Feasibility: Market Analysis
Now that you have developed a business idea, it’s time to analyze the potential market
for that business idea. You will conduct research and then create a document
containing your research. This information will later be used to write your business
plan.
Learning Targets:
1. Synthesize information from multiple sources to inform your decision-making.
2. Define and give examples of market segmentation and target markets.
3. Identify target markets for potential new businesses.
I.
Market Segmentation
Market Segmentation is the process of defining your customers. This includes
information about your potential customers and information about your potential
market.
For this assignment, you need to explain and define the different segments of
potential customers for your business. In order to do this, you need to research
statistics on your potential customers including population, income, and other
information relevant to your business. If you plan to begin your business in the
Hartland area, you can utilize any/all of the websites listed below to find statistical
information about Hartland, Livingston County and Michigan. In addition, feel free to
use Destiny.
Use these websites or other valid sites:
Hartland Chamber of Commerce
http://www.michigan.gov/mdch/0,4612,7-132-2944_5325---,00.html
http://www.city-data.com/township/Hartland-Livingston-MI.html
http://www.michigan-demographics.com/livingston-county-demographics
http://www.city-data.com/county/Livingston_County-MI.html
In addition to geographic statistics, consider other statistics that would be relevant to
your business. For example, if you have a business idea focused on a sport (or
sports), how many people are involved in that sport in the area? If you have a
business idea involving children, how many children are there? How many students
in a given school? You need to determine the statistics that will help you define your
market segment.
II.
Trends
In this section, you will conduct research on the future potential of your business.
You will research what’s changing in your potential business. Consider whether or
not the market is increasing or decreasing. Is your business more or less popular?
Why? Here are several examples:
 The health craze that’s sweeping America means that more people are
working out, eating healthy, and taking care of themselves.
 People rely on their phones for helping them keep track of their lives. There
are apps for just about every feasible need.
 The increasing pressure to perform well on standardized tests coupled with
the time crunch teachers face has created an increasing need for tutors to
help students stay on track.
Next, consider what’s changing in the area where your business is located. This
should answer the question of why you think your business should be opened. Here
are several examples:
 Hartland is the only school district in Livingston County that’s growing.
 Certain sports are becoming more and more popular at a younger age.
 There are three new running clubs in the area.
 The number of non-denominational churches has increased significantly in
Livingston County.
III.
Competition
You need to research and identify your competitors. Consider similar businesses not
just identical businesses. Create a list of a minimum of three competitors, and identify
their strengths and weaknesses.
NOTE YOU MUST CITE YOUR SOURCES FOR YOUR INFORMATION!
Feasibility/Market Analysis Assignment
Name: ___________________
4
Document is professional in
quality and ready for
publication.
Market segmentation research
is thorough, goes well beyond
the basics and student has
clearly synthesized the data,
not simply listed statistics from
a website. Customer
segments identified are
realistic, logical and go
beyond the “obvious”
customer. Student has gone
beyond geographic statistics
to identify several statistics
from a variety of sources
relevant to his/her business.
Segmentation provides a clear
and thorough picture of
potential customers.
The trends identified
demonstrate a thorough
understanding of the potential
business market and its
future. Competitive analysis
is complete, thorough, honest
and accurate. Competitive
analysis goes beyond the
obvious, direct competitors
and addresses competitors in
related markets. Sources are
properly cited.
3
Market segmentation
research is thorough and
student has clearly
synthesized the data, not
simply listed statistics from
a website. Customer
segments identified are
realistic and logical.
Student has gone beyond
geographic statistics to
identify statistics relevant to
his/her business.
Segmentation provides a
clear picture of potential
customers.
The trends identified
demonstrate a thorough
understanding of the
potential business market
and its future. Competitive
analysis is complete,
thorough, honest and
accurate.
Sources are properly cited.
2
Market segmentation
research is thorough and
student has listed several
relevant statistics from a
website. Customer
segments identified are
realistic and logical.
Student has identified at
least one statistic relevant
to his/her business.
Segmentation provides a
picture of potential
customers.
The trends identified
demonstrate rudimentary
understanding of the
potential business market
and its future.
Competitive analysis is
brief and too high level.
Sources are properly
cited.
1
Market segmentation
research is incomplete
and student has listed
statistics from a
website. Customer
segments are not
clearly identified.
There are no business
statistics related to the
particular business.
Segmentation is absent
or confusing.
The trends identified do
not clearly relate to the
potential business
market and it’s future.
Competitive analysis is
incomplete and too
high level. Sources are
properly cited.
Sources are NOT
properly cited.