Market Feasibility Study

By
Sanjeev Acharya
LOGO
Roll No. 28
 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 Study
Ideally, 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

Technical
Feasibility
Financial
Feasibility

Types of Economic
Feasibility
Market
Feasibility Feasibility

Ecological
Feasibility
Legal &
Administrative
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 Demand
secondary Forecasting
Information

Situation
analysis & Characteristics
specification of the Market
of objectives

Market
Conduct of Planning
Market
Survey
1. Situation Analysis & Specification of Objectives
Before entering the market we should gather the following
information:
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 of
items?
What prices are the customers willing to pay?
In what basis the differentiation of product will be made as
compared to different brands?
How the products will be distributed to customers and what
costs 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 of
Indian Union, Indian Year Book, Economic Survey, Annual Survey of
Industries, The Stock Exchange Directory, Publications of Advertising
Agency, 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
1 Define the target population

2 Select the sampling scheme and sample size

3 Develop the questionnaire

4 Recruit the train field investigators

Obtain information as per the questionnaire from the

5 sample of respondents

6 Scrutinize the information gathered

7 Analyze and interpret the information

 4. Characterization of the Market
Based 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

Current Market Situation

Opportunity and Issue Analysis

Objectives

Marketing Strategy

Action Programme
 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
-
http://businesstoday.intoday.in/index.php?issueid=&id=1236
&option=com_content&task=view&sectionid=4