Market research and SWOT analysis guide for small business

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MARKET RESEARCH and

SWOT ANALYSIS

Module 1 – Identify HOWTO Market My Small Business

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In this section +  MARKET RESEARCH +  WHAT IS A SWOT ANALYSIS +  WHY IT’S IMPORTANT +  HOW TO UNDERTAKE A SWOT ANALYSIS +  SAMPLE SWOT ANALYSIS +  WHAT TO DO NEXT

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Market Research +  Having a Competitor Analysis (from the previous Section) is a great start to better understand your business and marketing +  The next important step is to undertake other relevant Market Research +  Obtain statistics, data and anecdotal information about the demand for your products or services as well as potential customers and highlight opportunities for niche markets and unique selling points +  Government collects great statistical information that is publically available +  In Australia the ABS (Australian Bureau of Statistics) produces great data and reports +  Your local council may have statistical information online as well. +  Brisbane City Council for example has a great Community Profiles facility where you can search for stats in your region down to which suburbs have the most retirement villages, under 35s, the most blue collar workers, the most families…it’s an amazing facility HOWTO Market My Small Business

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Market Research +  Media consumption reports and social trends information can be found on sites such as www.mccrindle.com.au +  Google is a great starting point and even infographics in Pinterest can provide great general information (always check the source for credibility) +  Other Federal and State agencies also provide information and statistics about specific industries. +  Industry associations and Chambers of Commerce often produce survey results or benchmark data that can be very useful +  Links to relevant agencies and associations can usually be found on your government business resource sites +  You may also have your own data such as customer survey results, sales figures or information feedback you have been given +  Of course you may consider hiring a commercial market research agency or even buy their products and services to compare them with your own YOU’RE LOOKING FOR ANY INFORMATION THAT CAN IMPACT THE DEMAND FOR AND SALE OF YOUR PRODUCTS OR SERVICES HOWTO Market My Small Business

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Government business resources Australia www.business.gov.au Queensland www.business.qld.gov.au New South Wales www.trade.nsw.gov.au Victoria www.business.vic.gov.au Tasmania www.business.tas.gov.au

South Australia www.business.sa.gov.au Western Australia www.wa.gov.au/information-about/ business Northern Territory www.dob.nt.gov.au ACT www.business.act.gov.au New Zealand www.business.govt.nz

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What is a SWOT analysis +  Your competitor analysis and other market research will form the basis of a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis of your own business +  A SWOT analysis is a simple tool that can provide a snapshot of key issues and opportunities for your business, which can all have an impact on marketing and ultimately the success of your business +  It is one of the most commonly used business analysis and decisionmaking tools +  The SWOT analysis classifies your business’s internal factors as strengths or weaknesses and the external factors as opportunities or threats. HOWTO Market My Small Business

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Why it’s important +  The SWOT analysis helps you better understand your business, your market, customers and gives you opportunity to build on your strengths, minimise or fix weaknesses, leverage opportunities and address any threats +  To get the most out of a SWOT analysis, you need to conduct it with a particular business objective in mind. +  In this scenario you are using it to help decide who to target in your marketing and whether your current products and services are aligned to your targets +  It will also enable to identify whether the external environment and your internal processes, people and systems support your marketing goals +  For instance, a SWOT analysis could highlight the opportunity for a a new product or service or the need to change a point of sale or customer service system.

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Strengths and Weaknesses – Internal In the SWOT analysis your strengths and weaknesses are identified based on internal factors (that you have some control over) such as: +  Marketing activities and brand awareness +  Location and premises +  Company reputation +  Capabilities +  Capacity (time and resources) +  Processes, systems, equipment +  People (staff) +  Quality +  Finances/Budget +  Brand awareness +  Existing business/sales/contracts +  Intellectual property/patents/Trademarks +  Experience HOWTO Market My Small Business

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Opportunities and Threats – External In the SWOT analysis your opportunities and threats are identified based on external factors (that you have no or little control over) such as: +  Customers +  Competitors +  Market trends +  Demographics of your location +  Suppliers +  Investors/Partners +  Social or cultural trends +  Technological changes +  Economic conditions/currency values +  Legislative requirements +  Political environment +  Environmental factors/exposure natural disasters +  Stakeholder expectations and issues HOWTO Market My Small Business

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SWOT analysis tool +  Go to your HOWTOMARKETING™ Master Marketing Strategy Excel Workbook (found at the bottom of each module page) +  Go to the sheet on the bottom left that says ‘Identify – SWOT Analysis’ +  Fill out each of the cells based on the information you find – follow the prompts on the right in red +  Write one point in each cell (aim for 3-5 in each section/quadrant) +  You will find a sample Sample Analysis already completed in the SAMPLE Master Marketing Strategy Excel Workbook and on the following slides

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SWOT analysis tool

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SAMPLE SWOT analysis tool Costume Jewellery business -‐ handmade jewellery sold online via Etsy INTERNAL ENVIRONMENT

•  What can we learn from this analysis?

STRENGTHS

WEAKNESSES

Low overheads as can work from home and main costs are raw materials and own labour

Low brand awareness due to being a new business

Have a social media presence which generates a lot of interest in my products

No marketing strategy

Quite unusual designs

Workload can be hard to manage as I am sole employee and meeting a lot of orders at once can be hard

I have a lot of different designs

Have a standing arrangement in place to supply a local boutique which generates quite a few sales

Packaging and arranging postage is quite consuming

EXTERNAL ENVIRONMENT

OPPORTUNITIES

THREATS

Have noticed a trend from customers asking for child sized versions of bracelets and necklaces

There is a lot of competition on Etsy

I could keep past customers informed of new ranges or products

Low Australian Dollar means raw materials I import are getting more expensive

I could find other boutiques in my local area that would like to stock my products

I don't get a lot of repeat customers and reaching new customers is an ongoing challenge

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What next? +  Use the SWOT analysis to inform your business strategy and make changes to your operations, products and services if needed +  This will also inform your overall marketing strategy +  I recommend that you DON’T skip these steps even if you have been in business a while +  Often marketing your business falls down when you didn’t take the time to fully get to know what you are dealing with internally and externally and lay a strong foundation and knowledge base +  The physical exercise of getting these ideas down on paper (or on screen) can make a huge difference and put issues and solutions in perspective +  Involve other people you trust in the process as well HOWTO Market My Small Business

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RECAP – In this section +  MARKET RESEARCH +  WHAT IS A SWOT ANALYSIS +  WHY IT’S IMPORTANT +  HOW TO UNDERTAKE A SWOT ANALYSIS +  SAMPLE SWOT ANALYSIS +  WHAT TO DO NEXT

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