Team:Queens Canada/Market-Segmentation-Analysis
Market Analysis
Introduction
Market Segmentation Analysis is a powerful tool that can be used to divide up the market into smaller groups of consumers to assess each group’s needs, characteristics, behaviour, finances, and more. By better understanding our consumers, we can adapt our testing device to better suit the end-user. This includes analyzing the needs of the consumers of the different groups and assuring that all market segments would prefer the device to be at a low cost. We started this investigation by looking at questions commonly asked in a market segmentation analysis to determine a good starting point. We then created the market segments and evaluated each of their needs. Our team then created a scoring section where each aspect of the testing device and the attractiveness of our device to consumers were evaluated and totaled up.
Choosing a Beachhead Segment
- Is the target consumer well-funded and are they readily accessible to our sales force?
- Do they have a compelling reason to buy?
- Can we today, with the help of partners, deliver a whole product to fulfill that reason to buy?
- Is there no entrenched competition that could prevent us from getting a fair shot at this business?
- If we win this segment, can we leverage it to enter additional segments?
- Can we show results in a time frame consistent with the founder's personal agendas?
Market Segmentation
Outdoor Enthusiasts
Outdoor enthusiasts encompass a broad range of people from endurance athletes, to climbers and bikers or casual day hikers. This is one of the largest market segments for SUBLyme because it contains many large subsets of people. This market segment is likely to have a need for this device as they are a community that frequently spends time in the natural habitat of ticks which consists of tall grass and wooded areas. Ticks are commonly found on the clothes and bags of hikers and campers. Many times, they will not be removed and disposed of properly without a hospital visit or any confirmation that the tick was clean. Hikers and campers often do not understand the severeness of this disease. This group would greatly benefit from a fast and easy way to test ticks for Lyme disease.
Pet Owners
Pet owners are another fairly large market segment with many pet owners having pets being bitten by ticks. This market segment exists as pets, primarily dogs, tend to run in tall grass or wooded areas where ticks reside with little regard for avoiding said ticks. As a result, dogs can pick up larger amounts of ticks and these ticks can hide more easily in the fur of the animal while going undetected. Animals are typically not treated until they show symptoms which can take between months and years. This test can easily allow pet owners to test the ticks found on their pets for the presence of Borrelia burgdorferi.
Ranchers and Livestock Owners
Lyme disease can occur in many farm animals including cattle, chickens, goats, horses, pigs, and sheep. When infected, animals can exhibit lameness, arthritis, and many other symptoms. Testing farm animals is a fairly uncommon process and therefore, the livestock-owning community could benefit greatly from a method of testing for Lyme disease in ticks they find on their livestock. The market segment is fewer in number and overall, less concerned about Lyme disease than the two demographics mentioned above.
Equestrians
Although horses are farm animals, we decided to distinguish horseback riders as their own demographic since they utilize these animals for recreational purposes. Horses can cover very large distances and often ride through fields and wooded areas where ticks are commonly found. The horse's caregivers can use this test to help identify Lyme disease in ticks found on the horse and can prevent long-term sickness.
Medical Community
Medical professionals will always have the need for fast and accurate diagnostics for diseases like Lyme disease resulting in a good market for products like this. Currently, the Ontario government does not test ticks directly but tests humans for Lyme disease. Fast diagnostics in a clinical setting are crucial for patient wellbeing and are a market segment worth carefully considering for our product.
Vetenerians
Animals of all kinds are frequently bitten by ticks and in regions such as Kingston where Lyme disease is found in almost half of all ixodes ticks, diagnosis is critical.
Researchers
Researchers were considered as a possible market segment but there are tools available at a much higher cost that can accurately and quickly sequence pathogens in a variety of animals and insects that researchers have access to that the public may not. Therefore, this demographic was not accounted for in our segmentation.
Evaluation
| Industry | Outdoor Enthusiasts | Pet Owners | Ranchers | Equestrians | Doctors | Vetenerians |
|---|---|---|---|---|---|---|
| End User | - Hikers - Campers - Climbers - Runners | - Dog Owners - Rabbit Owners | - Farmers - Ranchers - Breeders | - Clubs - Recreational Riders | - Hospitals - First Aid - Walk-in Clinics | - Clinics - Hospitals |
| Application | - Self-Testing | - Animal Diagnosis | - Animal Diagnosis | - Animal Diagnosis | - Patient Diagnosis | - Animal Diagnosis |
| Benefits | - Universal - Low Cost - Very Fast - Small and Lightweight | |||||
| Market Characteristics | - High Price | - Rural | - Not as concerned with ticks | - High Price - Looking for specificity/sensitivity | ||
| Size of Market | Large | Large | Medium | Small | Medium | Small |
| Competition | Lab Tests | Lab Tests | Lab Tests | Snap Tests | Lab Tests | Snap Tests |
| Platform | - Outdoor Stores | - Pet Stores - Vet Clinics | - Vet Clinics - Mass Purchasing Platforms | - Equestrian Shops - Track Stores | - Medical Suppliers | - Vetenerian Suppliers |
| Needs | - Easy to use - Quick results - Light weight - Small size - Relatively accurate indicator of whether a hospital visit is needed | - Small size - Light weight - Easy to use - Accuracy to whether a vet should be consulted | - Easy to use - Sensitive - Specific - Accurate | - Easy to use - Small size - Light weight - Sensitive - Specific - Accurate | - Quick results - Sensitive - Specific - Accurate | - Quick results - Sensitive - Specific - Accurate |
Selection
| Market Segment | Outdoor Enthusiasts | Pet Owners | Ranchers | Equestrians | Doctors | Vetenerians | Description |
|---|---|---|---|---|---|---|---|
| Buyers | 5 | 4 | 2 | 2 | 3 | 3 | How many buyers exist in this segments of the market? |
| Funding | 4 | 4 | 3 | 3 | 5 | 5 | How well-funded are the clients? Would finances be an issue for this segment of the market? |
| Accessibility | 5 | 5 | 2 | 2 | 1 | 1 | How easy is it to interact and do business with these clients? How easy is it to make deals and perform transactions? |
| Usage Frequency | 1 | 2 | 1 | 1 | 4 | 4 | How often would the customers use the product? Would it be a daily usage or a sparse usage? |
| Competition | 4 | 2 | 4 | 5 | 1 | 1 | How much competition exists for the current market in this segment? A higher score indicates more of a monopoly. |
| Industry Standard | 2 | 2 | 2 | 1 | 5 | 5 | How accurate does the test need to be to satisfy the customer? Does the test need to be an indicator to see a professional or a be-all end-all test? |
| Customer Quality | 5 | 5 | 3 | 3 | 2 | 4 | How easy is this range of customers to interact with? Are they friendly and easy to work with? |
| Ease of Use | 5 | 5 | 3 | 4 | 1 | 2 | How big of a demand is there for a product that is easy to use? Would this segment of the market settle for a test that is more complex, bigger or heavier? |
| Total Score | 31 | 29 | 20 | 22 | 22 | 25 |
Results
As seen in the table above, we compiled a variety of market segments and created a table to characterize all of the different attributes for each segment to view the value of each one. From there, we took those segments and created a ranking system for different qualities that make up aspects of the device and aspects of the buyer. From this analysis, outdoor enthusiasts appear to be the largest market and are closely followed by pet owners. This is because there are no instant and cost-effective testing alternatives available to consumers. However, medical and veterinary professionals have the ability to perform lab tests which can be time-consuming but are highly accurate. Our analysis also shows that ranchers and equestrians would be less likely to buy a Lyme disease test as from our findings, it seems ranchers are not concerned about their cattle contracting Lyme disease to the same degree as pet owners or outdoor enthusiasts. The same stands for equestrians. Additionally, the test is also in better standing with the outdoor enthusiasts and the pet owners as the test doesn’t have to be a final diagnostic, but an indicator of worry. This is because, if the tick tests positive for Borrelia burgdorferi, it does not mean it has yet transferred to the one bitten. Therefore, if the tick tests positive, it is an indicator that the person performing the test should have them, or their pet further tested.