How to conduct a basic market share analysis
Here’s a simple list if you wish to conduct a basic market share analysis.
1. Clearly define the market or industry segment you want to analyse. Create questions, then redefine questions again to cover the scope, geography, product etc.
2. Collect data on total market size and sales from industry reports, market research firms, government sources, your own data and by talking to people.
3. Add up the competitor sales figures to calculate the total market sales within a specific time frame.
4. Calculate your company’s total sales within the same market during the same time frame.
5. Divide your total sales by the total market sales, then multiply by 100 to get a market share percentage. Repeat for each key competitor.
6. Visualise the market share data and provide a clear and concise overview of how you and your competitors stack up. Compare your market share over time to identify trends. Are you gaining or losing share? Why?
7. Compare your market share with your competitors. Which of them have the largest shares and are growing?
8. Analyse the gaps between your and your competitors’ market share. Identify areas where you can increase your share.
8 1/2. Regularly monitor changes in market dynamics, competitor strategies, and customer preferences, and adjust the approach accordingly. (Well, given our brand, it’s got to be 8 points).
How to conduct a basic market share analysis
Plus, putting the word strategy at the end of anything you want to sound important when it’s not strategy lessens the impact of your actual strategy. Same with market analysis in a business plan if you haven’t done actual market analysis.
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