Market Opportunity Analysis

1
Market Opportunity Analysis

• Adapted from Market Opportunity Analysis for
  New Products
• Cadotte (2003)

2
Macroenvironment Analysis
The MOA Process
Define Product-Markets
User Profiles
Competitor Profiles
Channel Profiles
Establish Market Requirements
Develop Strategy
Unique Contribution
Forecast Sales
Evaluate Market Opportunity
3
Macroenvironment Analysis
The MOA Process
Define Product-Markets
User Profiles
Competitor Profiles
Channel Profiles
Establish Market Requirements
Develop Strategy
Unique Contribution
Forecast Sales
Evaluate Market Opportunity
4
Market Structure for the Food Service Industry
5
Reebok Market-Product Grid

• Market Segment Product
• GROUP Running Aerobic Tennis
  Basketball Childrens Cross Step
  Golf Golf WITH Shoes
  Shoes Shoes Shoes Shoes
  Traing Traing clothing shoes
• General NEED
• runners P
  P
• Performance- aerobic
  P p
• conscious dancers
• consumers tennis
  P P
• (athletes) players
• basketball P P
• players
• step S P
• exercisers
• golfers P
  P
• Fashion- comfort S S
  S S
  S S
• conscious style
• consumers conscious
• (nonathletes) walkers S
  S S S
  P P
• children P
• KEY PPrimary Market SSecondary Market

6
Macroenvironment Analysis
The MOA Process
Define Product-Markets
User Profiles
Competitor Profiles
Channel Profiles
Establish Market Requirements
Develop Strategy
Unique Contribution
Forecast Sales
Evaluate Market Opportunity
7
Components of an Industry Profile

• What is the industry composition?
• Number of firms
• Industry sales
• Industry structure
• What are typical marketing practices?
• Market targets
• Price-feature packages
• Advertising
• Distribution
• What changes are anticipated?
• What are the industrys strengths weaknesses?

8
Components of a Key Competitors Marketing
Practices

• Key competitors marketing strategy
• Market targets
• Marketing objectives
• Marketing mix

• Tactics
• Definition of target boundaries
• Product characteristics
• Prices charged and policies
• Distribution network
• Channel service and incentive program
• Advertising copy, media, layout
• Personal selling appeals
• Sales promotion activities
• Publicity stories

9
Components of Customer (End User) Profile

• What are customers like as people?
• Needs wants
• Important use situations
• Activities interests
• Opinions attitudes
• Demographic characteristics
• Values

• How do people decide to buy?
• Problem recognition
• Search for use of product information
• Evaluation
• Purchase procedure
• Satisfaction with purchase

• What outside influences are
• affecting buying?
• Population social forces
• Legal forces
• Technological forces
• Economic forces
• Natural forces

10
Cluster-Based Segmentation
11
Macroenvironment Analysis
The MOA Process
Define Product-Markets
User Profiles
Competitor Profiles
Channel Profiles
Establish Market Requirements
Develop Strategy
Unique Contribution
Forecast Sales
Evaluate Market Opportunity
12
Consumers Zone of Indifference
13
Macroenvironment Analysis
The MOA Process
Define Product-Markets
User Profiles
Competitor Profiles
Channel Profiles
Establish Market Requirements
Develop Strategy
Unique Contribution
Forecast Sales
Evaluate Market Opportunity
14
Macroenvironment Analysis
The MOA Process
Define Product-Markets
User Profiles
Competitor Profiles
Channel Profiles
Establish Market Requirements
Develop Strategy
Unique Contribution
Forecast Sales
Evaluate Market Opportunity
15
Macroenvironment Analysis
The MOA Process
Define Product-Markets
User Profiles
Competitor Profiles
Channel Profiles
Establish Market Requirements
Develop Strategy
Unique Contribution
Forecast Sales
Evaluate Market Opportunity