The market analysis section of your food truck business plan illustrates your knowledge of the mobile food industry. Here, you present general highlights and conclusions of any marketing research data you’ve collected.
The market analysis section should include the following:
- Industry description and outlook: In this overview section, include a description of the mobile food industry and the current size of the industry and its growth rate since 2008.
Your market analysis section also should include trends and characteristics related to the industry as a whole, and a description of who the major customer groups are within the industry. You can find national mobile food industry growth trends here at Mobile Cuisine.
- Target market information: Your target market is simply the group of customers you want to focus selling your food to. When you’re defining your target market, narrow it to a manageable size. Overreaching when making these projections will only hurt you in the long run.
When it comes to target market information, you should gather information that identifies the following for the market analysis section.
Information To Gather
- Characteristics of the primary market you’re targeting. These characteristics may include information about the critical needs of your potential customers, the degree to which those needs are currently being met, and the demographics of the group. They’d also include the geographic location of your target market and any seasonal trends that may impact the industry or your business.
- Size of the primary target market. Here, you need to know the number of potential customers in your primary market, the number of annual purchases they make from food trucks that have menus similar to your own, the geographic area they reside in, and the forecasted market growth for this group.
- The extent to which you feel your food truck business will be able to gain market share and the reasons why. In this research, you determine the market share percentage and number of customers you expect to obtain in your geographic area. You must also outline the logic you used to develop these estimates.
- Your pricing. Here, you define the levels of your pricing and your gross margin levels.
- Resources for finding information related to your target market. If you have access to a professional market analysis or information you’ve received from a news article or a trade magazine, explain where you gathered your information from.
- Media you’ll use to reach your target audience. These sources may include print or online publications. Also, radio or television broadcasts, or any other credible source that may have influence.
- Market test results. When you include information about any of the market tests you’ve completed for your business plan, you must be sure to focus on only the results of these tests. Then list the details in the appendix.
The Next Step
Market test results may include, but aren’t limited to, the potential customers you contacted, any information or tastings you gave to prospective customers, and the target market’s desire to purchase your food at varied prices.
- Evaluation of your competition. When you’re doing a competitive analysis for the market analysis section, you need to identify your competition by researching food trucks with similar menus as your own. Food trucks all try to attain the same market segment in each geographic region. Understanding how many trucks navigate the streets of your city is key to your analysis.
RELATED: Competitive Analysis: Checking On Your Food Truck Competition
The Bottom Line
After you have this information, assess the strengths and weaknesses of the top food trucks in your area. The next step is to identify any barriers which may hinder you as you enter the market.
RELATED: Developing a SWOT Analysis for Your Mobile Food Business
Did you add something different to your food truck’s market analysis section? We’d love to hear your thoughts. Share your ideas in the comment section, our food truck forum or social media. Twitter | Facebook