How to Break the Market

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When we started working with the <Irbit Motorcycle Plant>, we were faced with the task of determining why the plant’s sales were falling.

Segmentation is one of the key components of market analysis. Only through segmentation can a company understand what sales potential its products have, who it will compete with, and how its competitiveness will be ensured.

There are many criteria for segmentation. You sri lanka whatsapp data segment the market by consumer characteristics, by product characteristics, by the specifics of the consumer purchase process, by types of distribution channels; you can develop criteria for a specific company task. Due to the huge number of parameters, segmentation becomes an extremely complex process - after all, it is necessary to identify key criteria and formulate the sequence of their application.

In our practice, we have repeatedly encountered both successful and incorrect examples of segmentation. As a rule, failures are associated with the fact that segmentation is carried out in a template manner. As a result, a certain market structure is obtained that does not fully reflect the general situation, although in some cases it can be applied in practice. For example, it is important to outline the boundaries of the market in which a company can operate. Nevertheless, in many business plans, companies consider the market as a whole, without cutting off those segments where they cannot operate in principle.

There are a number of principles that should be followed when starting segmentation. For example, it is very important to have a picture of the market as a whole. To do this, it is recommended to start segmentation from scratch, describing the market structure and existing market trends. In-depth market research should logically follow from the consolidated analysis. Hypotheses and questions revealed during detailed segmentation should complement the results of the preliminary analysis.

When we started working with the <Irbit motorcycle plant>, we were faced with the task of determining why the plant's sales were falling. There was demand for motorcycles - Japanese and German models were sold, but not <Urals>.