This document outlines the significance and methodology of conducting a market feasibility study, emphasizing the collection and analysis of information about potential markets and competition. It explains the components that should be included in the study, such as industry description, current market analysis, competition, and future market potential, to assess the viability of business ideas. Additionally, it highlights the importance of understanding customer needs and competitor reactions to improve the chances of success for new products or services.

1. Chapeter
-2
How to Write a Market
Feasibility Study
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2. Learning objectives
Students will be able to assist
business people in identifying
market competition, potential
markets, and market analysis
to assess a business idea.
After the study of this
lesson:
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3. What is Market Feasibility
Study?
 Market feasibility
studies involve collecting
information about a potential
market that can be used in
deciding how a product or
service should be designed,
delivered, priced, and
marketed.
 A variety of tools to
assess market feasibility
ranging from collecting and 3

4. What is Market Feasibility
Study? Contd..
Conducting market feasibility can provide a
"reality check" on your idea as well as help
define product development to ensure its
appeal for your customers. This type of
market research is used to determine:
1. How much of a demand is there for the product or
service you are considering?
2. What are potential customers’ needs and price
expectations?
3. Who are your competitors?
4. What are the strengths and weaknesses of your
competitors from potential customers’ perspective? 4

5. Needs Assessments &
Environmental Scans
 Needs
assessments are
market feasibility
studies designed
specifically for health
and human service
organizations.
 It involve studying a
geographic region or
client population to see
if there are unmet
needs or barriers to
Environmental scans are
expanded needs
assessments that include a
broad survey of community
characteristics and needs.
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6. Significance of Market
Feasibility
Market Feasibility Study helps to collect and analyse
following information, as it greatly improve chances of
succeeding with product or service (Idea or Project).
1. Unsatisfied needs that could be addressed by a new
product or service
2. Overall demand for new products, services, or ideas
3. Characteristics of likely customers (such as
demographics and buying behavior)
4. Characteristics of likely competitors
5. How competitors are likely to react when your product or
service is introduced
6. How your new product or service should be designed to
best meet customers' needs 6

7. What should be Included in a
Market Feasibility Study?
Things to be Included in a
market feasibility study are as
follows:
1. Description of the Industry
2.Current Market Analysis
3. Competition
4. Anticipated Future Market
Potential
5. Potential Buyers and Sources
of Revenues
6. Sales Projections
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8. Feasibility Study?
Contd….
1. Market Feasibility
Study for Sydney
Hall Apartments in
Minneapolis,
2. Current Market
Analysis
3. Analysis of the
Competition in
the Market
4. Anticipated Future
Market Potential
5. Potential Buyers and
Sources of
6. Sales Projections
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9. Description
 Give a brief one- to two-paragraph description of
the industry, and categorized the business in
accordance with the Labour Department of the
country.
 Determining the industry is important for receiving
government contracts, attracting investors, and for
receiving grants if it form as a non-profit
organisation. Example has been given below:
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10. Current Market Analysis
 This section of a market feasibility study describes
the current market for your product or service. If
company is offering something so unique that there
are few market statistics, company can either use
related industry information, or even conduct its own
independent study.
 There are several ways to conduct research for new
ideas namely, polling Internet forums,
questionnaires addressed to targeted consumer
groups or the general population, or even customer
surveys.
 Any solid evidence based on research if stated that
there is a demand (or market) for the product or
services, then it helps to sell the idea.
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11. Competition in the Industry
 Local Market-identify every competitor
within a fifty (50) mile radius. The fastest
way to do this is using a telephone book or
online business locator.
 National Market-search the list of the
companies operating in the country, rank,
industry, and by other variables to fine-tune
your search.
 Global Market-search the list of the
companies by country, rank, and industry,
and by other variables to fine tune your 11

12. Anticipated Future Market
Potential
Business houses usually data analysis to anticipate
market conditions or industry trends and drive sales
strategies.
1. Wal-Mart, for example, learned through analysis that
when a major weather event is in the forecast, demand
for three items rises: duct tape, bottled water and
strawberry Pop-Tarts.
 The purpose of this study is threefold—the first
objective is to develop a method of modelling that
allows analysts to make estimates about the future
Market potential.
 The second objective of this study is to protect the
savings and estimate the monetary value associated 12

13. The possible future of Yahoo
Finance?
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14. Potential Buyers and Future
Revenues
 A list of current customers, clients, and contracts and the
potential for new or renewed contracts.
 Any sales leads that may generate new customers or clients.
 A list of government contracting agencies with a brief
description of what type of contracts they solicit, and how they
pertain to your industry.
 A list of market types you currently, or intend to target such as
seniors citizens, working mothers, organizations, specialty
retailers, etc.
Note: Depending upon the nature of the business, it may not be
possible to associate specific amounts of revenue with a
This component of business market feasibility
study should be descriptive. Your potential
customers, clients, and contract sources should
include the following:
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15. Current and potential future revenue and
profits.
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16. Market Analysis of Urban Built
Environment-Case Study Video
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17. Steps in a typical Feasibility
Study
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18. Thanks
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