NEWS RELEASE                                                                                   January 2023

Aggregating Market niches for the Most Profitable Market

There is a $10 trillion Air, Water, Energy market with 1 million niches of $ 10 million each.

Which niches will combine for the Most Profitable Market (MPM)?  Each supplier will be best served by a unique combination of niches to pursue.

Facts x Factors = SOM forecasts x Validated value proposition % = MPM niche

Each niche has its own combination of facts which need to be multiplied by the most relevant factors to provide the Serviceable Obtainable Market (SOM). 

The achievable market share is shaped by the value proposition which in turn needs to be validated.

The foundation of business strategy can be the MPM niche forecasts. They set sales strategy down to the local sales level. The longer-range forecasts should be the basis for R&D, manufacturing investment, and acquisitions.

Most would agree that this is the ideal business strategy. But they would also question the practicality of pulling together the millions of necessary facts and factors.

What makes it possible is that most of the facts and factors can be utilized in many different MPM niches. Furthermore, the gathering and fine tuning of all this data has been going on for 48 years at the Mcilvaine Company.

Moving forward a few niches at a time

Each $ 10 million MPM niche has a unique combination of facts and factors which should be separately and continually analyzed. MPM is based on a minimum of 20% market share.  So, a 10-niche target would create a market of $ 100 million and $ 20 million in annual revenue.

A product manager for isolation ball valves could organize his activities around a $ 100 million MPM in energy in the U.S and Canada

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The Canadian salesman could be selling all the valve types in Canada.  He would be working with several product managers.

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Many companies in the air, water, energy space have sales of $50 million or less.  So, they need to target only 25 or less MPM niches in order to achieve the present revenues. If they can target an extra three niches per year, they will achieve double digit growth.

 Both the local salesman and the product manager should use the forecasts as the foundation of their activities but also be empowered to help shape the niche forecasts with facts and factors which they can contribute.

This strategy can be implemented niche by niche. Mcilvaine can help you select the low hanging fruit and demonstrate the value on a small scale before you adopt it universally.


To find out more about this important business strategy click on
www.mcilvainecompany.com

Bob Mcilvaine can answer your questions at 847 226 2391 or This email address is being protected from spambots. You need JavaScript enabled to view it.