Dynamic Market Share Description

Dynamic Market Share is a metric that better describes the latest evolution of your product sales vs the market’s sales. It is especially relevant in situations where the product and market sales are driven both by existing, recurring customers and also by new customers that previously did not consume in this category. For example, a product can have a relatively low market share, i.e. 10% because it does not have a lot of existing customers, and at the same time the product can gain a big share, i.e. 50% of the new consumers entering the market. This is esentially the share of market growth that the product is capturing.

This metric is particularly useful for understanding the impact of marketing initiatives, promotions, and other tactical decisions on a brand’s performance. By analyzing dynamic market share, businesses can identify trends, assess the effectiveness of their strategies, and make informed decisions to enhance their competitive positioning.

Formula:

$$ \text{Dynamic Market Share} = \frac{\Delta\text{Brand Sales}}{\Delta\text{Market Sales}} \times 100 $$

Configurable Parameters:

1. Brand: Select from a list of available products or brands to track sales performance.
2. Relevant Market: A relevant market is a set of products, including own products and competitor products that fit in the same category. In order to calculate a product’s market share, the relevant market needs to be defined as it is the denominator of the market share.
3. Measurement: Choose the unit of measurement, such as units sold, revenue, or volume, to align market sales calculations with the relevant metric.
4. Level: Choose from different levels of reporting:
   • Rep: Sales vs. target at the individual sales representative level.
   • Manager: Sales vs. target aggregated by team or manager.
   • National: Sales vs. target calculated at the national or organizational level.
5. Target Period: Define the start and end dates for the target calculation period to focus on specific time frames, such as monthly, quarterly, or annually.
6. Allocation: Select the brick-to-territory allocation method to apply when calculating the target value (current), allowing analysis based on specific geographic or assigned territories.
7. Reference Period: Define the start and end dates for the reference calculation period to focus on specific time frames, such as monthly, quarterly, or annually.
8. Reference Allocation: Select the brick-to-territory allocation method to apply when calculating the reference value (previous), allowing analysis based on specific geographic or assigned territories.
9. Data Source: Choose the source of sales and target data, which could come from different vendors or represent different types of sales data (e.g., Sell-In, Sell-Out).
10. Channel: Select the channel of sales/target values, such as in-store, online, or wholesale, to isolate performance by sales channel.