As a business owner, you should often look at the market trends to determine what drives demand, what are the strategies of your competitors, and the marketing techniques that work. Staying on top of market trends is essential for your business’ success and you can facilitate this using a market analysis template.
Market Analysis Templates
What is market need analysis?
A market needs analysis is a process used by businesses to find out the dynamics of a specific market in a certain industry. When conducting this process, you use a market analysis template to provide information about the industry, your customers, competitors, and other variables.
Moreover, the document also provides details on the demand and supply for a certain product or service. You can use all of this information to come up with market strategies for your business based on informed decision-making.
Market Research Templates
What are the components of market analysis?
Before starting to plan any business strategies, there is first the need to complete a comprehensive market analysis based on the research you have conducted when you decided to open your business.
Use a market analysis template for this process to provide an overview of the industry as well as the conclusions that you determined from the findings of your market research. There is really no standard method for using a market research template, but under most conditions, you may consider including the following components:
- The description and outlook of the industry
As with most business plans, it’s always a good idea to start with a description of your company’s industry, no matter how you choose to go through with your market analysis.
- Your target market
After completing your description of the overall marketplace and industry, the next step is to specify how you have narrowed your target market down to a more workable size.
- Competitive Analysis
In your comparative market analysis template, identify your competition and their target markets. Additionally, you may want to take note of any secondary or indirect competitors that might have an impact on your business’ target markets.
- Regulatory restrictions and barriers
Expound on any barriers you have identified when entering the market. Also, take note of any regulatory restrictions that might have an effect on your business. In such cases, describe how you can deal with them too.
Comparative Market Analysis Templates
How do you write a market analysis?
When creating a business or real estate market analysis template, here are some tips to guide you:
- Industry description and outlook
You can call this a summary where you outline your industry’s current state and where you believe it’s headed. This section includes relevant metrics like trends, size, projected growth, and life cycle.
Investors who want to deal with your business want to know what projects you’re doing and what you have already accomplished. You should come prepared with the information to support your business idea.
- Target market
The next part of your market study template focuses on your business’ general scope. It is in this section that you become more specific to establish a clearer understanding of your target market from the beginning. Include the following in the target market of your business plan:
User characteristics and persona
This refers to the inclusion of demographic factors like income, location, and age. There is also a need to tap into the psychographics of your customers. Identify their buying habits and interests helps you explain why you are the best business to cater to their needs.
This is the section where you need to get real – not just with your potential readers. You should provide answers to the questions like, “How much do your customers spend on the services or products you’re planning to offer?” or “What’s the size of your business’ potential market?”
- Competitive analysis
In this section of your market research report template, you should examine your competition. Knowing the competition’s weaknesses is important. Maybe your rivals are not serving customers enough and as such, can you offer something else that the competition cannot. Your competitive analysis must include the following:
Provide answers for the following questions: “What other businesses offer similar services or products?” or “What businesses are your customers currently purchasing from instead of yours?”
When your company creates a new product, you may not compete with other similar companies. Instead, you will compete for alternate solutions.
Strengths and weaknesses of your competitors
This requires some imagination where you identify opportunities that you can excel in where others fall short.
Barriers to entry
You have just examined your competitor’s weaknesses. Now, it’s time to examine yours. In this evaluation, you have to be very honest with yourself to determine these weaknesses.
Window of opportunity
Does your business’ entry into the market depend on technology that’s time-sensitive? Is there a need to enter the market early to take advantage of the emerging market?
Projections in your market analysis template refer to educated guesses instead of facts. For this, you don’t need to worry about accuracies. Still, it always pays to use your mind to avoid unfounded forecasts. For this, consider the following:
If you have an idea about how your customers spend their money in the future, you will also know which part of the market you have the opportunity to grab. Always think practical without having to sell yourself short.
Make sure to have an explanation for any numbers you come up with. You can do this with a bottom-up projection where you can explain how your sales and marketing strategies allow you to corner a specific percentage of the market.
Gross margin and pricing
Taking up your pricing structure and any discounts that you plan to offer. Gross margin refers to the difference between the sales price and your costs. Be realistic but, at the same time, optimistic. Keep in mind that your optimistic projections will serve as a motivator.
In general, there will always be some specific government restrictions or regulations in business affairs. You need to discuss these regulations in your analysis, how you plan to comply, and the cost of your compliance. It’s important to take these under consideration, especially if you plan to ask for money or investments from lending institutions. You have to deal with all of these legally.