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MARKET FEASIBILITY
Market Feasibility
July 27, 2017
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.
Market Feasibility
July 31, 2017
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
Market Feasibility
July 27, 2017
Business Feasibility
Areas of a feasibility analysis:
• Market Feasibility
• Technical Feasibility
• Economic Feasibility
• Business and Financial Feasibility
• Management Feasibility
Market Feasibility
July 27, 2017
Business Feasibility Market 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?
Market Feasibility
July 27, 2017
Market Feasibility Consumer and Product Trends
Business Feasibility January 31, 2017
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
Market Feasibility Consumer and Product Trends
Market Feasibility July 27, 2017
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).
Market Feasibility-Demographics
• Age • Household size • Education • Income • Job Type • Home Value • Affiliations
Who are they and which of the attributes listed might be the most important to your new product or business?
Census Total Total Households Median % % Median
Tract Population Households w/ Families Age Female College Household
(Issaquah) Degree Income
322.08 8,497 4,024 2,070 45 57% 58% 76,229$
American Factfinder: http://factfinder.census.gov/faces/nav/jsf/pages/index.xhtml
Market Feasibility July 27, 2017
Market Feasibility 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
Market Feasibility July 27, 2017
• 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.”
Market Feasibility 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
Market Feasibility July 27, 2017
Market Feasibility Brand Development and Product Attributes
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? http://articles.mplans.com/the-power-of-product
positioning/
Market Feasibility July 27, 2017
Economy
Economy
Quality
Quality
Confused (?)
Market Feasibility Competition Analysis
• 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?
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, 2-5-2014
Market Feasibility July 27, 2017
Market Feasibility Distribution, Channel, & Sales Analysis
• 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?)
Market Feasibility July 27, 2017
STORE ACCOUNTS 2016 2017 2018
Stores Stores Stores
Community Food Co-op 2 2 2
Goosefoot Community 0 1 1
Haggen 6 8 9
Payless 0 1 1
Skagit Valley Food Co-op 0 1 1
Star Market 0 2 2
Terra Organica 1 1 1
Town & Country Markets 0 0 5
Other 6 8 10
TOTAL 15 24 32
Market Feasibility BUILD YOUR SALES FORECAST MODEL
Market Feasibility July 31 2017
WHOLESALE STORES Cases Per Avg. TOTAL
Week Per Case ANNUAL
Store Price SALES
Community Food Co-op 2 31 23.06 37,482
Haggen 6 31 23.06 37,482
Terra Organica 1 10 23.06 12,507
Other 6 31 23.06 37,482
TOTAL 15 104 124,952
FARM SALES Units Avg. TOTAL
Per Week Unit Price ANNUAL
Farm Stand Sales 150 2.49$ 19,407$
TOTAL ANNUAL SALES 144,359$