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Session 7: Market Research

Objective

The purpose of this session is to enable you to present your market research data in a manner that would indicate there is satisfactory size to the market, adequate market share potential for you, and sufficient per capita expenditures to give you appropriate sales volume in dollars.

The end result of this piece of the business plan is the proof that there is sufficient market demand to justify a business start-up. In the case of business expansion, it is the proof of the increased market potential to justify the business expansion plan.

Learning Points

• Develop an identifiable niche segment
• Communicate the competition research
• Express the market share potential
• Calculate the revenue projections

INTRODUCTION

This section focuses on the demand side of your business. The supply side is your expense side of the business, your costs, and this will be provided in the operations section. The market research is for the purpose of showing your knowledge of the market and your estimation ( realistically ) of how much in Gross Sales Revenue you will get.

Market Research Format

The following are the key components in the market research section of the business plan:

• The Industry analysis
• The market opportunity
• The market niche
• The trading area and market niche size
• The competition and market share
• Market share estimates and revenue projections

The Industry Analysis

A brief description of the industry you are going into, the growth of the industry and new emerging trends. A paragraph which details your understanding of the industry and the various market niches within the industry.

Example:

The pet industry has been growing over the past few years. In 1996, there were 62% of households who had either a dog or a cat ( 40% dog and 22% cat ). In 1999, the number of households with a dog or a cat went to 72% ( 37% dog and 34% cat ). There were 1.7 dogs per household and 2.1 cats, per household. Per capita expenditure for vet treatment was $200 per year for dogs and $100 per year for cats.

Source: American Pet Products Manufacturing Association (APPMA)

The Market Opportunity

The growth in the cat population ( +12% ) is much greater than the dog population change ( - 4% ). Most veterinarians are catering to the dog population ( although they serve cats also ). Cats have specific needs, as evidenced by the number of cat specific clinics in the U.S.A. ( See appendix 1 ). N.B. Appendix 1 (below) would be included in the appendices at the back of the business plan.

APPENDIX #1

• All Care Cat Hospital - San Diego's most innovative, cat-only veterinary hospital excels at catering to the individual needs of your cuddly feline. Surgery, Dentistry, Wellness Plans and Internal Medicine.
• All Cats Clinic - Columbus, GA. See our facility, staff and an overview of our services: A full range of medical and surgical services along with boarding and retail facilities.
• Annapolis Cat Hospital - Annapolis, MD. Provide a full range of medical and surgical services, also boarding facilities (for cats only). Veterinary Encyclopedia, office hours, veterinarian bios.
• Argay Cat Clinic - Portland, OR. Medical, surgical and hospital care clinic for cats only. Contact information, clinic hours, and online encyclopedia.
• Capital Cat Clinic - Arlington, VA. Full service, cat-specific, up-to-date veterinary facility. List of services and directions to our office.
• Carrollwood Cats - Cats only clinic in Tampa, FL. Features a list of services, office hours, staff, directions, plus useful links and resources.
• Cat Calls Mobile Cat Clinic - Full service feline only mobile veterinarian. Appointment and contact information, cat care tips and health plans. Check out our prescription site at www.catcallsvet.com for online store, encyclopedia and home delivery of prescription diets and medications.
• Cat Clinic Doctor - Flossmoor, IL. The Cat Clinic is a feline-exclusive clinic that offers advanced diagnostics and care for people who want the best for their feline companions.
• Cat Clinic of Greensboro - Veterinary clinic serving cats only. Located in Greensboro, North Carolina.
• Cat Hospital of Memphis - Cats only veterinary clinic in Memphis, TN. Staff, services, directions, hours, news, FAQs, store, home delivery and e-prescriptions.
• Cats Only Veterinary Hospital - Feline practice located in Norristown, Pennsylvania. Features staff, location, services, and hours.
• Cats Only Veterinary Hospital - Fayetteville, NY. Learn about our staff and facility, shop our online store, find helpful answers in our Encyclopedia and FAQs.
• Columbia Cat Clinic - Cats-only veterinary clinic in Columbia, SC. Offers myriad services including surgery, health services, grooming, and boarding.
• Cozy Cat Veterinary Hospital - Raleigh, NC - A full-service feline veterinary hospital capable of handling your cat's medical emergencies, accepted on a walk-in basis until 6:00. Our after-hours emergency clinic phone number is 781-5145. Prescription Service and Online Store available.
• Kingstowne Cat Clinic - Full service all cat practice, in Springfield/Alexandria Virginia. Board certified feline specialist on staff. Online encyclopedia, e-prescriptions and store at http://www.kingstownecatclinic.net.
• Summer Street Cat Clinic - Buffalo and Getzville, NY. The purrrfect place for cats. Our site has tons of information about both our practices including maps and directions. Check out our newsletter, find valuable coupons, shop our store or browse through the online encyclopedia.
• The Cat Doctor - Vancouver, BC (Canada). Feline only veterinary hospital in the Kitsilano area. Includes hours, contact information, services, fees, and clinic tour.
• The Cat Doctor - Dr. Tracy McFarland - Feline veterinary practice in Santa Clarita, California. Includes contact information, pet health links, and services.
• The Cat Doctor of Dover - Dover, New Hampshire. Medical, surgical, and dental veterinary care. Boarding, grooming & bathing, consultation for behavioral & nutritional problems, and grief counseling.
• Westside Hospital for Cats - Los Angeles' only Feline Specialty Hospital. Site includes a clinic tour, veterinarians' biographies, a library and links to information on cat health and feline diseases, as well as copies of the hospital newsletter and promotions.