MARKET FEASIBILITY Market Feasibility July 27, 2017 Business - - PowerPoint PPT Presentation

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

• n 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
• ffers?
• 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,

• ther),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 1 1 Haggen 6 8 9 Payless 1 1 Skagit Valley Food Co-op 1 1 Star Market 2 2 Terra Organica 1 1 1 Town & Country Markets 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 $