Market Size Assessment Essay Example

issues and meet the needs of Canadian diabetes patients by providing accurate, efficient, portable, and convenient insulin delivery. To effectively enter the market, it is considered most effective to sell through third-party distributors because of high costs associated with technology and production. Initially targeting the Atlantic Canada region has several advantages: it has the highest diabetes population in Canada that is rapidly growing; there are fewer competitors offering insulin delivery medical devices in this region; hospitals, clinics, and nonprofit organizations are committed to assisting diabetes patients. These factors create an opportunity for Bolus Wizard to generate sales volume, increase brand awareness, and establish partnerships with third-party distributors.

Assessing market size and potential share

Before launching Bolus Wizard into the market, it is crucial to evaluate both the potential market's size as well as the business's ability to capture a share of that market.

The market size estimation method involves breaking down the larger "market size" problem into smaller problems and incorporating the results of these smaller problems into the market size. The focus is on the number of customers rather than dollars. This approach can be represented by the following equation:

Market size = (maximum number of buyers in Atlantic Canada who have diabetes) x (quantity purchased by an average buyer in the market per year) x (price of an average unit)

• Initially, both E-Stats on Statistic Canada and the Public Health Agency of Canada provide accurate statistics on the diabetes population by age group and territory.

These are two among many sources that assist in determining the total diabetes population in Atlantic Canada. These data also aid in defining

the maximum number of buyers in the region. Another valuable source for further analyzing the market is Industry Canada with NAICAS code, as it helps determine the total number of hospitals and clinics in Atlantic Region. This information, in turn, assists in defining potential sales volume and maximum number of buyers, as product aims to be sold through doctor's recommendations.

One way to gather information on the Halifax Nova Scotia hospitals and clinics is to search through listings. This can provide more specific details about the market.

• Another approach is to search company directories by sector from Industry Canada and Atlantic Canada Online. This can help define the competitors' profile in the region.

Browsing these companies' websites can provide insights into their product prices and annual sales volume. This information can be used to estimate the number of buyers and their consumption power of the Bolus Wizard. The total number of competitors also gives an indication of the market size, as the sales revenue supports these companies and the buyers drive the demand for insulin medical devices.

• Additionally, searching through regional diabetes associations can provide detailed information about the market size. These associations offer confidential whitepapers and reports related to local diabetic medical treatment and medical device industry.

For instance, one whitepaper from the Canadian Diabetes Association titled 'Preventing Diabetes in Atlantic Canada' specifically highlights the medication used by the current diabetic population and sales volume of medical devices in the Atlantic Region.

Finally, the market size for the Wireless Insulin Delivery Pump can be defined by putting together information

provided from above sources and using the equation. It is also important to estimate the market share when defining the market size. The bottom-up method is used in this case. For example, assuming there would be 200 doctors distributing Bolus Wizard in Atlantic Canada; every doctor contacts 35 diabetes patients per day, the hospital or clinic opens to serve diabetes patients 300 days per year, however, 5% of these days will close due to other reasons. Then the market share of Bolus Wizard in the market would be 200 x 35 x 300.05=105,000 sales per year. Through this kind of assumption, sensitivity analysis can be done by changing the numbers and seeing how much it would impact the final result. Appendix I: source for secondary research Data and information resource for the industry and the market Health Canada: http://www. hc-sc.

gc.ca/hl-vs/iyh-vsv/med/insul-eng.php Canadian Diabetes Association: http://www.diabetes.ca/ Medical and Healthcare Marketplace Guide: medicine and biotechData and information resources regarding the competitors: -SIN and NAICS Insulin pumpers Canada http://canada.insulin-pumpers.

The Canadian ACCU-CHEK Spirit insulin pump therapy is offered by http://www.disetronic-ca.com/dstrnc_ca/. Diabetes Markets Research provides a research report on investment opportunities, analysis, and forecast for Canada Diabetes Care Devices until 2012. More information can be found at http://www.marketresearch.com/browse.

asp?categoryid=1496;SID=38644949-427948723-466376294

Distributor

1. Diabetes Express: http://www. diabetesexpress. ca/ sources for determining market size Statistic Canada: http://www40. statcan. ca/l01/cst01/health54a. htm
2. The sites offer accurate data about diabetes population in Canada, categorized by age group and province as of 2005.
   Public Health Agency of Canada, http://www. phac-aspc.gc.ca/canada/regions/atlantic/Publications/Preventing_diabetes/index.html provides a 43-page report on an environmental scan of diabetes population in Atlantic.

The website atlanticdiabetes.ca/whitepaper.php offers confidential and updated white papers for each province in the Atlantic region. These papers provide information on the statistics and current situation of diabetes in Atlantic Canada. They also discuss diabetes-related medications, supplies, and devices available in each province.

For company directories in the Atlantic region, you can visit the Industry Canada website at http://www.ic.gc.ca/app/ccc/srch/cccBscSrch.do?lang=eng;prtl=1;app=1#specdir.

Another helpful resource for information on Atlantic Canada is the Atlantic Canada Online website at http://www.

aco.ca/search/index.html

The site offers a directory of products and services accessible in the Atlantic Provinces. It includes information on hospitals and clinics in the Atlantic Region, specifically in Halifax, Nova Scotia. For listings on hospitals and clinics, visit http://www.foundlocally.

com/Halifax/Health/

You can access breakdowns by demographics, geographies, and living clusters.