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MenuHow can I estimate the market size for a platform business that combines product information with consumer behavior information?
The platform uses a barcode reading mobile app to combine product information with consumer behavior (with full information). We are struggling to understand what is the size of our potential market (BeNeLux + EU), given that we want to sell market reports to brands, on the real drivers behind consumer choice - FMCG and retail in particular.
Any suggestion helps, and I would be happy to talk further!
Thanks!
Answers
If your market is 'market research' then you can easily top € 1BN in EU alone. If you're creating a new market then to calculate total addressable market I'd look at similar products and multiple their price x number of prospects, or calculate the financial cost/upside for your prospects x number of prospects. In NL alone there are about 1500 FMCG suppliers I believe
Related Questions
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Do you think this can be a successful business venture?
I have several years of experience in marketing and optimization in the eCommerce space for one of the largest online jewelry retailers in the U.S. I also have several year of experience working with online retailers that operate under a subscription models. In order to answer your question, you will need to consider the following: Will your subscription revenue generate enough income to maintain the operational strains of this business model and be profitable? If you do not know the answer to this, you need to work backwards to arrive at the monthly pricing for your subscription service. Some things to consider: 1. Cost associated with operational logistics like shipping and fulfillment (assuming customers have to receive and ship the jewelry back to you) 2. Carrying costs associated with holding on to inventory on consignment. (assuming you will not own the jewelry outright) This may come with other contingencies like having to carry insurance and the operational aspects that will help you handle recovery of lost / unreturned inventory, etc. 3. Costs associated with building a transactional platform that is built for the monthly activity you will have with a subscriptions service. If you take Macy's for example, most customers place online orders 4 times per year or so. In your case, the nature of your model requires a different platform as you will be taking recurring payments, arranging returns, maintaining credit card / payment information, etc. In short, its a different animal that your startup eCommerce type platform. If you'd like to get more details or insights I'd be happy to hop on a call and chat.MP
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Should physical products (skincare, in our case) always be available in brick and mortar stores? Is being online-exclusive brand suicide?
That depends on how differentiated you are from existing products and if having your product next to a dozen competitors on a shelf will help sell it. Do customers need to touch it to see why it's different/better? If not, brick-and-mortar might not be necessary, at least initially. Warby Parker overcame this issue by making their glasses easy to return. Try on a few frames and return the ones you don't want.FP
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What are the best strategies or resources for selling B2B to independent stores in the consumer products space?
Based on the details mentioned by you it seems that you want to break the status-quo of your business. I would advise you to revisit your business model than just looking at enhancing sales. That means, you should pen-down your top 3 business problems/challenges, analyze modern technology and platforms that could be leveraged, and map your business with appropriate solution (s). Larger part of above exercise will be to develop an "Integrated Growth Plan" with monetization enhancement as the hub. Do ensure not to just look at "Sales" number as the problem as well as solution. That may end you up with burning too much capital for too many things with too little solutioning potential. In my decade of experience working with entrepreneurs I've seen people often confusing symptom to a disease, only to cure the symptom and let disease prevail. Hope above helps!! All the best!! Need to discuss anything further? I am just a clarity away.SB
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I started an all natural dog cupcake business w/ my sis that gained popularity fast, but we don't know what the best business model is for us to grow?
Having 4 dogs and being a former sugar addict, I love the idea of dog cupcakes, kudos! My wife and I are currently solving a very similar issue with her t-shirt business. We don't have a freshness issue to deal with like you do, however we do have a scalability and growth issue that we are tackling. Understand, there isn't really anything that remarkable about dog cupcakes, it's cool concept but it would be very easy for someone to deconstruct and create their own recipe and brand. So you'll need to focus on how you sell your cupcakes. What value you offer your customers? Why your recipe is unique? Is there any portion of your product, formula or service that could be trademarked or patented? Do you have a memorable name, tagline and mascot? Are the health benefits to your product? I know that in some cases pet food can be highly regulated so you may not be able to make specific health claims. Next, I think you should look at a three pronged approach that is scalable: 1. Continue to develop your local market, treating it like a test kitchen. Work on new recipes, concepts, products, ideas and test them locally. Build a unique product line and a unique system for creating those products. 2. Develop a strong network of pet owners, pet shops, boutiques, organizations and so on. 3. Market your dog cupcake system and sell it as a turnkey package. This could be as simple or as fancy as you want to make it. The simple way would be to sell one time "starter package" with upgrades on a subscription model. This would include order forms, marketing plans, marketing materials, new product ideas, training videos, shopping lists, ingredients and so on. The expensive way would be to lawyer up and create an actual franchise but this can be very very expensive. I hope this was helpful and I'd be happy to work with you further on developing your business. Good luck and I look forward to buying Sadie, Charlie, Nixie and Sachi some tasty treats from you in the near future!SM
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If you had an online marketplace for market-research freelancers, what kind of companies and project would you target?
Maybe hire a freelance market researcher to find out? ;) Generally, something like this is going to appeal to fortune 500 companies. Smaller companies and entrepreneurs are going to be doing market research themselves. From the question it is difficult to tell if you have come into possession of such a platform, or are thinking about building one. Regardless, to succeed it's crucial that you deeply understand who your target customer is and what pain you are solving for them. Most ideas for a business stem from the entrepreneur's discovery of a solution to a problem for a certain group of people. Since who has the greatest need is unclear to you at the moment, the best thing to do might be to contact people at companies who you think have the greatest need. Find a way to get in touch with someone at the company involved in hiring market researchers, and ask them what challenges they face. You can also talk with a few market researchers themselves to get an idea of where they see the greatest demand of companies looking to hire them. Hope this helps.BM
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