Market Share Growth
Market Share Growth
Every retailer or company wants to dominate the market, some want the market flooded with their products climbing over every competitor and siting pretty on the money tree. Retail is however a stern business; everyone is seeking to make profit some others want to increase their profit.
Invariably, retailers want to spread in every area of the market, touching each sector, community or set of consumers. They want their reach to be further enhanced and their percentage increased, the reach or percentage the retailers clamor for is called Market Share.
This element of retail is seen as the area or percentage held by a particular company for a specified period of time. The percentage of that area being dominated by the company is referred to as Market Share. The market share of companies is calculated by taking the sales of a company for a specific period of time and dividing it by the total sales of that industry. For example, if Nike sells $200 million in soccer boots per year and the total amount of tractors sold in a year amounts to $400 million, we can say that Nike has 50% market share of the Soccer boots industry. Some strategic and innovative companies and retailers have been able to devise ways of increasing their market shares. These plans have set them apart from the rest and allowed them to thrive in the field where others struggle.
The market share of any company is one area that retailers that joke with; it is very important as it helps enhance corporate image, foster greater relationships, revenues grow and it raise a company above its competitors. An increase in the market share can also allow a company achieve increased profitability, there are several strategies employed by retailers to expand their share of the market. One of such plans is to lower prices of popular products. Different companies can manufacture the same product but what differentiates them are the price, quality, shape and benefits it has over the other. Cutting down prices can help increase the market share of the company, also improving the quality of a product can enhance the image and reputation of a brand.
Another strategy companies used to increase market share is advertising and appealing to the audience. Companies can promote new and existing products in a new way to captivate the audience. People can add a new way to using the product; companies can also advertise new looks to old products or additional information about a product. One way companies can appeal to the audience is by studying the demographics of the audience, understanding what method works for different social groups. The social media will be an apt platform to communicate new information about products to the youths, it could also be a great place to engage them, get to know their thoughts on a particular product and create major buzz about new products.
In conclusion, companies can expand into more areas of the market by tapping into the customer base of their competitors. This is not stealing of any sort but finding out what your competitors do and doing much better will bring more customers to you thereby increasing the company’s market share. Smart and innovative companies come up with ways of satisfying customers better than their competitors. Through the use of advanced technology, different Smartphone companies always strive to do something better than the other company whether it is in the size, camera quality, operating system or handling, each company wants to provide customers what they haven’t seen before.