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Market Share

Sales of a brand x100

Total sales of the product category

1 X 100= 0.245

245

This shows this brand to be competitive as compared to the others. It also means a great performance for this product. Factors such as increased popularity have increased the sales of this product in particular. This calculation of the market measure has enabled the Company to know how well they are doing as compared to the other companies that have the same product.

The values of the market share can be determined by the changes that are brought about by penetration. Thus higher share brands bring out a bigger result as compared to the brand shares that are lower.

Penetration

Number of Brand Buyers X100

Total number of customers (shoppers)

83X100=33.87 %

245

This figure is actually low hence can bring out the meaning that the purchase levels are high. But this figure is only related to a one time purchase as compared to more than one purchase.

Average Purchase Frequency

Number of purchases of the brand

Number of brand buyers.

83= 0.339

245

These differences show a variation in the purchases for this brand in particular. The value here is low hence it means that there is a low purchase rate. In the case whereby the figure was higher, then this would be interpreted to mean that the brand is being purchased in huge numbers. This brings out the number of times the product has actually been purchased.

Category Buying Rate

Number of purchases from the category, made by brand buyers.

Number of brand buyers.

1= 0.20

5

This helps the company to determine which category is mostly favored by a particular group as compared to others. For example, it can be observed that the product is particularly popular with a certain gender or age within the overall population.

If a certain category is found to purchase the product as compared to the others of different demographic categories this will bring about a change in the size of the repertoire as the frequency and the value keeps on increasing as a result of some changes.

Share of Category Requirements

Average Purchase FrequesncyX100

Category Buying Rate

1 X100= 0.14

7

It relates to the consumers in particular This value indicates the values that the customer has spent in relation to that product in particular.. Hence a higher figure means that the consumer is spending less on the product while a higher figure means that the consumer is spending a higher value on the particular product.

In these calculations, there is inconsistency with the heavy usage index in particular. A higher value actually means that the consumers who purchased the product are enjoying its usage while a lower value means that the consumers do not enjoy its value. In this case since it’s a consumable product then chances exist that the consumers do not actually enjoy the taste of the product as compared to other products in the market.

Solely Loyal

Number of brand buyers who did not purchase any other brandX100

Number of brand buyers

1 X100=33%

6

This value indicates that the heterogeneity of the product is less. The probability of the individuals having to make the same choice in the purchases is less meaning that they have divided their interests widely among other products.