What are the best ways to use market analysis for disruptive innovation in the ID innovation market?

2 Define the value proposition

The next step is to define the value proposition of your disruptive innovation, which is the unique benefit that you offer to your target customers that differentiates you from the competition. The value proposition should be clear, compelling, and customer-centric, and should address a specific problem or need that is not adequately solved by existing solutions. You can use market analysis to validate and refine your value proposition by testing your assumptions, collecting feedback, and measuring customer satisfaction and loyalty. You can also use market analysis to compare your value proposition with your competitors' and identify your competitive advantage.

3 Evaluate the market potential

The third step is to evaluate the market potential of your disruptive innovation, which is the estimated size, growth, and profitability of the market that you can capture with your solution. The market potential depends on several factors, such as the customer demand, the willingness to pay, the adoption rate, the market share, the price, the cost, and the margins. You can use market analysis to estimate and project these factors using various methods, such as surveys, interviews, focus groups, experiments, benchmarks, and models. You can also use market analysis to assess the risks and uncertainties that may affect your market potential, such as customer resistance, competitive response, technological obsolescence, and regulatory changes.

4 Segment the market

The fourth step is to segment the market for your disruptive innovation, which is the process of dividing the market into smaller groups of customers who share similar characteristics, needs, or behaviors. Market segmentation helps you to target your customers more effectively, tailor your solution to their specific needs, and optimize your marketing mix. You can use market analysis to identify and select the most attractive segments for your disruptive innovation based on various criteria, such as size, growth, profitability, accessibility, and compatibility. You can also use market analysis to understand the needs, preferences, and expectations of each segment, and how to communicate and deliver value to them.

5 Position the innovation

The fifth step is to position the innovation in the market, which is the process of creating a distinctive image and identity for your solution in the minds of your customers and competitors. Positioning helps you to differentiate your innovation from other alternatives, highlight your value proposition, and build a strong brand. You can use market analysis to develop and implement a positioning strategy that aligns with your target segments, your competitive advantage, and your marketing objectives. You can also use market analysis to monitor and evaluate the effectiveness of your positioning, and how to improve it over time.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?