www.khoadautu.neu.edu.

vn

CHƯƠNG V
LEGAL APPRAISAL AND MARKET APPRAISAL

4.1. Legal appraisal vinhave b

4.2. Market appraisal
 www.khoadautu.neu.edu.vn

CHƯƠNG V
LEGAL APPRAISAL AND MARKET APPRAISAL

4.1. Legal appraisal

4.2. Market appraisal

 www.khoadautu.neu.edu.vn

LEGAL APPRAISAL

Purpose Base documents

Verify the legal compliance of Socio-economic development
the project with the planning and planning, sectors and investment
regulations of the State areas
Legal document system related
to the project
Legal profile of the project
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Appraisal of the conformity of the project with the

socio-economic development planning, sector
development planning, construction planning
LEGAL APPRAISAL

Appraise the project's conformity with the State's

legal documents, regulations and preferential
regimes.

Assessment of land use, resources, and site

clearance capabilities.
&

Assessment of competent agencies on

environmental impacts, fire prevention plans
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MARKET APPRAISAL

• Verify the feasibility and market certainty of the

Purpose project.

• Investigation information from the market

• Information and data forecasting, predicting market
Base fluctuations, prices, competitors, substitute products
documents
• Product capabilities and prospects
 VD : Starbuck WN
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MARKET APPRAISAL

Consider
Evaluate
Check the Forecast of product the ability
reasonable Assess the market promotion to compete
supply and options, and
ness in conformity
consumptio
determinin of the demand for dominate
n methods
g the target project's the and the market
market of products project's product for the
products. distribution project's
the project.
networks
products
Market and Demand Appraisal

 Market and demand appraisal is the managing of the demand – its

estimation and determining the extent to which it can be met with
satisfaction to consumers and profit to the producers.
 In simple words, whenever a project is appraised, it begins with two aspects
of demand
 That is, what is the potential size of the market? And to what extent the
project appraisal is getting share of the market?
The study of present demand requires
the following aspects:
 Current purchases
 Not satisfied demand
 Marketing facilities
 Competition
Steps in market and demand appraisal

 Market and demand appraisal is very important for the success of the
future project, so it is very essential that it should be carried out in an orderly
and systematic manner
 Situational analysis as well as specification of objectives: The project
analyst, may be entrepreneur himself, is expected to get relationship
between a given product and its market presently available
 In this regard, the analyst may get good deal of facts relating to customer
preferences, purchasing power of customers, and the quantity they buy,
where they buy, when they buy, and even why they buy?
Steps in Market and Demand Appraisal

 Such informal analysis sometimes generates enough data to measure the

market and to find out the projected demand and revenues
 If such an analysis seems to be reliable and enough and if time and cost
considerations are there, sometimes an analysis can decide not to carry on
a formal study
 However, in most circumstances, a formal study is considered essential
 Objectives will help in generating the information relevant in forecasting
the overall market demand and in assessing the projected future share of
the market
Collection of market data

 In order to answer the questions which are listed above, information may
be obtained from two sources such as primary and secondary sources
 Secondary information provides the base and the starting point for market
and demand analysis
 It indicates what is known and provides ways and hint for gathering
information required for further analysis. Sources of collecting data include
both internal and external sources.
Steps in Market and Demand Appraisal

Major sources of information are primary and secondary data

- Primary data: Primary data can be defined as information that is collected
first hand, generally, by original research tailor made to answer specific,
current research questions
- Secondary data: Secondary data is that data the information of which is
collected for some other purpose, and is thus, readily available
Steps in Market and Demand Appraisal

 The important sources of secondary information used for market and

demand analysis in Vietnam as follows:
- Census of VN issued by Govt. of VN
- National sample survey reports issued by cabinet secretaries and Govt. of
VN
- Plan report issued by planning commission
- Annual publication by central statistical organization
- VN year book by minister of information and broadcasting
- Statistic year book issued by UNO
- Economic survey issued by ministry of finance
Steps in Market and Demand Appraisal

 Conduct of market survey: When secondary data are not available,

irrelevant or obsolete, the analyst must then turn to primary research
 Market survey can be census or sample survey. In census survey approach,
the entire population or the universe is covered
 For ex, we took the case of estimating demand and market share for the
improved kitchen flour mill
 Instead, sample survey can be resorted all the firms concerned. Each
technique has its own merits and limitations.
Steps in Market and Demand Appraisal

 The information sought in a market survey relates to one or more of the

following aspects:
- Total demand and the growth rate of demand
- Demand in different segment of the market
- Income and price elasticity of demand
- Objectives of buying
- Buying plan and intentions
- Satisfaction with the existing products unsatisfied needs
Steps in Market and Demand Appraisal

 Following are the steps which are involved in conducting sample survey:
- Define the target population: Defining the target population is of almost
importance in clear and carefully studied manner as it is first step
- Select the sampling technique and size: Sampling technique implies the
type of sampling i.e. simple random sampling, cluster sampling, sequential
sampling, stratified sampling, systematic sampling and so on
- Design the questionnaire: To collect the information from the respondents,
the main instrument is questionnaire
Steps in Market and Demand Appraisal

 Following are the steps which are involved in conducting sample survey:
- Recruitment and training of researchers: proper plan of recruitment and
training is to be prepared and implemented
- Get information according to questionnaire from the target respondents:
the respondents can be interviewed personally, or through mail or
telephone.
- Scrutiny of information: Next step is to scrutinize the gathered information so
that irrelevant or inconsistent data can be eliminated
- Analysis and interpret the information: The collected information has no
meaning unless it is minutely analyzed and interpreted with due care
Characterization
of the market
Characterization of the market

 What can a person do after sample survey

- We can talk about nature of market
 Market characterization – Assessment of market qualitatively
- Understand how the market functions
- One can talk about:
+ Effective demand in the past and present
+ Price
+ Methods of distribution and sales promotion
+ Consumers
+ Supply and competition
+ Government policy
Demand
Forecasting
Techniques
 Method direct
marketing :

catalogue
by
Methods of Demand Forecasting SEM
SEO

Qualitative methods: judgment of experts to translate qualitative information

into quantitative estimates. These qualitative methods are:
Time Series Projection Methods

 These methods generate forecasts on the basis of an analysis of the

historical time series
 The important time series projection methods are:
- Trend projection – method
- Exponential smoothing method
- Moving average method
Causal methods

 Causal (fundamental) methods –

Develop forecasts on the basis of cause-effect relationships in a quantitative
manner
The important causal methods are:
- Chain ratio method
- Consumption level method
- End use method
- Leading indicator method
- Econometric method
Uncertainties in Demand Forecasting

 Demand forecasts are subject to error and uncertainty which arise from
three principal sources:
 Data about past and present market
 Methods of forecasting
 Environmental change

investor .
demand
art
large