Determining a market’s size and the viability of a new product (or service) opportunity is a multifaceted and iterative process. The necessary research is part qualitative, part quantitative with estimates drawn while the product definition is changing in the background. Discipline is necessary. A flexible process is a must.

Our approach involves first understanding the total potential for the product-category and second, a market share estimate for the new entrant offering. Asking the right people, the right questions, at the right time is the key for estimate accuracy.

In many cases, sizing markets and optimizing product design go hand-in-hand along with pricing and other market mix elements. The study design must accommodate several variables which are typically not well understood and subject to change as new information is uncovered. Through our process we elicit the most important attributes and determine the range of acceptable limits for each during the qualitative interviews with carefully selected study participants. Learning the range for each salient attribute is key to future quantitative surveys used for sizing both the overall market potential and the specific product’s opportunity size.

The definition of the target market for a sustainable-oriented product or service and related selection of in-depth interview participants is a critical step in the process. This first step can take the study off course if not done well. For example, including individuals who are indifferent to gasoline mileage or electricity efficiency in the qualitative phase could influence less importance on efficiency in quantitative concept test and thereby minimize understanding of top-level efficiency attribute levels. Because IDI’s influence the range of levels tested for each attribute, it’s imperative that interview participant selection be diligent.

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