Pricing Mini Case: Understanding Market Share by Volume and by Sales One of the most common ways a company assesses the performance of one of its brands is by measuring its market share and comparing its market share to competitors. In many cases, it is common for someone to read a report for a brand's market share, reported as a %, but little or no context is given about how that market share % was actually calculated. It turns out the decisions that go into the market share calculation can have substantial impact on how to report and interpret a brand's market share. In this problem, you will be asked to calculate the market share for several different brands using several different market share calculation approaches. In addition, another important aspect of market share calculation is to understand whether the sales units or sales revenues are being calculated in terms of purchases made by the end consumer or by shipments made to marketing interrmediaries like wholesalers. Many companies do not sell their products directly to end consumers, so on one hand it makes sense to count sales to intermediaries as the relevant measure of market share. On the other hand, this approach can create deceptively high market shares for a brand if intermediaries overstocked a brand and are now unable to sell the product in a timely manner. EEB Click the icon to view the sales data table. Does it appear that marketing intermediaries may be overstocking any of the brands? If so, for which brand does this overstocking problem appear to be most severe? The overstocking problem appears to be most severe for The overstocking problem appears to be most severe for OUR BRAND no one brand Competitor B Competitor C Competitor A Click to select your answer(s) and then click Check Answer. lated. It turns out the decisions that go into the market share calculation can have substantial impact i More Info cula ed in direc O m t an c Marketing Intermediaries End Consumer Data Data Avg. Unit Price Avg. Unit Price Unit Sales Unit Sales prob me OUR BRAND Competitor A Competitor B Competitor C TOTALS $46.56 $29.1 $22.9 $15.2 $20.4 15,000 20,000 35,000 11,000 81,000 10,500 26,000 42,000 7,700 86,200 $43.51 $24.32 $34.68 to Print Done Pricing Mini Case: Understanding Market Share by Volume and by Sales One of the most common ways a company assesses the performance of one of its brands is by measuring its market share and comparing its market share to competitors. In many cases, it is common for someone to read a report for a brand's market share, reported as a %, but little or no context is given about how that market share % was actually calculated. It turns out the decisions that go into the market share calculation can have substantial impact on how to report and interpret a brand's market share. In this problem, you will be asked to calculate the market share for several different brands using several different market share calculation approaches. In addition, another important aspect of market share calculation is to understand whether the sales units or sales revenues are being calculated in terms of purchases made by the end consumer or by shipments made to marketing interrmediaries like wholesalers. Many companies do not sell their products directly to end consumers, so on one hand it makes sense to count sales to intermediaries as the relevant measure of market share. On the other hand, this approach can create deceptively high market shares for a brand if intermediaries overstocked a brand and are now unable to sell the product in a timely manner. EEB Click the icon to view the sales data table. Does it appear that marketing intermediaries may be overstocking any of the brands? If so, for which brand does this overstocking problem appear to be most severe? The overstocking problem appears to be most severe for The overstocking problem appears to be most severe for OUR BRAND no one brand Competitor B Competitor C Competitor A Click to select your answer(s) and then click Check Answer. lated. It turns out the decisions that go into the market share calculation can have substantial impact i More Info cula ed in direc O m t an c Marketing Intermediaries End Consumer Data Data Avg. Unit Price Avg. Unit Price Unit Sales Unit Sales prob me OUR BRAND Competitor A Competitor B Competitor C TOTALS $46.56 $29.1 $22.9 $15.2 $20.4 15,000 20,000 35,000 11,000 81,000 10,500 26,000 42,000 7,700 86,200 $43.51 $24.32 $34.68 to Print Done