Question

One of the most common ways a company assesses the performance of one of its brands is by measuring its market share and comparing its market share to competitors. In many cases, it is common for someone to read a report for a brand's market share reported as a % but ittle or no context is en about how that market share % was actual y calculated t u ns out the decisions that go into the market share calculation can have substantial impact on ho to report and interpret a brand's market share. In this problem, you will be asked to calculate the market share for several different brands using several different market share calculation approaches. In addition, another important aspect of market share calculation is to understand whether the sales units or sales revenues are being calculated in terms of purchases made by the end consumer or by shipments made to marketing intermediaries like whclesalers. Many companies do not sell their products directly to end consumers, so on one hand it makes sense to count sales to intermediaries as the relevant measure of market share. On the other hand, this approach can create deceptively high market shares for a brand if intermediaries overstocked a brand and are now unable to sell the product in a timely manner E Click the icon to view the sales data table. Does it appear that marketing intermediaries may be overstocking any of the brands? If so, for which brand does this overstocking problem appear to be most severe? The overstocking problem appears to be most severe for More Info no one brand Marketing Intermediaries Data Avg. Unit Unit Sales End Consumer Data OUR BRAND Avg. Unit Unit Sales OUR BRAND Competitor B TOTALS Price $27.2 $12.6 $12.9 $28.8 15,000 15,000 24,000 20,000 4,000 Price $38.08 S22.68 $21.93 $60.48 12,000 18,000 19,200 22,000 71,200

Answer 1