Calculation of shares of all market participants

Keeping track of competitors' market shares and your own share is vital information for decision making. The development of a company may look ideal: revenues are growing, profits are increasing. But growth can only be driven by market growth. Calculating and tracking the dynamics of market shares allows you to understand which competitors should be closely watched in order to capitalize on successful experience or takeover.

To track the position of the company and competitors, market share is an indispensable indicator. Market share reflects the development, influence of competitors, and the results of the marketing activities of each of them.

Why does a company need to know and track these indicators? Firstly, knowing the capacity and shares of participants, you can calculate not only the volume of revenue of individual competitors, but also other financial indicators, get the opportunity to increase your own market share, and identify the weakest links in the market chain. The second reason is to track the development of your own company. The development of a company may look ideal: revenues are growing, profits are increasing. But at the same time, growth can only be due to market growth. The market share indicator allows you to separate the effect of market growth from company growth and track the effectiveness of management and marketing decisions.

The minimum size of a representative sample for such projects per region is 600 questionnaires. By region we mean any territory for which separate analytics is required (this could be, for example, a city or country). In cases where it is necessary to separately consider and compare data from, for example, 2 cities, the minimum sample is 1200 questionnaires. The minimum period for such a survey is 1 business day.

The cost of the project to determine the shares of market participants consists of the cost of collecting a selected number of questionnaires (payment is taken only for fully completed questionnaires) and the cost of analytics (usually no more than 15% of the cost of data collection)

You can calculate the cost of one questionnaire yourself using our calculator (you will need to enter the number of open and closed questions in the questionnaire, quotas)

The cost of such a study is from 2000 £ (the cost is indicated for a minimum sample).

Market shares are determined on the basis of financial and, less often, physical indicators (pieces, tons, etc.).

Market share calculations are based on quantitative research (personal, telephone or online surveys). For B2B markets, qualitative methods are often added to quantitative methods (usually expert interviews).

Sometimes our customers have a question about what is the difference between data on the capacity and shares of participants published in the media and data obtained as a result of analytical projects? The main difference is the reliability of the source data for calculations: the media take data from participating companies (which can be embellished for PR purposes), while marketing research is based on real market data. The most accurate way is to collect data from market consumers (including used for the B2B market). Consumers have no interest in distorting information, so the reliability of the final data is incomparably higher.

BCGroup’s work on the project to calculate the shares of market participants is structured as follows:

1. An NDA (confidentiality agreement) is signed between BCGroup and the company;
2. A BCGroup specialist analyzes the market situation, features of market development, identifies strong and weak market participants, and also determines (independently or with the help of the customer) the target audience of the market;
3. A BCGroup specialist agrees with the customer on the calculation methodology, the final version of the survey questionnaire, and guides for expert interviews;
4. BCGroup interviewers conduct the survey in a short time (it is possible to survey up to 5,000 people per day);
5. Specially trained BCGroup interviewers conduct expert interviews in parallel with the survey;
6. Next, the BCGroup employee transfers data sets to the customer’s representative in Excel or SPSS format, audio recordings of expert interviews;
7. After 5-10 days, a BCGroup employee sends an analytical report to the customer based on the results of assessing the shares of market participants (sample reports)