Marketing strategy - New Product Opportunities
To position a current, or new product, it is important to really understand the market that you operate in, or that you want to enter. You need to know if it is homogeneous, or composed of very different sector requirements. Are there big potential markets, or only niche ones? e.g. is instant coffee primarily a mid morning break drink, or one of many choices that satisfy different people at different times of day?
Segmentation (that can be identified by clustering and other multi-variate analyses) shows the key variables that differentiate the different segments (e.g. demographics, psychographics, needs, attitudes/ beliefs, consumption, habits), and the size of each segment.
From this understanding, a brands position can be determined as well as market gaps.