Question 1:

The client is HealthWatch, a medium sized company specializing in manufacturing wearable health monitoring devices that track metrics like heart rate, sleep quality and activity levels. Their primary target is active and health conscious consumers between 30 – 45, but are now looking to expand its product line to target the senior population above 60 in the US. HealthWatch wants to estimate the potential market size for these wearables targeting the senior population before investing in its development. How would you calculate the market size for HealthWatch’s wearable health monitoring devices targeting the senior population in the United States? Please explain the steps you would take, and the actual calculations of the market size (e.g. X Million Dollars) in your answer.

Possible Answers to Question 1:

1. Senior Population in the U.S.:
The total population in the U.S. is approximately 330 million. Assuming a linear distribution and an average lifespan of 80 years, we can estimate the senior population aged 60 and above as follows.
Divide the total population by the average lifespan: 330 million / 80 years = 4.125 million people per year. Multiply by the number of years in the senior age group (60 to 80 years): 4.125 million * 20 years = 82.5 million people. Therefore, the senior population in the U.S. is estimated to be around 82.5 million people.

2. Adoption Rate:
Next let’s estimate the proportion of seniors who might be interested in wearable health devices by first assuming the tech adoption rate, and then those who are interested in health monitoring devices.
Percentage of seniors who are tech-savvy: I would estimate 40% of seniors are interested and own digital devices considering the increasing tech adoption among seniors. Percentage of tech-savvy seniors interested in health monitoring: Based on health awareness and increasing awareness of preventative health, I would assume 50% of tech-savvy consumers are willing to purchase wearable health monitoring devices. Potential market=82.5 million * 40% * 50%=16.5 million potential users

3. Potential Market Size:
Based on products currently in the market, let’s assume the average price of a wearable device is roughly 150 dollars. With this we can estimate the market size is 16.5 million users * 150 = 2.475 Billion dollars

Question 2:

Following the initial market sizing, HealthWatch recognizes the potential of the senior wearable device market. However, they want to delve deeper to confirm its attractiveness. What factors would you suggest to evaluate whether the market for wearable devices tailored to seniors is indeed lucrative and viable?

Possible Answers to Question 2:

Customer Needs and Preferences: Understand the needs, preferences, and pain points of potential customers, including healthcare providers and patients. Assess the willingness of these groups to adopt new technologies. Competition Analysis: Identify key competitors and their market share. Analyze competitive products/services and their market positioning. Identify barriers to entering the market, such as high capital requirements, entrenched competitors, or complex regulations. Explore potential partnerships or collaborations for easier market access. Regulatory Landscape: Analyze the regulatory environment for healthcare technology. Understand compliance requirements, data protection laws, and approval processes for new technologies.

Question 3:

Below are the results of HealthWatch’s recent consumer research. The data outlines feature preferences for wearable devices across three distinct age brackets: 30-44, 45-59, and 60-74. Based on this data, how would you advise HealthWatch to tailor their product development and marketing strategies to align with the preferences of their target senior group?

Possible Answer to Question 3:

Customer Needs and Preferences: Understand the needs, preferences, and pain points of potential customers, including healthcare providers and patients. Assess the willingness of these groups to adopt new technologies. Competition Analysis: Identify key competitors and their market share. Analyze competitive products/services and their market positioning. Identify barriers to entering the market, such as high capital requirements, entrenched competitors, or complex regulations. Explore potential partnerships or collaborations for easier market access. Regulatory Landscape: Analyze the regulatory environment for healthcare technology. Understand compliance requirements, data protection laws, and approval processes for new technologies.

Question 4:

What would be your final recommendation to the client?

Possible Answer to Question 4:

HealthWatch’s expansion into the wearable health monitoring market for seniors in the U.S. presents a significant opportunity, with an estimated market size of 16.5 million users and potential 2.4 Billion market size.

Recommendation:
Proceed with the market entry, focusing on key functions such as heart rate, blood pressure and glucose level management while ensuring technological accuracy. Address challenges such as technology adoption and user-friendliness through design and customer education.

Risks:
While the market is indeed attractive, HealthWatch should balance attracting new senior users and maintaining their brand image that has been appealing to their main younger consumer segment.