Market study is an essential part of the detailed feasibility study as it helps the project owner in knowing the volume of demand for project products or services as the market study aims to study a set of criteria that give the project owner sufficient information and knowledge about the project status and its position in the market with competitors knowledge and one of these criteria : Study the determinants of demand for the proposed project products, estimate the current and expected demand for project products, estimate the market size by estimating the volume of demand, estimate the expected share of project products from the local market, and study the effects resulting from the production of complementary and alternative goods for the produced goods, Arafa market structure and characteristics and advantages, the study of specific factors for display and analysis is carried through this study estimate expected during the first five years of the life of the project total revenues. The market study aims to:
First: Define and define the services or products of the project.
Second: To study and define the customers (consumers) of the project’s services or products, while describing their needs accurately and clearly.
Third: studying and defining the target market and describing its characteristics.
Fourth: Studying competitors and the offered services or products to help create a competitive advantage for the project.
Fifth: Predicting the amount of revenue and sales expected during the first five years of the project life.
To start studying the market, some steps are taken as follows:
First: Collect data and information and analyze them by relying on secondary sources, such as reports and published data, and conduct primary interviews and surveys.
Second: studying the candidate markets for the project, and the market can be divided into types of markets for the quality of customers into: horizontal markets (diversity), which serve many types of customers and provide the goods that the end consumer or consumer needs and vertical markets (centralization), which markets are limited to providing products to customers of one nature In their use of the product. It is possible to divide the market according to geographical criteria divided into a domestic and foreign market or according to demographic standards divides the market into a group of young children and young people or male and female … etc., or for social standards divides the market into a market for families and individuals market, or for educational and cultural standards into educated and uneducated Such as training and education projects, goods that depend on high technology or simple or according to health standards divided into the market for patients with heart disease and diabetes and obesity, or smokers and non-smokers and finally according to the criterion of the nature of producers divides the market into a market full competition and friction market I see complete (natural) and oligopoly market.
Third: Estimating the total volume of demand as the estimate is made based on the services or products currently present in the market and through the use of appropriate quantitative and qualitative methods, as the process of estimating the total volume of demand for project products or services is based on the information available and on the experience of those responsible for the feasibility study and the extent of The appropriateness of the prediction methods used and the ability to directly calculate factors affecting the volume of demand. Among the most important of these are: demographic factors, consumption patterns, individual customer behavior, national income and its distribution to individuals, prices of alternative and talking products, The pattern of competition in the market and political, economic, environmental and social stability.
Fourth: Estimate the total size of the project products / services in the market.
Fifth: Estimate the gap in the market by the difference between the total volume of demand and the supply of products or services provided by the project in the market.
Sixth: Define the elements of the Marketing Mix necessary to deliver the product / service in the target market in a way that suits the customers desires and purchasing power (product mix, product pricing, product distribution, product promotion, places to provide services / products, people involved in the marketing process).
Seventh: Preparing the final report of the market feasibility study to clarify the most important goals, sources and methods for collecting information, data and results that were reached to complete the rest of the aspects in the detailed feasibility study.