Market Analysis Research

The Following Guidelines have been prepared as a guide for this Market Analysis Assignment. The business that you choose as your subject in this analysis can be a business that you are familiar with, or it can be a business you would like to start, or it can be a fictitious business.

Write a 525-word report that includes the following sections:

· Section 1: Business overview, mission and vision:

Please define the type of business, services and/or products intended to be provided by the business. Define the need for the product/services and why you believe this is an important product/service and while the business will be well received.

· Section 2: Market analysis

Please describe the location, the competitors in the location, the market assumption of these competitors and why your business will be different and/or will be able to provide a successfully accepted product. Use the market analysis format below to calculate your actual expectation of your business’s market analysis:

Expected Market Value: (Place Organization’s Name here)
Assumptions	Probability percentage of the market share you will get	Number of services or units you plan to sell month ly  based on the size of your market population	Average Unit Price of Each Salon Service	Number of Services multiplied by the average unit price equals market value
Pessimistic	0.30		$	$
Most Likely	0.5		$	$
Optimistic	0.20		$	$
Expected Market Value ('$000)

1. The above chart is an example. All of the values highlighted in yellow, and the expected market value at the bottom of the chart need to be inserted based on your proposed business. You may use this chart to identify the “assumption of the market that you intend to capture.

2. Leave the assumption column as is. The probability column is identified in decimals and actually represents percentages, i.e. pessimistic = 30% of the market; Most likely = 50% of the market; Optimistic equals 20% of the market (with higher pricing for services). You can leave the percentages of the market as they are above.

3. As you read across the first horizontal line, the columns are self-explanatory.

· To compute 30% of the market value, fill in the number of services/products per month, that you expect to sell.

· Insert the average unit price for each unit you plan to sell each month,

· Multiple the average unit price by the number of units, to obtain the market value (for the month) at 30%.

4. Continue to identify the other percentages/market values on the chart in the same way.

5. Once you have identified all three market values (per their percentages), total the market value column. To identify the Total Annual Market Value when you have shown units sold per month, multiply the Total Annual Market Value by 12 (number of months in a year.)

6. The final step is to identify the Expected Market Value. This value represents the portion of the Total Market Value that you intend to capture. For example:

· If the Total Annual Market Value is $2,000,000 and you expect to capture 10% of that market value, the Expected Market Value will be $2,000,000 multiplied by .10.

· Once you have that value, include the percentage of the market that you intend to capture, in your written paper.

· Section 3: Recommendation

Based on the information collected, do you feel it is a good idea to continue with the implementation of the business? Explain why or why not.

Use the Market Analysis Research document for details on what to include in each section.

 

Cite references to support your assignment.