Every market analysis should supply at least three key measures: Dimension, tendency, and segments.
Typically, the market segments do not exceed 2 to 4. A market segment is a part of a whole market and can be defined according to three criteria. It is
- Large enough (in volume, value, number of customers, or other characteristics) to attract one or more competitors
- Specific and clearly distinct from other segments because it accounts for a specific purchase reason
- Homogeneous as it accounts for objects or persons with similar characteristics and/or ways of thinking
For the whole market and for each segment we:
- Describe the size, in volume and value, and
- Compute their growth over a predefined time lag, for instance weekly or yearly
This gives a clear and synthetic view of the playground. In a second step we can go deeper at the single competitor level.