Founder and CEO of NMS Capital Group, Trevor M. Saliba also leads the firm’s independent management consulting firm NMS Consulting as managing partner. In this capacity, Trevor Saliba and his team provide clients with guidance regarding everything from branding and corporate strategy to new market entry.
Before expanding to a new market, it’s essential that businesses complete market analyses. This type of research provides businesses with an in-depth understanding of growth rates, competitors, and potential barriers to entry.
Typically, a good market analysis consists of several components that can be combined into four basic categories: industry overview, target market, competition, and pricing and forecasts. As suggested by the name, industry overviews are relatively simple components of market analyses that describe the industry the business operates in. This description should be detailed enough that a person who is unfamiliar with the industry would be capable of grasping its challenges and outlook.
From there, companies must define their target markets and competition within a given market. The target market refers to the group of individuals that would be ideal customers for the business. This distinction requires that businesses define the gender, income level, and age of their preferred group. Meanwhile, examining the competition helps companies understand any direct and indirect competitors by providing information about their weaknesses and strengths.
Finally, setting the pricing and forecast helps businesses see where their companies would be positioned in the new market, and shows the portion of the market that can be secured by the business. This information is essential so companies can have an idea about any special pricing schemes or gross margin levels associated with new locations.
