Agroindustrial project analysi

THE MARKETING FACTOR 29testing consumes significant time and resources (such as land, inputs,research), it is economical to identify market needs first. Inaddition, land has multiple crop or livestock usages, and marketinformation can help an analyst choose among such alternatives.Furthermore, a market analysis can identify a product need thatis agronomically feasible but has not been considered. For example,based on a study of export market needs, the producers in oneCentral American country began growing okra, even though it hadnever been produced there and was not locally consumed.As indicated in chapter 1, agroindustrial products differ fromother products in the unique characteristics of their raw materials(perishability, seasonality, and variability in quantity and quality)and in their frequent status as necessities. The marketing of agroindustrialproducts will consequently differ from the marketing ofnonagroindustrial goods, and their necessity will often attract politicalattention to, and government control of, prices, quality, anddistribution.The primary elements that will be considered in the marketinganalysis of an agroindustrial project are the following:* Consumer analysis. The analyst examines consumer needs,market segmentation, the purchasing process, and marketresearch.* Analysis of the competitive environment. The analyst examinesmarket structure, basis of competition, and institutionalconstraints.* The marketing plan. The analyst defines the elements ofproduct design, pricing, distribution, and promotion that constitutethe firm's marketing strategy.* Demand forecasting. The analyst examines techniques andconsiderations for projecting sales.Consumer AnalysisTo define the project's potential consumer, the analyst mustidentify the needs the product will satisfy, the market segments theproduct will serve, and the method of purchase. Market researchis needed to obtain this information. If the agroindustrial product