# Market Share

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```					Market Share
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.
   example, there are 100 widgets sold in a country
and company A sells 43 of them, then company A
has a 43% market share
Market Share
   Or – you sold widgets for a total cost of \$860
and the people in the country spend a total of
\$2,000 on the same widgets, then the market
share is \$860/\$2,000 or 43%
   The two different methods of calculating market
share won't always provide the same answer,
Market Share
   Market share is used by businesses to
determine their competitive strength in a
sector as compared to other companies in
the same sector
Method 1 – Number of Buyers
   Estimate the total number of buyers in your
market and determine how successful your
competition is
   Per month, estimate the number of people
that will buy your product or service
   This is your percentage
Method 1 – Number of Buyers
   Ex/ Organic Coffee House
   Number of Tim Horton’s – 3040
   Market Share = 76% of Coffee and Baked
Goods
   Tim’s Sells 3 million cups a day
   3,000,000/ 3,040 = 987 cups sold per day per store
   987* 30 days = 29,605 per month
   29,605 / .76 = 38,954 cups a month for a store to have
100% market share in their area
Method 1 – Number of Buyers
   Our Organic Coffee House should get 2% of
the market, based off of the following data…
(trends that support your business) 2% of
total market share or 779 cups sold a day
   38,954 * 0.02 = 779 cups sold a day
Method 2 – Percent of Sales
   Total Market Share of top 5 competitors and
average last five years of sales

   Ex/ Organic Coffee House
   Top Five Competitors
   Tim Horton’s – 76% - Sales \$14 billion
   Starbucks – 7% - Sales \$1.3 billion
   Timothy’s Coffees World Inc – 4% - Sales \$736 million
   Second Cup – 2% - Sales \$386 million
   William's – 1.5% - Sales \$276 million
Method 2 – Percent of Sales
   I think we can have a market share of 0.05%
based on the following data … (trends…)
   Market share of 0.05% = \$ 9.2 million sales

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