MARKET FEASIBILITY Market Feasibility July 27, 2017

Transcription

1 MARKET FEASIBILITY

2 Business Feasibility CHARACTERISTICS OF SUCCESSUL ENTREPRENEURS CHECKLIST-RESULTS Look at your responses to the questions on characteristics. If you circled very much like me (us) for the majority, you probably have the skills to succeed in small business. If you circled not like me at all for the majority of these qualities, you may lack the characteristics needed for success in a small business. July 31, 2017

3 Business Feasibility Are you sure this business is a good idea? Feasibility Analysis Definition: As the name implies, a feasibility study is an analysis of the viability of an idea. The feasibility study focuses on helping answer the essential question of should we proceed with the proposed project idea? All activities of the study are directed toward helping answer this question. Iowa State University Extension and Outreach

4 Business Feasibility Areas of a feasibility analysis: Technical Feasibility Economic Feasibility Business and Financial Feasibility Management Feasibility

5 Business Feasibility Consumer and Product Trends Demographic Research (Target Market) Brand Development and Product Attributes (Think Strategic!!!) Competitor Analysis Distribution Analysis and Sales Forecasting Who or what resources will create the sales necessary to make the business viable?

6 Consumer and Product Trends Google will get you to a lot of good information but it s getting tougher, most current trend-info needs to be purchased! GOOD SOURCES INCLUDE SPINS The Hartman Group Food Marketing Institute Organic Trade Association (OTA) Trade magazines by category (The Packer, Dairy Foods, Dairy Reporter, Today s Dietician, State commodity commissions USDA AMS or USDA ERS Business Feasibility January 31, 2017

7 Consumer and Product Trends GOING GRASSROOTS! Walking stores with an eye for trends and opportunities Local co-op department buyers Farm to table events Networking-informational interviews (other farmers/food producers, buyers from diverse channels, other food professionals such as culinary instructors or nutrition educators).

8 -Demographics Who are they and which of the attributes listed might be the most important to your new product or business? Age Household size Education Income Job Type Home Value Affiliations Census Total Total Households Median % % Median Tract Population Households w/ Families Age Female College Household (Issaquah) Degree Income ,497 4,024 2, % 58% $ 76,229 American Factfinder:

9 Mission, Vision, Values or Beliefs Effective accomplishment of this work is core to every element of your business, especially the development of your market plan Mission is reason or purpose for your business Vision is statement (in present tense) of where your business will be be in five years Value or belief statements are core to how we conduct our relationships and business A just and livable world with a sustainable economy founded on informed choice and cooperative values.

10 Brand Development and Product Attributes NORTH CASCADES MEATS VALUE PROPOSITION North Cascade Meats provides authentic, high quality locally produced pasture raised and finished beef, lamb, and pork. You will know our products because they are source-identifiable from each individual local farm. We are committed to: Compassionate care of our livestock Careful stewardship of land and water resources Preparing our products with the highest attention to food safety Delighting your table with healthy and flavorful beef, lamb, and pork

11 Brand Development and Product Attributes Economy Economy Quality Quality PRODUCT POSITIONING For whom is the product designed? What kind of product is it? What is the single most important benefit it offers? Who is its most important competitor? How is your product different from that competitor? What is the significant customer benefit of that difference? positioning/ Confused (?)

12 Competition Analysis 64 oz. Whole Milk Retail Price Business Surveyed Private Label Whole Milk-conventional $ 1.99 Haggen, Inc. Darigold Whole Milk-conventional $ 2.29 Haggen, Inc. Twin Brook Creamery-LP and SI $ 3.59 Haggen, Inc. Jackie's Jersey Milk-LP and SI $ 4.99 Terra Organica Old Silvana Creamery-LP and SI $ 4.99 Terra Organica VAPG Dairy-LP and SI $ 4.99 Projected 8 oz. Cream Cheese Retail Price Business Surveyed LP=Locally Produced (marketed as) SI=Source Indentifiable Survey conducted by NABC, Who are your potential competitors? Where are they sold? What is their unique selling proposition and product position? What are their strengths and weaknesses? What are their production costs? What is your differentiation and positioning strategy?

13 Distribution, Channel, & Sales Analysis STORE ACCOUNTS Stores Stores Stores Community Food Co-op Goosefoot Community Haggen Payless Skagit Valley Food Co-op Star Market Terra Organica Town & Country Markets Other TOTAL Where will your potential customers seek your product (retail store, gift shop, farmers market, catalog, web site)? How much are they willing to pay and how much will they buy? What s the best way to get your product to market (yourself, distributor, common carrier, other),and what are the associated costs Front-loading your sales (Can you get written commitments or verify your projected sales?)

14 BUILD YOUR SALES FORECAST MODEL WHOLESALE STORES Cases Per Avg. TOTAL Week Per Case ANNUAL Store Price SALES Community Food Co-op ,482 Haggen ,482 Terra Organica ,507 Other ,482 TOTAL ,952 FARM SALES Units Avg. TOTAL Per Week Unit Price ANNUAL Farm Stand Sales 150 $ 2.49 $ 19,407 TOTAL ANNUAL SALES $ 144,359 July