Pradeep

MARKET SHARE

Market share is the portion or percentage of sales of a particular product or service in a given region that are controlled by a company. Market share is used by businesses to determine their competitive strength in a sector as compared to other companies in the same sector. There are four basic ways to improve market share.     Product that is better than competitors Changing the price or offering special incentives for buyers, such as discounts or sales. Finding new methods for distribution of the product so that people can buy it in more places. Finally advertise and promote the product. Using these techniques in any combination may improve market share. Increased market share is not always the best solution for businesses. It might not be profitable if it is associated with expensive advertising or a big price decrease. A company may not be able to meet the demand of an increased market share without huge investments in new equipment and employees. In some cases it can be to a company's advantage to decrease market share, if the lower costs of lower market share can improve profitability. Managing market share, therefore, is a very important aspect of managing a business.

CALCULATING MARKET SHARE Market Share (%) = Company Revenues / Total Addressable Market Unit Market Share (%) = Unit Sales / Market Unit Sales A Deeper Dive into Market Share

Penetration Share (%) Penetration is the number of people who have bought your product, or the category of products you are measuring  Penetration Share (%) = Brand Penetration / Market Penetration

Share of Wallet (%) How much do our customers spend with us vs others in category  Share of Wallet (%) = Spend with Us / Total Category Spend

Heavy Usage Index (I) how heavily do my customers use my product?  Heavy Usage Index (I) = Average Total Purchases in Category by Customers/ Average Purchases in Category by All Market The Formula: Market Share (%) = Penetration Share (%) * Share of...