Market opportunity analysis and sizing detailed analysis of the opportunity. It involves:

• Defining the problem statement of the target market
• Defining the target customer profiles and segmentation
• Estimation of total volume of the target customers
• Estimation of total market size and its growth rate
• Estimation of total addressable market size

Product Management Head initiates the market opportunity analysis and sizing activity after the approval of product idea (by management). In this module the first step is precisely defining/detailing the problem (or pain area, or market need) considered for IP/product development. Eliminate ambiguities to the extent possible so that it helps in clearly identifying the target market/customers facing the problem and willing to pay for the solution. 

Based on the problem statement defined above and using market research data identify and define typical target customers to whom the IP/product can help. Also try to group different target customers into multiple customer segments based on different parameters (eg: geography, size, industry, etc). Prepare summary of analysis of this customer segmentation with details including segmentation parameter and associated segments, characteristics of the segments with respect to problem statement.

Considering the above data and inputs from market research activity, estimate the total number of target customers in each segment.  The sum total of each of the customer segments shall be the total volume of target customers.

Estimate the potential amount that target customers in each segment would be ready to pay for a product/service (conceived to solve the identified problem). Use the data from market research activity for this estimation. Derive the total size of the market in Euros/USD. This represents the business potential considering that product has 100% market share. However due to various constraints (viz., competition, geography, company capabilities etc) the percentage of the market share can be much lower than the total market size. Considering all these parameters having impact on the product, estimate the percentage of the market share. From percentage market share and total market size estimate the Total Addressable Market size. Estimate the above for next three to five years. 

Roles & Responsibilities:

Trigger/Entry Criteria:

Evaluation of IP/product opportunity/idea has been cleared/approved for next steps.