There are equations , yes I know , but I need a practical one that can be deployed specially in FMCG retail shops , where such data as sales ratio is unrevealed.
Hi, Nahid:
You may find this interesting...Maximum Earnings Market Share (MEMS) calculation example for walmart and costco...
Please take a look at this research study (Corona, 2012) that analyzed the operations of Wal-Mart and Costco during the period from June 2006 until August 2008 from the standpoint of the efficiency of their operations in utilizing the resources to create shareholder's value, using key performance and enterprise marketing ratios.
You may find this study relevant given the different business models and strategies used by both companies, as well as their intense rivalry in the retail industry. The results showed that Wal-Mart is clearly superior in attracting investors willing to pay a premium for the stock, but Costco is far more efficient in the use of Selling, General and Administrative expenses to generate profits.
Furthermore, the Maximum Earnings Market Share (MEMS) calculations evidenced that Costco could have made $3,660 million more in that period, whereas Wal-Mart overspent $26,300 million more than needed to maximize earnings (EBITDA) in the same period!
- Corona, R. (2012). IS COSTCO BETTER THAN WAL-MART? A COMPARATIVE ANALYSIS BASED ON ENTERPRISE MARKETING EFFICIENCY. Global Conference On Business & Finance Proceedings, 7(2), 555-567.
Hope this helps!
Nadeem
Thank you very much for your response , sure I'll read it and give you my feed back , your help is much appreciated,, Nadeem
Hi there, Wright, Sharp and Sharp (2002) do exactly this. They use the Juster scale to estimate all the usual market statistics for retail shops, and validate this method by a comparison against panel data. I attach the final pre-publication working paper and the link to the published version. If you would like the actual article, contact me and I will send it privately. Cheers, Malcolm
Article Market statistics for the Dirichlet model: Using the Juster ...
Malcolm is as always very accurate and thoughtful.
I'm not sure what you will be using the data for but an obvious question is whether you want volume or value. The choice will give very different results in some markets.
As a practitioner I always used retail audit data. It is not always possible to get the most recent data from the agencies but sometimes they will let you have slightly older data. Again much depends on what you want to use the data for.
A lot of people had helped me to determine the best ways to getting the market size and market share of Nigeria's woven polypropylene industry on research-gate. (See resource below)
For the actual determination of correct figures, I engaged several territorial sales managers who have good knowledge of stakeholders in the industry and market. Other information were sought from website sources and other search engine helps.
The application of basic addition, subtraction, percentages and charting on Excel gave us a very good picture of the market size and significant analysis. I should be publishing the publication soonest.
Other Useful Resource:
1. http://bit.ly/1Fl0wdA
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