How to calculate Market Share ?
Posted: Mon Jan 20, 2025 6:45 am
Now that you know the different factors that can impact and change the Market Share calculation, you understand how to do the calculations, right?
Let's review the formulas to simplify your understanding:
Share by Sales Volume : (Company Sales Volume ÷ Total Market Sales Volume) x 100
Share by value : (Total value of company sales ÷ Total value of market sales) x 100
However, there are different ways to perform this calculation, as we mentioned.
An example is considering brand penetration, which takes into account different metrics such as market share by sale and penetration rate, not surprisingly, we reinforce how subjective this index can be.
In addition, aspects such as customer activity must be mexico whatsapp data taken into account.
That is, a person can buy lunch boxes every working day of the week, which makes him a loyal consumer of this type of product.
However, his activity varies: to save money, he buys from two different suppliers, one cheaper (on three days) and one more expensive (on the other two days).
Thus, there is 60% activity with the cheapest provider and 40% with the most expensive one.
How to increase a company's Market Share ?
Now that you know what market share is and how to calculate it, you may be wondering: “ How can I increase my market presence?”
This is an important point in a company's growth strategy.
After all, it is not enough to invest in quality or modernize your factory.
It is necessary to monitor and manage indicators, to understand exactly if your operation is on the right track.
As we have discussed in other content, analyzing the growth of a business based on one or another indicator can cloud your entrepreneurial vision. It is necessary to consider some of them .
And then, once you're monitoring market share, what actions can you take in your business to boost it? Check out our tips:
Invest in brand promotion
Since the topic is your brand's presence in the market, there's nothing better than boosting it by investing in greater reach, right?
In other words, you need to promote your company and your solutions to other audiences and regions.
Develop an innovative product/service
This tip is the most obvious, but also the most complicated.
After all, what would it be like to develop an innovative solution? We have already covered the topic in our content on innovation management , where we talked about this concept.
In fact, it is especially about putting a disruptive idea into practice, presenting something different from the ordinary, which solves your clients' problems.
Rely on a strategic sales team
Your sales team should be part of the effort to increase market share.
It is something that involves several actions, but above all, reviewing the approach to new clients, as well as reviewing your sales pipeline (and also the funnel, which are different tools).
How do you prospect customers? Do you have a defined and updated buyer persona or ICP? Does your business proposal align with the needs of your target audience?
For your sales team, it is essential to act strategically and in harmony, if possible with the help of technologies that optimize processes.
Let's review the formulas to simplify your understanding:
Share by Sales Volume : (Company Sales Volume ÷ Total Market Sales Volume) x 100
Share by value : (Total value of company sales ÷ Total value of market sales) x 100
However, there are different ways to perform this calculation, as we mentioned.
An example is considering brand penetration, which takes into account different metrics such as market share by sale and penetration rate, not surprisingly, we reinforce how subjective this index can be.
In addition, aspects such as customer activity must be mexico whatsapp data taken into account.
That is, a person can buy lunch boxes every working day of the week, which makes him a loyal consumer of this type of product.
However, his activity varies: to save money, he buys from two different suppliers, one cheaper (on three days) and one more expensive (on the other two days).
Thus, there is 60% activity with the cheapest provider and 40% with the most expensive one.
How to increase a company's Market Share ?
Now that you know what market share is and how to calculate it, you may be wondering: “ How can I increase my market presence?”
This is an important point in a company's growth strategy.
After all, it is not enough to invest in quality or modernize your factory.
It is necessary to monitor and manage indicators, to understand exactly if your operation is on the right track.
As we have discussed in other content, analyzing the growth of a business based on one or another indicator can cloud your entrepreneurial vision. It is necessary to consider some of them .
And then, once you're monitoring market share, what actions can you take in your business to boost it? Check out our tips:
Invest in brand promotion
Since the topic is your brand's presence in the market, there's nothing better than boosting it by investing in greater reach, right?
In other words, you need to promote your company and your solutions to other audiences and regions.
Develop an innovative product/service
This tip is the most obvious, but also the most complicated.
After all, what would it be like to develop an innovative solution? We have already covered the topic in our content on innovation management , where we talked about this concept.
In fact, it is especially about putting a disruptive idea into practice, presenting something different from the ordinary, which solves your clients' problems.
Rely on a strategic sales team
Your sales team should be part of the effort to increase market share.
It is something that involves several actions, but above all, reviewing the approach to new clients, as well as reviewing your sales pipeline (and also the funnel, which are different tools).
How do you prospect customers? Do you have a defined and updated buyer persona or ICP? Does your business proposal align with the needs of your target audience?
For your sales team, it is essential to act strategically and in harmony, if possible with the help of technologies that optimize processes.