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Client Results
TAM definition and strategy formulation for minority-focused Online Education Platform
CLIENT
Online education platform focused on the development of Black and Latino executives
INDUSTRY
Technology, Finance
AREA OF EXPERTISE
Go to Market, Pricing
#black&latino
#pricingmodel
#totaladdressablemarket
THE Challenge
Our client, one of US largest professional social networks and online education providers focused on the Black and Latino populations engaged Stratygika to:
1) Define the target market and size the Total Addressable Market utilizing the TAM/SAM/SOM methodology to prioritize markets of entry and define total business opportunity.
2) Conduct and in-depth competitor benchmark analysis to identify other players serving minority populations and key competitors, and
3) Develop a differentiated pricing model identifying key qualitative attributes of each market.
OUR APPROACh
STRATYGIKA identified TAM through a top-down approach leveraging macroeconomic and socio demographic data and industry reports to define a subset of plausible US states and areas with large minority populations, specifically by
1) Population distribution and annual per capita income by state.
2) Educational attainment, and other occupational data, and
3) Black and Latino racial segmentation.
Our analysis let to the identification and ranking of comparable companies based on geography, revenue, target customers base, industry segment, business model, and acquisition strategies. Furthermore, we jointly developed a framework of specific tactical actions to penetrate key territories with highest TAM based on social and demographic variables for both, the Black and Latino populations.
PROJECT RESULTS
Contrary to the initial hypothesis, two large, underserved, and profitable market subsegments were identified: Overall Black women tend to be more educated than Black men and the opposite occurs with the Latino population.
As in other technology industry subsectors, the COVID pandemic almost eliminated the hesitancy to obtain online education programs of executives which significantly accelerated our client’s go to market plans. To leverage this unique opportunity, a detailed customer strategy in each key population subsegment was crafted to offer tailored leadership development courses.
The Total Addressable Market (TAM) was valued at $12.77 Billion.
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