Brand market share, definition and methods of analysis, data collection for brands

Brand market share is a metric that indicates the percentage of total sales or revenue within a specific market or industry that is attributable to a particular brand. It reflects the brand’s competitive position and influence in its market relative to its competitors. High market share typically signifies strong brand performance and a leading position in the market.

Definition of Brand Market Share:

Brand market share is calculated as the brand’s sales or revenue divided by the total sales or revenue of the entire market, expressed as a percentage. It provides insights into the brand’s dominance, consumer preference, and competitive edge within its industry.

Methods of Analysis for Brand Market Share:

1. Sales-Based Analysis:

• Revenue Analysis: Calculate the brand’s revenue for a specific period and compare it to the total market revenue. This method involves analyzing financial statements and sales reports.
• Volume Analysis: Measure the total units sold by the brand and compare it to the total units sold in the market. This method is useful for industries where volume data is more relevant than revenue.

2. Competitive Benchmarking:

• Comparison with Competitors: Analyze the market share of key competitors to understand the brand’s position relative to others in the industry.
• Market Share Trends: Track changes in market share over time to assess growth, decline, or stability.

3. Market Segmentation Analysis:

• Segment Performance: Break down market share by different segments (e.g., geographic regions, customer demographics) to identify where the brand is strongest and where there are opportunities for growth.
• Product Category Analysis: Measure market share within specific product categories or lines to determine performance in different areas of the business.

4. Share of Voice (SOV) Analysis:

• Media Presence: Measure the brand’s share of total media mentions or advertising spend compared to competitors. A higher SOV often correlates with a higher market share.

Methods of Data Collection for Brand Market Share:

1. Primary Data Collection:

• Sales Reports: Collect internal sales data from the brand’s sales team or financial department to determine revenue and volume.
• Market Surveys: Conduct surveys to gather data on consumer preferences and purchasing behavior, which can help estimate market share.
• Retail Audits: Perform audits of retail outlets to gather data on sales volumes and market penetration.

2. Secondary Data Collection:

• Industry Reports: Utilize market research reports from firms like Nielsen, IRI, or Euromonitor to obtain data on total market size and share.
• Public Financial Statements: Access publicly available financial reports and filings from competitors and industry leaders to estimate market share.
• Market Research Databases: Use databases and platforms that provide comprehensive market and industry statistics, such as Statista or MarketResearch.com.

3. Sales and Market Data Aggregation:

• Market Research Firms: Engage market research firms to conduct studies and provide detailed market share analysis.
• Trade Publications: Review industry trade publications and news articles for market trends and share estimates.

4. Digital Analytics:

• E-Commerce Data: Analyze sales data from online platforms and marketplaces to estimate the brand’s digital market share.
• Social Media Analytics: Monitor social media engagement and sentiment to gauge brand visibility and market presence.

Steps for Calculating Brand Market Share:

1. Define the Market: Determine the specific market or industry in which the brand operates. This includes defining the scope, such as geographic region or product category.
2. Gather Total Market Data: Collect data on the total market sales or revenue. This may involve using industry reports, market research, or aggregating data from various sources.
3. Obtain Brand Sales Data: Collect the brand’s sales or revenue data for the same period.
4. Calculate Market Share:
   • Formula: Market Share=(Brand Sales or RevenueTotal Market Sales or Revenue)×100\text{Market Share} = \left( \frac{\text{Brand Sales or Revenue}}{\text{Total Market Sales or Revenue}} \right) \times 100Market Share=(Total Market Sales or RevenueBrand Sales or Revenue​)×100
   • Example: If a brand’s revenue is $10 million and the total market revenue is $100 million, the market share is (10,000,000100,000,000)×100=10%\left( \frac{10,000,000}{100,000,000} \right) \times 100 = 10\%(100,000,00010,000,000​)×100=10%

Conclusion:

Understanding and analyzing brand market share is crucial for assessing a brand’s position in the market and developing strategic initiatives. By employing various methods of analysis and data collection, businesses can gain valuable insights into their competitive standing, identify growth opportunities, and make informed decisions to enhance their market presence.