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Market Analysis  ›  Lesson

Identifying Market Needs

Identifying Market Needs 12 minA market need is real when people already spend time or money working around it, and it is sized by how often it occurs, how much it hurts and how many people have it.

Identifying Market Needs

Ask a hundred students "Would you use an app to buy cheaper second-hand textbooks?" and ninety will say yes. That tells you almost nothing. Saying yes costs nothing, while real needs leave evidence behind.

The rule

A need is real when people already spend time or money working around it.

A workaround is the messy thing people do today because nothing better exists. It is the strongest sign of a need, because it shows people care enough to act. Before ReShelf, students at the pilot campus:

  • ran a "Books Buy/Sell" WhatsApp group with 1,800 members, where posts were buried within an hour
  • pinned handwritten notes on the hostel notice board
  • shared one copy between three roommates and took turns

Weigh each piece of evidence by what it cost the person:

Evidence Strength
"I'd probably use that" Weak: hypothetical, costs nothing
Complaints about the current way Medium: shows pain, not action
Time spent on a workaround Strong: they already act
Money spent on a workaround or rival Strongest: they already pay

Then check three dimensions of the need:

  • Frequency: how often it comes up. Every semester, for every student.
  • Intensity: how much it hurts. ₹5,000 is a large share of a student's budget.
  • Reach: how many people have it. A rough size for the pilot campus: 2,000 first-years a year × 6 books × ₹900 = ₹1.08 crore of new-book spending every year.

That size is rough, and it doesn't need to be precise. It only has to tell you whether the need is big enough to matter.

The shortcut

Follow the workaround. Find the hack people use today, measure how much activity it gets, ask what goes wrong with it, then size the need.

Proving the textbook needStep 1 of 4
  1. Find the workaround

    The campus group "Books Buy/Sell" has 1,800 members. That alone shows students already try to trade.

The trap is trusting enthusiasm. "Everyone said they'd love it" is not evidence until someone has already spent effort or money on the problem.

Drills

Answer fast — trust the rule.

quick drill

Which is the strongest evidence that students need ReShelf?

quick drill

A campus has 1,000 first-years, each buying 5 books at ₹800. What is the yearly new-book spend?

quick drill

Posts in the book group spike in week one of each term and almost vanish mid-semester. What does this say about the need?

quick drill

Why is "Would you use an app that…?" a weak way to test a need?

Remember

  • A need is real when people already spend time or money working around it.
  • Follow the workaround, measure it, ask what breaks, then size it: people × frequency × spend.
  • Trap: treating polite enthusiasm as proof.

Practice — level up

0/1 solved

Write your answer, then compare it with a rubric and a model answer.

ExplainIs the need real?

ReShelf is thinking of adding lab-equipment trading (calculators, lab coats, drawing kits). Explain how you would find out whether this is a real market need, what evidence would convince you, and how you would roughly size it.