Market Research for Financial Services Business Plan

There is a very high aversion to risk as a result throughout the primary customer base.

D. Market Segmentation and Targeting

The following pie chart illustrates the market segmentation and need for targeting by service area in this market. Figure 1, Market Segmentation by Outlet and Service illustrates the percentage of revenue by product and service within the financial news market.

Figure 1: Market Segmentation by Outlet and Service

Product/Services

Share

Audio

1.0%

News reporting text

50.0%

Photographs and graphics

30.0%

Video

19.0%

Outlet

Share

Newspapers

50.0%

Television (free-to-air)

20.0%

Cable and satellite TV

10.0%

Magazines

10.0%

Radio

5.0%

Internet

5.0%

Sources: (Buxton, 2005) (Browne, 2006) (Davis, 2009)

E. Competition and Competitive Edges

Competitors in this market are highly fragmented and many have financial services in addition to financial news analysis. Bloomberg has seven lines of business and each addresses the need for a varying approach to delivering financial data. AP is a syndicated news service which strives at broad market research, yet does not concentrate on depth of analysis as much. All competitors have econometrics-based modeling systems for interpolating market direction, and all have specific approaches and formats that serve to differentiate their services.The need for a simply-designed user interface, which none of them have, combined with a simple pricing model would serve to be an effective differentiator.

F. Estimates Market Share and Sales

The following table provides an analysis of market share by provider. Bloomberg's biggest rivals are Thomson-Reuters in the U.S. And globally, Agencie and News Corp.

Major Player

Market Share

The Associated Press

30.0%

Getty, Inc.

14.5%

Bloomberg L.P.

8.4%

Thomson-Reuters Corporation

8.3%

News Corporation Ltd.

8.0%

Agencie, French Financial News

4.2%

Other

26.6%

Sources: (Buxton, 2005) (Browne, 2006) (Davis, 2009)

G. Ongoing Market Evaluation

What's critically important is for the proposed new venture is to define a unique position in the market with a Web-based delivery model and evaluate the competitive advances of each competitor makes to this position. At present each of the competitors have overly complex graphical interfaces, with Bloomberg's taking weeks to learn how to use. The usability of the advances functions of each of these services is significant and takes time to learn. By evaluating customer satisfaction of competitors, pricing, delivery changes and direction the proposed venture can create a significant niche.....