Market Research Toolbox: Forward-Thinking Decisions Using Validated Market Size, Share, and Growth
Understanding the market size and share for your product line is critical to gauge the impact of ongoing marketing, to stay informed about competitors, and to calibrate important marketing efforts. A Market Estimation from BioInformatics LLC provides your company with the current landscape, forecasted changes in the market, and the positioning of each major competitor. Why is this so important to your company? Market size gives decision-makers current metrics valuable for strategic planning. The information generated from a Market Estimation can give you insight into the following:
- What is the estimated size of the market? Is it growing, stagnating, or shrinking?
- At what rate is the market growing or declining?
- How many competitors are in the market? Where does my company stand compared to competitors?
- What purchasing trends and patterns exist?
- What customer segment is spending the most on my product?
- What are the potential sales of my product?
- Are we currently reaching a specific segment with marketing efforts?
- And much more…
Case Study: What is the current status of the life science market for mass spectrometers?
A leading life science supplier asked BioInformatics to estimate the market size and share of the mass spectrometry market for instrumentation and consumables. Our client needed to understand their competitive position, recent purchasing activity, future growth, and any threats/opportunities posed by other suppliers. We utilized a Market Estimation incorporating end-users’ purchasing patterns, usage rates, and equipment inventory along with secondary market data confirmation. We provide this life science supplier with the most accurate market size and share data for the mass spectrometer market, along with segmentation and growth information.
Structuring a Market Estimation
Utilizing primary data from end-users as well as the proprietary data from Strategic Directions International (SDi), we designed a statistical model that related key input variables to forecast the market for mass spectrometry instruments and reagents. This approach is based on the premise that the market is a set of objects (products, prices, discounts, usage, etc.) that interact. By using sophisticated statistical equations, we can display the interrelationships of these objects and achieve higher accuracy than top-down market estimates. Some of the variables that were used to build the statistical model included:
- Average number of scientists/technicians per lab/group and the number who perform mass spectrometry
- Number of scientists who plan to begin using mass spectrometers in the next 12 months
- Number of experiments/reactions run per week and the average volume per experiment/reaction
- Expected change in the number of experiments/reactions over the next 12 months
- Number of instruments per lab per brand
- Number of scientists who intend to purchase a new product in the next 12 months
- Number of scientists who intend to switch brands in the next 12 months
The statistical model output was presented to our client in clearly explained tables that combined the areas of size, share and segment to give an overall Market Estimation.
*Above tables can be presented with unit, revenue, and growth rate figures in
a market estimation study (assuming sample size is large enough for segmentation).
Delivering Results
Through a Market Estimation, BioInformatics provided a 360 degree profile of the market for our client. As a result of these insights, our client successfully crystallized their future marketing efforts, sales forecasts, resource allocation, and strategic positioning for the mass spectrometry market.
Learn how we can help you better understand your market by calling Greg Thompson at 703-778-3080 x-15 or email [email protected].
