Market Factors Review
1. Commercial Value Proposition
A commercial value proposition defines why someone will want to buy and use your product. Please capture:
- What is the potential value to each of your stakeholders identified in the Human Factors section?
- What economic benefits does your product bring to each stakeholder?
- What must-haves does the market demand for this kind of product?
Additionally, please articulate how you're going to leverage this value proposition to build a market. Specifically:
- What are the key market segments you see?
- How will you target for your sales (e.g. which segments), both at first and then as your product becomes more established?
- What sales and marketing techniques will you leverage to grow your market?
- What price point do you project for your product?
- What costs do you anticipate for developing your marketing materials and executing your early sales?
2. Market Sizing
Defining your market size is critical to helping investors understand the opportunity you see. You should estimate both your regional and global market sizes, as well as your beachhead market (first launch market) and subsequent expansion markets. Make sure to include both the overall size and the addressable size (e.g. the percentage of the overall market you can address). You can quantify your market size in a number of different ways. Some typical values include number of procedures done with similar products, number of patients affected, total money spent addressing the need, etc.
Additionally, make sure to capture any trends you see that will affect your market, such as emerging technologies, new health economics, etc.
3. Competitive Landscape
You should have good visibility into your competitors. Competitors are any product or technique that aims to address the same need as you. One useful way to capture this is using a table like this:
4. Value Analysis
Relative to the market, please articulate:
5. Risks & Mitigations
Every new venture faces risk. Please articulate your risks and how you plan to manage each one.
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