What Does a Quality Market Analysis Consist of?

By collecting all the necessary information concerning the market (number of participants, the total volume, trends, competitors, and target groups of consumers), the right business decision is made about entering the market and the expansion of the range of products, i.e. the potential of the market itself.

The result of this service is the report preceded by collecting, analyzing, and processing quantitative and qualitative data, i.e. market information. Research and analysis are created in two directions:

  • Research and analysis of the sector
  • Research and analysis of the competition (depending on client’s selection)

In order for research service and market analysis to have a satisfactory result, it is important to define which market segment is the subject of the research (Croatian market is conditionally segmented – arranged according to the national classification of economic activities NACE CODE 2007). With the exception of defining the previously mentioned parameter (NACE), the sole process of analysis is in-depth, while covering each individual research in order to ascertain the actual activity of participants in a specified sector.

The purpose of this is to ultimately eliminate inconsistent businesses. In fact, the inconsistency is largely present in the segmentation according to NACE, since a significant number of businesses in effect is under a certain NACE, while in reality, it performs a completely different activity which has no correlation with the initial national classification. As an example, for the analysis of niche of retail fashion clothes, it is important to eliminate all retail stores that, according to NACE, do not apply to the specified niche, such as work safety clothing or something similar


  • evaluation of both size and potential of the market in comparison with the needed investment, as well as its cost-effectivness
  • both market share and market budget planning
  • possibility of specifying the purposes of sale
  • evaluation of sales activities areas
  • reduction of feasibility risk.

Ultimately, the result needs to be the exact information derived from the analysis of segment, which determines the volume of market, its parameters, the growth rate, etc… The analysis of competition represents the basis for market positioning and defining market share as a strategic variable, i.e. the aim.

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