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2. MARKET RESEARCH AND ANALYSIS

Source: entrepreneurship.mit.edu
Topic: Marketing Research

Sort Desciption: 2. MARKET RESEARCH AND ANALYSIS. 2.1 Market Definition. The market for the E-Pen Electronic Transcription System is the global installation of dry erase ...

Content Inside: 1997 Virtual Ink Corporation COMPANY CONFIDENTIAL. DO NOT DISTRIBUTE. 4 2. MARKET RESEARCH AND ANALYSIS 2.1 Market Definition The market for the E-Pen Electronic Transcription System is the global installation of dry erase whiteboards. We estimate there to be 140 million dry erase marker boards in the world. However the E- Pen System will require one personal computer to store the data. Therefore the market of E-Pen users is the intersection of personal computer owners and dry erase marker board owners. According to the Computer Industry Forecasts 96Q2 report the installed base of personal computers reported in published journals since July 1995 is 170 million with an annual replacement rate of 40 million. We estimate that approximately 1/3 of this base represents non-commercial owners. Therefore we estimate the market size for the E-Pen to be 66% of the 170 million personal computers existing today or 112 million units. At an average retail price of $419 per unit this results in a $47 billion global market. 2.2 Research Methodology We reviewed several market research data sources including International Data Corporation (IDC) Information Access Companys (IAC) Market Business and Computer Insite databases ABI-Inform and extensive on-line WWW-based searching to determine the potential markets and sales for the epen . As part of our ongoing marketing research we have profiled dozens of MIT students faculty and staff to understand how consumers might react to a really new product. Our responses have been overwhelmingly positive. We believe the value proposition is real most immediately in the professional group meeting or conference setting where it is critical that information generated in brain storming sessions be accurately transcribed. However the ability to manipulate this stored data using existing software applications such as word processors and not graphics applications will make this System useful for a much broader market. 2.3 Market S ...

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