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Market Survey

A market survey is an important requirement for initiating any successful business. The objective of a market survey is to collect information on various aspects of the business. This survey is a tool through which we can minimize risk. After the market survey, the results must be analyzed in order to finalize a business plan. The workshop session on market surveys was designed to provide the participants with an understanding of the importance and procedures of such a survey. The session started with a case study on Lokmans Grocery, taken from the training manual. Participants were divided into four groups to study the case and answer the following question: What happens when an entrepreneur starts her business without conducting a market survey? The groups came up with the following answers: She doesnt know the purchasing power of the customers She doesnt know the age group of the customers She doesnt know the target market of the customers She doesnt know the right place to start her business She cant get enough profit Difficulty in sales She cannot decide which product should be produced She cannot decide the production capacity No market for product Plan would become a failure Customers availability People don't need the product Accessibility of the product Cannot sell the product Customers may go to another shop Without market survey, no customer, no benefit Difficult to sell because they dont know about standard price so that they will sell cheaper or higher She has risks gets little profit or its too late to develop the enterprise; doesnt have buyers Goods not needed in the market The session also included a presentation by the resource person on the concept of a market survey. The presentation included the following points: A market survey is a systematic collection, recording, analysis and interpretation of data relating to the existing or potential market for a product or services

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A market survey is a useful tool for contact with the market The systematic and intelligent use of this tool can reduce risks of decision making under conditions of uncertainty Through a market survey we can obtain information in the following areas: size of market pattern of demand buying habits and motives past and present trends for this or other products The following five steps in doing a market survey were also discussed in the session: Step1: Define objectives and specify information to be collected Identifying sources of information Assessing time and costs required for the survey Selecting methodology Preparing an action plan

Step 2: Select a sample Determining where to conduct the survey Determining when to conduct the survey

Step 3: Prepare a questionnaire for the survey Step 4: Collect data and analyze the information obtained Step 5: Prepare a report based on data analyzed In the session, participants discussed the following ten broad areas for information collection: Market Buyers/ customers Raw materials Machinery, equipment Competitors Furniture Manpower Capital and risks Rules and regulations Marketing

After the discussion, participants were divided into four groups to identify questions to be asked in the above-mentioned areas while conducting a market survey. The major points of the group reports are as follows:

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Small-scale Enterprise for Neo-literates through CLCs

Group 1
Area: Market
What to Know How many sellers in this market Size of demand Possibility of increasing demand Present prices Seasonal demand Demand creation What types of problems facing sellers, what are the probable solutions Areas of market How to Know discussion/data collection discussion/data collection data analysis/discussion From Whom to Know local shopkeepers local authorities local shopkeepers EPB consumers EPB customers association local shopkeepers consumers local shopkeepers

questionnaire discussion/data collection discussion questionnaire

Area: Customer/Buyer
What to Know Who are the customers age group sex economic status Consumer buying behaviour Consumer choice Where they purchase their commodity and why What types of facilities customers get from local shopkeepers How to Know discussion/interview From Whom to Know local shopkeepers seller consumer seller producer consumer consumer consumer

interview discussion discussion discussion

Area: Raw Materials

What to Know what types of raw materials are the raw materials available here prices of raw materials are there any transport facilities what types of storage facilities required to preserve raw materials is there any risk to handle raw materials; (if yes)how it may be overcome How to Know discussion/interview discussion/interview discussion/interview interview/discussion discussion/interview discussion From Whom to Know local producers/shopkeepers local producers/shopkeepers local producers/shopkeepers local producers/shopkeepers local producers/shopkeepers local producers/shopkeepers

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Group 2
Area: Machinery/Equipment
What to Know What kinds of machinery What price Where the machinery is available Who is the cheapest supplier Maintenance after sales service Power supplies How long it should be used Guarantee Qualified machine Dimension Buying/selling procedure How to Know Individual contact Advertising Web pages Users Exhibition/demo Rumor/jokes Chatting From Whom to Know TV Radio Daily papers Computer Posters and signboards

Area: Furniture
What to Know What types of furniture are needed Where the furniture is available at a reasonable rate What types of furniture attract the consumer Prices How to Know Observation of the enterprises Data collection Discussion From Whom to Know Competitors Shopkeepers Consumers Media

Area: Competitors
What to Know Who are they Where are they Quality of their goods Size of their market/where What are the incentives given by the competitors (quality and quantity) How many competitors What is their best production Where is their monopoly area Who are their consumers Where do they collect raw materials What types of equipment do they use What is special about their product What kinds of media do they use for advertising What are the weaknesses of products and competitors What types of incentive do they offer What is the quality How to Know Individual contact Advertising Web pages Users Exhibition/demo Rumor/jokes Chatting Market survey Individual contact Questionnaires Field visit Discussion Data collection Personal relationships From Whom to Know TV Radio Daily papers Computer Posters and signboards Consumers Shopkeepers Materials supplier Business associations

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Small-scale Enterprise for Neo-literates through CLCs

Group 3
Area: Manpower
What to Know Types of employees No. of employees Experience of employees Responsibilities of employees Wages for employees Facilities for employees Demand of employees Recruitment/hiring of employees How much money required Source of credit Rules of credit Mode of loan recovery Establishment cost Types? When? How do they overcome? How to Know Interview (oral and written) Survey Collect information Collect information From Whom to Know From people Entrepreneur Employment exchange Media

Risks:

Initial capital Additional requirement Initial capital Additional requirement Initial capital Additional requirement Initial capital Additional requirement Initial capital Additional requirement

Entrepreneurs Documents Banks Laws Laws Laws

Group 4
Area: Marketing What to Know
Rules and regulations Marketing Size of market Location of market Market demand

How to Know
Interviews interviews

From Whom to Know

Officials competent individuals

At the end of the session, participants also discussed techniques for preparing a questionnaire.

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