Market analysis – make fact-based decisions
By conducting a market analysis, you can answer several important questions. They are often used in connection with companies being in an expansive phase and looking for new markets or other projects. In order to be able to assess the various opportunities and risks that it entails to invest in a new market or a new customer group, you as a company can ask yourself questions. After that, the right data must be obtained in order to use quantitative methods to form a picture of whether it is worth making a bet or not.
This is how we do a market analysis
How do you actually do a market analysis? It is a big task that must be performed in stages. Our experience has taught us that in order to be able to help customers in the best way, accuracy and planning are required. But using a standardized template is not a good recipe because each market and customer segment is unique. Therefore, we tailor our analysis based on the situation you and your company are in. The execution takes place in three steps which are listed below.
A solid preparation which is based on one or more working meetings with you as the client. Here we establish, among other things, goals, core questions to answer, scope and method. This is the basis for an informative and useful report.
Desk-top studies to produce the facts that are available and that create a basis for the next step. The method is cost-effective for acquiring the data needed for the next step in the process.
3. The most important step consists of external data collection. This is usually done through interviews, but can be combined with surveys or customer panels. Here, the data produced in step 2 is validated and data to answer most of the core questions is obtained.
Questions answered with a market analysis
As we mentioned earlier, it is important to adapt the market analysis to the exact situation in which you and your company find yourself. Therefore, it is important to formulate questions that are suitable for solving your needs. Some examples of strategic and commercial issues that can be highlighted are:
- Is this market worth investing in?
- How big is the economic potential?
- What ROI can we get?
- What are the risks?
The above issues are common and many decision makers ponder them when given the opportunity to invest in a new market or a new customer segment. Our model has been developed for several years and can be adjusted to ask questions that bring clarity to your thoughts. By being responsive and listening to you, we can adapt our work to help you raise the right questions to decide whether you should implement the investment or refrain.
Based on your specific goals and with the help of externally obtained data, we measure and analyze the market conditions from several perspectives – size, potential, competitive situation, maturity, and last but not least what efforts are required to succeed.
The market analysis enables fact-based decision-making
We believe that each situation is unique and the preparatory work is crucial for the result. In order to have a sufficient basis for decision-making, you should clearly and clearly define which core questions you want answered, what the desired situation is, what movement you want and which target groups and markets are relevant.
It is our firm belief that all decisions should be based on facts. Some questions can be answered through desktop studies. However, it is a superficial method that can give indications and answer simple questions. But to create a robust and comprehensive understanding, the market must be consulted. The key is to understand the customers’ wishes, what needs do they have and how can these be satisfied? What are they dissatisfied with and what improvements do they want to see?
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