A. Total Market Size and Trends 1. What is the approximate size of the total potential market for your kind of product or service? B. Assessment of Competition 1. Are there several kinds of products or services that compete for the same business with the same customers? For example, a hospital uses both mercury and electronic thermometers. If this is the case, what are the competing products or services? 2. List your major competitors in order of their reputed share of the market. Comment as to who is the pricing leader, quality leader, most innovative, growing most rapidly, most aggressive, having problems.
Obtain and attach Dun & Bradstreet reports on the three leading competitors. These will give you some information on their companies.
3. What is the pretax profitability-as a percentage of sales-of the competition and their profit trend in recent years? 4. What information do you have on your competitor's operations? a.
What makes you think it will be easy to compete successfully with them? What are their weaknesses? b. What will make it difficult to compete with them? What are their strengths? 5. What is the price spread among your competitors for products and/or services that would compete with yours? 6. Do you think you can be price competitive and make a profit? Why? Profitability worksheet.
7. What market share do you think you will acquire? C. Marketing Tactics 1. What are the methods that you will use to sell and distribute the product or service? Will you use direct selling, sales reps, distributors? 2. What sort of service and warranty must you offer to make a sale? 3. How will you bring your product or service to the attention of potential customers? 4. How much will it cost and how long will it take to establish a sales and distribution method for your product? Make rough estimates.