A market potential study is an important step before launching new products or services in a particular market segment, as this study identifies the gaps and threats in the market at an early stage. Market potential studies, at the end of the day, answer the question – “Does my product/service make economic sense?” These studies provide a reality check on your concept parameters and help ascertain the potential demand of your product/service, the demands of your potential customers, who your primary and secondary competitors are, a SWOT analysis of your competitors, efficient designing of your products and services, and much more.

Market potential studies involve extensive research about how your product is to be purposed and repurposed vis-a-vis existing and future market dynamics. Companies usually deploy state-of-the-art tools to analyze secondary data and extracting valuable insights. A market potential study is segmented into two different phases:

Market Feasibility Study:This study consists of the following sub-phases:

• Market areas identification
• Defining the target market in terms of demographics, lifestyle and socio-economics
• Population segmentation to determine exact potential customers
• Exact customer profiling to market proposed project
• Potential impact assessment across various customer segments
• Strategic recommendation for development
• Contingency plans

Economic Feasibility Study:In this phase, elements such as concept development, cost estimate, and financial feasibilities are studied and formulated. This study consists of the following sub-phases:

• Compliances incorporation
• Procurement of essential merchandise
• Procurement of start-up inventories
• Operating capital
• Projection of expenses, profits, cash flows, and pre-tax ROI
• Product financing structure likes equity, loans, etc.

Market potential studies for your project are critical to determine whether your project has what it takes to sustain in a competitive market.  The factors can be as diverse as supply and demand to adequate production planning and quality control. Your project armed by such a study stands to benefit in a myriad of ways such as:

• Potential market penetration
• Primary and secondary features of the target market
• Target demographics and size of the market
• If the market is matured or emerging
• Complete competitor profiling – their size, revenue, growth market, expansion plans, workforce planning, product and services portfolio, etc.
• Strengths and weaknesses of your competitors
• Your potential market share and revenue generating mechanisms

If your business; success hinges on ROI from your products and services, and zero-investment risks, market potential studies can give your business a competitive edge. If the risk factor is on the higher end of the spectrum, market potential studies can improve the standard of your venture’s performance and quality of service delivery. In addition, these studies enable you gather valuable market intelligence about:

• Untapped needs of the market that your product(s) can potentially address
• Market demands of your existing and future portfolio of products and services
• Purchasing patterns of your future customers
• Profiling of your nearest competitors
• Gauging customer reactions and interest levels when you would launch a new product or service
• Marketing and advertising best practices
• Roadblocks and barriers to successful product promotion

Global-Ability offers businesses and individuals a direction for business innovation and planning. Our key strengths revolve around a decision-oriented approach to our clients’ problem space, a customized approach for each customer, and state-of-the-art research methodologies and techniques. We demystify complex concepts and present them in an easy to comprehend manner. We believe in simplicity and zero-compromise quality of service.