Developing a sufficiently detailed understanding of which markets offer the greatest opportunity — and whether that opportunity is sustainable — can be a complex task. Many factors must be considered, such as application requirement, cost of change to molders / resin users, processing conditions, market size, market potential and competition. Additionally, shifting trends which open — or close — the potential market opportunity must be fully assessed. The complexity of this exercise is compounded where multiple market segments are being analyzed.
Lucintel has developed proprietary models and market assessment tools to support rigorous screening, evaluation and prioritization processes. These models and tools are used to screen and rank specific applications.
In many cases, the cost of developing and actively pursuing an application for a material or technology can exceed $1 million, when including the cost of product design, testing, prototyping, sales and marketing. Therefore, it becomes crucial for the firm to identify the best applications in the earliest phase of the budgeting and resource allotment process. This prevents wasting resources in the application development process where the chances of success are limited. Lucintel offers clients an unbiased perspective that saves them from costly mistakes while providing insight into the best opportunities. This insight provides a greater chance of success for your material and technology systems.
Identifying the best opportunities from more than thousands of applications becomes a challenging task and requires unique expertise and intimate market knowledge.
In conducting an opportunity screening, Lucintel typically conducts the following analysis:- Industry Analysis: To understand the dynamics, problems, and opportunities driving your industry
- Product/Service Delivery: Provides a detailed description of the products and/or services currently being sold in the industry.
- Marketplace Analysis: Provides an understanding the dynamics, problems, and opportunities driving your marketplace.
- Marketing Dynamics: What are unmet needs in the marketplace and how are you going to fill them? How will you differentiate your product or service from your competitors? What unique features, benefits, or capabilities will you bring to the marketplace? Who are your customers?
- Distribution and Sales Dynamics: How does the market reach its customers? How does the market close the sale with its customers?
- Financial Estimates: The Pro Forma Financial Estimates should illustrate what the average competitor should expect within the industry and marketplace that you have defined. For purposes of this analysis, set both variable and fixed costs to equal 50% of COGS.