Determining TAM and Potential Revenue for Non-Sensor Products:
This analysis should be completed separately for SURFR+R and Cloudburst: Climate watch (I suggest starting with SURFR)
All calculations should be performed and annotated clearly in Excel so others can understand and work with them.
Clearly labeled row and column headings
All numbers used clearly labeled
All units clearly defined
All references clearly cited
Any math performed utilizes embedded formulas so others can easily follow calculations and make changes where needed
Research and recommendations should be outlined in a word or PowerPoint document that can be presented and shared with others.
Save all completed files here: StormSensor Company Files - DocumentsProduct 5_Product_ResearchMarketResearch
Assignment:
Review Product Problem/ Solution Statements for each product:
Files can be found here: StormSensor Company Files - DocumentsProduct 5_Product_ResearchMarketResearch
Reference the potential customer pipeline spreadsheet to determine the Total Available Market for each product
Pipeline can be found here: StormSensor Company Files - DocumentsSalesPipeline
For the base analysis one city = one customer
Determine total potential revenue for each product
Assume Price of SURFR is $4,900 and cost to make is $300; this is a one-time purchase
For 100% market saturation, assume every target city purchased SURFR one time (revenue here will be a dollar amount)
Assume Price of Cloudburst is $1,500 per month and cost to make is $150; this is a yearly subscription (so charged/made 12x per year)
For 100% Market Saturation, assume every target city is subscribed to Cloudburst for 1 year (revenue here will be a dollar rate/ year)
Assess Results using research and make recommendations:
Find 3-5 comparable products to compare each of our products to; how does our proposed pricing compare? Clearly reference results.
Would you recommend changing our pricing based on this comparison? Explain how.
Examine differentiating pricing (based on, for example, city acreage or population).
How would you recommend differentiating pricing? Explain your reasoning.
How would this differentiation change revenue projections? Show results.
Explain your overall recommendations for pricing and how they would increase total projected revenue for each product.