How do I estimate the market share of my product?

While market share estimates are by their very nature uncertain and at best educated guesses, it is important to have an understanding of the overall market that you anticipate selling into before defining what is feasible for your product. Some factors to consider are the percent of patients who are diagnosed, treated and compliant; essentially who knows they have a problem, who’s doing something about it and who cares enough about the problem (or the solution is convenient/cheap enough) to do continue doing something about it. Other important factors are the rate of change in the market size, trends in the market (and related markets that might affect your market) and how your product will be sold and the amount of effort that will be put into selling it. It is important to understand who is going to be purchasing your product (end users, hospitals, insurance companies, etc) and what factors they consider when making a purchase (eg. cost, quality, speed, reputation, etc.). If you are creating a market that is not currently being served, remember that some people who may have the problem your product solves, may choose not to solve it. And if you create a lucrative market, others will be sure to follow you into it, so it is prudent to always be conservative in market estimates.

Darren Fast, Ph.D.
President
Solalta Advisors
49 Nutley Circle
Winnipeg, MB R2N 1S2
204-229-8831
dfast@solalta.com
www.solalta.com

Do you have questions on investment options? Send your questions to Katherine Taverner