Market potentials and customer requirements should be understood in detail on the basis of a market analysis before companies develop new markets or consider the launch of innovative products. Especially in less transparent markets, the precise collection and well-founded evaluation of market data is a basic precondition to any successful strategic decision.
Our experience has been that conducting a market analysis is unfortunately not a matter of course. Particularly in the B2B environment, many business leaders make main decisions without having a clear picture of the market potential, market entry barriers or customer requirements. However, strategically important questions should not be left to a gut feeling, but should be based on a comprehensive market analysis, which includes the following dimensions:
To quantify the market potential, we use scientifically recognized methods that have been tried and tested in practice as part of a market potential analysis. As a rule, we use at least two alternative methods to achieve the most valid results possible. Depending on the respective focus market, we select the most suitable methods to assess potential, including:
The Top-Down approach calculates market potentials based on available macro data that are influencing the specific potentials.
Example: The global amount of processed waste water can be used as macro figure for deriving the potential of waste water processing equipment, like e.g. pumps, filters, centrifuges and compressors.
The Bottom-Up approach looks at the individual sources of demand for the product or service in question and sums up their demand to a potential on segment, country or global level.
Example: The typical demand of a medium size medical lab for laboratory equipment can be multiplied with the total number of same-size labs in a market to calculate the equipment potential for this laboratory market segment.
The competitor approach collects turnover data from comparable competitors to estimate the overall market potential. This works especially well, if the business of the competing companies is clearly focused on one type of business and if the number of relevant competitors is limited.
Example: For determining the potential of the vehicle market, the relevant turnover of the 20 biggest vehicle manufactures can be researched, made comparable and be summed up.
The supplements and substitute approach aims to deduct market potentials for one product or service from the – ideally – already documented potential of another product. The two products need to have a logical relationship to each other.
Example: The potential for ink cartridges can be derived from the number of ink printers that are installed in the market.
When identifying trends, we consider all factors that influence the development of the targeted market or acceptance of a product to be launched. The assessment of future regulations plays just as important a role as the appraisal of economic and political framework conditions, technological progress and social demographic changes. We always carry out such an analysis while taking into account country- and market-specific particularities.
We create a clear picture of the market situation from the customer’s perspective and on the basis of a targeted analysis. The determination of customer behavior in the target market serves as the basis for this. This way, we provide valuable insights into customer segmentation, willingness to pay and requirements that are placed on new products, for example. Both qualitative and quantitative methods are used. Apart from interviews with target customers and market experts, relevant market reports and current research results from science are also included in the survey, for example.
Relevant primary and secondary data are collected and evaluated in order to carry out a competitive analysis. The product of such a competition analysis is, for example, a description of the macro competition landscape or a detailed evaluation of the strengths and weaknesses of individual competitors and their products.
Consequently, the market analysis provides answers to a large number of critical questions with regard to the target market or the product to be launched:
Markets are very diverse. Only profound industry and application knowledge can help you understand individual structures and identify market-specific opportunities and risks. We use proven methods to reliably analyze markets. We always tailor our market analyses to your needs and consider all special features that affect your targeted market or your products and innovations to be launched. In addition, thanks to many years of experience, we have a comprehensive database at our disposal and can fall back on existing research results. This way we systematically capture the product or market potential with unique accuracy.
We not only offer market analyses, but can also support you in the interpretation of the acquired data and will accompany you in the implementation of suitable measures to achieve your strategic business goals. Our experts will be happy to talk to you about the possibilities of a market potential analysis in your company.