Market Feasibility Study

A market feasibility study is an analysis of the viability of a product or service. A feasibility study focuses on helping answer the key objective of “should we proceed with the proposed project idea?” All activities of the study are directed towards helping answer this question.

The feasibility study will help you to identify if there are opportunities in a market or market segment. This type of survey is usually carried out before writing a business plan. The results from this survey will provide strategic direction of the idea or project. It is very important to conduct a market feasibility study before launching a new product/service in the market. Below are some reasons why it is important to conduct a market feasibility study:

• Helps in narrowing business alternatives
• Identifies new opportunities in the market
• Identifies reasons to or not to proceed with an idea
• Enhances the probability of success by addressing and mitigating factors that could affect the project.
• Provides quality information for input in strategic decision making
• Helps in securing funding from lending institutions and other monetary sources
• Helps to attract equity investment.

When planning to run this type if survey, it is important to understand the key issues you want investigated in the survey. In essence, a good market feasibility survey will cover the following key areas:

• Main players in the category of interest
• Brands playing in the category
• Market segmentation
• General usage behaviour
• Purchase patterns
• Master brand and sub brand SWOT

The above are key areas that can be covered in a market feasibility survey. The list above is however, not exhaustive.

Wishing you success !!!!