When it comes to writing winning proposals, one of the most overlooked yet powerful components is market research. A proposal without strong market insights often reads like theory, while one grounded in data, competitor intelligence, and demand analysis feels both credible and bankable. Market research transforms a proposal from a mere request for funding into a compelling business case.
Why Market Research Matters
At its core, market research answers two critical questions every funder or investor silently asks:
- Is there a real demand for this product or service?
- Can this business capture and sustain a fair share of that demand?
Without research, proposals are guesses. With research, they become strategic blueprints backed by evidence.
Key Components of Market Research in Proposals
- Industry Overview: Outlining the size, growth rate, and trends of the sector.
- Target Market Analysis: Defining customer segments, demographics, and purchasing behaviors.
- Competitive Landscape: Identifying competitors, their strengths, weaknesses, and market positioning.
- Pricing & Sales Trends: Showing historical and projected price movements.
- Regulatory & Policy Environment: Highlighting government policies that impact viability.
Case Study 1: An Agro Allied Farm (Fish Feed Expansion)
We prepared a ₦2 billion proposal for an Agro Allied Farms Ltd company, market research played a defining role. Nigeria consumes over 1 million metric tons of fish annually, yet local production meets less than 50% of demand (FAO, 2022). Feed constitutes 70% of fish farming costs, and the local feed supply chain is highly fragmented.
By identifying competitors like CSS Integrated Farms and Ibro Fish, and analyzing their feed pricing, They demonstrated that its entry supported by new feed processing machines could competitively price quality feed, capture 10% of the Abuja and Nasarawa market within 2 years, and target exports to other countries like Zimbabwe. This not only showed the existence of a vast unmet demand but positioned the company as a disruptor with scalable potential.
Case Study 2: A Real Estate & Furnishing Project
The real estate furnishing proposal for our real estate client hinged on understanding Abuja’s housing market. Research revealed that Abuja’s short-let and serviced apartment market was growing at 8% annually, driven by expatriates, business travelers, and young professionals. However, over 60% of developers outsource furnishing, creating a gap Mshel could fill in-house.
By using primary research (interviews with property managers) and secondary data (National Bureau of Statistics housing sector reports), the proposal justified a ₦2 billion investment in premium furnishing equipment. Market research turned what could have been a generic “we want funds for furnishing” request into a data-backed plan tied to specific demand trends.
Case Study 3: An Integrated Steel Mill Company.
For our client’s Steel’s $600M integrated steel mill, research was non-negotiable. Nigeria imports over $3.3 billion worth of steel products annually (World Bank, 2021), despite having large iron ore reserves. The proposal leveraged this gap, showing how local steel production could substitute imports, reduce forex pressure, and supply construction, automotive, and manufacturing industries.
Competitor analysis highlighted how few integrated mills exist in Nigeria, and production inefficiencies among smaller operators. By presenting a 25-year demand projection aligned with national infrastructure goals, Bintom Steel positioned itself as a strategic solution to a national problem.
Real-Life Application of Market Research in Proposals
- Banks want to see repayment ability: Market research provides sales and cash flow justification.
- Investors want to see scalability: Research shows market expansion opportunities.
- Government partners want to see impact: Research highlights job creation, import substitution, and GDP contribution.
Statistics That Strengthen Proposals
- Nigeria’s aquaculture industry is projected to grow at 10% annually through 2030 (FAO).
- Abuja’s housing deficit exceeds 600,000 units, with demand driven by urban migration (NBS, 2023).
- Sub-Saharan Africa’s steel demand is expected to grow by 4.7% annually through 2035 (World Steel Association).
These numbers transform a proposal from wishful thinking into a document grounded in reality.
Conclusion
Market research is not just an add-on in proposal development, it is the backbone. Whether pitching to a bank for working capital or to an investor for a billion-dollar steel project, proposals built on robust market insights stand out. They speak the language funders understand: evidence, opportunity, and calculated risk.
In short, market research converts possibility into probability and probability into funding approval.
