The lion’s share of our business is helping businesses both established and new to understand whether their new product or service has legs and is commercially viable. And time and time again we come across the same issue – everybody looks to the future and what people might want or do as oppose to looking at the current state of play and looking at what these people are doing now:
- What are they buying, why are they buying those brands or using that company for that service, what is influencing them in deciding what to buy, who else are they considering, what’s important to them when buying this type of product and service and crucially how much are they paying and willing to pay for it – what value do they place in it?
Businesses all too often forget that is only by understanding what’s going on in the market place right now can they possibly hope to influence it in the future.
Apart from the important task of conducting research with target customers and key opinion leaders, some other ways to understand the current state of play are as follows:
- Environmental Analysis:
- You do not operate in a vacuum. You need to understand how your external environment can impact your business – negatively or positively
- What consumer, demographic, regulatory or other trends could impact your business?
- Competitor Analysis:
- Your competitors – known, unknown, indirect & peripheral
- Who can threaten your business, now & in the future?
- Market Size & Valuation:
- Your market size & your market value
- How much of this market you can feasibly address in Year 1, Year 2 etc.
It is only by truly understanding the dynamics at play within the marketplace can businesses hope to play within it successfully.