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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posted:11/3/2012
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