🎓 Definition
The Share of the brand - or Market Share – or Brand sales contribution is a metric used by Retailers to measure the sales performance of individual Brands within a specific Category or Sub-Category and compared to their competitors. It is calculated by dividing a brand's sales by the total sales of the Category or Sub-Category and is typically expressed as a percentage.
When a Supplier's sale grows more than the category sales, its market share inside the Retailer – or its sales contribution – is growing. In this case, the Supplier is a Category Growth Driver.
🧪 Example of Share of Brand
Let's say Within the Potato Chip Category, the Retailer offers several brands, including Brand A, Brand B, and Brand C.
Assume the following sales data for the Potato Chip Category over the past month:
Brand A: $10,000
Brand B: $8,000
Brand C: $7,000
Total Potato Chip Category: $25,000
To calculate the Share of Brand for each Potato Chip brand, the Retailer divides the sales for each Brand by the total sales for the chip category:
Brand A share of brand: $10,000 / $25,000 = 40%
Brand B share of brand: $8,000 / $25,000 = 32%
Brand C share of brand: $7,000 / $25,000 = 28%
❓What is Share of Brand used for
- By tracking share of brand over time, Retailers can identify which brands are gaining or losing market share, and adjust their product offerings and marketing strategies accordingly.
- Share of brand provides a snapshot of how each Brand is performing in relation to its competitors. Retailers can use this information to make decisions about which brands to continue carrying, which ones to drop, and which ones to promote based on the Category Strategy.
- Share of brand data can be used to negotiate better deals with Suppliers. By showing Suppliers how their brand is performing compared to others in the category, Retailers can negotiate better pricing and promotional support.
Overall, Share of Brand is a useful tool for Retailers to monitor the performance of their product offerings, make data-driven decisions, and improve profitability.
How frequently should Retailers ideally measure and track the Share of Brand to get accurate insights into brand performance?
Ideally, Retailers should measure and track the Share of Brand regularly, such as monthly or quarterly, to get accurate insights into brand performance. Regular tracking allows Retailers to identify trends over time and make timely adjustments to their product offerings and marketing strategies.
Are there any limitations or challenges associated with using Share of Brand as a metric to evaluate brand performance within a specific category?
Yes, there are some limitations and challenges associated with using Share of Brand as a metric. Share of Brand focuses solely on sales performance and may not capture other important factors such as brand reputation, customer loyalty, or seasonal trends. Additionally, Share of Brand is a relative measure and can be influenced by the overall growth or decline of the category, which may not always reflect the true performance of individual brands.
Can Share of Brand be influenced by factors other than sales, such as brand reputation, customer loyalty, or seasonal trends? If so, how can these factors be accounted for in the analysis?
Yes, Share of Brand can be influenced by factors other than sales, such as brand reputation, customer loyalty, or seasonal trends. To account for these factors in the analysis, Retailers may consider incorporating additional metrics and qualitative data into their evaluation process. This could include customer satisfaction surveys, brand awareness studies, and seasonal sales trends analysis. By combining quantitative and qualitative data, Retailers can gain a more comprehensive understanding of brand performance and make more informed decisions.
🖥️ Make it happen in Ariane
How to access Share of Brand or Market Share in Ariane: 3 Simple Steps
Step 1: Select the Market Share Menu in the Performance Menu Bar.
Step 2: Select Option in the Filter Menu and choose the KPI you want.
Step 3: Select the display by which hierarchy level you want to measure and the period scope.
And here it is.
