Market Analysis Tool | REDFworkshop

1Instructions

2Target Market

3Customer Profile

4Industry Analysis

5Market Potential

6Competitive Landscape

Before launching any business, smart entrepreneurs carefully analyze the market they are about to enter. Social enterprises are no exception. You will want to make market positioning decisions based on a detailed understanding of possible market niches, customers, and competitors. This tool will help you focus on the most critical questions when determining the market potential for your social enterprise's product or service.
This tool has 5 components:
1. Target Market
2. Customer Profile
3. Industry Analysis
4. Market Potential
5. Competitive Landscape
In order to complete sections of this tool, you may find the following resources helpful:
We estimate that this tool will take 3 hours to thoughtfully complete, although feel free to work at whatever pace suits you.
Let's get started:
What is the name of your social enterprise?
Does this enterprise provide products or services?

Understanding your target market (that is the primary group of customers who will be purchasing your products or services) is critical to developing a viable sales plan and devising a marketing strategy to reach your most important customers. This section will help you analyze possible target markets, and then prioritize them based on market size, sensitivity, and alignment with your offering.
Identify the customer groups most likely to purchase your offering. For example, possible target markets for a social enterprise that sells high-end, small batch jams and jellies might be boutique retailers, major grocery retailers, farmers markets, or individual consumers.
Target Market A:
Target Market B:
Target Market C:
How well will you be able to influence the key decision-maker in these markets?
Rate each from 1-5 the extent to which you can you access and influence this person's decision to purchase, where: 1 = little/no access to or influence over the decision maker 5 = easy access to and/or significant influence over decision maker
Target Market A
Target Market A
Target Market B
Target Market B
Target Market C
Target Market C
How price sensitive are these markets?
Rate each from 1-5 the extent to which this market's buyers make their purchase decisions according to price, where: 1 = pricing has significant effect on purchase decisions; and 5 = pricing has little or no effect on purchase decisions.
How features and quality sensitive are these markets?
Rate each from 1-5 the extent to which this market's buyers make purchase decisions based on product quality and features, where: 1 = quality/features have significant effect on purchase decisions; and 5 = quality/features have little effect on purchasing.
How well-aligned with your organization's social mission and market experience are these markets?
Rate each from 1-5 the extent to which this target market is aligned with your agency's social mission and market experience, where: 1 = low alignment; and 5 = high alignment.
Score for Target Market A
Score for Target Market B
Score for Target Market C
Review the overall ratings of each of your identified target markets above. The higher the score, the more potential your social enterprise has to selling to this market.
Which market will be your PRIMARY target market?
Which market will be your SECONDARY target market?

Now, we'll ask you to think in more detail about a typical customer from the primary target market you have selected.
Is your primary target customer a business or an individual?
Are your primary target customers located regionally or nationally?
Where are your customers primarily located?
City State
Describe your ideal customer. Include information about their demographic and psychographic traits.
Psychographic traits include things like social class, lifestyle, and personality of your target customers. Please use complete sentences.
Summarize your target customer's needs and wants. What are the most important factors influencing their decision to purchase? What are they looking for in this particular product or service?
Please use complete sentences
Describe your target customer's use of your offering. How frequently and on what occasions will they need your product or service? Are they one-time or repeat customers?
Please use complete sentences

Industries exhibit different characteristics; your planning and launch should take these characteristics into consideration.
What industry is the proposed social enterprise in?
Please list your industry:
Is this industry growing, shrinking, or staying the same?
Describe any industry-wide macro factors affecting the industry you're considering.
For example, the hospitality industry might be effected by weather, disposable income, and business travel trends.
Describe any region-specific factors affecting the industry you're considering.
An example of this might be the effect of annual snow fall on a local ski area.
Summarize the likely future prospects, outlook and trends for this industry.

Understanding the market potential and industry trends is critical to projecting future sales for your social enterprise. What volume of sales can you reasonably expect? To help you assess the market potential, consider the market opportunity, existing customers and sales trends.
Describe the market opportunity that led you to this social enterprise concept. What makes this a great idea?
Please use complete sentences.
What is the estimated total size (number of potential customers) of this market?
Is this customer base growing, shrinking, or staying the same?
If your target customer base is NOT growing, describe other aspects of the market that will offset this disadvantage?
Example phrase: "We will offset the decreasing number of customers in our target market by selling more to each customer; we will market multiple-piece sets and offer multiple purchase bonus plans."
What were national/regional sales ($) of this product in the past 3 years?
2016
2017
2018
If sales to your target market are NOT growing, describe how you intend to offset the sales trends.
Example phrase: "Although regional sales have decreased in recent years, there is some evidence that sales to our specific target market have increased. We will focus our marketing on this subset of the regional market."

Another key element of the market for your products and services is the question of what other businesses are providing them.
How many companies currently sell a similar product to your identified target customer base?
In the last two years, has the number of companies providing this product or service to your target market increased, decreased, or stayed the same?
Analyzing businesses that have opened or closed in your region and industry can help you understand the market potential for your products or services.
Do you observe signs of competitive pricing (such as advertised discounts or price wars) for this product aimed at your target market?
Competitive pricing often happens in saturated markets, where comparable products exist and consumers enjoy a choice in offerings. If you notice competitive pricing, it may be an indication that the market you are considering is already saturated.
Based on what you've indicated, your social enterprise may face competitive pressures. Please describe any additional market forces that you believe will offset the competitive environment that you've described.
Example answer: "The competitive environment will be offset by rising income in our target market, and anticipated increased number of target market families due to ABC headquarters moving here."
Who are the closest competitors in your target market?
Competitor 1
Competitor 2
Competitor 3
How do this competitor's products or services differ from yours?
Example inputs include: "priced higher", "less colorful", "primarily metal product"
What comparative advantage do you have over this competitor?
Comparative advantage gives a company the ability to sell goods and services at a lower price than its competitors and realize higher margins. Examples include "closer to end customer", "proprietary technology", or "lower shipping costs".
What can you learn from this competitor's operations?
_{Example inputs include: "production efficiency", "retailer relations", "classic design elements"}
Summarize the key information you've learned about your position related to your competitors.
Example: "Analysis of the competitive landscape suggests that we can address the social problem and meet the needs of customers better than existing competitors. We will improve upon our competitors in both areas by..."

This tool has 5 components:

Target Market

Customer Profile

Industry Analysis

Market Potential

Competitive Landscape

In order to complete sections of this tool, you may find the following resources helpful:

Small Business Administration's Market Research and Competitive Analysis

U.S. Bureau of Economic Analysis

U.S. Census Bureau

We estimate that this tool will take 3 hours to thoughtfully complete, although feel free to work at whatever pace suits you.

Let's get started:

Employer Co Inc.

Thank you!

This tool has 5 components:

Target Market

Customer Profile

Industry Analysis

Market Potential

Competitive Landscape

In order to complete sections of this tool, you may find the following resources helpful:

Small Business Administration's Market Research and Competitive Analysis

U.S. Bureau of Economic Analysis

U.S. Census Bureau

We estimate that this tool will take 3 hours to thoughtfully complete, although feel free to work at whatever pace suits you.

Let's get started:

My name here