8 Tips for Identifying Business Market Growth Potential
We'll go through eight strategies to spot market growth prospects in this post. To accomplish so, you must first grasp the business orientation of your organization and then conduct market research. Consumer requirements and other considerations, such as brand value propositions, must all be considered while evaluating the business strategy.
1. Segmentation of customers
You must first establish consumer categories with similar features in order to understand your demand. Age, gender, location of residence, educational level, occupation, and income level are examples of "hard" factors, whereas lifestyle, attitude, values, and purchase impulses are examples of "soft" variables.
Hard factors might aid in the estimation of a company's prospective consumer base. Price, prestige, convenience, durability, and design are examples of soft factors that might assist in identifying purchase reasons.
2. Evaluation of the purchase scenario
Sales analysis may assist you in better understanding how customers buy and positioning your goods and services. In order to find expansion chances, purchase circumstances must be investigated. Providing new shopping options may attract new clients. When analyzing purchase data, ask yourself the following questions: When do customers buy our product or service? Is it accessible when they require it? What stores do people shop at? What method of payment do they use?
3. Analysis of direct competition
It is critical to examine supply in addition to demand and purchasing scenarios. When analyzing prospects, it's critical to understand the current companies in the market where you're competing or planning to compete. Relevant questions include: What are our industry's fastest-growing goods and brands, and why?
4. Analysis of indirect competition
This sort of research can help you develop competitive advantages over indirect competitors and uncover new growth prospects.
5. Review of related items and services
Companies should keep an eye on the performance of related items from other companies. When making investing selections, trends in adjacent markets should be considered.
6. Review of related industries
In other circumstances, a company's goal is to extend a specific business model or philosophy rather than to continue functioning inside an industrial area. In any case, learning about the competitors before entering a new business is critical: market sizes, market shares, growth rates, unit pricing, per capita sales, and brand positioning.
7. Assessment of international markets
Knowing the evolution of a product's per capita consumption in a certain country might serve as an indicator of the product's life cycle maturity. It will be easier to assess the business potential if you have information about the size of the market and competitors in other locations. On the other side, keeping an eye on what's going on in another area might lead to new products or services that aren't yet available in your current market.
8. Examine the environment
Market research may be performed to learn more about the local company environment and ensure that your approach will succeed in it. Changes in a country's legal structure, as well as technological and scientific advancements, might result in new economic possibilities.
Using a range of analyses will assist your company in gaining a comprehensive perspective of prospects and in developing long-term strategic plans. The eight categories of study that can help you uncover new market opportunities include consumer segmentation, purchasing decisions, direct and indirect rivals, complementary products and services, industry, overseas markets, and environmental analysis. Not all of the market possibilities discovered will succeed, but testing will reveal their potential.