Question

Topic: Research/Metrics

How To Determine Market Share Ratio?

Posted by Anonymous on 50 Points

I need help to determine market share. What benchmark and KPI to select and measure.

Thanks

Paulus
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RESPONSES

  • Posted bykoen.h.pauwelson Accepted
    market share is simply the sales of the brand divided by the sales of all brands in the same category. Practically though, there are two decisions to make:
    1) how to define the category? Coke's market share looks a lot more impressive if you define carbonated drinks as the category, versus all beverages
    2) unit sales or dollar sales (revenues)

    Koen
  • Posted on Author
    Koen,

    Do you have any idea on how to get the dollar sales in the same category or what do we call benchmarking with other competitor? Especially if the competitor has no annual report published.

    Thanks

    Paul
  • Posted on Accepted
    Depending upon the category, you may be able to get some total consumption numbers from an appropriate trade association. You may be able to make some estimates about the competition and derive your market share that way.
  • Posted on Accepted
    You can also do some Consumer Research, understand the market size and brand share in the past (period)

    Also you can select a representative sample of stores in terms of size and geographical coverage and extrapolate their sales of your category
  • Posted byBizConsulton Accepted
    竞争信息,你可以检查overs or another online resource, industry trade associations, or make some contacts with your buyers to see if you can get an idea of the competition's size or relative market share. If those avenues don't pan out, you could leverage a competitive intelligence firm to dig into their business.

    If you know the accounts they sell into, you can also estimate their dollar volume based upon the account's share of sales overall and their 'share of shelf' (or at the category level, if available).

    It would help to understand the category and channels you're dealing with so we can be more specific though.
    -Steve

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