Market size, growth and share
- Created by: london irish
- Created on: 21-10-22 11:34
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- Market size, growth and share
- Market size by value
- Value of sales in the specific market sector
- A - gives idea of sales potential. D - Markets change over time
- the UK market for wrapped bread was worth £1.4 billion in 2015. That was the market size by value.
- Market size by volume
- Quantity brought in a market sector
- the UK market for wrapped bread was worth £1.4 billion in 2015. That was the market size by value.
- A- allows you to work out price per unit/product. D - Value is more important in business
- Market growth
- Percentage change between two years
- in 2015 the UK market for ‘free-from’ groceries (such as gluten-free) grew by 19.2%, from £520 million to £620 million.
- A - Easier to break into an emerging market - new niches. D - Value needs to grow also.
- Influence
- Adapting to the larger markets to attract more customers - can also be economic trends and consumer tastes
- Fairy has a 69% share of the UK market for washing-up liquids. But Finish has a 56% share of the bigger market for dishwasher powders. For Reckitt Benckiser, producers of Finish, persuading people to switch to an automatic dishwasher makes a lot of sense
- A - The biggest producer enjoys the large chunk of growth in an expanding market. D - Boosting the market could boost rivals
- Market decline
- Sales falling year on year - %
- in 2015 sales of vegetables fell by 6.4% in the UK, from £4,963 million to £4,646 million, a fall of £317 million. The previous year the figure fell by 7.4%, so this represents a downward trend.
- A - Knowing trends is vital to staying successful. D - If people ignore trends - they will lose business and profit
- Market share
- Percentage of market held by one company
- in 2015 Heinz had a 67% share (by value) of the UK market for baked beans. Its nearest competitor was Branston, with an 11% share.
- A - Market size can be affected by the economy or customer tastes; market share is marketing and quality. D - Big companies can get complacent
- Boosting market share
- Boosting sales faster than market growth
- as long as the market size is big enough, boosting the share of a small brand can yield big rewards. In 2011 the chocolate brand Lindor had a 1.5% share of the UK chocolate market. By 2015 it had won 2.4%. That meant the difference between £48.7 million of sales in 2011 and £88 million in 2015 (a rise of 80%).
- A - Small market share have large growth scope. D - Could be expensive to boost.
- Growing a niche
- Existing brands need a lot of marketing expenditure, a new business immediately gets new attention
- in 2007 Warburtons had a 29.8% share of the UK bread market. In 2015 it was 34%. Its sales gains have been boosted by new niches such as wraps, thins and giant crumpets.
- A - Innovation is appreciated and boosts corporate image. D - Failure rate of 80% in UK, 1 in 5 new products.
- Declining share
- Sales either falling whilst elsewhere rising or rising more slowly than the market as a whole.
- in 2008 Kellogg’s Special K had a 7.3% share of the UK market for breakfast cereals. By 2015 the figure was 4.8%. The market share decline was steady and grim.
- A - You can decide whether to stop investment or have a new focus. D - Retailers may remove product from shelves.
- Sales either falling whilst elsewhere rising or rising more slowly than the market as a whole.
- Market size by value
- Retaining market share
- Losing share size could be a primary objective
- in 2015 Wrigley held a 94% share of the UK market for chewing gum, with one brand (Extra) taking 75% of the market on its own. For Wrigley, success means nothing happening.
- A - Maintaining is cheaper than gaining. Retail shops and customers need to be kept happy. D - For the staff at a stable business, there may be little scope for innovation
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