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About this assignment
What's involved in assessing a market opportunity?
What should I remember about assessing a market opportunity?
What do the experts have to say about assessing a market opportunity?
About this assignment
What is your role?
You and Susan have worked hard to develop a thorough understanding of the dog grooming market in Empire City. You’ve identified the specific consumers to which you expect to market Petopia’s services and have examined the competitive landscape. The next step in moving Petopia from dream to reality is to start estimating how many customers Petopia might attract and how much revenue these customers could represent.
Why is this assignment important?
Once you’ve convinced yourself that a market exists for your product or service, and have outlined your competitive advantage, you need to start estimating the number of potential customers and determining how much money they would likely spend on your product or service.
As part of this process, you’ll use what you know about your potential customers and about the competition to estimate a reasonable price for your product or service. By analyzing the size of the target market and your price point, you’ll start to understand how much money your business might actually be able to bring in. This is your market opportunity.
In addition, you might start to consider ways to maximize the size of that market opportunity. What would happen if you charged a higher price? Sold additional products? Adjusted the hours of operation?
How will this assignment work?
In this assignment, you’re going to:
- Review all the information you have about dog grooming in Empire City.
- Look back at the work you completed in prior assignments.
- Recommend a price for Petopia’s basic groom and quantify the market opportunity.
You will document your assessment of the market opportunity using an Excel workbook. In addition, you’ll be asked to send Susan your conclusions, your recommendations to increase Petopia’s market opportunity, and your impressions of the biggest risks to Petopia’s success.
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