How to Calculate Market Share?

After we have become familiar with the concept of Market Size, this article will guide us on how to determine the size of our market share.

To find information on market share, we can use two methods:

1. Gathering market size information from various aggregators

Gathering market size information from various aggregators such as the Nielsen Retail Audit. The method involves Nielsen purchasing sales data from different channels like Tops, Gourmet Market, Makro, Big-C, 7-11, and even small local shops through surveys.

This helps in understanding the sales figures for each brand, product, or SKU. Additionally, Euromonitor’s Passport GMID, which can be accessed through libraries and educational institutions (e.g., TCDC), also provides market share information. This data can show the market share of different brands.

and the perspective of sales channels, indicating how much is sold through each channel.

2. Estimating market size through projections. 

Besides directly obtaining information, we can also make estimates. For example, if the product is not manufactured in Thailand, we can look at import values from the Customs Department based on the HS Code. Find more about HS Code here

Another method we can use is to review the financial statements of various companies available in the DBD Data Warehouse.
https://datawarehouse.dbd.go.th/index

When using this method, a key consideration is that we must first understand our assumptions. For example, we have only a few competitors in the market, and they sell only the same type of products as we do.

However, it’s important to keep in mind that nowadays, many businesses no longer divide market share directly. For instance, services like Uber/Grab have entered the market to compete with traditional taxi services, etc. Therefore, in addition to looking at market share, we should also consider indirect competitors.

References

• https://unstats.un.org/unsd/bigdata/conferences/2019/workshops/scanner-data/Session%202.6%20Nielsen%20Data.pdf
• https://nielseniq.com/global/en/landing-page/how-to-make-the-most-out-of-your-next-retail-audit/

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