Market share

What is the market share?

The market share is the percentage of total sales of a product or brand compared to the sales of a homogeneous product category or market during the same period of time.

The market share (and its evolution) is one of the most followed KPIs for sales and marketing purposes to gauge the competitive position of a brand or product.

The interpretation of this KPI will depend on whether it is presented in value or volume and on the chosen market reference. The definition of the relevant market and which products are considered as competitors or not is often open for debate.

For instance, when calculating the market share of a beer brand, do we only include the sales of other beer brands or also include the market for wines, cider or other alcoholic beverages?

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