What is the first step X Company ABC should take to project the growth rate for a new product market?

To project the growth rate for a new product market, it is essential to first estimate market demand. Understanding the potential demand for the product allows the company to gauge how much of the product it can realistically sell over a given period. This step involves analyzing the size of the target market, consumer behavior, preferences, and any relevant market trends that could influence product uptake.

While promoting the project, defining the target audience, and conducting competitive analysis are important components of a marketing strategy, they are steps that follow the estimation of market demand. Before any promotional activities can effectively take place, or before identifying the audience or analyzing competitors, a clear understanding of market demand must be established to inform all subsequent actions. Therefore, estimating market demand is fundamental for projecting the growth of a new product.