The first step in any market research undertaking is to understand the market
size and trends that are affecting the market.
To start, Growthink identifies all markets in which the client competes or plans
to compete. Next, we determine the relevant size of these markets. The relevant
market size equals a company’s sales if it were to capture 100% of its specific
niche of the market. Growthink determines this size using both a top-down (what
percent of the market can we reasonably expect to penetrate) and bottom-up
(e.g., how many units can we expect to sell at what price) methodology.
As many assumptions are required when sizing a new or emerging market, Growthink
relies heavily on case studies of thousands of other companies and clients who
have penetrated new markets.
In assessing markets, Growthink looks at the current market size and what the
market size might be in the short, mid and long-term. Specifically, we answer
key questions such as the following:
- How has the relevant market size changed over the past one to five years?
- What is the projected growth of the relevant market?
- What factors will affect this growth? General economic factors? Changing
regulatory conditions? Changing consumer needs? Etc.