Template:BPB6

                             Market Analysis

    [] This section describes the existing marketplace in which you will
    introduce your company and products /services.

Market Definition

Key points in defining the market segment for (product/service) are XXX, XXX, and XXX.

    [] By product feature, by lifestyle of target consumers, by
    geographical location, by season, etc.

    [] Include charts where appropriate.

Currently, the market distribution is shared by XXX participants.

    [] How is share of market distributed among major participants?

    [] What are the share gain and loss trends?

    [] Summarize your view of the trends and implied opportunities.

XXX (product or service type) Market

Users of XXX (product/service) are looking for quality and productivity improvements.

XXX (past/current/recent/lack of) development of XXX (product/service) has resulted in the need to XXX (changes, corrections, applications of new technologies). This innovation is called "XXX", and allows XXX (product) to operate efficiently (or more efficiently) as XXX.

The (product/service)'s ability to operate/perform/provide XXX (benefits) is unique to (Company)'s products.

Independent market research indicates that there is currently only XXX (quantity) (product/service) for every XXX customers. The XXX (market/industry), as a whole, is looking toward XXX (manufacturers/suppliers/retailers/experts) for use in the expansion of existing applications/product lines/services.

    [] For an existing Business (your own or a recent acquisition) review:
       Sales history
       Profits
       Market Share & Position
       Marketing methods
       Industry Trends

The stability of this market segment is XXX (volatile, uncertain, etc.), based on XXX product category performance over the past two years.

    [] What do industry forecasters predict for the next two?

The XXX market is growing at a rapid rate. The market for XXX (similar products/services) amounted to $XXX million* in 19XX - representing a XXX% growth over $XXX million* in 19XX.

Referenced sources agree that the major trend is for XXX. The trend has been toward the development of XXX (other products/services) and, hence, the latest development of distributed or shared resources.

The overall XXX market for the XXX industry is projected to be $XXX billion* by the end of 19XX. The overall market potential for (product/service category) is estimated to be $XXX billion by 19XX, and the (additional products/services) portion of this market is estimated to be XXX million.*

The area of greatest growth in the XXX market is in the area of "XXX".

• Source: XXX (industry analysts, census, trade journal studies)

Possible Retail and Wholesale Outlets Include:

    Store type                       Total         SIC Code
    Department Stores               23,275             5311
    Garden Supply Stores            16,496            5261B
    Hardware Stores                 40,140             5251
    Giftware Wholesalers             3,524            5199G
    Electrical Equipment Whlse      41,313             5063
       Total                       124,748

    [] Collect mailing list catalogs - look for all the possible outlets
    for your product/service.

    [] Look in your telephone book classified advertising under: Mailing
    Lists.

    [] Complete the chart below - the list may surprise you as well as
    prove to be a valuable resource for resellers.

The major market segments are:

    XXX
    XXX

    [] List, by broad category, the types of customers you are likely to
    sell to.

    [] Retailers, Electrical Contractors, Mail-order Catalogs, etc.

XXX (Specific Market Area) Segment

This segment of the market is generally based on XXX (products/services) and XXX (products/services) with retail prices in the range of $XXX to $XXX. The vast majority of sales in this category will be handled by OEM's, Retailers, Manufacturer's Representatives. The minority of sales will be through direct channels.

Over the past XXX years, XXX (similar product manufacturers/service providers) companies have proven that meaningful features can be developed for this class of XXX (product/service) (e.g., XXX, XXX, and XXX). These companies have primarily focused on the use XXX (manufacturing technique, special materials, recipes, chemicals, machinery) to improve the quality of XXX in a (product/service). These products have been successfully distributed in many areas of the industry. Competitive products/services in this market are produced/provided by XXX, XXX, and XXX.

In the next XXX to XXX years it is estimated that there will be more than XXX million of XXX (product/service)s distributed.*

• Source of Statistics: XXX (industry analysts, census, trade journal

studies)

Of the XXX customers, approximately XXX% will buy/use/want/expect XXX to help them to XXX (deliver their work, maintain their XXX, expedite their production, reduce costs). XXX of these (products/services) (actually about XXX) will have a XXX capability, and about XXX of those (products/services) will require XXX (other features).

The market potential for a (product/service) in these quantities - with a current retail price of $XXX per unit - is approximately $XXX million.

    [] Repeat the above information for as many market segments as are
    required.

Strengths

    [] In covering your strengths, be sure to place at least as much
    emphasis on marketing as on your product, if not more.

In terms of product/service strength, XXX (product/service) has several distinctv advantages over the competition. First is its marked advancement in XXX technology.

    [] How else is the product/service favorably differentiated from the
    competition?

    [] In actual performance?

    [] In quality and reliability?

    [] In production efficiencies?

    [] In breadth of line and/or options?

In marketing, our most powerful assets are XXX.

    [] In category/share leadership.

    [] In segmentation.

    [] In distribution.

    [] In pricing.

    [] In awareness/image.

In the corporate arena, (Company) is supported by XXX.

    [] What are the corporate strengths?
       Size.
       Financial resources.
       People resources.
       Reputation.
       Business Relationships (expand on this in the Business Relationships
       section).

Weaknesses

There is/are XXX handicaps inherent in our product.

The only notable marketplace disadvantages are XXX and those are because XXX (explanation).

By 19XX we should be able to position ourselves in order to XXX and thereby reduce this weakness considerably.

Corporate weaknesses, at this time, consist only of XXX, however we are taking steps to XXX which we feel should alleviate this problem.

Environmental threats (declining markets, trade barriers, consumer trends, changing economy) include XXX.

Other known threats include XXX.

Opportunities

The upside potential for XXX and XXX (our products/services) in XXX (each of the currently addressed markets) over the next two years is XXX.

Based on XXX (existing conditions), introduced in the Present Situation and Strengths/Weaknesses analysis it is apparent that (justify potential with logical rationale).

Unexploited Opportunities

An altogether new application for this product/service would be tapping XXX markets.

Further opportunity for our product exists in XXX market(s).

    [] Can the current line of products/services and technological
    capabilities be leveraged effectively?

    [] What is the estimated cost of entry, time frame, and risk?

Still another possibility for development involves XXX.

    [] (e.g. alternative distribution, technology licensing, creating
    up/down market brands, etc.)

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