic Analysis
 Also referred to as social-cost-
benefit analysis
 SCBA is a process which is
concerned with evaluation of
investment projects from the point
of view of the society (or economy)
as a whole
 Recently economic analysis has
gained significance

17. Ecological Analysis
 Environment has gained a lot of
significance-rightly it also deserves
 Ecological analysis should be done
particularly for those projects which have
significant ecological implications like
power plants and irrigation schemes and
environmental-polluting industries
 Major 2 questions arises-1. what is the
likely damage caused? 2. what is the cost
of restoration measures required?