This is generally the most difficult segment of the Business Plan. This segment shows the investor, customer or employee how the company proposes to develop the product or service into a profitable business unit. It is also the segment that potential financial lenders will scrutinize with a fine tooth comb to look for probable loopholes. It is therefore absolutely imperative to convince them of the following key concepts:

- Need for your product or service in current market

- Understanding of potential customer requirements

- How your product or service will meet that requirement

- The product or service will make a profit

Market Analysis and Strategy are the backbones on which a company builds its business. Without clear and focused outlook of long-term goals and plans and strategies to handle all exigencies, no company or business can hope to achieve its growth or development.

Ideally, this portion of the Business Plan should provide information broadly classified under these heads.

a) Definition of target market - Identify the target market and clearly define the role you see in it for your company's products and services. Define customer profiles, locations and target areas that you will focus on. Include well researched data on customer preferences and expectations with regard to prices, quality and service of products and services you bring into the market. While projecting customer reviews to soft launches of products if any, it is important to also bring into focus any negative feedback about your products or services and set clear timelines for planned enhancements or improvements to overcome these negative factors.

b) Market share & size - A detailed study on estimated sales current market size is essential. This can be arrived at by reviewing statistical data and figures and by discussions with distributors and sales representatives. Market surveys will help identify customer base and loyalty to products and services currently in the market and will help gauge customer response to new product launches.

c) Industry and market trends - This section should show potential market growth with facts, figures and projections over a timeline of two, five or ten years. These estimates should be backed with information about changing market trends, newer technological developments, fluctuating customer profiles and other factors related to industry. It is essential to back your assumptions with realistic goals. Overstated and exaggerated projections of market share and size will only lead to questioning and rejection of your Business Plan by potential investors.

d) Competition - Provide clear description and statistics about primary competitors and their market share. If you can, it will be good to provide tabulated comparisons of products and services with competing products based on price, quality, service, after sales and other related factors. A review of competition with particular reference to marketing strategy, operational plans and financial projections will be an added advantage. Outline future developmental areas which will enhance your product or service against competition.

e) Pricing - Exhaustive reviews of product and service pricing is essential to hold your market share against competition. A detailed pricing policy backed by in depth knowledge of market share will definitely help you increase market share and profitability.

f) Sales and distribution - This is an equally important aspect of marketing strategy. Sales & Marketing is the face of any company or organization and therefore it is a key factor that drives the company's products in the market and increases profits. A well oiled sales & distribution channel with clear demarcation of territory will enhance growth and visibility of product and service in the market and help leverage market share. A good and efficient after sales service, customer service requests and speedy resolution of warranty or guarantee policies are keys to enhancing company's image in the market.

g) Advertising and promotions - A clear cut agenda to generate awareness of company's products and services is an absolute must to hold your own against competition. Visibility is the need of the hour and hence, use of strategic tactics like participation in trade shows, promotional offer campaigns, public relations exercises contribute to the growth of the company. It is therefore of key relevance to factor in advertising and promotional expenditure in the expenses portfolio.