Congratulations on embarking on an incredible business journey! Before creating your marketing plan and finalizing your custom branded packaging, it is always wise to look at the market opportunities your brand can leverage.
While it is tempting to jump in and assess your possibilities, you must uncover market opportunities suitable for your present phase in business. The definition of an opportunity varies based on the size of the company, the sector they’re seeking to break into, and the type of growth they intend to achieve.
No matter how big or small, every company has the capacity to develop beyond a certain point. As long as the market opportunity analysis is tailored to the organization’s requirements and objectives, it may effectively fulfill this potential.
Startups are, without question, the most vulnerable level a business can be. Being the “new kids on the block,” they have a lot on their plate. Besides proving themselves as service providers, they have to figure out how to start making a profit. By capitalizing on the right market opportunity, startups can either develop rapidly or manage to stay afloat during the first few years.
Startups lack the financial resources to make risky business moves. Identifying market potential at this level, on the other hand, does not need a large sum of money.
Identifying the correct prospects for startups may be done in a few safe yet guaranteed ways:
Client Segmentation
Client segmentation is a technique for dividing a customer base into distinct groups.
The first question a business should ask is how big is the addressable market for the market they’re seeking to break into. But then, what if you’re looking to break into an untapped market? The majority of startups are industry disruptors. How do you determine the market’s potential size based on the entire market occupied by incumbents?
Redirecting the attention to the customers is a better way to calculate the prospective market size. And that is how segmentation enters the picture. It’s a good idea to start by segmenting your target customer base based on criteria like age, lifestyle, spending patterns, and a common problem they have that your business might tackle.
This entails drawing up a mental map of each market sector and comprehending the social and psychological elements that impact potential clients’ purchasing decisions.
Leveraging Current Events and Situations
Major occurrences in an area or throughout the world compel individuals to seek specific solutions as soon as possible. Startups can take advantage of such events to boost their visibility and present themselves to individuals who might otherwise be uninterested in what they have to present.
For instance, the COVID-19 pandemic caused the decline in demand for specific types of packaging while causing a sudden rise in demand for e-commerce packaging as well as healthcare products and groceries. This poses an excellent opportunity for a startup to use on-demand product packaging to attract customers and boost their sales.
Evaluating Consumer Buying Power
Understanding how to create pricing models by categorizing the total target and functional market is also beneficial to startups.
As a beginner, the way you price your products sets the standard for the following several years. If you charge too much, you risk becoming unaffordable. If you’re priced too low, you can be mistaken for a low-quality product.
Assessing your target market’s mindset might help you figure out how much they’re likely to spend on a decent product. Analyzing the target market’s usual spending behavior might reveal more than simply how much you should charge for your goods. It can also teach you how the market decides which purchases to make.
