Market Research - Financial Feasibility - Opportunity Analysis Assessment Answer

• Subject Code : MKTM033
• Subject Name : Market research analysis

Market Research & Financial Feasibility - Opportunity Analysis Assessment

Contents

Introduction
Proposed venture description
Market research
Market segment analysis
Industry analysis

• Industry rivalry
• Bargaining power of supplier
• Bargaining power of the buyer
• Threats of substitute
• Threats of new entrants

Technical feasibility study
Financial Feasibility
Scenario versions
Scalability of the new venture
PESTEL analysis
Personal SWOT analysis
SWOT analysis of business idea
Conclusion
Reference

Introduction

Opportunity analyses is the procedure of identifying and explore profits improvement or expense lessening state to better position the business to realize augmented productivity, efficiencies, market potential, or other attractive objectives (Patterson et al. 2019). It is highly imperative to conduct opportunity analysis as it helps the new business to survive in a competitive environment. The main aim of this analysis is to conduct an opportunity analysis of a new undertaking. It will further include elements like self-analysis, venture description, industry analysis, and more. Finally, the conclusion will summarize the overall analysis.

Proposed venture description

The original and inventive creation that a novel venture is introducing in the marketplace will be named as Bloom Season. The particular business will produce interior plant pots that can be hung on the walls. The motive behind is to increase the availability of green frames for each category of shopper whether having sufficient room for gardening activities or not (Shepherd and Zacharakis 2018). The creation will successfully solve the matter of putting a pot since it can be effortlessly hang up on the walls and efficiently aid to sustain green and beautiful background. Furthermore, the demographic aspects are measured as significant factors that a dealer measured for endorse and introducing a creation in the marketplace. Also, the country (Singapore) is witnessing trouble of amplified pollution and erosion so this product can add considerably to decreasing these harmful ecological consequences through the plantation in everybody's home.  Also, it is a price effectual and simple to install products that aid to fulfill the altering requirements of the international business atmosphere.  It also leads to generate constructive influence on the atmosphere of the nation.

Market research

Market research can recognize how clientele and possible customers may outlook your business and recognize the gap in customer prospects. This is influential information to have when finishing your marketing approach (Baker et al 2018). According to the marketing study of Bloom Season, there are some factors that have been recognized which comprise the target marketplace, channel of sponsorship, and special mode to advertise the product.  

The target market will include young people, old people females and all those are capable of making a buying decision. In addition, the target markets not simply comprise the family but also business associations, restaurants, coffee bars, and hotels. As the hanging plants can also be used in the office for beautifying walls which assist to encourage constructive surroundings and also seem beautiful that leads to include magnificence to workplace interior.

The advertising instrument of the product comprises online commercial and online video which specify the mode to sustain and utilize the hanging potted plants (Mou 2019).   Different ways of product endorsement engage the allocation of samples to workplaces, café, hotels, and eatery. These actions assist to increase purchaser awareness that inspires them to make buying choices. In addition, the product can also be sponsoring by launching it in Garden fiesta. The accessibility of products to patrons can be made through an alliance with special well-recognized chains of the outlet so that the product can be simply available and accessible to patrons. Furthermore, the product can also access to clientele through online buying that assist to decrease client’s purchase efforts. Besides, a diverse assortment of flora is also presented for the purchaser to decide from.  The flora pots can well suit the necessities and interior of the workplace and hotel. Also, an amalgamation of both aromatic plants and shrubs can go well with the interior of the home and workplace (Berry 2017).  Additionally, it is necessary to set viable value for the product to preserve long-term productivity and victorious business place.

Market segment analysis

The profile of our purchasers includes the following geographic and demographic information:

Industry analysis

Porter’s five forces model is linked by a structure that demonstrates the business rivalry stage and market pressure. Furthermore, hanging green frames is a pioneering product that will be launch in the marketplace (Porter 2016). 

Industry rivalry

Gardening is the rising business and numerous entrants are already captured large market share. The business can face elevated rivalry from present competitors like Tai Kwang garden, ken landscape services, Chenhtai nursery, and many more. Therefore Bloom Season must offer original products at cutthroat value for increasing market share.

Bargaining power of supplier

Dealer for Bloom Season will comprise sellers of frames, labor, flora, and a variety of other parts. In this stage product bargaining authority can be reasonable at the entrance stage that assists in the delivery of improved product superiority.

Bargaining power of the buyer

 It can be recognized as buying control of the purchaser that demonstrates the capability of the buyer to acquire a product. To catch the attention of more clients and offer them happiness by offering the product business must make sure to offer the product at a low price or collaborate with the purchaser in bargaining. 

Threats of substitute

Bloom season will sell green frames or different plants so alternatives of this product is accessible in the marketplace thus posing low pressure of alternate. 

Threats of new entrants

 In the gardening business access and exit of the novel, the firm is simple. Although, this business does not has any risk of the new players. It will be an average stages at the point of launch this product.

Technical feasibility study

The most important constituent engages the utilization of fertilizers and topsoil to be used in the pot plants. The soil is developed with the help of research and development and therefore has elevated water grasp ability. The pots necessary for plants will be outsourcing from the external producer (Vuorio and Puumalainen 2017). Also, a range of plants are offered by the business including air cleanse, blossoming and aromatic plant and fragrant. Air purifying flora comprises Chrysanthemums and Dwarf Date Palm.  Flowering plants include angelonia and orchids, rosemary, laksa.

Financial Feasibility

Cost and profits assessment of the plan is a significant constituent that assist to decide the prospective business state. It can be estimated with the assistance of economic viability that demonstrates all fixed costs and returns of the business (Berry 2017). 

The startup expense for the blooming season is $41500 which includes the rent for the land.

Objectives

• To preserve a normal gross margin at or above 50%

• To generate a standard of $1000 of sales every day

• To maintain annual growth rate of 10%

                   P&L (Bloom season)

Scenario versions

The different situation version and latent reaction that could be specified in tackling them are explained in the following ways:

• What if expenditure surpasses the returns?

In this circumstance, the corporation will get help by implementing a cost lessening approach to arrive at breakeven point or to achieve the finest level of success.

• What if alternate creation is launched in the marketplace?

In this condition, the business will make product segregation to draw a great number of clients or it can aim untapped market

• What if purchasers do not like the product?

In this position, the business would be capable to please client requirements by successfully recognize the fondness and outlook of customers concerning the product characteristic and value.

• What if the business targets the incorrect marketplace?

In these circumstances, the corporation would competent to get accomplishment and augmented productivity through doing a suitable market investigation that would assist to recognize the genuine targeted patrons. 

Scalability of the new venture

Venture scalability is the process of business growth and it makes sure that new business enterprises can simply increase their production in the future with no incur excessive expenses (Lum and Morrish 2019). Singapore has a solitary marketplace for the vending of Green Frame so it can pursue an improved policy for the industry expansion. Scalability assists to calculate the business's position and then take remedial action for the development of business.

PESTEL analysis

Personal SWOT analysis

SWOT analysis of the business idea

Conclusion

It has been concluded from the overall report that an opportunity analysis help to evaluate whether the business can gain a competitive advantage or not. It has also been recognized that adequate human assets are obligatory for the victorious opening of a new business enterprise. Furthermore, it is also evaluated that businesses will face rough rivalry from the existing players. Furthermore, the innovative and effective ideas of the business venture will be able to capture a large market share. In addition, the business must put more emphasis on targeting the right customers. Initially, the business has to focus on satisfying the needs of customers in order to increase a loyal customer base. Furthermore, a financial study revealed that businesses can arrive at the effectual productivity stage by launching this effective product.

Reference

Baker, L.M., Boyer, C.R., Peterson, H.H., and King, A.E., 2018. Online opportunities: A quantitative content analysis benchmark study of online retail plant sales. HortTechnology, 28(4), pp.516-523. Berry, G.R., 2017. Feasibility analysis for the new venture nonprofit enterprise. New England Journal of Entrepreneurship, 20(2), p.4. Jin, L., Madison, K., Kraiczy, N.D., Kellermanns, F.W., Crook, T.R., and Xi, J., 2017. Entrepreneurial team composition characteristics and new venture performance: A meta-analysis. Entrepreneurship Theory and Practice, 41(5), pp.743-771. Lum, P., and Morrish, S.C., 2019. Opportunity-based new venture creation: an opportunity, outcome, and process (OOP) framework. In ICSB World Conference Proceedings (pp. 1-5). International Council for Small Business (ICSB). Mou, T.A., 2019. Market analysis for rooftop and home gardening.

Patterson, K.P., Mogelgaard, K., Kabiswa, C., and Ruyoka, R., 2019. Building resilience through family planning and climate adaptation finance: a systematic review and opportunity analysis. The Lancet Planetary Health, 3, p.S12. Porter, M., 2016. GBN Education: The Five Forces of Strategy. Education. Shepherd, D.A., and Zacharakis, A., 2018. Conjoint analysis: A window of opportunity for entrepreneurship research. Reflections and extensions on key papers of the first twenty-five years of advances, pp.149-183. Vuorio, A., and Puumalainen, K., 2017, September. Change in Entrepreneurial Opportunity Templates and new Venture Ideas. In European Conference on Innovation and Entrepreneurship (pp. 786-793). Academic Conferences International Limited.