Determine market feasibility and fit-for-purpose
Gain a better understanding of your customer and market.
You have a good idea, maybe a great idea. But how well do you understand the market, the growth potential and the size of the opportunity? Who is your main customer? Why should they buy from you? These are key questions for any entrepreneur with an idea for a new product or service.
If you have developed a more detailed concept or even a prototype, then feedback about fit-for-purpose and market-readiness is key.
The purpose of market feasibility is to gain a better understanding about the market, the trends, drivers, growth potential; the size of the opportunity and the potential value for the new product or service. True North Innovation undertakes research with your potential customers to understand their needs and ensure that your product or service meets these needs.
Tools and methods we would typically use for market validation:
PESTLE Impact Map
The PESTLE impact map is a useful tool for analysing the macro evironmental factors and their potential impact on a sector or business. Used in conjunction with Porter's Five Forces, it is particularly useful when entering a new market.
Porter's Five Forces
Everyone has competition! Porter's Five Forces is a framework for analysing the level of competition within an industry. This is a useful exercise for new entrants to assess where threats might emerge and how quickly you can gain traction.
The market attractiveness tool is a structured way to measure the value of a market using the output from the PESTLE and Porter's 5 Forces together with a company's technical capabilities. It can be used when entering a new market or to explore new uses for a technology.
The Competitive Analysis is a tool to carry out a comparison of your product versus the main competitor's to identify both the Opportunities and the Threats you face.
Segmentation Analysis is an essential tool to analyse consumer characteristics, target the most relevant group. This helps position your product or service development to meet the needs of that group and create a competitive edge.
Total Addressable Market
The Total Addressable Market method is used to calculate the total market demand for a product or service, then estimate the actual portion that is addressable and the obtainable target to determine revenues for a new launch.