Design Management Group

Market structure illustration

A clear illustration of the market structure helps to clarify distribution channels and the key competitive players in each channel, be it by geography or product type. Especially useful when not much is known about a market.

Description

A simple picture of the market structure helps to clarify who the manufacturers are, what distribution channels are available and which end-users use each distribution channel. It is also a useful start point for establishing the overall size of the market and relative market share of the competition. A good start point is to separate end users, distribution channels and equipment manufacturers:

Effective segmentation can indicate gaps in the market and provides insights into the requirements of different types of users, enabling potential product offerings to be carefully positioned to meet those needs.

Method

Equipment manufacturers

Who are the suppliers of original equipment in the market? Who are the key manufacturers in the different territories?

Distribution

How is the equipment distributed to the end users? Is it sold via agents or stores? Do the end users hire the equipment?

End users

Who are the end users and which distribution channels do they use?

The illustration should be drawn to represent the global market and if appropriate, separate supporting pictures for each geographic region. Where possible, add data such as market share, size and growth rates.

Notes

Can be a good starting point when not much is known about a market. It can be of great benefit to visualise complex relationships between distributors, manufacturers and end users.