INSTITUTO POLITÉCNICO NACIONAL
ESCUELA SUPERIOR DE COMERCIO Y
ADMINISTRACIÓN UNIDAD SANTO TOMAS
UNIT: MARKET ANALYSIS AND MEASURMENT
TEACHER: HERRERA GARRIDO PEDRO STUDENT
TEAM:
ALATORRE PICHARDO JUAN ANTONIO
ANGUIANO SILVA MARIO ABDIEL
CORTES CASTRO INGRID ARIADNA
HERNANDEZ DE JESUS CARLOS DANIEL
SANCHEZ CORONA SURIH ZOE
GROUP: 5RMAF
In this analysis we will compare the sales of the product, "OMEGA" in an airport,
analyzing the offer of said product by two different brands, "body" and "moist" to
understand its presence and participation in the market. but for this analysis we need to
know basic and essential concepts of market participation.
By analyzing different types of market share, companies can understand their
position in the market and make better decisions to improve their competitiveness. Market
share is the part of a market that one company or product controls. It helps compare how
well a company is doing compared to others in the same industry. This measurement
shows how well a company can keep its old customers and attract new ones. It also helps
companies compare themselves with other companies of similar size. As companies face
different market forces, market share becomes an important factor in guiding marketing
efforts and using resources effectively.
Market share changes based on things like consumer preferences, competition,
and market conditions. Companies use market share as a goal and a way to measure
performance. A growing market share usually shows that a company is doing well in the
long term because it often means customers are satisfied and trust the brand.
MARKET SHARE
Market share is the portion of a market controlled by a particular company or
product. It is typically expressed as a percentage and is calculated by dividing the
company's sales by the total sales of the industry during a specific period. Market share
is an important indicator of a company's competitiveness and its ability to attract and
retain customers within the market. In addition to serving as a gauge of competitiveness,
market share can also influence strategic decision-making within an organization.
Companies often adjust their marketing strategies based on shifts in market share, aiming
to enhance customer retention and satisfaction, which are crucial for long-term success.
For instance, businesses may choose to invest more heavily in advertising or product
development when they observe a decline in their market position, hoping to reclaim lost
ground against competitors. Additionally, understanding the dynamics of market share
can provide insights into consumer behavior, allowing firms to tailor their offerings to meet
evolving demands effectively. As such, maintaining a robust market share not only
signifies current success but also lays the groundwork for future growth opportunities.
The characteristics of market share
• Percentage Representation: Market share is typically expressed as a
percentage, indicating the portion of total sales in a market that a particular
company or product controls.
• Competitive Indicator: It serves as a crucial indicator of a company's
competitiveness, reflecting its ability to attract and retain customers
compared to its competitors.
• Sales-Based Calculation: It is calculated by dividing a company's sales by
the total sales of the industry during a specific period, highlighting the
company's performance relative to the overall market.
Moreover, the pursuit of market share often leads companies to adopt innovative
marketing strategies and enhance product offerings to differentiate themselves from
competitors. For instance, organizations may invest in research and development to
create unique features or improve customer service, thereby increasing their
attractiveness in the eyes of consumers . Additionally, a robust understanding of market
segmentation allows firms to tailor their approaches effectively, targeting specific
demographics that are most likely to convert into loyal customers . This strategic
alignment not only bolsters market share but also fosters long-term relationships with
consumers, ultimately contributing to sustained profitability and competitive advantage
within the industry. Furthermore, leveraging data analytics can provide insights into
consumer behavior, enabling companies to anticipate trends and adapt their strategies
proactively, ensuring they remain ahead of the curve in an ever-evolving marketplace.
Market share can be categorized in several ways based on different metrics and
perspectives. Here are the primary types of market share:
Market Share by Sales: This is calculated by dividing a company's sales revenue
by the total sales revenue of the industry. It reflects the company's financial performance
and its ability to generate income from sales compared to the overall market. In addition
to these conventional metrics, companies increasingly recognize the importance of
qualitative factors that influence market share dynamics. For instance, brand perception
and customer experience play pivotal roles in shaping consumer preferences, often
transcending mere price competition. A strong brand reputation can significantly enhance
customer loyalty, which, as noted in studies, correlates with a sustained increase in
market share and overall financial performance across various firm sizes . Furthermore,
the integration of technology into marketing strategies—such as utilizing artificial
intelligence for personalized customer interactions—can create a more engaging
shopping experience, thereby driving sales and expanding market reach. As firms
navigate this complex landscape, it becomes imperative to not only track quantitative
measures but also to cultivate an emotional connection with customers, ensuring long-
term viability amidst fierce competition.
Market Share by Units:
This type measures the number of units sold by a company compared to the total
units sold in the market. It provides insight into the volume of products a company is
selling relative to its competitors. In addition to measuring market share by units,
companies can also assess their performance through revenue-based metrics, which
consider the total sales value rather than just volume. This approach is particularly
relevant in industries where product pricing varies significantly; it allows firms to gauge
not only how much they sell but also the financial impact of those sales on their overall
profitability. Furthermore, understanding the interplay between market share and brand
equity becomes essential, as a strong market presence often enhances perceived value
among consumers, leading to increased customer loyalty and retention. Companies that
effectively leverage these insights are better positioned to navigate competitive pressures
and capitalize on emerging opportunities within their respective markets, ultimately
contributing to sustainable growth and resilience against economic fluctuations.
Segmented Market Share: This type analyzes market share across different
segments, which can include:
1. ABC+: This stratum represents the upper and upper-middle class. Consumers
in this category typically have higher disposable incomes, prioritize quality and brand
reputation, and are more willing to pay a premium for products. They are likely to seek
products that are perceived as higher status or more luxurious.
2.C: This is the middle class. While consumers here are cost-conscious, they also
value quality and are willing to invest in products that offer good value for money. They
are more likely to compare options but are open to purchasing from reputable brands if
they believe the price is justified.
3. C-: This represents the lower-middle class. Consumers in this segment are
highly price-sensitive and tend to prioritize affordability over premium features. They seek
basic functionality and quality without the extra frills.
4. D+: This is the lower-income stratum. Consumers in this category often prioritize
price over other factors due to tighter budgets. Affordability and accessibility are key
considerations for this group.
Based on the information given in the chart below, calculate market share in sales,
units, relative and of the segment for product Omega. Once you have completed the
exercise, interpret the results and argue your answer.
SALES SALES IN VOLUME CUSTOMER
CATEGORY BRAND SEGMENT PRODUCT IN LOCAL IN BY
UNITS CURRENCY GRAMS PRODUCT
DRESSER
BLUE 84 4000 9240 328
CATEGORY
BODY ABC+ WHITE 73 17000 7300 740
POCKET
RED 92 3000 11500 285
CATEGORY
GREEN 108 23450 27000 1080
MOIST C/C-/D+
REFIL
YELLOW 77 3890 7700 451
CATEGORY
TOTAL 434 51340 62740 2880
PRODUCT PRICE PRESENTATION
BLUE 47.61 110
WHITE 232.87 100
RED 32.60 125
GREEN 217.12 250
YELLOW 50.51 100
In this analysis, we calculated the market shares for two brands, “Body” and
“Moist”, which sell the same product, "Omega" but in different segments and colors.
Several key metrics were used to understand how these brands are positioned in the
market, such as unit share, monetary sales share, segment share, and relative market
share.
1. Calculate the market share in sales.
We calculate this by add the sales of each brand and dividing the sales of each brand by
the total market sales.
The Formula for market share in sales:
𝑡𝑜𝑡𝑎𝑙 𝑠𝑎𝑙𝑒𝑠 𝑜𝑓 𝑡ℎ𝑒 𝑏𝑟𝑎𝑛𝑑
𝑀𝑎𝑟𝑘𝑒𝑡 𝑠ℎ𝑎𝑟𝑒 𝑖𝑛 𝑠𝑎𝑙𝑒𝑠 = 𝑥100
𝑡𝑜𝑡𝑎𝑙 𝑚𝑎𝑟𝑘𝑒𝑡 𝑠𝑎𝑙𝑒𝑠
Body
We add the total sales of the brand body
Body sales= 4000+17000+3000= 24000
Now the result diving by the total market sales 51340
"#$$$
Share in sales= ( %&'#$ )x100= 46.7%
Moist
We add the total sales of the brand Moist
Moist sales= 23450+3890= 27340
Now the result diving by the total market sales 51340
"('#$
Share in sales= ( %&'#$ )x100= 53.3%
In an airport, customers are usually travelers. Travelers often don’t have time to shop
around and are willing to pay more for something fast and convenient. Moist takes
advantage of this by being a “premium” brand that can charge higher prices.
Body sells more units, but Moist generates slightly more revenue, ´cause Moist have
higher prices than Body, this can be seen reflected in the “green” price which is a price of
217.12 and was the best seller having sales of 23450 compared to Body whose highest
price is 232.87 for "white" which had sales of 17000.
Body sells more products because it offers lower prices, which may attract people who
want to save money or are more budget-conscious after spending on travel
Price Factor: Moist charges more, and Body sells more because it is cheaper.
Segment Factor: In an airport, Moist might appeal to wealthier travelers, while Body could
attract budget travelers.
2. Calculate the market share in units.
This is calculated by summing the units sold by each brand and dividing them by the total
units sold in the market.
𝑡𝑜𝑡𝑎𝑙 𝑢𝑛𝑖𝑡𝑠 𝑜𝑓 𝑡ℎ𝑒 𝑏𝑟𝑎𝑛𝑑
𝑀𝑎𝑟𝑘𝑒𝑡 𝑠ℎ𝑎𝑟𝑒 𝑖𝑛 𝑢𝑛𝑖𝑡𝑠 = 𝑥100
𝑡𝑜𝑡𝑎𝑙 𝑚𝑎𝑟𝑘𝑒𝑡 𝑢𝑛𝑖𝑡𝑠
Body
We add the total units of the brand body
Body units= 84+73+92= 249
Now the result diving by the total market units 434
𝟐𝟒𝟗
Market share in units= ( ) x 100= 57.4%
𝟒𝟑𝟒
Moist
We add the total units of the brand moist
Moist units= 108+77= 185
Now the result diving by the total market units 434
𝟏𝟖𝟓
Market share in units= ( ) x 100= 42.6%
𝟒𝟑𝟒
Since Body is cheaper, more travelers buy it. Moist, however, sells fewer units but earns
more because its products are more expensive. In an airport, some people want
affordable options, and Body fits that need. Others want premium products, and Moist fits
that group.
Body sells more because it’s cheaper, while Moist sells fewer but at a higher price.
Body has a larger presence in the market in terms of volume, selling more units overall.
However, this does not translate to higher revenue, suggesting that Body may be priced
lower than Moist.
3. Market share relative
This metric helps to understand how dominant a brand is relative to its competition.
The Formula for relative share in sales is:
𝑀𝑎𝑟𝑘𝑒𝑡 𝑆ℎ𝑎𝑟𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑏𝑟𝑎𝑛𝑑
𝑅𝑒𝑙𝑎𝑡𝑖𝑣𝑒 𝑚𝑎𝑟𝑘𝑒𝑡 𝑠ℎ𝑎𝑟𝑒 =
𝑀𝑎𝑟𝑘𝑒𝑡 𝑆ℎ𝑎𝑟𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑐𝑜𝑚𝑝𝑒𝑡𝑖𝑡𝑜𝑟
Body
53.3
𝑅𝑒𝑙𝑎𝑡𝑖𝑣𝑒 𝑚𝑎𝑟𝑘𝑒𝑡 𝑠ℎ𝑎𝑟𝑒 𝑜𝑓 𝑏𝑜𝑑𝑦 = = 1.14
46.7
Moist
46.7
𝑅𝑒𝑙𝑎𝑡𝑖𝑣𝑒 𝑚𝑎𝑟𝑘𝑒𝑡 𝑠ℎ𝑎𝑟𝑒 𝑜𝑓 𝑚𝑜𝑖𝑠𝑡 = = 0.87
53.3
Moist is the leader in terms of revenue (money earned), but Body is close behind. The
relative market share shows that Body earns about 87% of what Moist makes.
This small gap shows that Body is still strong in the market, but Moist has a slight
advantage due to its higher prices and positioning as a premium brand.
Relative market share compares each brand’s sales to the market leader, which in this
case is Moist, since it makes more money overall.
This means that for every dollar Moist earns, Body earns 87 cents.
• Moist is the leader in terms of revenue (money earned), but Body is close
behind. The relative market share shows that Body earns about 87% of what
Moist makes.
• This small gap shows that Body is still strong in the market, but Moist has a
slight advantage due to its higher prices and positioning as a premium
brand.
The Formula for relative share in units is:
𝑀𝑎𝑟𝑘𝑒𝑡 𝑆ℎ𝑎𝑟𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑏𝑟𝑎𝑛𝑑
𝑅𝑒𝑙𝑎𝑡𝑖𝑣𝑒 𝑚𝑎𝑟𝑘𝑒𝑡 𝑠ℎ𝑎𝑟𝑒 =
𝑀𝑎𝑟𝑘𝑒𝑡 𝑆ℎ𝑎𝑟𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑐𝑜𝑚𝑝𝑒𝑡𝑖𝑡𝑜𝑟
Body
57.4
𝑅𝑒𝑙𝑎𝑡𝑖𝑣𝑒 𝑚𝑎𝑟𝑘𝑒𝑡 𝑠ℎ𝑎𝑟𝑒 𝑜𝑓 𝑏𝑜𝑑𝑦 = = 1.35
42.6
Moist
42.6
𝑅𝑒𝑙𝑎𝑡𝑖𝑣𝑒 𝑚𝑎𝑟𝑘𝑒𝑡 𝑠ℎ𝑎𝑟𝑒 𝑜𝑓 𝑚𝑜𝑖𝑠𝑡 = = 0.74
57.4
:
• The relative market share of Body compared to Moist is 1.35. This means
that Body has a market share 35% higher than Moist in terms of units sold.
• The relative market share of Moist compared to Body is 0.74, indicating that
Moist has a share 26% lower than Body in units.
4. Market share segment for product in sales
helps us understand how sales are distributed within different socioeconomic groups, in
this case, ABC+ (upper and upper-middle class) and C/C/D+ (middle and lower-middle
class).
Results by Product in Each Segment:
Body is mainly targeted at the ABC+segment, with a total of 24000 sales in local
currenty
Body segment ABC+
4000
Blue relative market share= $24000% x100 = 𝟏𝟔. 𝟔𝟔%
17000
White relative market share= (24000)x100= 70.83%
3000
Red relative market share= (24000)x100= 12.5%
Moist focuses on the C/C/D+ segment, with a total of 27340 sales
23450
Green relative market share= $𝟐𝟕𝟑𝟒𝟎% x100 = 𝟖𝟓. 𝟕𝟕%
3890
Yellow relative market share= (𝟐𝟕𝟑𝟒𝟎)x100=14.22%
Market share segment for product in units
helps us understand how sales are distributed within different socioeconomic groups, in
this case, ABC+ (upper and upper-middle class) and C/C/D+ (middle and lower-middle
class).
Results by Product in Each Segment:
Body is mainly targeted at the ABC+segment, with a total of 249 units sold.
Body segment ABC+
84
Blue relative market share= $249% x100 = 𝟑𝟑. 𝟕%
73
White relative market share= (249)x100=29.3%
92
Red relative market share= (249)x100=36.9%
Moist focuses on the C/C/D+ segment, with a total of 185 units sold.
108
Green relative market share= $249% x100 = 𝟓𝟖. 𝟒%
77
Yellow relative market share= (249)x100=41.6%
The airport has customers from many social classes, and each brand performs differently
with these groups.
Body in ABC+ Segment:
Body sells well to wealthier people in the ABC+ class (rich or upper-middle-class
people). These travelers like quality but also want to save money when possible, which
makes Body a good choice for them. Body offers both good quality and a reasonable
price.
Moist in C/C-/D+ Segments:
Moist does well in the C/C-/D+ segments (middle and lower-income groups).
These groups may still buy Moist because they see it as a high-quality product and are
willing to pay a bit more for it, especially in an airport where people are likely to make
quick purchases.
Interpretation:
In an airport, people from different income groups are shopping. Wealthier travelers
(ABC+) like Body because it gives them good value, while middle and lower-income
travelers (C/C-/D+) might choose Moist because they see it as worth the extra money for
better quality.
Price Factor: Moist’s higher prices may still attract lower-income groups in the airport, as
these travelers are looking for value or might treat themselves while traveling.
Segment Factor: Body does well with richer people who want to save money, and Moist
appeals to middle and lower-income groups willing to spend more for a premium product.
• Body sells more units but makes less money because it charges lower prices.
• Moist sells fewer units but earns more because its prices are higher.
• Both brands are successful in the airport setting because travelers have different
needs. Some travelers want affordable products (Body), while others want
premium products (Moist).
• Body appeals to wealthier customers (ABC+) who still want to save money, while
Moist attracts middle and lower-income customers (C/C-/D+) who want a higher-
end product even if it costs more.
• Body is succeeding in terms of volume, particularly in the higher socioeconomic
stratum (ABC+), but could potentially be leaving money on the table by not
capitalizing on its pricing strategy. If Body were to raise its prices slightly or
introduce a premium line, it could boost its overall profitability without sacrificing
much in terms of sales volume. Since consumers in the ABC+ segment tend to
value quality and brand reputation, Body has an opportunity to grow its revenue by
appealing to this group's willingness to pay more for perceived value.
• Moist, meanwhile, has managed to find a balance between premium pricing and
affordability. Even though it sells fewer units, its higher ASP means it is driving
more revenue. Moist’s success in the C/C/D+ segment shows that it understands
how to offer products that appeal to price-sensitive consumers without
compromising on brand perception. Its ability to maintain a higher price in a market
where cost is crucial suggests that consumers see Moist as offering superior value,
either in terms of product quality or brand prestige.
• Product differentiation plays a critical role here as well. For instance, Moist's
"Green" variant is clearly a standout in the C/C/D+ segment, accounting for over
half of the units sold in that group. This suggests that consumers perceive this
particular product as offering more value or fitting better with their needs than other
available options.
Conclusions:
• Moist has a slight advantage in terms of revenue (local currency sales), but Body
dominates in units sold, with a stronger presence in the ABC+ segment.
• The segment share reflects a clear segmentation: Body is stronger in the ABC+
segment (upper and upper-middle class), while Moist has a larger share in the
C/C/D+ segment (middle and lower-middle class).
• The relative market share confirms that although Body sells more units, Moist
balances the competition with higher prices or more profitable products.
Recommendations:
• Body could leverage its strong unit presence to increase profit margins, either by
raising prices or introducing premium versions of its products.
• Moist should continue strengthening its strategy in the C/C/D+ segment, where it
already has a solid base, but also explore opportunities to increase the number of
units sold.
