It’s important that the niches identified for any new product or service add the most value to your business.
Steps to take include:
- Critically evaluating the value of entering a new sector: Taking into account the budget available in the short, medium, and long-term prospects of the sector.
- Testing the market view of your idea: Screening for market sentiment, prior to devoting further time or resources to an idea is a vital action to take.
- Testing the economics of your idea: This includes conducting primary and secondary research to highlight niches, as well as informing what price and volume assumptions should be considered.
- Choosing the best way/s to exploit the opportunity: After research and rigorous testing, it is important to determine the right entry model. Should you access opportunity directly, by partnership, joint venture, acquisition, or another model?
A wholesaler of luxury fragrance was looking to test consumer appetite for a new perfume concept they intended to retail independently.
We helped identify and poll likely consumers to understand what price premium was achievable given the luxury perfume concept differentiators.
We were able to establish that two price/volume points could optimise profit.
This allowed us to develop a financial model that, in turn, could be used to obtain growth capital.