A key element of a business plan, a market study must answer two major questions:
Who will buy what I want to sell?
Who is already offering my product or service?
The goal is to assess the relevance of your project. The data you collect will help you develop a profitable commercial strategy and define your competitive advantages. In short, a market study maximizes your chances of success.
An American study revealed that 60% of business failures could have been avoided if a market study had been carried out. It is therefore worth investing the necessary time and energy to:
Analyze your market in order to reduce risks for your business;
Understand customers’ needs, preferences, and characteristics;
Validate the commercial feasibility of your project and refine its concept;
Guide your actions and decision-making.
A market study is essential to understanding the potential of your offering. It involves formulating a set of assumptions (based on desk research and market analysis), then testing and validating them in the field through surveys and investigations.
A market study covers four main areas: the sector (or market), customers, competition, and the environment. For each area, you need to answer a series of questions.
A market study begins with an analysis of sector trends and the overall market in which your business operates, in order to understand the context.
Is the market growing or declining? What is its momentum?
What is its size? How many players are there?
Is it a local, national, or international market?
If the market is globalized, what is the situation in leading countries?
What innovations and future prospects exist in the market?
Start from the simple idea that “if you sell everything to everyone, you actually sell nothing to anyone.” It is therefore essential to clearly define your core target, segment your customers, and understand their barriers and purchasing criteria.
Who needs your offer? How many customers can you expect? Where are they located?
How do you segment your target audience? According to which criteria?
What are your customers’ profiles? Their buying habits? Their needs and expectations regarding your products?
Who are the users, prescribers, and buyers?
What motivates or discourages them from buying? How do they purchase?
What influences their choices (rational and emotional criteria)?
What psychological price is acceptable to your customer?
Analyzing your competitors helps you define your positioning compared to other market players.
Who are your competitors (direct and indirect)?
Which offers are the most successful, and why?
What are their practices? (Become a customer yourself to get firsthand information.)
Check customer reviews and feedback.
It is recommended to study your three main competitors in depth. Create a summary grid to carry out your benchmark. Here are some factors to evaluate:
Financial factors: revenue, profits, margins, year-on-year growth;
Geographical factors: areas served, market-specific features, and adaptation to local conditions;
Customer satisfaction factors: are customers satisfied with competitors’ products or services? How do competitors address customer pain points?
Commercial factors: pricing levels, flexibility, speed of commercial response, size of the sales force at national level.
To identify these factors, don’t hesitate to brainstorm with someone who knows the market well.
There can be significant differences between overall market trends and the reality of your immediate environment, and these must be identified. Your business may be subject to many constraints beyond your control: political situation, taxation, legal requirements, technological developments, and more.
To systematically analyze the external factors that may affect your business, it is essential to study this environment carefully.
January 26, 2026 - BY Admin