The identification and subsequent entry into your markets should be solidly supported by market research.
This section of your business plan should be based on your market research. Review your research and use it to support your choice of markets that you’re planning to enter.
Use the questions in Table 12 as guidelines when reviewing your market research. These should help you summarize your markets.
Table 12: Guidelines for Markets Section
|Guidelines for Markets|
Table 13 gives the example for the Markets section of Fay’s Variety’s business plan.
Table 13: Markets for Fay’s Variety
Fay’s Variety’s posture regarding clientele and markets is reasonably straightforward. Due to the nature of the business, market scope is limited primarily to Anywheretown with outside exposure to people working in Anywheretown, but residing elsewhere.
Based on a marketing survey (Appendix I) conducted in 200x, the following was determined:
The marketing survey results would suggest the following strategy:
The fact that Fay’s Variety is downtown is excellent from the perspective that many residents also require the services of the bank, hardware, pharmacy, etc. located in the same area.
The market for Fay’s Variety for the most part is limited to a reasonable driving/walking distance to the store. However, we know that the local economy depends, to a great extent, on a transient market including tourists and working non-residents.
Emphasis to attract a broader market will include strategic advertising and/or signage to attract people into the store. Targeted specials will be considered, for example, salads, fresh baked goods, sandwiches, loaves of fresh bread. The convenience of additional services available inside the store (shoe repair, DVD’s, postage) will be highlighted.
A program to enlarge the market will be developed to reach out to associations and seniors.
The Tourism Anywheretown Task Force has been working along with City Council to promote the local economy. Wider coverage of advertising to places across the city is being used to pull in a wider customer base.
Click on Worksheet 8.6 to identify your markets.