Market Share and Participation By Product-8

If you have access to data on your particular market, you can determine your share of the market as:

• Market Share = Your Company’s Sales / Total Sales in Your Market Sector

This ratio could be calculated in terms of volume of units sold, dollar value of sales, or both.
If your business involves more than one type of product, you can determine the relative importance of each product, in terms of your total sales, as:

• Participation of Product A in Total Sales  = Sales of Product A / Total Sales

To obtain an indication of how well you are renewing your product line, you can use the following ratio:

• Level of Renewal of Product Line = Sales of New Products / Total Sales

The more information you have regarding the sales and costs of each of your own products, and the associated figures relating to your market sector, the more types of analyses you can perform.
By breaking down your actual sales by individual product, or line of products, and comparing these figures with the corresponding market figures, you can determine:

• The growth of your sales of each product, period by period, and how your growth compares to the market.
• Changes in your market share, by product by period.
• Changes in the make-up of your sales – how much of your sales was for each product, and how is this evolving over time.