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97
What are the time frames for your plans? How will these plans increase
profits or generate new profits?
Product liability
What are the liabilities this product may pose?
What are the insurance requirements? How do you plan to limit
the company's liability?
What kind of engineering studies, testing, and
evaluating has the product undergone?
Market Analysis
Objective:
– To demonstrate that you understand the market, that you can
penetrate it, and that you are in control of the critical success factors
that will enable the company to reach its sales goals.
– To prove there is a real demand for your product / service.
Target Market and Characteristics:
Who or what is your target market? (individuals, companies –
small, medium, large, government agencies, etc.)
What is the size of your target market?
Can this market be segmented (by geography, by industries,
etc.)? How?
What is the profile of your targeted customers? (age, sex, profes-
sion, income, geographic location, etc.)
What are the major applications of your product or service?
For each major application, what are the requirements by cus-
tomers?
What are the requirements of regulatory agencies?
What are the current ways of filling these requirements?
What are the buying habits of the customers? What will be the
impact on the customers who use your product or service?
How much will they save?
What is their return on investment (benefit to them)?
Will they
have to change their ways of doing things?
Will they have to purchase other goods and services to utilize
yours?
Will they change their work habits?
How will you satisfy their need and wants better?
98
Analyst Summaries
What quotes and statements from reputable sources can you pro-
vide? How do they summarize significant market opportunities?
Market Share, Trends and Growth Potential
What share of the market do you hope to capture?
What is the growth (historical and potential) of your market?
What are the market trends? (industry-wide, regional, local)
Is the market seasonal?
What factors will affect it (economic, government regulation,
etc.)? What are your market share objectives for the total available mar-
ket? What are your rationale and costs of achieving different levels of
penetration?
How will you maintain and increase your market share?
How will you satisfy current customer needs?
How will you attract new customers?
How will you offer something new, better, or unique?
How will the segments and applications of your market change
over the next 3–5 years? Are your products / services bought by others
to service their customers?
How does their industry look?
What kind of business are they doing?
Sales, Distribution and Profits by Product / Service:
Are your sales expectations in line with the manufacturing ability
to produce it?
Are your pricing, service, and warranty policies attractive and
competitive in the marketplace?
What does each product / service cost you to sell?
What does each product / service cost you to produce? What have
your profits been by product / service?
What will they be?
What are your current sales goals by product / service? What are
your current goals by number of units? What is your sales volume in
dollars / rubles?
How will you distribute your product? (direct, dealer network,
wholesale, retail, manufacturer's representatives)
Will it be distributed under your name or someone else's?
If transportation is involved, what are the implications of export-
ing? Importing? Taxes? Tariffs? Duties? Barriers? Foreign exchange
What are the time frames for your plans? How will these plans increase Analyst Summaries profits or generate new profits? What quotes and statements from reputable sources can you pro- vide? How do they summarize significant market opportunities? Product liability Market Share, Trends and Growth Potential What are the liabilities this product may pose? What share of the market do you hope to capture? What are the insurance requirements? How do you plan to limit What is the growth (historical and potential) of your market? the company's liability? What kind of engineering studies, testing, and What are the market trends? (industry-wide, regional, local) evaluating has the product undergone? Is the market seasonal? What factors will affect it (economic, government regulation, Market Analysis etc.)? What are your market share objectives for the total available mar- Objective: ket? What are your rationale and costs of achieving different levels of – To demonstrate that you understand the market, that you can penetration? How will you maintain and increase your market share? penetrate it, and that you are in control of the critical success factors How will you satisfy current customer needs? that will enable the company to reach its sales goals. How will you attract new customers? – To prove there is a real demand for your product / service. How will you offer something new, better, or unique? Target Market and Characteristics: How will the segments and applications of your market change Who or what is your target market? (individuals, companies – over the next 3–5 years? Are your products / services bought by others small, medium, large, government agencies, etc.) to service their customers? What is the size of your target market? How does their industry look? Can this market be segmented (by geography, by industries, What kind of business are they doing? etc.)? How? Sales, Distribution and Profits by Product / Service: What is the profile of your targeted customers? (age, sex, profes- Are your sales expectations in line with the manufacturing ability sion, income, geographic location, etc.) to produce it? What are the major applications of your product or service? Are your pricing, service, and warranty policies attractive and For each major application, what are the requirements by cus- competitive in the marketplace? tomers? What does each product / service cost you to sell? What are the requirements of regulatory agencies? What does each product / service cost you to produce? What have What are the current ways of filling these requirements? your profits been by product / service? What are the buying habits of the customers? What will be the What will they be? impact on the customers who use your product or service? What are your current sales goals by product / service? What are How much will they save? your current goals by number of units? What is your sales volume in What is their return on investment (benefit to them)? Will they dollars / rubles? have to change their ways of doing things? How will you distribute your product? (direct, dealer network, Will they have to purchase other goods and services to utilize wholesale, retail, manufacturer's representatives) yours? Will it be distributed under your name or someone else's? Will they change their work habits? If transportation is involved, what are the implications of export- How will you satisfy their need and wants better? ing? Importing? Taxes? Tariffs? Duties? Barriers? Foreign exchange 97 98
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