Saturation and attractiveness of the market

Knowing the saturation of the market in which you operate or plan to enter is key information for decision making. When entering the market, the research will avoid risks, which means saving several tens of thousands of dollars. When working in the market, research will provide information in which direction to develop and an understanding of the financial horizon for your company.

Assessing market attractiveness will clearly show how your market performs compared to other markets.

The saturation and attractiveness of the market is the first thing that interests founders, investors and top managers at the stage of determining strategy and making management decisions. The saturation of a market or a particular area is key information when deciding to enter a new market or segment and when investing.

There are several approaches and methods for analyzing attractiveness, including those proposed by well-known consulting companies: the McKinsey matrix, the Boston Consulting Group matrix, the GE matrix and many others.

Our company has developed and uses in projects, in addition to those listed, its own approach to analyzing market attractiveness, which allows us to clearly demonstrate the situation on the market and make an important decision for the company (BCGroup market attractiveness matrix). Customer satisfaction is our top priority and we are proud to be able to meet the expectations of even the most demanding customers.

The minimum size of a representative sample for such projects per region is 400 questionnaires. By region we mean any territory for which separate analytics is required (this could be, for example, a city or country). In cases where it is necessary to separately consider and compare data from, for example, 2 cities, the minimum sample is 800 questionnaires. The minimum period for surveying this quantity is 1 business day.

The cost of the project to determine the saturation and attractiveness of the market consists of the cost of collecting a selected number of questionnaires (payment is taken only for fully completed questionnaires) and the cost of analytics (usually no more than 15% of the cost of data collection)

You can calculate the cost of one questionnaire yourself using our calculator (you will need to enter the number of open and closed questions in the questionnaire, quotas)

The cost of such a study is from 2000 £ (the cost is indicated for a minimum sample).

From a mathematical point of view, market saturation is the ratio of market capacity and market potential. From an economic point of view, this indicator indicates how attractive the market is, what stage of development it is at, and what its growth potential is.

Projects to assess market saturation using the information collection method are typically quantitative (conducted using surveys). Qualitative research (for example, expert interviews) is less commonly used because it has a much larger margin of error.

Data obtained during surveys are processed in a special way and calculations are carried out. The result of the project is information presented in a visual form in the form of matrices, as well as a saturation coefficient.

BCGroup's work on assessing market saturation is structured as follows:

1. An NDA (confidentiality agreement) is signed between BCGroup and the company
2. A BCGroup specialist clarifies the reasons that necessitated such a study, understands the current situation on the market, and examines the development of the market in recent years
3. A BCGroup specialist agrees with the customer on the research methodology, the final version of the survey questionnaire, guides for expert interviews (if conducted)
4. BCGroup specialists conduct a survey using the agreed tools within the timeframe agreed with the customer (it is possible to survey up to 5,000 people per day)
5. Next, the BCGroup employee transfers the data array to the customer’s representative in Excel or SPSS format
6. After 8-15 days, a BCGroup employee sends an analytical report to the customer based on the results of assessing market saturation. Typically this is a full version of the report and an executive version in presentation format of up to 20 pages