Understanding Market Need
“Agreed,” Lucy said. “So let’s figure out which market opportunities represent the best new revenue potential for FEI. Before we do this, we must make a list of the market niches we’ve already filled with current product offerings.” She wrote:
Hearths – Homeowners and consumers direct.
Entertainment – Events, fireworks and celebrations.
Matches – Small self-lighting products.
Décor – High-fashion torch hardware.
Business to Business – Cooking, heating, industrial energy and more.
Org scowled. FEI simply hadn’t been capitalizing on all of its market opportunities. “How much market share do we hold in each?” he asked with concern.
“Competition from Pyro has been intense, but many people wouldn’t buy any brand other than FEI for their homes. Flintstone had the jump on the self-starting fire market, but our matches are winning in side-by-side comparisons. Entertainment is a niche market, in which no clear market leader has yet emerged. Décor will never be a big business, but profit margins can be high. Finally, I think we can all agree that the B2B market represents the best opportunity for FEI’s new products,” Lucy said.
“So what is our strategy for targeting new markets?” Org asked.
“The iFire is an emerging market if there ever was one,” Zoot said. “We can leverage the popularity of newer technologies to create products that will be wildly popular with the teenager, young adult and early adopter segments.”
“The Olympian healthcare network is expanding,” Numo offered. “Hospitals need fires to keep patients warm.”
“Another great idea,” Lucy agreed.
“There’s a grape-load of opportunity in the business-to-business sector,” Zoot said. “Developing products specifically for restaurants, banks, offices and other businesses could be a short path to new market share as well.”
“Selling through different distribution methods is another route to different markets,” Org suggested.
“Wonderful work, tribe!” Lucy exclaimed. “Yet this is only the first step of our product development strategy. Next we have to analyze our own core competencies to ensure we can create products that will be appropriately valued within these markets.”