Appraisal should be made of the product's market in terms of geographic coverage and target groups. The LGU's appraisal team should:
• Assess whether the determinants of demand have been fully identified and whether the methodologies and assumptions used in forecasting demand and price are appropriate and valid;
• Determine whether the sources of supply have been identified and the existing distribution channels and prices have been ascertained; and
• Conduct sensitivity analysis/stress tests to find out the impact of variable changes on the supply and demand assumptions.