Topic: Research/Metrics

Market Share(value) And Share In Shop Handling.

Posted by bilal.raja on 125 Points
I know the calculations of the both the terms Market Share(Value) and Share in Shop handling(SiSH).

i want know the:

1. Relation between Market Share and SiSH.
2. How SiSH is translated as Consumer Pull.
3. What drives the market share; SiSH or Weighted Handling or Both.
4. When SiSH is equals to Market Share. does SiSH lose its importance.
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  • Posted by mgoodman on Accepted
    Market share is the percentage of category sales represented by the individual brand in the geographic region. For example, if there are 1,000 units sold in the region and your brand sells 400 of them, then your market share is 40%.

    Share-in-stores-handling considers the universe to be just the stores that stock/sell your brand. Using the example above, if only half the stores in the region stock your brand, you probably have a SISH of about 80%, since the share is zero in stores not handling. (This assumes, of course, that category sales are roughly proportionate in all stores. If category sales are concentrated in stores-stocking, then the SISH will be between 40% and 100%.)

    When you have very high/universal distribution, the market share and the SISH will be almost the same. When you have poor distribution, they will be very different.

    Not sure what you mean by "consumer pull." If you mean "demand," I'm not sure how you measure it. Obviously increased demand for a product should increase its market share, as more consumers will purchase the product. Sometimes that will grow the category and/or increase the sales of competitive products as well -- especially in stores not-stocking. In other cases it might simply be a share-swap in which the share gain comes at the direct expense of other brands.
  • Posted by Peter (henna gaijin) on Accepted
    Consumer pull, assuming you are talking about pull versus push strategies, could increase the number of stores carrying your product, which could hopefully get your SiSH to be closer to your market share.

    Something to keep in mind that the definition of market, and thus market share, is very flexible. If you sell Coca Colas, is the total market cola drinks, carbonated soft drinks, all soft drinks, all products that would hydrate someone, or something else? In the first case, Coca Cola would have a large market share in most every country, as it is really just comparing them o Pepsi and some other small cola companies. In the last, the total market includes juices, water, etc., so Coca Cola would have a much smaller market share. You get to choose what the market is defined as and this greatly impacts what your share will be.
  • Posted by mgoodman on Moderator
    Share can also be measured in dollars (or local currency), purchase units (i.e., packages), weight (i.e., fluid ounces, kilograms, tons, etc.) ... or even unique customers or purchase occasions.

    Depending on what you are trying to learn, and the intended use of the findings, you need to be sure to select the right measure, the right geography, and the right category definition.
  • Posted by Shelley Ryan on Moderator
    Hi Everyone,

    I am closing this question since there hasn't been much recent activity.

    Thanks for participating!


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