PRESENTATION ON

MARKET & DEMAND ANALYSISPROJECT FAILURE AND SUCCESS

BOMRED APPROACH

SUBMITTED TO SUBMITTED BY

MR VISHAL SHARMA ANISH GANDOTRA (0604MBA13)

MARKET & DEMAND ANALYSIS

Situational Analysis and Specifications of Objectives

Collection of Secondary Information

Conduct of Market Survey

Characterization of the Market

Demand Forecasting

Market Planning

SITUATIONAL ANALYSIS AND SPECIFICATIONS OF OBJECTIVES Get a “feel” for the relationship between the product and it’s

market, the project analyst may informally talk to customers, competitors, middlemen and other in the industry.

Look at the experience of the company to learn about the purchasing power of customer, action & strategies of competitors.

The objectives of market & Demand analysis, to answer the following question : (for air coolers)

Who are the buyers of air cooler? What is the total current demand for air coolers? What price will the customer be willing to pay for the improved

air cooler. What price & warranty will ensure its acceptance? What are the prospects of immediate sales? etc.

COLLECTION OF SECONDARY INFORMATION

Secondary Information is information that has been gathered in some other context and is already available.

Secondary information provides the base and starting point for the market & Demand analysis.

Also discussed on : General Sources of Secondary Information Industry Specific Sources of Secondary Information Evaluation of Secondary Information

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CONDUCT OF MARKET SURVEY The market survey may be a census survey or a sample

survey. Census survey are employed principally for intermediate

goods & investment goods when such goods are used by a small number of firms.

Steps in a Sample Survey1. Define the Target Population2. Select the Sampling Scheme and Sample Size3. Develop the Questionnaire4. Recruit and Train the Field Investigators5. Obtain Information as Per the Questionnaire from the

Sample of Respondents6. Scrutinizes the Information Gathered7. Analyze and interpret the Information

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CHARACTERIZATION OF THE MARKET

Effective Demand in the Past and Present

Production + Imports – Exports – Change in stock level Breakdown of Demand

Nature of ProductConsumer GroupsGeographical Division

Price Methods of Distribution and Sales Promotion Consumers Supply and Competition Government Policy

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FORECASTING

Predicting the future Qualitative forecast methods

subjective Quantitative forecast methods

based on mathematical formulas Depend on

time frame demand behavior causes of behavior

DEMAND FORECASTING Qualitative Methods

These methods rely essentially on the judgment of experts to translate qualitative information into quantitative estimates

Used to generate forecasts if historical data are not available (e.g., introduction of new product)

The important qualitative methods are:Jury of Executive MethodDelphi Method

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DELPHI METHOD

Rationale

Eliciting the opinions of a group of experts with the help of mail survey

Anonymous written responses encourage honesty and avoid that a group of experts are dominated by only a few members

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DELPHI METHOD Approach

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Coordinator Sends Initial Questionnaire

Each expertwrites response(anonymous)

Coordinatorperformsanalysis

Coordinatorsends updatedquestionnaire

Coordinatorsummarizesforecast

Consensusreached?

YesNo

TIME SERIES PROJECTION METHODS

These methods generate forecasts on the basis of an analysis of the historical time series.

Assume that what has occurred in the past will continue to occur in the future

Relate the forecast to only one factor - time

The important time series projection methods are:Trend Projection MethodExponential Smoothing MethodMoving Average Method

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MARKET PLANNING

To enable the product to reach a desired level of market penetration, a suitable marketing plan should be developed. Broadly, it should cover pricing, distribution, promotion and service.  A marketing plan usually has the following components:

I. Current marketing situation: Market situation. competitive situation. distribution situation. macro environment.

II. Opportunity and issue analysis: Strength. Weakness. Opportunities. Threats.

III. Objectives: Clear-cut. Specific. Achievable. 

IV. Marketing strategy: Target segment. Positioning. Product line. Price. Distribution. Sales force. Sales promotion. Advertising.

PROJECT SUCCESS Details are Closely Managed-If the devil is in the

details, there is nothing more devilish than the complex and intertwining dependencies of a project. When the project moves from point A to point B, you question those who say the details have changed and make sure to understand how it happened.

Big Picture is Understood-Understanding the overall purpose and goal of the project allows you to make decisions and resolve issues that arise.

Decisions are Quickly Made-You use the best information you have available to make decisions quickly. Even if it’s not the BEST decision, a GOOD decision suffices in nearly all cases.

Communication is Rampant-You can never have enough communication. If the worst thing is that somebody says they already know what you just told them, great. They have retained more than what your general audience remembers, which is about 10%. The reality is that you will have to deliver a message ten times before total recall happens.

Risks are Kept at Bay-Risk brings projects to a grinding halt. In successful projects risks are actively identified, managed, and squashed at every opportunity.

PROJECT FAILURE Poor planning and/or inadequate process – planning is central

to the success of a project. It is important to define what constitutes project success or failure at the earliest stage of the process. It is also essential to drill down the big picture to smaller tasks.

Inefficient way to document and track progress – this is an oversight on the part of the project manager. Tracking milestones is a crucial way to see if expectations are being met. Documentation and tracking also lets the manager identify which areas require more resources to be completed on time.

Poor leadership at any level – the “leader” is usually identified as the project manager. However, the management-level executive also has a responsibility of ensuring the project’s success. He/she should work together with the manager to ensure that the company’s exact requirements are understood.

Failure to set expectations and manage them – in working in a team setting, it is critical that you’re able to manage people. If and when expectations are not met, there should be clearly-defined consequences. The task should then be prioritized and possibly reassigned to a more competent individual.

Inadequately-trained project managers – the project manager is taking on a heavy responsibility. It is important to assign management roles only to individuals who have the capabilities to meet requirements. In some cases, poorly-trained managers are assigned to complex projects; this is a recipe for failure.

Inaccurate cost estimation – There are instances when the cost of an undertaking is grossly underestimated. When it runs out of resources, the project cannot be completed. This can be mitigated when the lack of resources is identified early by the project manager.

Lack of communication at any level – communication between the management executive and the project manager, and between the latter and the team members are always important.

Competing priorities – when a company’s resources are stretched, there will be competing priorities in terms of manpower and financing.

BOMRED APPROACH

BALANCING APPROACH :- A project that is undertaken to improve upon the

manufacturing capacity of one or more production units that will result in improvement in the overall production capacity of the project as a whole is called a Balancing project.

ABC ltd is a company who has started its operation this year but their production are not according to the capacity of machines due to shortage of raw material , or electricity problem so company will try to balance their production so that their production operates at full capacity of their machine

MODERNIZATION APPROACH

Technological innovation is a continuous process. When a new technology is evolved and becomes commercially operative, the existing technology becomes obsolete. Any project is set up with the latest available technology. However with, the passage of time, in view of continuing technological upgradation, the projects, become obsolete in technology. Thus, whenever either the plant and machinery becomes obsolete or whenever the production process becomes obsolete there is a need for modernization.

ABC is a company they have decided to do a new process in their company by introducing new operation so that they can bring new economies of scale in their company which lead to increase the productivity of their workers. It will increase their knowledge. It gives benefits to them.

REPLACEMENT APPROACH Replacement project involves replacing some of the old

machinery with new machinery of the same capacity. Due to ageing and wear and tear of machinery, the maintenance-cost starts mounting up and a stage will come when it will be no more advantageous to keep the worn-out machinery in the production line in view of abnormally high maintenance costs, poor quality of output, reduction in capacity of output, break-down etc.

ABC is a company they will change their old machines and bring new machines in their company so that workers can do well in the org. it will help workers to works efficiently and effectively.

EXPANSION APPROACH

An expansion project is one that is aimed at increasing the plant capacity for the current product range. Assume that a company is engaged in the production of wrist watches and that the plant capacity is 50,000 Nos. of wrist watches per annum. If the company, anticipating further growth in the market demand for wrist watches, plans and implements a project for enhancing the plant capacity from the present level of 50,000 Nos. of wrist watches per to 75,000Nos. per annum, the company is said to embark upon an expansion project.

DIVERSIFICATION APPROACH

When a manufacturer wants to offer more than one product, it is described as product diversification and the project meant for this purpose is the diversification project.

Diversification is of two types :1. Related Diversification2. Unrelated Diversification

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