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  • Project Appraisal: The First Step of Project Appraisal Is To Estimate The Potential Size of

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    Aminul Haque Russel
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    The first step of project appraisal is to estimate the potential market size and market share that the proposed project will capture. This involves analyzing the aggregate demand for the project's output and determining what portion of the market the project will be able to obtain. Information needs to be gathered about potential buyers, current demand levels, price points customers will accept, appropriate distribution channels, and factors that will influence sales projections like government policies and competitor offerings. Demand is then forecast using both qualitative and quantitative techniques, though all methods have limitations since it is difficult to account for all changing variables that could impact future demand.

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    This is required for the students of BBA program

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    Project Management.)

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    The first step of project appraisal is to estimate the potential market size and market share that the proposed project will capture. This involves analyzing the aggregate demand for the project's output and determining what portion of the market the project will be able to obtain. Information needs to be gathered about potential buyers, current demand levels, price points customers will accept, appropriate distribution channels, and factors that will influence sales projections like government policies and competitor offerings. Demand is then forecast using both qualitative and quantitative techniques, though all methods have limitations since it is difficult to account for all changing variables that could impact future demand.

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    Attribution Non-Commercial (BY-NC)
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    Sinalizar o conteúdo como inadequado
    10 visualizações3 páginas

    Project Appraisal: The First Step of Project Appraisal Is To Estimate The Potential Size of

    Enviado por

    Aminul Haque Russel
    The first step of project appraisal is to estimate the potential market size and market share that the proposed project will capture. This involves analyzing the aggregate demand for the project's output and determining what portion of the market the project will be able to obtain. Information needs to be gathered about potential buyers, current demand levels, price points customers will accept, appropriate distribution channels, and factors that will influence sales projections like government policies and competitor offerings. Demand is then forecast using both qualitative and quantitative techniques, though all methods have limitations since it is difficult to account for all changing variables that could impact future demand.

    Direitos autorais:

    Attribution Non-Commercial (BY-NC)
    Baixe no formato DOC, PDF, TXT ou leia online no Scribd
    Sinalizar o conteúdo como inadequado
    de 3

    Project appraisal: The first step of project appraisal is to estimate the potential size of the market for the

    project output and get an idea about the market share i.e. likely to be captured. Market appraisal addresses two fundamental issues1. Aggregate demand for the project output . ! of market share that the proposed project will enjoy Information required for market and demand analysis 1. "ho are the buyers of the proposed project product# . "hat is the current aggregate demand# $. %istribution pattern of demand o&ertime and geographical pattern of distribution '. "hat is the break-up of demand lot size# (. "hat price the customers are con&inced about the superiority of the product# ). "hat price and warranty will ensure its acceptance# *. "hat channels of distribution are most suited for the project# +. "hat trade margins will induce distributors to carry it# ,. "hat are the projects of immediate sale# 1-. "hat could be the best media for ad&ertising the product# 11. .uperiority of others suppliers 1 . "hat are the go&t. policies of regarding the product#

    Sources of Information
    1. /ensus report . 0ational sample sur&ey report $. .tatistical report publish by go&t. such as statistical year book '. 1conomic sur&ey (. Annual report published by organization ). .tock e2change directory *. /entral bank publication +. 1lectronic and print media

    Characterization of the market


    1. 1ffecti&e demand in the past and present . 3reakdown of demand a4 0ature of product b4 /onsumer groups c4 5eographical di&ision $. 6rice '. Methods of distribution and sales promotion (. /onsumers ). .upply and competition *. 5o&ernment policy

    Demand forecasting
    1. Methods of demand forecasting 7ualitati&e methods a4 8ury of e2ecuti&e method b4 %elphi method a4 b4 c4 . /ensus method /hain ratio method /onsumption le&el method 1nd use method 9eading indication method 1conometric method Time series projection methods Trend projection method 12ponential smoothing method Mo&ing a&erage method

    Limitation of demand forecasting

    14 %ata about past and present markets a4 9ack of standardization b4 :ew obser&ation c4 ;nfluence of abnormal factors 4 Method of forecasting a4 ;nability to handle un<uantifiable factors b4 =nrealistic assumptions c4 12cess data re<uirement $4 1n&ironment change a4 Technological change b4 .hift in go&ernment policy

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