How to Conduct a Market Analysis On Your Business Here in the Philippines

Starting a business here in the Philippines is not an easy task. Many factors are considered before you can put up a business that will surely be worth your investment.

One effective way to determine the success of your dream business is to do a marketing analysis. This will guide you in starting up your business.

Market Analysis

Market analysis is the evaluation of the market in a specific industry. These are some that should be assessed such as your target market, your item’s market value, your competitors, consumer behavior, consumer’s profile, location and market trend.

5 EFFECTIVE WAYS TO CONDUCT A MARKET ANALYSIS ON YOUR BUSINESS HERE IN THE PHILIPPINES

#1 Identify Your Target Market

While focusing on the product you are trying to sell, it is imperative to know the specific market you are trying to penetrate. No matter how excellent your product is, if you offer it to the wrong group in the market, it will not sell.

That is why you should thoroughly identify the specific demographics of the customers that your product will appeal to. This is where the buyer’s persona comes in specifically:

  • Age group
  • Marital status
  • Salary grade
  • Interests
  • Gender
  • Occupation
  • Challenges
  • Needs.

Taking these into consideration is a good way to filter out which market you are trying to serve. For instance, if you are selling baby products your main target are parents with infants. What occupation do they have, if they can afford your product through their salary grades, the gender of their kid and so on.

You can conduct simple surveys or polls through your social media account to have an overview; or you can check the internet on the latest trend in the market.

The former is applicable if you don’t have a specific product to sell yet; but for sellers who have already established their brand and product, all you need is to know where and who to sell your item to.

#2 Find the best location to sell your product

After identifying your target market, you should next search for the best place to put up your business. This might mean the geographic location of your business or which groups in the internet you should be visible in.

For physical stores, check the density of foot traffic on a specific location. This is if the foot traffic on a location is heavy and if your store is clearly visible to the passersby and mainly the accessibility of your business to consumers.

For instance here in the Metro, the most important thing is how visible you are to the customers and if your store or business is accessible to the public. That is why for physical stores, the more visible the location the more expensive the rent for that spot.

In the internet or the social media sites, be present at market groups that has the same products that you have. In this way, the target market can easily find you in that specified group.

Marketplace in the Facebook social media site for instance, you can join different groups that sell specific products and from there you can compare your product from other competitors and at the same time, you have a higher chance of being noticed by online users that searches for the same products.

Be where your target market is and that will truly require a thorough research to figure out.

#3 Study the price trend for your product

It is not enough to depend your product’s price on your production’s expenses, you also need to evaluate the price in the market and compare it with your competitors. This way you will gauge how much your customers are willing to pay for your product.

Always be updated on the movement of price trends in the market so you can adjust and provide a more reasonable and competitive price in time.

More often than not prices go higher ever

#4 Create an industry analysis

An overview of an industry’s standing in the market is essential in establishing a firm foundation for your business. This will tell you firsthand of the status of the industry you are trying to penetrate at a given timeline which depends on a lot of factors.

This includes:

  • SWOT analysis – The Strength, Weaknesses, Opportunities and Threats

Strength – This is what sets your business apart from your other competitors. Your strength is what your business can best offer among others.

Weaknesses – These are the things that your business lacks and areas that you can improve on to meet the demand of the market.

Opportunities – Possibilities that your business can tap and will further success for your business.

Threats – The external factors that can negatively affect the success of your business plan.

  • PEST Analysis – This is also known as the Broad Factor’s Analysis, which is the Political, Economic, Technological, and Sociodemographic factors.
  • Porter’s 5 Forces Model or the Competitive Forces Model

                Intensity of Industry rivalry

  1. Threat of Potential Entrants
  2. Power of complementary good/service providers
  3. Bargaining power of suppliers
  4. Threat of substitute goods / service

#5 Benchmarking

Benchmarking is basically to compare your business to internal forces or external forces in order for you to pinpoint which areas to improve and which ones to maintain. This will also show you your edge over other competitors and will let you form new innovative solutions. This might include product comparison, business strategy, and consumer satisfaction.

Data gathered in benchmarking is essential. This will prompt you to assess your business’ performance and compare it to your competitors and will provide you a clear solution that will render you a better outcome.

Study your competitor as you assess yourself as well.

Application of all of these key points on how to conduct an effective market analysis will surely give you a jumpstart on your business here in the Philippines.

Thorough research, data gathering and continuous progress will provide your business a firm foundation as it enters into the industry.

This will give you a concrete plan and overview of the goals you want to meet for your business and a clearer direction on where you will be headed at.

References:

https://corporatefinanceinstitute.com/resources/knowledge/strategy/industry-analysis-methods/
https://corporatefinanceinstitute.com/resources/knowledge/strategy/broad-factors-analysis/
https://www.mindtools.com/pages/article/newTMC_05.htm
https://www.businessnewsdaily.com/15751-conduct-market-analysis.html
https://www.thebalancecareers.com/overview-and-examples-of-benchmarking-in-business-2275114
https://www.bernardmarr.com/default.asp?contentID=1753

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