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.
🖥️ 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.