Market analysis involves conducting a quantitative as well as qualitative assessment of a market in order to understand the tangible and intangible factors at play in an industry. It looks at the size of the market, various customer segments, competition, and the economic environment.
Companies often turn to third-party market research providers to perform market analysis.
The main objective of market analysis is to understand a market and to see if the market is large enough to build a sustainable business.
Market analysis involves answering several questions, including:
- Target market, what is its size, sales figures, consumer spending figures, is the market growing or contracting, what is the forecast for the market??
- Who is the target customer? demographics and segmentation?
- What is the competitor environment (competition)?
- Barriers to Entry, what are the potential disruptors?
- Regulation
While conducting market analysis, you’re required to provide some relevant information on the market in which the company operates within such as:
- Market trends- market definition, mention market size and growth over last 3yaers and projected growth between 3 to 5 years. mention market changes, market share, other trends
- Product range – Include Product mix, product categories within the market across companies.
- Consumers /customers types, – you can look at Customer Characteristics and needs influencing the market, cultural elements, social elements, personal elements
Look at answering the following questions while doing Consumer Behaviour Analysis:
- Who buys our products or services?
- Who makes the decision to buy the products?
- Who Influences the decision to buy the product?
- How is the Purchase decision made? Who assumes what role?
- What does the consumer buy? What needs must be satisfied?
- Why do customers buy a particular brand?
- Where do they go or look to buy the particular product or services?
- Where do they buy? Any seasonality factors?
- How is our product perceived by the consumers?
- What are the customers’ attitude towards our products?
- What social factors might influence the purchase decision?
- Do customers’ lifestyle influence their decision?
- How do personal or demographic factors influence purchase decisions?
Market research databases like Mintel, Passport, Marketline Advantage are popular market research resources for management students to carry our Market Analysis for their project work.
Market Analysis Examples
Market analysis for 3D printed housing industry in Mumbai
Mumbai is a densely populated and high-cost urban centre in India that is experiencing an increasing need for accessible and environmentally conscious residential accommodations. The urban population is poised to hit 28.5 million by 2030. The current situation has exerted significant strain on the urban infrastructure and housing, leading to a critical deficit of reasonably priced housing alternatives.
As per the findings of a report by Knight Frank India, a significant portion of Mumbai’s population, comprising mainly of middle and lower-income groups, generates the majority of the demand for affordable housing. Income levels are one of the primary factors driving the demand for affordable housing in Mumbai. As per a study conducted by the National Sample Survey Office, a substantial affordability crisis is evident in Mumbai, with 68.9% of households spending more than 30% of their income on housing.
The Maharashtra government has implemented multiple policies aimed at tackling the housing crisis in Mumbai. The Pradhan Mantri Awas Yojana (PMAY) is a government initiative designed to offer cost-effective housing solutions to the lower income urban population.
There is a growing consciousness among individuals regarding the ecological implications of conventional construction techniques. As per a report published by the Indian Green Building Council, Mumbai boasts the largest count of green buildings in India, which reflects an increasing inclination towards eco-friendly housing.
Analyse the competition and potential market share for 3D printed housing solutions:
The construction industry is currently in the nascent stages of adopting 3D printing technology, with a limited number of companies providing 3D printed housing solutions.
Tvasta is a prominent player in the 3D printed housing market in Mumbai. The organisation has successfully executed multiple projects across the United States, Mexico, and Latin America. It aims to broaden its business activities in India and other regions of Asia.
According to a report by MarketsandMarkets, the global 3D printing construction market is projected to reach a market size of $1.5 billion by 2024, with the Asia-Pacific region experiencing the highest growth rate. The construction industry in Mumbai is subject to strict regulations, and new entrants may encounter various obstacles when attempting to implement innovative construction techniques such as 3D printing.
In summary, the 3D printed housing industry in Mumbai is currently in its nascent phase. However, the market has a substantial potential share, owing to the increasing need for cost-effective and eco-friendly housing solutions.
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