Out of all the potential target audiences we have reviewed, we have chosen to target iPad to the elderly as our initial entry into this industry. Below is an End-User Profile of our Beachhead Audience describing their demographic information, psychological and emotional profile, and finally, their primary “needs” and “wants.”
We have also included a market size analysis via our TAM, SAM, and SOM table below to assess how big our beachhead market will be. Please note that the TAM (Total Addressable Market) is the total size of the industry. In contrast, SAM (the Serviceable Addressable Market) is the size of our beachhead market after applying demographic and geographic criteria to the TAM. Our SOM is our target Share of the Market that we are confident in acquiring with our product launch.
An Overview of Your Project Idea
Re-describe your company and its history, shortening and tightening the overview.
I. End-User Profile of Our Beachhead Market
Describe your beachhead market with an end-user profile. What are their psychological profile and personal values? What label would you give them? Come up with more psychological details of your audience and validate them with research.
Where do you think they exist? What part of the US do you think you will find them? What are their values? Do not use personas for this section.
You may use age brackets and income ranges, but you must validate them as what you think people can afford is not truly what they can afford. You must remember that the costs of living in the US are very high vs. salaries. Salaries have not kept up with food prices, rent, health care, or even basic transportation costs. Do not use averages! They are misleading and can easily be skewed by a higher number. Use income ranges instead.
II. TAM, SAM, and SOM Table
In Excel, build out a table with your beachhead market’s TAM, SAM, and SOM formatted professionally and efficiently read with calculations for each step from TAM to SAM.
- TAM is the total size of your industry or the size of your product category. Look under the Statista database to find this number or research your industry size under marketing databases.
- SAM is your calculating the size of the beachhead market using the criteria you spelled out in the End-User Profile. Seek out those data points of the End-User Profile to help you narrow the TAM to the SAM by multiplying that % by your TAM to help narrow and come up with the size of the beachhead market.
- SOM is based on your research and confidence in your product or service design; estimate a Share of the Market (SOM) that you want to target. This % share will translate into a $ share that you will use as a revenue target between 3 and 5 years from now in the forecasting assignment later in the class.
Make sure that Excel table lines have been deleted by coloring the cells with white color. Also, make sure titles are clear to read and centered. All business formatting requirements also apply to this table, including font, centering the table in this document, and using footnotes to describe where the data came from.
III. TAM, SAM, and SOM Analysis
Describe the assumptions and calculations found in the table above. Use bulletpoints to describe where the data came from and the analysis. Does your SAM emulate the details in the end-user profile of the beachhead market?