Market attractiveness is a measure of how profitable or desirable a target market is for a particular business. It examines factors such as the size of the target audience, their purchasing power and preferences, competition within that market, potential for growth, and so on. The analysis can also look wider at the country conditions and macro economic trends.
It is often used by companies to provide a more grounded view of the market potential. This closer analysis involves looking at what part of the market could actually be reached, the market conditions, level of investment required and degree of fit with a company's existing / planned capabilities.
Ultimately, it is designed to help businesses prioritise their resources by identifying areas with high potential returns on investment. It is also a valuable tool attracting investors and demonstrating expert knowledge for marketing and starting conversations with prospective customers.
Analysing Market Attractiveness
Using our proprietary analysis framework, we can conduct a holistic market assessment or just focus on a specific aspect. It is tailored to your needs.
Our approach is based on delivering a transparent and objective assessment of the market size, its attractiveness and the presence and capabilities of competitors. We also invite our client’s to conduct a similar evaluation of their own capabilities and appetite for risk and give the tools to do this.
We tailor the approach based on each customer's requirements:
Industry-level analysis looks at factors like consumer demand, cost structure, government regulations etc.
Customer-level focuses on consumer needs and behaviours; and segment-level looks at product categories or consumer segments.
We have used this approach with companies of all sizes, scaling the depth of analysis to meet the time and budget requirements of each client.
We use a weighted score method to transform the collected market information into a set of factors that are objectively scored. This gives the process full transparency and credibility to the results.
We use quadrant maps to plot the relative attractiveness of each market, with bubbles used to show their size. This transforms complex market information into clear recommendations.
If you would like to know more, please get in contact. We will be happy to help.