Market Analysis

Necessary basis for any sales and marketing work



The results from market analyses are the basis for any new product introduction, market expansion and sales strategy

Without extensive knowledge of the market, gained through detailed and structured market analyses, the development of a sales strategy, the drawing up of a business plan, the realignment of a business unit or the search for new sales channnels up to investment opportunities as well as sales and budget planning are not possible.

To simplify matters, we have summarized segments “Services,” Service, and “Product” under the word “product.”

Crucial competitive advantages over your competitors often only can be achieved due to in-depth market and competition analysis. Of course the own sales team and other divisions do know the market and the market players.

However, are a comprehensive and neutral analysis as well as assessment of the market or individual segments required a clear advantage is given by an externally compiled market analysis. More planning security than in often politically colored internal analysis is provided.

Market and potential analyses fall essentially into the following four categories:

New products affect both existing and new markets. Also to look at existing products for existing markets and new markets


What do you really know about your market?

Market analysis: Existing products for existing

Markets

For most companies, knowledge of the existing market and its own products are based on information from the field service, as well as other distribution channels such as dealers or sales representatives. Learn more>>



How successful will your new products be?

Market Analysis: New Products for Existing Markets

Innovations, other product variants and new products are the driving force for continuous growth and company success. These are mostly developed for the existing markets and customers. Learn more>>



Go-to-market strategy available for new markets?

Market Analysis: Existing Products for New Markets

The marketing of existing products into new markets is in most cases a geographical extension of the existing sales area. Learn more>>



A big task!

Market Analysis: New Products for New Markets

Probably the most complex and difficult situation is if new products are to be sold in new markets. Here, analyses are necessary both for market potential and market attractiveness as well as on product acceptance analyses. Learn more>>








Market analysis of existing products

for existing markets



It is important to continuously monitor and analyse the existing markets with the existing products

What do you really know

about your market?


For most companies, knowledge of the existing market and its own products are based on information from the field service, as well as other sales channels such as dealers or sales representatives.

However, the level of knowledge usually ends with what you learn from your own customers, as far as one’s own market figures are concerned and as far as publily available statistics or the trade press do show. There are a lot of market estimates and guesses and its not uncommon – also by the sales teams – to present the market and the market potential for its own products in the way it fits best into the personal situation.

Its immensely important for the sales and company success to provide concrete knowledge of the available market, market potential and market development (development of demand). Without this knowledge, an efficient sales control (own sales organization as well as other sales channels) may not be possible.

In the existing markets with the existing and established own products, the aim must therefore be to have extensive knowledge of all current and future market-relevant factors and drivers.

In order to ensure that you do not squander the gained lead and instead stay up-to-date in the long term, we also offer ongoing market monitoring in addition to individual project based analyses.

Market research or market intelligence activities can also be “outsourced” in total or in sub-areas. For this purpose, a detailed specifications will be prepared in advance, where tasks, content, scope, objectives and reporting will be defined and fixed, among other things.

Depending on the scope and content of the market analysis, we are bringing in external specialized market research agencies, which we will integrate into the project. A comprehensive project plan with individual control steps is drawn up and coordinated with the client. In advance, the scope, the content as well as the geographical and factual dimension will be clarified, as well as definition of technical terms and market and customer-specific circumstances.

Consulting example “Analysis of the Current Market”

  • Total market and market potential (quantity / value)
  • Market and product segmentation
  • Development of the market including trend analysis and presentation of growth drivers and influencing factors
  • Importance of substitution products and their development
  • Key market players. Delivery shares of the largest suppliers
  • New providers
  • Barriers to entry
  • Assessing of the market attractiveness

© New Business Consulting GmbH





Market analysis of new products for

existing markets



Introducing new products to an existing market is costly. Therefore, a detailed preliminary analysis is necessary.

How successful

your new products

will be?

Innovations, other product variants and new products are the driving force for continuous growth and company success. These are mostly developed for the existing market and customers.

The relationships with the customers are present and one knows their requirements for new or similar products (which may already be supplied by another supplier).

The danger, however, is that the new developments will not be evaluated sufficiently, broadly and in detail in the market in advance in terms of needs and acceptance. So it can happen that you start an expensive new development on the basis of needs of 2 or 3 important customers, who, however, have by no means enough potential to bring the new development into the market profitably. It would be falsely to base the entire market potential on just these few customers.

Example of new product rating

In the case of new products for existing markets, the following market or customer analyses should therefore be carried out in good time:

  • Preliminary study on the need and acceptance of a new development. Analysis of total demand (quantity, value) and per selected customer. This should happen before costly investments in tools or equipment and can also be done neutrally without publishing the provider name. In addition, competitive products can be compared at potential customers and the respective advantages and disadvantages, purchase criteria and benefit assessment can be recorded at the customer level. The analysis is supported by customer surveys based on the Kano model, where the wishes and expectations of customers regarding product developments can be recorded.
  • Market needs analysis with regard to new customer requirements and wishes (customers and non-customers): Which new requirements does the market have? What are the new or changed needs or are under development? What are the new requirements and needs in the coming time and why? What does this mean for the existing range and for planned new developments?
  • New developments of the competition. Which new products will competition bring to the market. How do customers rate this? What is expected by your customers of you as a supplier? What impact will this have on your business?
  • Analysis and evaluation of trend topics related to new products and needs. Are they trending topics with potential or just air numbers? Why and how strongly will customers respond? Who is eligible as a driver and provider? Which market segments and – regions are affected, which customer segments?

Consulting example “Market Analysis of New Products”

  • Preliminary study on the need and acceptance of a new development. Analysis of total demand (quantity, value) and for selected customers.
  • Market demand analysis with regard to new requirements and needs
  • Analysis of new competitive products including customer review
  • Analysis and evaluation of trend topics on new product needs

© New Business Consulting GmbH





Market analysis of existing products

for new markets



To go into new markets with existing products, a detailed market analysis must be the basis for a well thought-out go-to-market strategy

Go-to-Market Strategy for

new markets available?



The marketing of existing products in new markets is in most cases a geographical extension of the existing sales area. However, the same complexity often arises when entering new markets (segments) in already known sales regions. The sale can happen with the help of its own sales, but also in still unknown regions with dealers or representatives.

Before investing into expensive own sales offices or difficult-to-control indirect sales channels, the new market must be analysed in terms of its demand for the existing product. This includes the traditional market analyses (quantity and revenue potential according to potential customers, competitive situation, price level, etc.)

Just however, other factors need to be considered for regions outside the EU, such as:

  • barriers to entry (E.g.: customs duties, transport conditions, necessary certificates, import quotas, safety requirements, storage capacities, order cycles, packaging requirements, payment morale, complaint behavior, service expectation, language, culture etc.)
  • What kind of distribution (culture, type of sale, necessary networking, buying center structure, decision-making processes, criteria and duration are common there. How is accordingly, sales tactics and supply chain to be build up.

A comprehensive market analysis and recommendation for a go-to-market strategy (including the most suitable sales channel) provides a good and professional basis for further decisions and investments. The analysis and development of the strategy often is carried out (depending on the country/region and topic) in cooperation with local partners and/or experts.

Consulting example “Market Attractiveness of New Target Market”

  • Analysis of the market attractiveness of the new target market
  • Analysis and evaluation of alternative distribution channels in the new target market
  • Analysis barriers to entry
  • Search and evaluation of potential distributors

© New Business Consulting GmbH





Market analysis of new products for

new markets



Establishing new products in new markets is certainly the hardest part of a business expansion. Many unknown factors need to be captured and analyzed before investing.

A big task!



Probably the most complex and difficult situation is if new products are to be sold in new markets. Here, analyses are necessary both on market potential and market attractiveness, as well as on product acceptance:

  • Total market (demand for the products based on quantity and value). The overall market also includes products that do not correspond to their own portfolio.
  • for example Subdivision into the available market (where one’s own products can be used concretely and are not replaced by substitute products in the rest of the overall market)
  • Market development:: how will your available market and the overall market grow within the next 5 years? What growth rates can be expected on the basis of individual segments and both for the total market as a whole and for the available market (based on quantity and value)? Why is the market going to change? What are the driving factors?
  • Which substitution products (e.g. PET instead of glass for water bottles) are currently in development of which suppliers? Where are these products already being used or tested? What is the danger for your own company?
  • Which new providers are pushing into your market? What is their concept? What risk is caused loosing customers or revenue potential? Why would customers switch to these new providers?
  • Where are opening new fields of application or potential new customers (e.g. start-ups) who have a “fit” to your products? What potentials (quantity, value) are to be expected and when?
  • How do your customers and non-customers rate your products compared to competition. What are the key purchase criteria?
  • Barriers to entry (e.g.: customs duties, transport conditions, necessary certificates, import quotas, safety requirements, storage capacities, order cycles, packaging requirements, payment standards, complaints, service expectation, language and culture, etc.)
  • Which type of distribution (culture, type of sale, necessary networking, buying center structure, decision-making processes,-criteria and duration are usual. How to build the sales tactics and supply chain accordingly.

In the case of new products for new markets, the following market or potential analyses should therefore be carried out in good time:

  • Preliminary study about the need and acceptance of a new development. Analysis of the total demand (quantity, value) and per potential customer. This should be done before significant investments in tools or equipment happen and can also be carried out in a neutral manner without publishing the provider name. Also it can be compared with competitive products among potential customers, and the respective advantages and disadvantages, purchase criteria and benefit valuation on customer level can be assessed.
  • Market needs analysis with regard to new requirements and needs of potential customers: Which new requirements does the market have? What are the new or changed needs or are under development? What are the new requirements and needs in the coming time and why? What does this mean for the existing range and for planned new developments?
  • New developments of competition. Which new products will competition bring to the market. How do customers rate this? What does your customers expect from you as a supplier? What impact will this have on your business?
  • Analysis and evaluation of trend topics related to new products and needs. Are they trending topics with potential or just air numbers? Why and how strongly will customers respond? Who is eligible as a driver and provider? Which market segment and – regions are affected, which customer segments?

A comprehensive market analysis and recommendation for a go-to-market strategy (including the most suitable sales channel) provides a good and professional basis for further decisions and investments. The analysis and development of the strategy are often carried out (depending on the country/region and topic) in cooperation with local partners and experts.