Follow up on market share change sounds easy enough, but can be more tricky than you might think. Especially if you have a market share target for your business.
- Market share is contingent on factors that are out of your control.
You cannot control factors such as for example weather and macroeconomics that might have a hugh impact on your category.
- It assumes there’s no way to grow the overall category.
When you set out a market share target you need to do assumptions on the overall category development. To gain market shares you assume you will grow faster than the category. It also assumes you will gain from somebody else.
- You may end up taking counterproductive measures to “grow share” instead of focusing on “growing sales.”
To grow shares, you need to gain from somebody else. There are numerous ways to do so, but not all are perhaps good for your brand. For example, driving more sales through price promotions in order to gain shares might hurt your brand equity in the long run.
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