The company's market share. Analysis of the market share of an enterprise is an effective tool for a successful business

One of the most important performance indicators modern enterprise is, of course, market share. This is an indicator of its competitive struggle with other companies, attachment to it of a stable category of consumers.

What is market share in marketing

Market share is a measure of a company's position in the market relative to its competitors. This indicator is expressed as a percentage of sales of the company's products to the total sales in the market of goods of the same category. It happens that sales separate category goods in general on the market may be unknown, then it is expressed as a percentage relative to:

regarding sales of nearest competitors;
relative to the leading competitor, leader.

The market share is determined by two methods:

in units of goods;
in terms of money.

How to calculate

The indicator can be calculated using a fairly simple formula. To do this, the volume of goods or services sold by the enterprise is divided by the total sales of competitors and multiplied by 100%. Both that and other volume can be specified both in monetary terms, and in units of production. The higher the score, the higher. To calculate this indicator, you need to know the following information:

who exactly are your competitors;
the range of products offered by competitors;
what is the pricing policy of competitors;
what segment each competitor occupies;
how many and where they place their ads and so on.

As a result of the work done, the company will not only calculate its share in the industry as correctly as possible, but as a result of data processing, it can not only identify the features of competitors (their advantages and weaknesses), and use this information to the maximum for the benefit of their company.

Market segmentation

Marketers argue that the main competitive struggle begins with competent segmentation. Market segmentation implies the division of buyers with many of their needs into homogeneous groups according to the requirements. This means that a sector is a group of consumers with similar characteristics. The main purpose of dividing an industry into segments is to identify groups of buyers with relatively homogeneous product needs. Having identified such groups, the company can correctly determine the range of manufactured goods, competently organize its pricing and marketing activities. To determine the segments in which activities will be carried out, the following criteria are important:

amount potential buyers products;
availability of distribution channels;
conditions for the transportation of goods;
product storage conditions;
possibility effective work in the segment and so on.

Market segmentation has a number of undoubted advantages:

assessment of competition in the industry;
production of new goods that meet the needs of consumers;
using effective marketing strategies;
the ability to effectively evaluate the marketing strategy of the company to consolidate the stability of the position of the market share of the product.

How to estimate market share

Market Share Estimation It is carried out by comparing the marketing actions of competitors with the marketing actions of the company. Estimating market share is important for developing a company's competitive strategy that will be most effective for it. For the competitiveness of the company, it is important that it has competitive advantages that allow it to stand out from competitors. An important point in assessing market share is the sales forecast - crucial moment business planning. To do this, you need to conduct a number of studies:

survey of potential consumers to study their intentions in purchasing the proposed product;
studying the demand and consumption of the proposed product in different regions;
studying the physical limit of demand (for example, a person usually does not need more than one cell phone number);
in relation to durable goods, it is necessary to study the rate of wear of the goods.

In order for a company's market share to be sustainable, its marketing strategy must be flexible, considering such options as the emergence of new competitors or the rise in the cost of raw materials.

Market share analysis

A company's sales volumes are indicators of the consumer market response to its products. However, in addition to the analysis of sales, an analysis of the market share must be carried out. It is always necessary to know how competing companies producing the same product and operating in the same market are doing, because the assessment of the share of a product always depends on the underlying market. It is necessary to ensure that this base is the same for all competing brands. At the same time, it is important to take into account the risks that when new brands are introduced to the market, the share of each competitor may fall. Sometimes an exceptional factor, such as a large order, can affect market share. Regardless of the method used to determine the underlying market, market share can be calculated in several ways:

by volume (the ratio of the number of products sold to the total volume of sales in pieces in the underlying market);
in value terms (calculated on the basis of revenue);
calculation of market share not relative to the underlying market, but relative to sales in the segment where the company operates;
comparison of the relative market share of the company with the sales of competitors.

When measuring market share according to various options it may be difficult to find the right data on competitors. However, in consumer markets, such data can be accessed through dealers and consumer associations. Moreover, their accuracy is becoming ever higher thanks to commodity code readers.

The Importance of Market Share

Market share is a prerequisite for a business to make a profit, as well as important tool evaluation of its effectiveness. The market share of a start-up enterprise must be periodically calculated to determine its dynamics. Moreover, it is desirable to do this at regular intervals. The presence of its constant stable share in a certain market segment gives the company the opportunity to look for additional sales markets, thereby increasing its market share, which will lead to an increase in the company's profit and respect among competitors and among consumers, to creditworthiness.

Conclusion

Market share is important factor for the development and growth of any company. However, when conquering the next segment for its products, any manufacturer must first of all think with respect about its consumer, offering him quality goods without saving on good raw materials and at the same time offering affordable price. Only the consumer, making sure high quality of the goods offered to him, can provide the company with a stable position among competitors.

One of the main indicators used in assessing the competitiveness of companies is market share. This is a simple but objective indicator of the firm's performance. It may be that, at first glance, the company is developing just perfectly: profits are growing, the pace of sales is also increasing, becoming more and more recognizable. But if at the same time the market share is small, then the prospects for business development seem rather doubtful. Therefore, when analyzing the marketing work of a company, it is always necessary to track its market share, as well as the market shares of the closest and / or strongest competitors.

where: D r- market share, %;
Q n- the volume of sales (sales) of our or another analyzed company. It can be calculated both in physical terms (pieces) and in value terms (rubles);
Qtot is the total volume of sales in the market. It can also be expressed both in pieces and in rubles.

There are 3 consumer electronics stores in the city. For the year, store A's sales were 15 million rubles, in store B - 20 million rubles, and in store C - 25 million rubles Calculate the market share for store A:

Thus, the market share of store A is 25% .

Scope of market share indicator

Market share allows you to evaluate two extremely important things. Firstly, the dynamics of the market share over the years shows the success of the company's development over time. Secondly, calculation and comparison of the market share of a company and other firms offering similar products in a given region, shows the competitiveness of this company.

Peculiarities of the market share indicator

market share can be calculated based on:

cost indicators ( sales volumes in rub.);
natural indicators ( sales volumes in pcs.);
the number of clients.

market share can be calculated both relative to the total sales volumes for the market as a whole, and relative to the sales volume of the strongest competitor (competitors).

Galyautdinov R.R.

Relative market share measures a company's or brand's market share relative to its largest competitor and therefore reflects a company's true market power and identifies opportunities for improvement. Let's explain the importance of the phrase "relative share": with a 20% share, you can both dominate the market and remain in second or even lower position among competitors.

The key question this metric helps answer is how much is our market share growing compared to our competitors?

Relative market share calculation (see formula) allows managers to compare relative market positions various products. This KPI gained popularity due to research (especially by the Boston Consulting Group) that showed that major players in the market tend to be more profitable than their competitors (although this claim has detractors, see "Remarks").

Relative market share tends to be closer to cash flow, since the higher the market share, the more cash flow is generated. As a result of economies of scale, it is assumed that these profits grow the faster, the higher the market share.

The reason for choosing relative market share, rather than just profit, is that market share carries more information than ordinary cash flow. The relative market share indicator shows the position of the brand relative to the main competitors and its possible future. It also gives an idea of what kind of marketing activity will bring the greatest impact.

The measure of relative market share was first proposed in the 1960s. and was subsequently popularized by the Boston Consulting Group in their famous Relative Market Share and Growth Matrix.

In this matrix, one axis represents relative market share - analogous to competitiveness. The other axis represents the market growth rate - . On each axis, products are ranked high or low, falling into one of four quadrants. In the traditional interpretation of this matrix, products with a high relative share in a growing market are viewed as "stars" whose production must be supported by an appropriate amount of investment. The cash for such investments can come from cash cows, products with a high market share in relatively stable markets. "Question marks" or "problem children" may have the potential for further growth, but are currently in a weak competitive position. And finally, "dogs" have neither growth potential nor sustainable competitive positions.

How to take measurements

Information collection method

Information can be obtained through analysis of publicly available annual reports and market research. If obtaining information is difficult, then such an analysis can be performed on request.

Formula

Relative market share (%) = Market share of the company / Market share of the largest competitor.

As can be seen from the formula, brand share is measured relative to the largest competitor. Thus, if the market share of a brand is 20% and the largest competitor has the same figure, then the ratio will be 1:1. If the largest competitor has a share of 60%, then the ratio will be 1:3, meaning that the brand of the organization is in a weaker position. If the largest competitor has a share of only 5%, then the ratio will be 4:1, meaning that the brand of the organization holds a strong position, and this in turn can be reflected in profits and cash flow. When using this method in practice, this dependence is logarithmic, not linear.

Measurements are usually taken annually, more frequently in dynamic markets.

The source of information is annual reports or market research.

The cost of collecting data can be very high, especially when good quality information is not available. Comparative data is available for many industries, but this path can also be expensive. When available necessary information the cost of data collection is minimal.

Target values

Target values can be determined based on existing market research. Comparative data can be gleaned from articles that look at how organizations maintain high positions in relative market share.

Example. Consider the example of the production of small city cars. As initial information, we present a table with the performance indicators of the key players in this market.

Company	Number of units sold, thousand units	Revenue, thousand dollars	Market share, %
Zipper	25	375 000	40
Twister	10	200 000	21,3
A-One	7,5	187 500	20
Bowls	5	125 000	13,3
Chien	2,5	50 000	5,3
Market Total	50	9 375 000	100

A-One management needs to know the relative market share of its largest competitors. The calculation was made in relation to the number of cars sold and the proceeds received.

A-One sells 7,500 vehicles a year. Zipper, the market leader, sells 25,000 vehicles. In terms of the number of cars, the relative market share of A-One will be 0.3 (7,500/25,000). We get the same result if we first calculate the shares of A-One (7500 / 50,000 = 0.15) and Zipper (25,000 / 50,000 = 0.5), and then divide 0.15 by 0.5 (0, 15 / 0.5 = 0.3).

In terms of revenue from car sales, A-One has $187.5 million per year, while Zipper, the market leader, has $375 million. Therefore, A-One's relative market share in terms of revenue is 0.5 ( 187.5 / 375). Due to relatively high vehicle prices, A-One has a larger relative market share in terms of revenue than in terms of the number of vehicles.

Remarks

In addition to relative (and absolute) market share, other indicators must be taken into account to get the full picture. To determine the maximum possible market share of an organization, it is necessary to take into account the volume of production, revenue and marginality. There are many ways to measure market share. The simplest is to rank the amount of revenue or measure the absolute volume of products sold or gross income. The measurement of volume is the starting volume, in the future, these measurements should be expressed in terms of the market share held by the company. Holding 70% of the market where you are losing money is not a good strategy. The main criticism of the indicator of the relative market share is connected with the fact that it does not take into account the profit of the company.

Relative market share is defined as the ratio of a firm's market share to that of its leading competitor.

The market shares of the firm or the strongest competitor are found as the ratio of the volume of sales to the market capacity of the given product, respectively, by the firm or the strongest competitor.

For example, the market capacity for product No. 1 is 7353 thousand CU, and the volume of sales of product No. 1 by the firm is 2500 thousand CU. Then the market share of the firm for product No. 1 is 34%

Hence the ODR for product #1:

This means that the volume of sales by the firm of product No. 1 exceeds the sales of a similar product by the strongest competing firm by 2 times.

4. Calculation of the share (%) of each type of product in the total sales volume of the company for 2000

Table 1.2

5. Construction of the bkg matrix

As an evaluation scale certain types products (average values in the matrix) apply:

The average market growth rate index (RR), equal to the average value of market growth rates for individual products:

Relative market share - the average value in the range from the minimum to maximum value relative market share.

For example, in our example:

The diameter of the circle for the image of the product is chosen in proportion to the share of the volume of production in the total volume of sales of the company.

The BCG matrix has the form shown in Fig. 27.

6. Formation of the company's commodity strategy based on the analysis of the BKG matrix.

It is formed for individual types of products and may contain the following strategic decisions:

Remove from the company's product portfolio;

Increase the volume of sales by changing the structure of the product portfolio;

Change relative market share;

Increase investment;

Introduce strict control over investments and redistribute funds between certain types of products, etc.

When forming a product strategy, you can use the following set of decisions and principles for the formation of a product (product) portfolio:

- "stars" to protect and strengthen;

If possible, get rid of "dogs" unless there are good reasons to keep them;

Cash cows require tight control of capital investment and the transfer of excess cash receipts under the control of the top management of the company;

- "difficult children" are subject to special study to establish whether they can not turn into "stars" with certain investments;

The combination of "cats", "stars" and "cash cows" products leads to the best results of the company - moderate profitability, good liquidity and long-term growth in sales and profits;

The combination of "cat" and "star" leads to unstable profitability and poor liquidity;

The combination of "cash cows" and "dogs" leads to a drop in sales and a decrease in profitability.

One of options commodity (product) strategy of the company is presented in table. 1.3.

Table 1.3

The main direction of the company's strategy is to change the structure of the product portfolio and redistribute available funds.

The BCG matrix is a convenient tool for comparing the various SBAs in which a company operates. In the BCG matrix, in fact, only one indicator is used to determine the company's prospects in the market - the growth in demand. Horizontally, the initial version uses the market share occupied by the company under study in relation to the market share of a competitor. For each SBA, the future growth rate is estimated, the market shares are calculated and the results are entered into the appropriate boxes. The BCG diagram offers the following set of decisions about the further activities of the company in the respective business areas:

"stars" to strengthen and protect;

if possible, get rid of "dogs" unless there are good reasons to keep them;

for "cash cows" it is necessary to strictly control capital investments and transfer excess cash proceeds under the control of the company's top management;

"wild cats" are subject to special study in order to establish whether they can not, with a certain investment, turn into stars.

"Wild cats" under certain circumstances can become "stars", and "stars", in the future, will turn into "dogs". The BCG matrix helps to perform two functions: making decisions about the intended positions in the market and the distribution of strategic funds between different areas of management in the future.

Matrix of the company "General Electric"

The pioneer in the development of an advanced firm SBA Strategic Portfolio Matrix with Variables: SBA Attractiveness - KSF is General Electric (in collaboration with the consulting firm Mc Kinsey). This matrix has dimension 3? 3. Usually in this matrix, the areas of circles (rectangles) representing SBAs are proportional to the sales volumes in them, and the shaded sectors show the market share controlled by the firm (Fig. 16.5).

Rice. 16.5. GE Matrix - McKinsey

In principle, the firm itself can set the boundaries between the sectors of the matrix. But since, when estimating in points, we proceeded from the possible spread (-5, +5), and also normalized the total values obtained by factors, we can recommend the following sector boundaries:

small (weak): -5? -2; average (average): -2 ? +2; high (large): +2 ? +5.

Such matrices are usually supplemented with information on appropriate investment flows. For example, in the General Electric matrix, there are three priority areas for investment:

With weak priority; - medium; - high (see the diagram in Fig. 16.6).

Rice. 16.6. The feasibility of investment flows

Shell adds a number of recommendations to such a matrix, and also provides an additional decision table (Table 16.8).

Table 16.7

Investment strategy

Table 16.8

Decision table depending on the prospects for profit and return on investment

http:// www. stplan. en/ articles/ theory/ mckincey. htm

Analysis of McKinsey's "7S"

assessment of the internal environment of a company operating in the market:

1.company strategy

2. competitive advantages

3. goals and values

4. staffing

5. the style of the firm

6. organizational and functional structure

7. various processes occurring in it (management, production, marketing, movement of information flows).

An example of a "7S" model

When all S-factors function in concert, the company becomes a powerful competitive fighter. It can be argued that with their initial successes Apple company Computer owes a balance to the S-factors. She professed an entrepreneurial style, supported by the founders, which attracted the most powerful and creative personnel to her. With state-of-the-art technological and professional capabilities, the Apple founders chose a loose matrix structure that suited the personal qualities of the employees and the challenge of creating new products.

Apple has developed support systems to reward innovation and control operations management. The reward system reinforced the shared values of teamwork and the pleasure of achieving the company's ultimate goal of giving every family the best, most user-friendly computer. Apple's strategy was to create a proprietary, user-friendly system for the home, school, and application graphics market. All S-factors were well matched to each other and provided mutual support on the way to moving towards the set goals.

Do an MBA-style analysis of your favorite organization. Write down seven S-factors on a piece of paper and dig into them. An MBA strategist does exactly what you're doing now with the 7S model. True, the consulting firm will accompany their analysis with entertaining computer graphics, put their work in a beautiful folder and demand a tidy sum from your company.

Rice. 2. Model 7S McKinsey

The presented model allows to analyze both "hard", more tangible aspects of the organization's activities, and "soft", more difficult to formalize. The first, hard ones, are strategies, structures and systems. The soft ones include the value system, skills and competencies, personnel and style. The analysis of these aspects makes it possible to identify the strengths and weaknesses of the company, but does not make it possible to analyze the external environment.

http://www.gri.com.ua/index.php?id=36&tx_ttnews=10&tx_ttnews=15&cHash=c5806fb4b9

The information basis for calculating the market share of a product of a certain trademark(for simplicity - the market share of a particular brand) are indicators of the volume of sales of competing products. Thus, market share is a calculated indicator, except when it is determined by an expert method by asking experts direct questions about their opinion on the value of this indicator for individual products.

Typically, the sales volume for calculating the market share indicator is expressed as monetary units. However, to exclude the influence of prices on this indicator, it is possible, where appropriate, to use natural indicators, such as the number of cars of certain brands sold.

To determine the market share of a product of a certain brand (a certain assortment position of a product group), both primary and secondary data should be used. Primary data is collected and processed using the following main methods.

1. Trade audit– determination of the share of sales of various products based on sales data of a representative sample of points of sale - wholesale and retail outlets.

Obviously, various retail outlets can be classified according to their location, type, sales volume, etc. The sample should include different types outlets. To form a sample, it is necessary to have a complete database of outlets. Only in this case, it becomes possible to project the obtained data on the entire studied market (market segment). Data is collected on the volume of sales of the studied products of competing companies.

Trade audits are typically carried out by large research agencies with extensive data collection and analysis resources and mature research technology. Such studies cost tens and even hundreds of thousands of dollars, so they can be afforded mainly by large companies, most often global manufacturers of food and consumer goods.

Trade audit is carried out in the following sequence.

First, a complete census (sensus) of the trade network of the study area is carried out. The census includes any retail outlets that have the studied goods in stock, ready for sale. As a result of the sensation, we get Full description of the studied general population - the number of outlets, their classification and distribution.

Further, a sample is made from the entire trading network, a so-called statistical panel is formed. Panel - these are the outlets where sales of the product under study will be recorded. The panel is divided into sub-samples, consisting of different types outlets. You should first agree with the management of outlets about the possibility of the presence of an auditor and the collection of information. The auditor works directly at the point of sale and keeps a description of all goods of the category under study, located both in trading floor as well as in stock. The audit is carried out cyclically. Each audit cycle reflects sales over a specific period of time.

All collected data is entered into databases. For each brand of product and for different product groups, sales volumes and market share indicators are calculated.

Let be the total sales volumes for each competing product (A, B, C, ..., N) of a certain category in the studied outlets, included in the sample, presented in monetary units for the selected period of time, and - the total sales of "our" product. Then the market share of product A for a sample of outlets - PDA is calculated as follows:

(6)

Similarly, the market shares of all the products studied in our example are calculated:

It's obvious that .

It is possible to cover not all competing products of the studied category, but only the products of the main competitors. In this case, the calculation of the market share indicator is carried out only for the main competitors. Let the market share of "our" product and two products of the main competitors be investigated. Then

This indicator does not give a picture as a whole for the market (the figure of 100% refers only to the studied products, and not to the totality of competing products presented in retail outlets).

Sales volume for a sample of stores retail can be determined based on the regular Nielsen trading panel, which gives a view of all retailers in a particular industry. Based on measurements on the trading panel, the Nielsen index is calculated, which determines the volume of sales by product, brand for a certain period of time (usually two months). The Nielsen index characterizes the average sales volume in one sample store for a certain period of time:

(8)

where V- sales volume for the selected period of time; - stocks at the beginning of the period; P - deliveries; B - return; - inventory at the end of the period.

The market share indicator is calculated using the above formulas.

Market share can also be determined using indicators such as numerical weighted distribution, selection indicator, average share in turnover.

Numerical distribution(PR) is the ratio of the number of retail stores that carry a given brand of product to the total number of a particular type of store where a consumer typically buys that type of product, expressed as a percentage.

PR = number of brand retailers Product X / total number of product retailers X (%).

Weighted Distribution(BP) is the market share of products held by retailers with Y brand of this product.

VR = total product sales X retailers who sell the brand Y/total product sales X (%).

A weighted distribution takes into account the size of stores that carry a particular product. For example, a weighted distribution of 60% of brand Y product X means that the Y brand is represented in stores that provide a total of 60% of the product's sales volume x.

Selection indicator(IV) = VR / PR = average product sales X in stores selling the Y brand / average sales of products for all retailers. A VR of 60% and a PR of 20% mean above-average sized stores are selected (they are few, but they produce the bulk of the product's sales). The selection indicator in this case is greater than one, namely 60/20 = 3.

Average share in turnover(DM) shows what position a particular brand occupies in selected stores, and can be considered as the market share of brand Y in the total turnover of product X in selected stores.

SD = brand turnover Y product X in selected stores / total turnover of products in selected stores (%).

Then the market share (SR) is defined as MR = PR IV SD = VR SD.

2. Diary consumer panel of regular respondents.

Respondents use a diary (records + checks and receipts) to record all purchases of the product group under study. The data obtained on the basis of the above calculated dependencies are translated by the researcher into market shares. Diary entries are used by many companies in different countries. As a rule, such panels are balanced in terms of family size, age of the head of the family, family income and geography. Panel members are recruited quarterly and added to the active roster after receiving a report from them that meets the standards of the research company. For participation in the panel, its participants are stimulated. A family may be excluded from the panel upon application or simply by failing to send three reports in a row. In Russia, this method is beginning to be mastered by some large marketing companies in Moscow, but in the regions it is still very rare.

3. The scanner-panel is similar to the previous method, except for the method of fixing purchases.

In this case, the respondents are given an identification card (or the respondent's credit card is used). A person presents (uses) a card when paying for purchases in a store that has a barcode scanner. The respondent code is appended to the data read by the scanner. Unlike the first method, the scanner-panel allows you to evaluate sales within various segments of the consumer market. But this method is applicable only in countries with very a high degree trade automation - it is necessary that almost all purchases be made in stores equipped with scanners.

4. Based on panel surveys, primarily for consumer products (both frequent consumption, such as food, and durable products, such as televisions), the market share of products of a certain brand can be calculated using the Parfitt-Collins method using the formula

where DR is the market share of the brand; PR - penetration of the brand, characterized by the percentage of buyers of this brand from total number buyers who purchase products of the category to which this brand belongs at least once during a certain period of time; PP - re-acquisition (substitution) of the brand, determined by the percentage of buyers who make

repeated purchases of a product of this brand. This is the percentage of consumers who have become adherents of this brand; I – intensity of brand consumption – the ratio of the volume of consumption of this brand by repeat buyers (brand adherents) to the average level of consumption of this category of products.

When applying this method, all products are divided into two categories - durable goods (demand is calculated per household) and non-durable goods (demand is calculated per consumer). Brand penetration for both groups characterizes the group of consumers who purchased the product for the first time. Repurchase, which characterizes secondary demand, for non-durable goods means that the consumer continues to buy the product of this brand, i.e. remains a fan of hers. For durable goods, secondary demand refers to a return to a given brand of product when a product is replaced or when an additional purchase is made. This method is directly related to consumer research (bottom-up approach).

Suppose there are 10 buyers and competing products in the market X, Y, Z(Table 3.2).

Table 3.2. Market share calculation

Buyers	Penetration	Reacquisition
		XXXX
		XXXX

Brand penetration value X accounts for 40%, reacquisition 66% (8:12). The consumption intensity of the brand is calculated as I = 3: 1.8 = 1.67, where the number 3 characterizes the ratio of the amount of the product X(the sum of initial and repeated purchases) to the number of buyers who bought this product (12: 4 = 3). The number 1.8 characterizing average level consumption of a given category of products is calculated in a similar way for all buyers of all studied products (18:10 = 1.8).

Market share is calculated using formula (1) as DR = 0.4 0.66 1.67 = 44% (check: DR = 8/18, column "Reacquisition").

5. Survey of consumers (physical and legal entities) is conducted at the respondent's place of residence, in public places, at the workplace, or in any other setting that involves personal contact.

Respondents are directly asked what products and how often and in what quantity they buy.

To determine the market share of consumer products of daily demand, the following structure of the questionnaire can be proposed (Table 3.3).

Table 3.3. Questionnaire structure

The product of these answers to three questions (O P Q) by the number of buyers of each product - P characterizes the sales volume of competing products for the study period.

For fast expendable, systematically purchased products for which there are certain consumption norms (for example, 2 g of toothpaste for one toothbrush), it is sufficient to determine consumer loyalty to a certain brand and the frequency of toothbrushing based on a survey.

The same applies to calculating the sales volume of category products. B2B, having consumption standards, for example, consumables, tools, etc.

6. When the number of analyzed products is relatively large (more than 7–10), the method of paired comparisons is used (this method is discussed in the works). To conduct a market share analysis based on paired comparisons, you need to:
1) make all possible pairs of the studied products and prepare questionnaires for pairwise comparisons;
2) using these questionnaires to conduct a survey of consumers (representatives of the consumer or business market, depending on the object of study). Respondents are asked to compare in pairs with each other products of the same type supplied to the market under study. At the same time, the questionnaire questions can be formulated, for example, as follows: "If you had to choose product A or product B when buying, which one would you prefer?" Possible answers: "Product A", "Product B", "Products are equivalent";
3) based on the data obtained, evaluate the market shares of products of competing companies.

Assuming that steps 1) and 2) have already been completed, we will show how, based on the results of pairwise comparisons, we can estimate the market share of each competing product.

Consider conditional example. Let the respondents express their attitude to five competing brands A, B, C, D, E (Table 3.4).

Table 3.4. Determination of market share based on pairwise comparisons

The numbers at the intersection of, for example, the first row A and the second column B (0.61) represent the proportion of cases where brand A is preferred over brand B. Obviously, at the intersection of the second row and the first column there should be a number that complements the previous share to one (0.39). If the respondent finds it difficult to choose the preferred trade mark, then the numbers 0.5 are entered into the table.

It is easy to check that the sum of all preferences in the example is equal to 10, the number of pairs being evaluated. Dividing the total preferences of each brand by the sum of all preferences characterizes the calculated value of the market share indicator for products of a particular brand.

7. Determination of market share indicators based on expert assessments.

It is carried out by direct processing and analysis of expert judgments, which can be employees of marketing departments of organizations, retail stores, as well as employees of consulting firms, marketing centers, marketing specialists, etc. involved from outside.

In addition to primary data, in the case when the market share is studied for enlarged assortment positions, and the market gravitates towards an oligopolistic structure (oil, gas, metals, mineral fertilizers, etc.), which is typical for products B2B, it is possible to use secondary data obtained from Russian and international statistical collections.

8. Use of marketing intelligence data, which can be carried out in various directions.

Having data on labor productivity in the industry and the number of workers employed in the production of major competitors, and assuming that all output is sold, it is possible to estimate the production volumes of competitors by multiplying labor productivity by the number of workers.

Knowing the costs of any type of resources (raw materials, electricity, gas, etc.) for the production of a unit of output and the volume of purchases of resources by competitors, it is possible to estimate the production volumes of competitors by dividing the volume of resources by the costs of resources for the production of a unit of output.

Knowing the average waste output per unit of production and the volumes of industrial waste of competitors, it is possible to calculate the volume of production of competitors by dividing the volume of industrial waste by the waste output per unit of product.

In the case of an industrial market, where there are few sellers, few buyers, and each purchase is expensive, the size of the market can be calculated by directly adding up the data on projects announced by competitors. Enterprises operating in such markets, as a rule, publish information about their projects in the press and on the Internet (since there are few projects, they tend to talk about each, at least on their own website). Thus, by monitoring the press, competitive and thematic Internet sites, it is possible to collect very accurate information about all projects in this industry for the reporting period.

Often, a company has access to specific data, which can be used to accurately determine the size of the market. For example, all POS terminals must be affixed with a special stamp at the time of sale, certifying that this type of POS terminal is approved for operation by the Federal tax service RF. It is also known that the right to manufacture and sell such stamps belongs to only one organization. If you can get information from this organization about how many stamps were sold in a year, then by multiplying the number of stamps by the average cost of a cash terminal, you can get the market size and your share in it (according to your own sales).

When using publicly available data, one must keep in mind that they can be very inaccurate. Most Russian companies do not provide accurate information about the volume of products produced or sold and will try to circumvent existing rules(no matter what it concerns - customs, accounting or something else).

Obviously, the use various methods definitions of market share will give different results. In this case, it is necessary either to give preference to the most reliable method, or to use the average value of the market share indicator.