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IS MY PRODUCT COMMERCIALLY VIABLE?
Having ideas for new products is only an initial step for introducing a new product to market. It is important to assess the commercial viability, is the market large enough and is there sufficient margin, for this product before going too far down the line of developing prototypes.
Where superior products are being developed to better address the needs of a market, it is likely that sales will be gained at the expense of existing products. The introduction of digital pen equipments probably did not result in more things being weighed, rather the same things being weighed more easily.
If this is the case then essentially you need to know three things about the market you are developing a better product for. Firstly, how big is it – this is normally measured in Rs. value. Secondly, how do consumers or retailers segment the market? And lastly, is the overall market and its segments growing or shrinking?
Thinking about both markets you wish to investigate, the internet and Google have made this exercise much easier but I would start by visiting a couple of stores or sections in-store where you can imagine your new products being sold. Look at what is currently offered by suppliers at the moment. Make a note of the supplier names, equipment or feed manufacturers and if you have access to the internet start by looking at their websites.
Larger suppliers may produce annual reports, and often in the chief executive’s statement you can find either a reference to how they describe their markets or sometimes their estimate of the market size or their percentage market share. Compare this to their sales and you have one estimate of market size.
Often these have very limited information without paying a subscription but you might find headline information to help. You might also find articles that reference this data which can be forthcoming,