LOGO

By

Sanjeev Acharya

Roll No. 28

Market Feasibility Study

What is Feasibility Study?Feasibility study is the process of determining the

implement ability of the project

‘Feasibility study is the activities/efforts/analysis to

measure the cost and benefit of a business in order to

define the efficiency and effectiveness of the project’s

methods and tools.’1

According to Wikipedia ‘A feasibility study is a

preliminary study undertaken to determine and

document a project’s viability. It is an analysis of possible

alternative solutions to a problem and a recommendation

on the best alternative’

1. Prasanna Chandra (2006), Projects: Planning, Analysis, Selection, Financing, Implementation and Review,

India, Tata Mc Graw Hill

Feasibility StudyIdeally, the feasibility study involves making rational decisions about

a number of enduring characteristics of a project, including:

1. What exactly is the project?

2. Economic feasibility

3. Technical feasibility

4. Schedule Feasibility

5. Customer Profile

6. Determination of competitive advantage

7. Operational Feasibility

8. Current market segments

9. Vision/mission statement

LOGO

Market Feasibility

FinancialFeasibility

Technical Feasibility

Ecological Feasibility

Legal &Administrative

Feasibility

Types of Feasibility

Economic Feasibility

Market Feasibility Market feasibility study is a logical study and a marketing plan about a

course of action to be taken.

‘It studies the marketing viability of the project in terms of its ability to

satisfy customers needs.’1

Information be collected & analyzed during market feasibility:

Unmet needs that could be addressed by a new product or service

Overall demand for new products, services or ideas

Characteristics of likely customers

How competitors are likely to react when our product or service is

introduced

How your new product or service should be designed to best meet

customers’ needs

How best to market, advertise and communicate about product or service

Likely barriers to successful introduction of your product or service

1. Prof. Govind Ram Aggrawal (2008), Project Management in Nepal, Nepal, Ekta Publication

Key steps in Market and Demand

Analysis and their Inter-Relationships

Collection of

secondary

Information

Situation

analysis &

specification

of objectives

Conduct of

Market

Survey

Characteristics

of the Market

Demand

Forecasting

Market

Planning

1. Situation Analysis & Specification of Objectives

Before entering the market we should gather the followinginformation:

Who are the buyers of product?

What are the current demand for product?

How the market segment is selected?

What will be the break even sales for different types ofitems?

What prices are the customers willing to pay?

In what basis the differentiation of product will be made ascompared to different brands?

How the products will be distributed to customers and whatcosts are incurred for it?

Export and import trends

Policies, Laws and Regulatory Initiatives in the Industry

2. Collection of Secondary Data

There are various sources of gathering secondary data like Census of India,National Sample Survey Reports, Plan Reports, Statistical Abstract ofIndian Union, Indian Year Book, Economic Survey, Annual Survey ofIndustries, The Stock Exchange Directory, Publications of AdvertisingAgency, Industry Specific Sources and so on.

Evaluation of secondary data is done on basis of :

Who gathered the information?

When was the information gathered?

What was the objective?

What was the target population?

How was the sample chosen?

How representative was the sample?

How satisfactory was the process of information gathering?

What was the degree of misinterpretation by respondent?

How accurately was the information edited, tabulated and analyzed?

Was statistical analysis properly applied?

3. Conduct the Market Survey

Total demand and rate of growth of demand of products.

Demand in different segment of the market

Income and price elasticity’s of demand

Satisfaction with existing products

Unsatisfied needs

Attitude towards various products

Distribution trade practices and preferences

Socio-economic characteristics of buyers

Various Steps of Conducting the Market Survey

Define the target population

Select the sampling scheme and sample size

Develop the questionnaire

Recruit the train field investigators

Obtain information as per the questionnaire from the

sample of respondents

Scrutinize the information gathered

Analyze and interpret the information

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4. Characterization of the MarketBased on the information gathered from market survey and secondary

sources the market for the product or services may be described in

terms of the following:

5. Market Planning

Opportunity and Issue Analysis

Objectives

Marketing Strategy

Action Programme

Current Market Situation

Bibliography

Books:

- Prasanna Chandra (2006), Projects: Planning,

Analysis, Selection, Financing, Implementation and Review,

India, Tata Mc Graw Hill

Websites:

-www.scribid.com

- http://www.stingconsultants.com/pdf

-http://www.slideshare.net/drobberecht/idea-

feasibility-case-study-presentation

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http://businesstoday.intoday.in/index.php?issueid=&id=1236

&option=com_content&task=view&sectionid=4