Market Analysis

Market Analysis

This analysis focus on the product/services market that will be undertake for a country. This kind of analysis involves research along market size and sales potential, competitorsanalysis, channels of distribution, customer characteristics, pricing, market communication and barriers to selling.

Market size and sales potential

At the time a country has been screened andtargeted, a company’s managers will possess a great deal of information about several important indicators:

• Market size: This is the total number of possible purchasers for a product/servicecategory in the country. Analysts look at population size and age distribution data. The analysis may be presented in terms of numbers of people or, if average incomes for the age cohort targeted areknown, at this point also are made estimates on market growth.

• Market Potential: this figure is the share of the market size likely to be devoted to purchase of the specific product/serviceand its growth prospects.

• Sales potential: this is the share of the potential market likely to go to the company’s product/service now and at some future point.

To refine market size andpotential figures, analysts will look at GDP per person or related figures, such as disposable income per person. Disposable income is income available for consumption or savings after taxes are paid andif often is broken down by age group, gender, or in some other manner. If government data is not available, industry association research may be obtained.

Data must be gather by the companythrough the use of observations, surveys or interviews.
Aggregated country data now are easily obtained on the internet in the “National Statistics” on the IBUS 300 Home Page, and from public sources likethe World Bank and private purveyors like the Economist Intelligence Unit.

One of the best ways to learn what is possible is to establish small offices or partnerships in a country for a few...