How to perform a feasibility analysis of new products in B2B sales?
Posted: Wed Jan 22, 2025 5:33 am
The feasibility analysis of new products in B2B sales is essential to assess whether a product idea is profitable, sustainable and meets market needs.
This analysis helps reduce risks and increase the chances of a successful launch. Below are the main steps to perform a feasibility analysis.
1 – Market analysis
The first step involves understanding the market in which the new product will be launched. This helps to validate whether there is a real demand and whether the market is ready for the solution.
Steps:
Assess the market potential by estimating how many companies marketing list of plumbers or industries might be interested in the new product. Check whether the market is large enough to support product development.
Identify the different segments within the B2B market that can benefit from the new product. Each segment may have different needs and this helps to customize the product or its features.
Conduct a competitor analysis, checking for similar or substitute products. Evaluate the strengths and weaknesses of competitors and how your product can offer a competitive edge.
Analyze industry or sector trends that may affect product adoption. For example, regulatory changes, new technologies, or evolving purchasing behaviors may influence viability.
2 – Demand analysis
Demand analysis aims to validate whether there is interest and real need in the market for the new product.
Steps:
Conduct interviews, surveys, or focus groups with current and potential customers to understand whether they face the problems your new product would solve. This helps validate demand and uncover valuable insights .
Present a prototype or detailed description of the new product to potential buyers and gather feedback . This allows you to test market reception before full launch.
Based on the feedback you get, estimate the percentage of adoption and interest in the product. This can be done by calculating how many customers indicate that they would buy or use the product.
3 – Financial analysis
Financial analysis is crucial to determine whether the new product will be profitable in the long term and whether the necessary investment is justified.
Steps:
Include all costs related to product development, including research and development, prototyping, testing, patents, and necessary adjustments.
Calculate manufacturing or delivery costs, considering raw materials, labor, technology and other operational costs.
Include launch costs, marketing campaigns, sales team training , and distribution channels.
Set a selling price based on total cost and market analysis. Estimate the profit margin you expect to achieve. Consider whether the B2B market is willing to pay the estimated price.
Based on the demand analysis, project future sales of the new product, considering different adoption scenarios (conservative, optimistic and intermediate).
Calculate the break-even point, that is, how many units need to be sold to cover development and production costs.
The feasibility analysis of new products in B2B sales must be comprehensive, involving aspects of market, finance, operations, risks and legal compliance.
By following a structured approach, it is possible to minimize risks and maximize the chances of success of a new product, ensuring that it meets market needs and is financially sustainable for the company.
This analysis helps reduce risks and increase the chances of a successful launch. Below are the main steps to perform a feasibility analysis.
1 – Market analysis
The first step involves understanding the market in which the new product will be launched. This helps to validate whether there is a real demand and whether the market is ready for the solution.
Steps:
Assess the market potential by estimating how many companies marketing list of plumbers or industries might be interested in the new product. Check whether the market is large enough to support product development.
Identify the different segments within the B2B market that can benefit from the new product. Each segment may have different needs and this helps to customize the product or its features.
Conduct a competitor analysis, checking for similar or substitute products. Evaluate the strengths and weaknesses of competitors and how your product can offer a competitive edge.
Analyze industry or sector trends that may affect product adoption. For example, regulatory changes, new technologies, or evolving purchasing behaviors may influence viability.
2 – Demand analysis
Demand analysis aims to validate whether there is interest and real need in the market for the new product.
Steps:
Conduct interviews, surveys, or focus groups with current and potential customers to understand whether they face the problems your new product would solve. This helps validate demand and uncover valuable insights .
Present a prototype or detailed description of the new product to potential buyers and gather feedback . This allows you to test market reception before full launch.
Based on the feedback you get, estimate the percentage of adoption and interest in the product. This can be done by calculating how many customers indicate that they would buy or use the product.
3 – Financial analysis
Financial analysis is crucial to determine whether the new product will be profitable in the long term and whether the necessary investment is justified.
Steps:
Include all costs related to product development, including research and development, prototyping, testing, patents, and necessary adjustments.
Calculate manufacturing or delivery costs, considering raw materials, labor, technology and other operational costs.
Include launch costs, marketing campaigns, sales team training , and distribution channels.
Set a selling price based on total cost and market analysis. Estimate the profit margin you expect to achieve. Consider whether the B2B market is willing to pay the estimated price.
Based on the demand analysis, project future sales of the new product, considering different adoption scenarios (conservative, optimistic and intermediate).
Calculate the break-even point, that is, how many units need to be sold to cover development and production costs.
The feasibility analysis of new products in B2B sales must be comprehensive, involving aspects of market, finance, operations, risks and legal compliance.
By following a structured approach, it is possible to minimize risks and maximize the chances of success of a new product, ensuring that it meets market needs and is financially sustainable for the company.