Entering a New Market With Confidence
Competition in the life science industry is fierce, and the cost of failure is high. Before entering a new market, BioInformatics can help you assess the landscape using research-based data. An internal push to expand into new markets can be loaded with bias and an inability to discern the nuances between uncharted segments and the current market.
Reduce risk by deploying a BioInformatics Market Attractiveness Assessment. Rely on our years of experience in directing major life science suppliers toward new markets that optimize company strengths and help them establish strong positions in the early stages of a product’s life-cycle. We leverage our market research techniques and knowledge of the life science industry to deliver a data-driven model for making fact-based decisions about entering new markets and launching new products in current ones.
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:
|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.