John Grifonetti Offers Insight Into Assessing Potential Growth in Emerging Markets

Discovering New Customer Segmentation Patterns

To understand the demand for your product, you must pick out common customer segments with shared characteristics. These can be easily defined, like age, gender, location, education level, income level, and occupation. They can also be more subjective, like purchasing motivations, values, attitudes, and lifestyles.

Purchase Analysis

To discover hidden markets, it is a good idea to find out how, when, why, and where people purchase your products. Take a look at the payment methods, distribution channels, retail locations, and other factors that play into positioning your product.

Direct Competitive Analysis

Next, you need to find out what your competitors are doing and determine what advantage you have over them. Knowing all of the existing players in the market can give you the power to find areas where they are falling short and where you can present a better alternative.

  • In our industry, which products and brands are growing the fastest and why?
  • What proposition of value do they possess?
  • What is our competitive advantage over these companies?

Indirect Competition

It is a good idea to sit down and think about industries that run in parallel with yours but are not necessarily direct competitors. If your industry serves a similar but not identical clientele, think about how you can lure them toward your alternative product or service. For example, if an airline wants to increase its market share, it could advertise to customers who take long-haul buses and trains. Drawing a contrast between your business and the service they are currently using may give them a good reason to switch.

Complementary Products

Companies should be on the lookout for other companies’ complementary products. For example, if you have a packaging company, keep an eye on items produced locally that your company could package. Providing an affordable local alternative may be an attractive choice for a manufacturer accustomed to sending their products some distance away to be packaged. John Grifonetti believes that this tactic may be one of the most advantageous.

Look Into New Industries

If you feel that your company has already exhausted most of these methods of looking for new markets, it can be a good idea to analyze other industries and see whether your company could branch out. For example, the British airline Easy Jet later applied its business model to Easy Cinema and Easy Bus.

Learning to Compete Intelligently

Finding out how your company can expand into new markets can help you increase your profits and your overall reach. Having a better ability to compete in a broad market will enable your company to survive and thrive in a highly competitive market.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
John Grifonetti

John Grifonetti

John Grifonetti has built a career investing into small businesses and personally helping them grow with his considerable acumen for understanding markets