How to perform a market analysis in product discovery

As someone who has been involved in various phases of product development, I can say that market analysis is a crucial part of product discovery. Before you start developing a product, it is important to understand the market and the competition and to assess whether there is an unmet need that the product can satisfy. In this post, I will share my experience and best practices on how to conduct an effective market analysis in product discovery.

Definition of market analysis

At its core, a market analysis involves the evaluation of demand and supply in a particular market. The objective is to understand market dynamics, identify unmet needs and evaluate business opportunities.

Data collection

The first step in market analysis is to collect data. In general, it is advisable to start with a review of existing literature, such as industry reports and market studies. In addition, you can make use of information found online, in social networks, and in specialized forums. Surveys and interviews with potential customers and industry experts can also be conducted.

Competitive analysis

One of the most important aspects of market analysis is competitor analysis. This involves evaluating direct and indirect competitors in the marketplace to understand their offerings, positioning, and pricing strategy. This analysis can also help identify opportunities for differentiation and determine what features are important to customers in the marketplace.

Demand analysis

Demand analysis is another crucial part of market analysis. This involves assessing the market size, market segments, and potential customers. Purchasing trends, unmet needs, and problems that customers are currently facing in the market should also be considered. In addition, growth opportunities and emerging trends can be assessed.

Product strategy selection

Once the information has been collected and analyzed, it is important to use it to determine the product strategy. In general, product strategy should be based on an understanding of unmet market needs and business opportunities. It is important to consider the competition and potential customers when making product decisions and to ensure that the product offers differentiated value.

Conclusion

In summary, market analysis is a critical step in product discovery. Through data collection and analysis, you can better understand the market, the competition, and potential customers. This in turn can help determine product strategy and ensure that the product offers differentiated value. As someone who has been involved in several product development projects, I can say that market analysis is a key part of success in creating successful products.