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the coffee market) that that company is trying to penetrate, and remove pieces of that market that it will not target.To triple offset butterfly valve begin, it is critical to understand why traditional market sizing methodologies are ill-equipped to size emerging markets.

Growthink calls the first approach "peeling back the onion.For instance, if the company created an ultra high-speed coffee maker that retailed for $600, it would initially reduce the market size by factors such as retail channels .As President of Growthink Business Plans, Dave Lavinsky has helped the company become one of the premier business planning firms.The second methodology requires assessing the market from several angles to approximate the potential market share, answering questions including:?Competitors: who is competing for the customer that you will be serving; what is in their product pipeline; once you release a product/service, how long will it take them to enter the market, who else may enter the market, etc. Growthink clients have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share.

Customers: what are the demographics and psychographics of the customers you will be targeting; what products are they currently using to fulfill a similar need (substitute products); how are they currently purchasing these products; what is their degree of loyalty to current providers, etc.The challenge that many firms face is their inability to size their relevant markets, particularly if they are competing in new or rapidly evolving markets.

To illustrate, if a research firm were to use traditional methods to size a mature market such as the coffee market in the United States, it would consider demographic trends (e.In developing their business plans, companies of all sizes face the challenge of determining the size of their markets.past sales, demographics of the customer when there are no current customers) don't exist because the markets are presently untapped. Defining and communicating a credible relevant market size is far more powerful than presenting generic industry figures.