Market Analysis Summary Template – Free Word Download

Introduction

In the lifecycle of a project, particularly those involving product development, service launches, or business expansion, the “Field of Dreams” approach building it and hoping they will come is a recipe for disaster. The Market Analysis Summary is the antidote to this risk. It is a foundational governance document typically created during the Initiation or Feasibility phase. Its primary purpose is to validate that there is a quantifiable, accessible, and willing audience for the project’s output.

While the Project Charter defines what we are building and how we will build it, the Market Analysis Summary explains why the market needs it. It connects the internal project activities to the external business environment. This document is not merely a collection of optimistic guesses; it is a rigorous investigation into industry trends, customer behaviors, competitive landscapes, and economic forces.

For a Project Manager, this document is vital for two reasons. First, it shapes the requirements; knowing that customers prefer mobile apps over desktop software changes the technical scope. Second, it justifies the investment; if the Total Addressable Market (TAM) is too small, the project may be financially unviable regardless of how well it is executed.

This template provides a comprehensive framework for dissecting the market. It utilizes standard MBA-level models such as PESTLE, Porter’s Five Forces, and TAM/SAM/SOM analysis. It requires you to look outward, gather evidence, and present a compelling case to the Project Sponsor that the “ladder is leaning against the right wall.”

Section 1: Project Concept and Value Proposition

1.1 Project Offering Definition

Instructions:

Clearly define the product, service, or result the project will deliver. Avoid technical jargon. Describe it in terms of the value it provides to the user.

• Project Name: [Enter Name]
• Product/Service Description: [What is it? e.g., A cloud-based inventory management system for small bakeries.]
• Core Problem Solved: [What pain point does it address? e.g., Bakeries currently waste 20% of ingredients due to poor tracking.]
• Unique Value Proposition (UVP): [Why is this better than the current solution? e.g., It is the only system that integrates directly with major flour suppliers.]

1.2 Target Audience High-Level

Instructions:

Who are we building this for? This is a broad definition before we get to detailed segmentation.

• Primary Customer: [e.g., Independent bakery owners.]
• Secondary Customer: [e.g., Franchise managers.]
• Geographic Scope: [e.g., North America initially; Europe in Phase 2.]

Section 2: Macro-Environmental Analysis (PESTLE)

Instructions:

Projects do not exist in a vacuum. They exist within a broader political and economic context. Use the PESTLE framework to analyze external factors that could support or threaten the project’s market success.

2.1 Political Factors

• Regulations: [Are there government policies that affect this market? e.g., Trade tariffs, grants for digitalization.]
• Stability: [Is the political environment stable in the target region?]

2.2 Economic Factors

• Trends: [Is the economy growing or shrinking? How does inflation affect customer purchasing power?]
• Currency: [If selling internationally, does exchange rate volatility pose a risk?]

2.3 Social Factors

• Demographics: [Is the target population aging? Growing? Urbanizing?]
• Lifestyle Trends: [e.g., The shift toward remote work; the rise of health-conscious eating.]

2.4 Technological Factors

• Innovation: [Is new technology making our project obsolete before it launches? e.g., AI replacing manual entry.]
• Adoption Rates: [Are our customers tech-savvy enough to use this solution?]

2.5 Legal Factors

• Compliance: [What laws must we follow? e.g., GDPR, Health & Safety standards, Employment law.]
• Intellectual Property: [Is the market crowded with patents?]

2.6 Environmental Factors

• Sustainability: [Do customers demand eco-friendly products?]
• Climate Impact: [Does weather affect the market? e.g., Selling winter coats.]

Guidance for Completing Section 2:

Do not simply list facts. Explain the impact on the project.

• Bad Example: “Inflation is 5%.”
• Good Example: “Inflation is 5%, which means our target customers (budget-conscious families) have less disposable income. We may need to lower our entry-level price point.”

Section 3: Market Size and Growth Potential

Instructions:

This is the math section. Sponsors need to know the size of the prize. You must use the TAM/SAM/SOM model to provide a realistic estimate of revenue potential.Opens in a new windowShutterstock

3.1 Total Addressable Market (TAM)

Definition: The total market demand for a product or service. If every single possible customer bought your product, how much revenue would that be?

• Calculation: [e.g., Total number of bakeries in the world (500,000) x Average software spend ($100/yr) = $50 Million.]
• Source of Data: [e.g., Industry Association Reports, Government Census Data.]

3.2 Serviceable Available Market (SAM)

Definition: The segment of the TAM targeted by your products and services which is within your geographical reach.

• Calculation: [e.g., Total bakeries in North America (our region) that use computers (our tech requirement) = 50,000 bakeries x $100 = $5 Million.]

3.3 Serviceable Obtainable Market (SOM)

Definition: The portion of SAM that you can capture. This is your short-term target (e.g., Year 1-3).

• Calculation: [e.g., Based on our marketing budget and sales team size, we can realistically acquire 5% of the North American market in Year 1. = 2,500 bakeries x $100 = $250,000.]

Tips for Success:

Investors and Executives focus on the SOM. A massive TAM is meaningless if your SOM is zero. Be conservative with your SOM calculation. It is better to beat a conservative target than miss an aggressive one.

3.4 Market Growth Rate (CAGR)

Instructions:

Is the pie getting bigger or smaller?

• Historic Growth: [How fast has the industry grown in the last 3 years?]
• Projected Growth: [What do analysts predict for the next 5 years?]
• Analysis: “The market is growing at 8% annually, suggesting strong demand for new entrants.”

Section 4: Customer Segmentation and Needs Analysis

Instructions:

“Everyone” is not a customer. You must segment the market into distinct groups with shared characteristics.

4.1 Customer Personas

Create 2-3 detailed profiles of your ideal buyer.

Persona A: The Efficiency Seeker

• Job Title: Operations Manager.
• Demographics: Male, 30-45, Urban.
• Psychographics: Values speed, hates paperwork, loves data.
• Pain Points: Spends 4 hours a week on manual reporting.
• Buying Trigger: Needs to cut overtime costs.

Persona B: The Risk Avoider

• Job Title: Compliance Officer.
• Demographics: Female, 40-55.
• Psychographics: Values safety, reliability, and certifications.
• Pain Points: Fear of failing an audit.
• Buying Trigger: A new regulation is introduced.

4.2 Customer Needs Assessment

Table 4.1: Needs vs. Features Mapping

Customer Need (The “Why”)	Current Friction	Project Feature (The Solution)	Priority
Need to access data from home.	Current software is installed on office desktop only.	Cloud-based mobile app.	Critical
Need to reduce data entry errors.	Typing numbers manually from paper.	OCR scanning of invoices.	High
Need cheaper pricing.	Competitors charge huge upfront fees.	Monthly subscription model.	Medium

Guidance:

Use the “Jobs to Be Done” framework. Customers don’t buy a quarter-inch drill; they buy a quarter-inch hole. Focus on what the customer is trying to achieve, not just the features they say they want.

Section 5: Competitive Landscape Analysis

Instructions:

Who else is fighting for this customer’s money? Use Porter’s Five Forces to analyze the intensity of the competition.Opens in a new windowShutterstock

5.1 Porter’s Five Forces Summary

1. Threat of New Entrants: [Low/Med/High]
   • Analysis: Is it easy to start a business in this space? (e.g., A consulting firm has low barriers to entry; a nuclear plant has high barriers).
2. Bargaining Power of Suppliers: [Low/Med/High]
   • Analysis: Are there few suppliers? (e.g., If Intel raises chip prices, computer makers have no choice).
3. Bargaining Power of Buyers: [Low/Med/High]
   • Analysis: Can customers easily switch to a competitor? (e.g., Switching toothpaste is easy; switching ERP systems is hard).
4. Threat of Substitutes: [Low/Med/High]
   • Analysis: Can the customer solve the problem a different way? (e.g., The substitute for “Airline Travel” is not just “Train Travel,” it is also “Zoom Meetings”).
5. Rivalry Among Existing Competitors: [Low/Med/High]
   • Analysis: Is it a price war? Or is the market polite and stable?

5.2 Direct Competitor Profiles

Instructions:

List the top 3 specific competitors and analyze them.

Table 5.2: Competitor Matrix

Competitor Name	Market Share	Key Strength	Key Weakness	Our Strategy to Win
Competitor X (Leader)	40%	Brand recognition, deep pockets.	Old technology, slow support.	Win on speed and modern UI.
Competitor Y (Budget)	15%	Cheapest price.	Limited features, no mobile app.	Win on value-added features.
The Status Quo	30%	Free (Excel/Paper).	Error-prone, manual.	Win on automation ROI.

Tips for Success:

Never forget “The Status Quo” as a competitor. For many projects, the biggest competition is not another company; it is the customer deciding to “do nothing” or keep using their Excel spreadsheet. You must explain why your solution is better than doing nothing.

Section 6: SWOT Analysis (Market Focused)

Instructions:

This SWOT is different from a project risk SWOT. It focuses strictly on the market position.

6.1 Strengths (Internal)

• [e.g., We own a proprietary patent.]
• [e.g., We have exclusive access to a distribution channel.]

6.2 Weaknesses (Internal)

• [e.g., We have zero brand awareness in this new sector.]
• [e.g., Our budget is lower than the market leader.]

6.3 Opportunities (External)

• [e.g., Competitor X just raised their prices, angering customers.]
• [e.g., New legislation requires the exact reporting tool we are building.]

6.4 Threats (External)

• [e.g., A recession could cause customers to cancel discretionary subscriptions.]
• [e.g., A tech giant (Google/Amazon) is rumored to be entering the space.]

Section 7: Market Entry and Distribution Strategy

Instructions:

How will the customer actually buy the product? Building it is half the battle; distributing it is the other half.

7.1 Distribution Channels

Select the primary paths to market:

• [ ] Direct Sales: (Sales team calls customers). Best for high-value B2B.
• [ ] E-Commerce: (Self-service website). Best for B2C or simple B2B.
• [ ] Retail/Partners: (Selling through third parties). Best for physical goods.
• [ ] App Stores: (Apple/Google). Best for mobile software.

7.2 Marketing and Promotion Strategy

High-level approach to acquiring customers:

• Awareness: [How will they hear about us? e.g., LinkedIn Ads, Trade Shows.]
• Consideration: [How will they evaluate us? e.g., Free Trial, White Papers.]
• Conversion: [What is the closer? e.g., Discount on annual contract.]

Section 8: Pricing and Revenue Model

Instructions:

How will this project make money? The pricing strategy must align with the target market defined in Section 3.

8.1 Revenue Model

• Type: [e.g., One-time purchase, Subscription (SaaS), Freemium, Licensing, Transaction Fee.]
• Justification: [Why this model? e.g., “Customers prefer OpEx (Subscription) over CapEx (One-time) for software.”]

8.2 Pricing Strategy

• Approach:
  • Cost-Plus: (Cost + Margin). Good for hardware.
  • Value-Based: (Charge based on money saved for customer). Good for software.
  • Competitor-Based: (Undercut the leader). Good for commodities.
• Proposed Price Point: [e.g., $50/month per user.]
• Comparison: [How does this compare to the market average?]

Section 9: Barriers to Entry and Risks

Instructions:

Be honest about the difficulties. What stops us from taking over the market tomorrow?

9.1 Barriers to Entry

• High Capital Requirements: [e.g., Needs a factory.]
• Switching Costs: [e.g., Customers are locked into 3-year contracts with competitors.]
• Regulatory Hurdles: [e.g., FDA approval takes 2 years.]

9.2 Key Market Risks

Table 9.1: Market Risk Register

Risk Description	Probability	Impact	Mitigation Strategy
Market Saturation	Medium	High	Focus on a specific niche (Vertical) rather than broad market.
Price War	Low	Medium	Build brand loyalty so price is not the only factor.
Slow Adoption	High	High	Offer extensive onboarding support and training.

Section 10: Data Sources and Validation

Instructions:

A market analysis is only as good as its data. List where you got your information to build credibility.

10.1 Primary Research (Conducted by us)

• Surveys: [e.g., Surveyed 100 potential users in Q3.]
• Interviews: [e.g., Interviewed 5 industry experts.]
• Focus Groups: [e.g., Demoed prototype to 3 customers.]

10.2 Secondary Research (External sources)

• Industry Reports: [e.g., Gartner, Forrester, Statista.]
• Competitor Websites: [e.g., Pricing pages, Annual Reports.]
• Government Data: [e.g., Census Bureau, Department of Labor.]

Guidance:

Always cite the date of the data. Market data ages like milk, not wine. Data from 2019 might be totally irrelevant in a post-2020 world.

Conclusion – Market Analysis Summary Template – Free Word Download

The Market Analysis Summary serves as the “Business Reality Check” for the project. It validates that the ladder is leaning against the right wall before the team starts climbing.

By completing this analysis, the project team demonstrates that they understand not just the technical requirements of the build, but the commercial requirements of the success. It answers the fundamental question of the Project Sponsor: “Is there a market for this?”

If the analysis reveals a small TAM, high competition, and declining growth, the courageous (and correct) project management decision may be to kill the project now, saving the organization time and money. Conversely, if the analysis shows a growing market with a clear gap that competitors are missing, this document becomes the most powerful tool for securing budget, resources, and executive enthusiasm.

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Meta Description:

A comprehensive Market Analysis Summary template covering PESTLE, TAM/SAM/SOM, competitor analysis, and SWOT to validate project viability and market demand.

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