How to determime market size?
Discussion
Hi,
I'm trying to determine the size of the market for performance shock absorbers for mountainbikes. I'm a keen biker and have access to the equipment to manufacture prototypes and small production runs (batches of 100 or so). I think with time I can develop a decent product and put it to market.
Fox racing (http://www.foxracingshox.com/) are clearly the market leader and i've seen a promotional video showing production elements which are heavily automated, suggesting to me thier volumes are high. I just have no idea how to obtain sales information or any idea of the market size?
I would be aiming purely aftermarket and expect a tiny market share to begin with, but i need some number to base a business case on before a get stuck in.
Any ideas?
Cheers
I'm trying to determine the size of the market for performance shock absorbers for mountainbikes. I'm a keen biker and have access to the equipment to manufacture prototypes and small production runs (batches of 100 or so). I think with time I can develop a decent product and put it to market.
Fox racing (http://www.foxracingshox.com/) are clearly the market leader and i've seen a promotional video showing production elements which are heavily automated, suggesting to me thier volumes are high. I just have no idea how to obtain sales information or any idea of the market size?
I would be aiming purely aftermarket and expect a tiny market share to begin with, but i need some number to base a business case on before a get stuck in.
Any ideas?
Cheers
To begin with I'd list every manufacturer of the shock absorbers you know of, then get the turnnover of the company via Company house, Kells Directory, Dunn & Bradstreet, their own websites and their annual reports. Its a lot of research but you need to do it, its amazing what info can come from a search like this. Total all the individual turnover figures up and it will give you in broad brush strokes the value of the market for home produced kit. Then do some digging into imported equipment, do foreign manufacturers use distributors? Whats the turnover of the distributor/ sales agent? This will also give you an idea of the number of units sold.
Now you need to ask yourself what your competitive advantage is? Whats the difference between your product and the others in your market, and what will make the consumer/customer buy from you and not them?
What is your differentiator? For longevity of the business I take it that yours will be a niche product that will rely on technical superiority rather than a "me too" product selling on a lower price basis.
By doing a bit of research and asking yourself a few pointed questions you should be able to generate a product development and a market positioning strategy that will enable you to target your efforts at the correct market niche.
HTH a bit.
Cheers,
Tony
Now you need to ask yourself what your competitive advantage is? Whats the difference between your product and the others in your market, and what will make the consumer/customer buy from you and not them?
What is your differentiator? For longevity of the business I take it that yours will be a niche product that will rely on technical superiority rather than a "me too" product selling on a lower price basis.
By doing a bit of research and asking yourself a few pointed questions you should be able to generate a product development and a market positioning strategy that will enable you to target your efforts at the correct market niche.
HTH a bit.
Cheers,
Tony
Gassing Station | Business | Top of Page | What's New | My Stuff