Niche Market Analysis

Overview

CONTENTS

1.0 Proposal Overview

2.0 Assignment Details

2.1 Proposed Title

2.2 Purpose Statement

2.3 Prescribed Footnote

2.4 Methods Statement

2.5 Producers and Consumers

2.6 Unit of Exchange

2.7 Data Gathering Plan

1.0 PROPOSAL OVERVIEW

The Proposal assignment is the first of five content-focused assignments. The goal of this assignment is to get you started in a direction that is likely to result you completing your market analysis successfully and on time. Your instructor will be able to recognize some topics as too challenging and others as otherwise misguided.

For this assignment, you need to convince your instructor that the market you want to analyze is appropriate and feasible. You must create at least one but you may create as many as three proposals for your instructor. Each proposal should be one page in length.

The Proposal assignment must include the following components which are described in detail in the "Proposal" chapter:

1. Your name, email address, and phone number in the upper left-hand corner.

2. A draft title appropriately adapted as prescribed.

3. A purpose statement paragraph, appropriately adapted as prescribed, that includes a prescribed footnote. (1P)

4. A methods statement paragraph, that is adapted appropriately as prescribed. (1P)

5. A statement about who are the market's typical producers and consumers.

6. A statement defining the proposed period of analysis.

7. A statement about what is the typical unit of exchange in the market.

8. A description that identifies how/where you will get data for this market. Typically the easiest and best way to get market price data is to visit and gather data from individual firms in the market area. (1P)

2.0 ASSIGNMENT DETAILS

Be sure to look at the Overview chapter for helpful advice about how to choose a topic.

2.1 Proposed Title

Propose an informative title. Technically, this will be a "working" title since you may change it as you learn more from your analysis.

Titles of technical communication documents should be clear and useful. These factors may weigh against a "catchy" title. While a catchy title might attract additional readers or viewers, technical communication may not be intended for a large, broad audience. Useful and clear titles are often direct and informative. Technical communication also aims to be true and logically organized. Technical communicators are expected to be people that readers and listeners can trust as judicious and logical. A catchy title may lead readers to doubt the seriousness of the author or presenter. For these reasons, you may want to avoid catchy titles like:

• (avoid) Don't Horse Around with Equity Values: An Analysis of the U.S. Market for High-End Thoroughbred Stallion Breeding Rights from 2021 to 2026

• (avoid) No Antidote for Non-Western Medicine: The Regional Farm-Level Market for American Ginseng in Kentucky, 2021 to 2026

You might identify two or three words that summarize your analysis and a short plain description separated by a colon (:). Here are a few examples:

• Stock Values, Disposable Income, and Farm Exemptions: Factors Affecting the Market for High-End Stallion Breeding Rights, 2021 to 2026

• Ginseng, Kentucky, and Diminishing Supply: A Current Regional Farm-Level Market Analysis, 2021 to 2026

You might consider other ways to use a colon in your title. A colon is a punctuation mark that separates two ideas, the second of which expands or illustrates the first. For example, you might adapt and/or combine one of the following titles:

• The Significance of Equity Value Changes on the U.S. Market for High-End Thoroughbred Stallion Breeding Rights: A Current Analysis from 2021 to 2026

• The Significance of Equity Values: A Current Analysis of the U.S. Market for High-End Thoroughbred Stallion Breeding Rights from 2021 to 2026

• A Current Market Analysis of the National Market for High-End Thoroughbred Stallion Breeding Rights in the U.S. from 2021 to 2026

• The Current Regional Farm-Level Market for American Ginseng in Kentucky: 2021 to 2026

As always, the first, last, and all important words in a title should be capitalized. Titles are not sentences and should not have ending punctuation unless the title is a question in which case a question mark is appropriate. Titles should be enclosed in quotation marks except when a title is used as a title (e.g., as a heading for a written report). Shorter titles are better than longer titles, all else being equal.

2.2 Purpose Statement

After your proposed title, state in a single paragraph what you will analyze and why (i.e., your purpose statement). The purpose statement is a single paragraph that clearly and succinctly describes the useful purpose of the analysis.

Your purpose statement paragraph must start with a single sentence that captures as succinctly as possible what you will do in your analysis. Follow the format below as closely as possible:

• This report defines and examines the current ______[1]______ ______[2]______market for ______[3]______ from ______[4]______ to ______[5]______.

In the first blank [1], insert the best one-word description of the expected size of the market space (e.g., "local", "regional", "national", or "global"). As described in the chapter on market space, the market space is the geographic distance across which producers and consumers in the market typically look for one another. For example, at the retail level, consumers of fluid milk and other basic grocery items (e.g., bread, eggs, etc.) typically look only in their own neighborhood (e.g., "in southern Fayette County") to find a retail seller of these items. Likewise, retail producers of these items (e.g., grocery stores) only "look" or advertise their products (e.g., using mail fliers) to potential consumers who live within a short drive (e.g., 10 minutes) of the grocery store. By contrast, products that are marketed online (e.g., Amazon products) often have a national market space (e.g., dried spices, dried fruit, and crackers). These products tend to be relatively lightweight, relatively high-value, and shelf-stable, making them suitable for nation-wide shipping.

In the second blank [2], insert the best one-word description of the marketing chain level (e.g., "retail", "wholesale", "processor-level", "farm-level", or "farm-direct"). Most products and some services move through marketing chains. For example, wheat is grown by farmers and sold to grain elevators in the "farm-level market". Wheat is converted into flour that is sold to bread wholesalers in the "processor market". Bread wholesalers bake bread and sell it to retail grocery stores in the "wholesale market". And grocery stores put bread on selves at eye level in air conditioned stores to sell to final consumers in the "retail market". At each stage of the marketing channel the producers and consumers change. These are different markets. You need to be clear in your proposal which level of the marketing chain you propose to analyze. Markets are defined by who the producer is (e.g., in a "farm-level" market, the producers are the farmers or in a "retail" market, the producers are the retail sellers).

In the third blank [3], insert a list of characteristics that appropriately define the good or service. You will learn a lot more about the defining characteristics of a good or service in the "Characteristics" chapter, but for now think of the defining characteristics as those factors that consumers care about. For example, when retail consumers go to the grocery store, what do they care about when they buy potatoes? All potatoes are not the same, right? There is probably a retail market for "organic, sweet potatoes" that is different from the retail market for "basic, sweet potatoes". You might also say that "baking potatoes" are different than "sweet potatoes". Certain consumers probably care about potato attributes like "locally produced" and "heirloom". Defining a market is an inexact science that allows for different possibilities. The question is what do you want to argue? What characteristics do you want to argue consumers care about? When buying toothbrushes, retail consumers probably do not care about the color (e.g., "blue" or "red"), so color probably is not a defining market characteristics. But, retail consumers of toothbrushes probably care about the softness (e.g., "hard" versus "soft"), the quality (e.g., "ADA-approved"), and the newness (e.g., "used" versus "new"). This means that there are many different retail markets for "toothbrushes".

In the fourth blank [4] and fifth blank [5], insert the starting and ending calendar years for your proposed analysis. Because your analysis will be a "current" market analysis, the start year for your analysis should be as recent as possible given your ability to estimate the market price and quantity. Typically, current niche market analyses span a period of five years (e.g., 2021 to 2026) starting with the "current" year. If you are working on a "current" analysis in the first half of the year (e.g., January to June), the starting year of your analytical time period will most likely be the last calendar year. If you are working on a "current" analysis in the last half of the year (e.g., July to December), the starting year of your analytical time period will most likely be the current calendar year.

The remainder of your purpose statement paragraph must include several sentences that specifically explain why analysis of this market at this time will be useful. Avoid vague claims, for example, about the enormous size or significance of the market or the commodity. Instead, address how recently published and/or freely available other analyses of the market are. The longer ago that a market analysis like yours (i.e., a free analysis) was published, the stronger your justification will be for doing one now. Another good justification for doing a current market analysis is if, as expected, the product is expected to be traded in commercial quantities during the period you propose for your analysis. These two facts alone (i.e., no recently published low-cost analysis and continued commercial relevance) are often sufficient to justify a claim that a current market analysis will be useful.

Consider some examples. As similar as these examples are to each other, that is how similar the first sentence of your purpose statement should be. Keep in mind that these are all examples of "current" market analyses, meaning that the starting year of the analysis (i.e., 2021) is the most recent year for which these analysts were able to estimate their own or find another's estimate for the market price and quantity. Your text does not need to be in italics.

1. Tangible, current farm-level product market example. NOTE: Assume that this analysis was conducted in the year 2021 about the period 2021 to 2026.

This report defines and examines the current regional farm-level market for unprocessed wild-harvested American ginseng (Panax quinquefolius) in Kentucky from 2021 to 2026. [Complete this paragraph with several sentences that explain why an analysis of this market will be useful at this time. Avoid vague claims, for example, about the enormous size or significance of the market. In general, if no known analysis of the market has been done recently (or ever) and if the product/service is, was, or is expected to be traded in commercial quantities during the period you propose for your analysis, then those two facts alone are often sufficient to justify a claim that an analysis will be useful. At the end of the last sentence of this paragraph, insert the prescribed footnote about originality expectations.]

2. Tangible, current retail-level product market example. NOTE: Assume that this analysis was conducted in the year 2022 about the period 2022 to 2027.

This report defines and examines the current local retail market for recreational seasoned firewood in Lexington, Kentucky from 2022 to 2027. [Complete this paragraph with several sentences that explain why an analysis of this market will be useful at this time. Avoid vague claims, for example, about the enormous size or significance of the market. In general, if no known analysis of the market has been done recently (or ever) and if the product/service is, was, or is expected to be traded in commercial quantities during the period you propose for your analysis, then those two facts alone are often sufficient to justify a claim that an analysis will be useful. At the end of the last sentence of this paragraph, insert the prescribed footnote about originality expectations.]

3. Intangible current product market example. NOTE: Assume that this analysis was conducted in the year 2023 about the period 2023 to 2028.

This report defines and examines the current regional market for small group hunting leases in Central Appalachia from 2023 to 2028. [Complete this paragraph with several sentences that explain why an analysis of this market will be useful at this time. Avoid vague claims, for example, about the enormous size or significance of the market. In general, if no known analysis of the market has been done recently (or ever) and if the product/service is, was, or is expected to be traded in commercial quantities during the period you propose for your analysis, then those two facts alone are often sufficient to justify a claim that an analysis will be useful. At the end of the last sentence of this paragraph, insert the prescribed footnote about originality expectations.]

4. Current labor market example. NOTE: Assume that this analysis was conducted in the year 2024 about the period 2024 to 2029.

This report defines and examines the current regional market for feed sales representatives in Central Kentucky from 2024 to 2029. [Complete this paragraph with several sentences that explain why an analysis of this market will be useful at this time. Avoid vague claims, for example, about the enormous size or significance of the market. In general, if no known analysis of the market has been done recently (or ever) and if the product/service is, was, or is expected to be traded in commercial quantities during the period you propose for your analysis, then those two facts alone are often sufficient to justify a claim that an analysis will be useful. At the end of the last sentence of this paragraph, insert the prescribed footnote about originality expectations.]

5. Current service market example. NOTE: Assume that this analysis was conducted in the year 2025 about the period 2025 to 2030.

This report defines and examines the current local market for basic equine massage therapy in Central Kentucky from 2025 to 2030. [Complete this paragraph with several sentences that explain why an analysis of this market will be useful at this time. Avoid vague claims, for example, about the enormous size or significance of the market. In general, if no known analysis of the market has been done recently (or ever) and if the product/service is, was, or is expected to be traded in commercial quantities during the period you propose for your analysis, then those two facts alone are often sufficient to justify a claim that an analysis will be useful. At the end of the last sentence of this paragraph, insert the prescribed footnote about originality expectations.]

Your purpose statement paragraph must end with a prescribed footnote.

2.3 Prescribed Footnote

At the end of your purpose statement paragraph, insert a footnote using the automatic footnote feature. The purpose of this required footnote is to alter your readers' the usual originality expectations. Huh? What does that mean? Well, you might be wondering, "How can I just cut-and-paste the exact wording from this online textbook into my paper without giving proper attribution?". Great question.

You can and should read more about "Attribution, Citations, and Plagiarism" in the Resources chapter. That section of this textbook explains that, to avoid plagiarism, one option would be to distinguish clearly your work from the work that Roger Brown (i.e., the author of this textbook) did using quotation marks and proper citations. In academia, this is the default expectation. Another option is to alter clearly this default expectation. The problem with the first option is that it will require you to interrupt your writing constantly with distracting and intrusive citations and quotation marks. In some writing assignments, that might be necessary, for example, if your instructor says that you must follow the default expectation regarding originality. The writing assignments in this text allow you--with limits--to modify the default originality expectations. Thus, you can follow the second option (i.e., establish clearly alternate expectations regarding originality). If this sounds confusing, you should read the "Attribution, Citation, and Plagiarism" section in the "Resources" chapter of this textbook now.

To alter the default originality expectations and keep your text nice and tidy, you will (must) simply add a footnote to your text that explains clearly the alternate expectations. This should be done at the earliest possible opportunity. A footnote at the end of the first paragraph that informs the reader what the altered expectations should be regarding the originality of your work is sufficient.

This will be a prescribed footnote. It must go at the end of the first complete sentence of the purpose statement paragraph. Here is the text of that prescribed footnote:

• Some analytical techniques, organization, and wording for this analysis are adapted from suggestions provided by Roger Brown's online textbook, Technical Communication in Economics, accessed on [insert date] at https://a.triplesilver.com. All work other than that provided by Brown's textbook is clearly distinguished from the author's work.

Here are a few clarification. First, if you do not know what a footnote is or how to insert a footnote easily into your own text, you should read the "Credibility, Evidence, and Footnotes" section in the "Resources" chapter of this text.

Second, the above footnote should not be in italics when you cut-and-paste it into your paper, except that the title of the textbook should be (as always) italicized or underlined. Also, you should remove the instruction text and the associated brackets (i.e., "[insert date]") from the footnote and instead insert the date that you accessed the textbook.

Third, if during the course of conducting your analysis, you receive from a classmate or other reviewer editorial help with grammar, spelling, and/or formatting or other kinds of similarly minor assistance (e.g., a suggestion to consider a different demand or supply shift factor), you should modify the above footnote to include recognition of those specific individuals and their specific minor contributions. Here is the additional text you should add to the above prescribed footnote:

• Some analytical techniques, organization, and wording for this analysis are adapted from suggestions provided by Roger Brown's online textbook, Technical Communication in Economics, accessed on [insert date] at https://a.triplesilver.com. All work other than that provided by Brown's textbook is clearly distinguished from the author's work. The author also acknowledges minor helpful contributions from [insert name(s) and association(s) of person(s) providing basic assistance] who improved earlier drafts of this report with their helpful suggestions, including help with grammatical, spelling, and formatting errors. Any remaining mistakes are the responsibility of the author.

Be careful! Each of these footnotes tell readers that you (the author) do not make any efforts to distinguish your work from any of the work found in this (Brown's) online textbook but that you do make every effort to distinguish clearly your work from everyone else's work (i.e., all work that is not Brown's and not yours).

If you have been assigned to use this text for your class, you can assume that your instructor is okay with you using this footnote to alter the default originality expectations, allowing you to copy-and-paste or otherwise adapt anything from this text without attribution, provided you include the above footnote in your text as prescribed. If your instructor has authorized you to work in groups with other students, be sure that you are clear how much assistance from your fellow group members your instructor has authorized. The extended version of the footnote above does not typically, for instance, authorize you to copy the ideas, wording, or formatting (i.e., the "work") of any other person, including a fellow student.

2.4 Methods Statement

After your purpose statement paragraph, I want you to insert a methods statement. The methods statement is typically a single paragraph that tells clearly and succinctly how you will conduct your analysis step-by-step. Whereas your purpose statement identifies briefly what you will analyze and how, your methods statement describes briefly how you perform that analysis.

For this assignment, you must cut the methods statement paragraph below and paste it into your analysis as your second paragraph. You should edit the font and font size, of course, to match your preferences.

• In this analysis, the author first explains what ______[1]______ is and the characteristics that distinguish this commodity from other, similar products. Second, the author describes the general attributes of producers and consumers in this market and distinguishes this market from related upstream and downstream markets. Third, the author explains why the marketing area for this product is global. The author concludes Part One with an estimate of the current global equilibrium market quantity and price in ______[2]______. In Part Two of this report, the author identifies expected future shifts in market supply and demand and their impact on market quantity and price from ______[3]______ to ______[4]______.

In the first blank [1], insert the full name of the niche product or service that you are analyzing. In the next blanks (i.e., [2] and [3]), insert the calendar year for the start of your analytical time period. In the fourth blank [4], insert the calendar year for the ending year of your analytical time period five years after the start year.

1. Tangible, current farm-level product market example. NOTE: Assume that this analysis was conducted in the year 2021 about the period 2021 to 2026.

In this analysis, the author first explains what unprocessed wild-harvested American ginseng is and the characteristics that distinguish it from other, similar products. Second, the author describes the general attributes of producers and consumers in this market. Third, the author explains why the marketing area for this product is regional rather than local, national, or global. The author concludes Part 1 with an estimate of the current equilibrium market quantity and price in 2021. In Part 2 of this report, the author identifies expected future shifts in market supply and demand and their impact on market quantity and price from 2021 to 2026.

2. Tangible, current retail-level product market example. NOTE: Assume that this analysis was conducted in the year 2022 about the period 2022 to 2027.

In this analysis, the author first explains what recreational seasoned firewood is and the characteristics that distinguish it from other, similar products. Second, the author describes the general attributes of producers and consumers in this market. Third, the author explains why the marketing area for this product is local rather than regional, national, or global. The author concludes Part 1 with an estimate of the current equilibrium market quantity and price in 2022. In Part 2 of this report, the author identifies expected future shifts in market supply and demand and their impacts on market quantity and price from 2022 to 2027.

3. Intangible current product market example. NOTE: Assume that this analysis was conducted in the year 2023 about the period 2023 to 2028.

In this analysis, the author first explains what small group hunting leases are and the characteristics that distinguish them from other, similar products. Second, the author describes the general attributes of producers and consumers in this market. Third, the author explains why the marketing area for these products is regional rather than local, national, or global. The author concludes Part 1 with an estimate of the current equilibrium market quantity and price in 2023. In Part 2 of this report, the author identifies expected future shifts in market supply and demand and their impacts on market quantity and price from 2023 to 2028.

4. Current labor market example. NOTE: Assume that this analysis was conducted in the year 2024 about the period 2024 to 2029.

In this analysis, the author first explains what feed sales representatives are and the characteristics that distinguish them from other, similar service workers. Second, the author describes the general attributes of producers and consumers in this market. Third, the author explains why the marketing area for these workers is regional rather than local, national, or global. The author concludes Part 1 with an estimate of the current equilibrium market quantity and price in 2024. In Part 2 of this report, the author identifies expected future shifts in market supply and demand and their impacts on market quantity and price from 2024 to 2029.

5. Current service market example. NOTE: Assume that this analysis was conducted in the year 2025 about the period 2025 to 2030.

In this analysis, the author first explains what basic equine massage therapy is and the characteristics that distinguish it from other, similar services. Second, the author describes the general attributes of producers and consumers in this market. Third, the author explains why the marketing area for this service is local rather than regional, national, or global. The author concludes Part 1 with an estimate of the initial current equilibrium market quantity and price in 2025. In Part 2 of this report, the author identifies expected future shifts in market supply and demand and their impacts on market quantity and price from 2025 to 2030.

2.5 Producers and Consumers

NOTE: In your next assignment ("Characteristics"), you will include an improved version of your title, your purpose statement with prescribed footnote, and your methods statement. There are three other sections that are needed for this "Proposal" assignment, but you will not copy these three sections into your next assignment.

Students often overlook or misunderstand that markets are organized into chains. As noted above, "farm-level" markets for wheat are different than "wholesale" markets and "retail" markets for bread. The consumers and producers differ as goods move through a marketing chain. Since your task is to analyze a single market and not a whole marketing chain, your instructor wants you to show that you are clear who the consumers and producers are in the niche market you propose to analyze.

For this "Proposal" assignment, identify who you currently think the typical producers and consumers are in the market that you propose to analyze. You do not need to provide any evidence in your proposal. Instead, the purpose of the proposal is for you to articulate what you hypothesize to be the attributes or characteristics of the typical producers and consumers in your market. Most importantly, you need to be clear that the typical producers and consumers who you identify in your market align with the level of the marketing chain for your market. For example, grocery stores (e.g., Kroger, Walmart, and Costco stores) are the typical producers of grocery store items (e.g., eggs, vegetables, boxed cereal, and beef) at the retail level. For most farm-level markets for cattle, the typical producers are local cattle farmers and the typical consumers at the farm-level are brokers and dealers who work independently or cooperatively with the major meat processors (e.g., Tyson Foods, Cargill, etc.). For more information about marketing chains, see the section

2.6 Unit of Exchange

Under construction.

2.7 Data Gathering Plan

Under construction.