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Amplify Chances of Success Before Entering a New Market

Entering a New Market As A Vehicle for Growth
In the highly competitive life science industry, companies assess options before entering a new market, often by using opportunity analysis tools. However, employing such tools without gathering objective market data and insights only illustrates internal stakeholders' guesses, which may veer from reality.* ("Entering New Markets: Talking to yourself is not a strategy." The Linus Report. September/October 2005.)

Before deciding which market to enter, it is important to determine which market fits optimally with your company's internal strengths and which market is most attractive for your company based on external industry factors. To give you the greatest chance of success, we leverage our market research techniques and life science experience to deliver you a data-driven model for fact-based decision-making in our Market Attractiveness assessment.



			Case Study: Which new product line will best complement our current business portfolio? Our client was considering introducing one or more new product lines that would cater to scientists willing to purchase products from a commercial supplier rather than developing in-house products. With established suppliers in each of the product categories under consideration, our client wanted to verify which of these categories were good fits for their brand. BioInformatics' Market Attractiveness model was able to address all of the client's questions.

Market Attractiveness Model: Building a Market Map
The first step in evaluating a new product line with our market attractiveness model is identifying the most relevant and critical factors, both internal and external. These are evaluated by survey respondents who are scientific researchers in the field. A few examples of these factors include:

Internal	External
Access to financial resources	Competitive intensity / rivalry
Customer loyalty	Current usage
Market share	Market growth rate
Production capacity	Market size / maturity
Relative brand awareness	Price sensitivity

Each of the factors selected are weighted by importance and relevance to your company. With the framework for the model determined, we then develop a questionnaire enabling us to extract information on the factors selected. The questionnaire enables us to calculate market size, share, and growth of the product lines analyzed. Questions also relate brand and satisfaction to evaluate how your company is perceived in the market.

Based on input from the customers who comprise the market (in tandem with secondary research), each of the critical factors is given a “score” out of 5 possible points. Using the factor’s score and assigned weight, an overall market attractiveness and competitive strength value for each product line is produced. The outcome is then charted. (Graph below)

Click to enlarge
Each circle on the market map represents one of the three product lines under consideration. The size of the circle is proportional to the product’s current market size. Each circle’s unique position along the x-axis and y-axis presents our client with decision-making data for each option.

Delivering Results
By assessing both market attractiveness via external factors and competitive strength, BioInformatics' data-driven Market Attractivess Model identifies which product line is most attractive based on both internal and external factors. As a result, our client was able to evaluate their execution capabilities and decide which product line was the best fit with both their brand and product portfolio.

To get more information on BioInformatics' Market Attractiveness assessment or to discuss further details of your potential market study, please contact us at 703.778.3080 ext. 12 surveys@gene2drug.com.