Name: 

Profit-oriented firms usually state their marketing plan objectives in terms of desired market share, or sales or profitability targets.  The math exercises for this chapter focus on market share.  The exercises for Chapter 7 focus on sales and profitability.

Like segment shares, market shares are related to market size data.  Market shares, which are also known as brand shares, clarify how large individual brands are and the relative importance of different competitors in a given product or service category.  For example, if PMB finds that, of the 20 million people in Canada who drank soft drinks in 2002, 6,245,899 drank Regular Coke, we can calculate that Regular Coke had a 31.2% share of the overall soft drink market in 2002.  This is a very large share given the number of different soft drink brands that are available in Canada.

The formula for market share or brand share is:

=   Brand share (percentage of market size).  

Calculate the following based on the above formula.

If 9,850,000 people bought a new car last year and 2,200,900 of these people bought Ford-branded vehicles, what share did Ford have of the new car market last year?

If 3,250,000 cases of detergent were sold through grocery stores, drug stores, and mass merchandisers in 2002, and Tide sold 1,567,000 of these cases while Sunlight sold 1,006,987, what were the Tide and Sunlight brand shares in 2002?

If $42.9 million dollars’ worth of haircuts were sold through barbershops and hair salons in a given 12 month period, and the First Choice Haircutters chain sold $5.6 million dollars’ worth, while the Tangles chain sold $3.5 million dollars’ worth, what were the First Choice and Tangles’ shares of the haircut market during that 12-month period?

If sales of packaged rice totaled $4,060,768 last year, of which $1,741,018 were sales of Uncle Ben’s brand products, $588,811 were sales of Dainty Rice brand products, and $1,730, 939 were sales of all the other brands in the category, what were the market shares in the rice market last year based on the available information?

Complete the following chart.  What can you conclude from this data about the Frito-Lay and Miss Vickie’s share trends in the potato chip market during the past 3 years? What market share targets do you think might be reasonable for the Frito-Lay and Miss Vickie’s brands in 2003 based on this information?

	2000	2001	2002
Annual Potato Chip Market sales (in cases)	5,534,555	5,435,000	5,643,777
Frito-Lay Brand Sales (in cases)	863,391	798,945	761,910
Frito-Lay Brand Share
Miss Vickie’s Brand Sales (in cases)	99,906	107,899	117,456
Miss Vickie’s Brand Share