View    arrow
TMCVocabulary

How to Chart a Market Penetration Strategy

pg.1

By Eugenia Jones

Eugenia Jones Situation

Ten years ago, when nanotechnology was in its infancy, a group of accomplished academics and entrepreneurs formed a company to development products for materials research and industrial markets based on a strong intellectual property portfolio. The company successfully launched several products for industrial customers, and was selling nanofabrication systems to material science researchers and engineers. We offered two systems: one for “methods and materials” developers which provided the end user with maximum flexibility and resolution; and a second, lower-priced system, with a smaller footprint that allowed users to pattern materials onto substrates with lower resolution, and less flexibility compared with our other system. As is the case in many emerging technology markets there was no clear leader in the nanolithography market, and most sales were to innovators in materials science and engineering.

How to Define a Market Segmentation MapWhen we noticed that some of these innovators were using our systems to develop methods for the deposition of biological materials, we saw an opportunity to expand into the biomedical technologies market where nanoscale material deposition was a means to an end, rather than the end goal. Marketing research identified several segments in the broader biomedical technologies market, with forecasted total sales exceeding $2 billion in the near term, and a CAGR of 26%, as targets for equipment sales.