Market Space Analysis illuminates economic and political trends, industry and competitor factors and key value drivers.
During Idea Evaluation and Idea Approval stage, preliminary Market Space Analysis is required. An In-depth Market space Analysis provides an Insight in to defining the Business space and scope that your Idea/s will rely on.
At the end of Idea Generation process, there is an seamless understanding on the objective, scope and the Purpose of the Idea and the effects it will have on the Business/ Market realization.
1) Market Knowledge and Frequency understanding
2) Analysis of Opportunity by Sector
3) Dependency Analysis
4) Risk Mitigation (Acceptance / Rejection / Defer / Transfer / Resolution Strategy)
The Purpose of Market Space Analysis is to
1) Understand the Market
2) Understand Opportunity
Market Space Analysis:
1) Who is the market?
Who are your Customers? Categorize the Customers depending up on identified Market Factors (Geographic scope, Product Scope, Business Scope, Customer Scope
2) Who is the target market?
Who are the customers that you want to reach out within 3 years.
3) Who is the served market?
Who are the customers within the Target Market which can be REALISTICALLY served?
4) What is the size of the target market?
How many customers are there in your Target Market?
5) How fast is the market growing (%/yr)?
How fast is the Customers in the Target Market Growing per year?. Customers in terms of financial mapping can also be taken.
6) How far is the market penetrated (%)?
How much is the target market penetrated within the Market. If it is Brand New it is 0%. For saturated Markets it is 100%.
7) What are customers' current needs?
Why are the Customers opting for the Market specifications. What are the needs the Customer wants to fulfil?
8) What are customers' future needs?
What will be their Future needs? What are the benchmarks they want to be added in the current catalogue for them to continue?
9) What are current distribution channels?
Distribution channels are how your product reaches your market. Choices typically include sales people, sales reps, distributors, wholesalers, retailers (independents, chains, boutiques, mass merchandisers).
10) What are channel markups at each stage?
What is your price out of the factory, what is the retail (final) price, and what are the various in-between prices to wholesalers and distributors, if applicable?
11) How price-sensitive are customers?
Customers are extremely price-sensitive if they view the industry's products as commodities (i.e., all products are alike), hence go for the lowest price. However, if the industry's products are differentiated, customers will seek the products they want without regard to price. Another test to apply is: If you lowered your price a little, how many more customers would buy your product? If a lot, they are price-sensitive; if very few, they aren't.
12) What is the current pricing strategy?
Pricing strategy is complex. For now, consider one of the following options: Low-price leader, pricing to allow for a reasonable profit, pricing to position the company in the marketplace (esp. high end), pricing to force competitors out of business, monopoly pricing (esp. for introducing a first-time product), or pricing what the market will bear.
13) What are some market/customer trends?
What changes are occurring with your customers or your market? Do they now buy differently? Do they use the product differently? Are their needs changing? Write down here any changes you're aware of.