Increasing your company's market share is a great way to increase your sales, improve customer and brand loyalty, and reduce your competition. For example, imagine Joe's Widgets has 60% market share and your company has 40% of the market share. How would you increase your market share to gain a greater pie of the overall market?
Review the scenario and company history below, and then use a competitive analysis to identify ways you may be able to increase market share from 15 percent to 20 percent. This may include, but is not limited to:
- Increasing the market base.
- Maximizing market potential.
Research strategies and methodologies that relate to increasing your market share. Your market share strategy should be presented as if you were presenting it to your boss, which may be in a memo format.
The company is a manufacturer of refrigerated cases for the retail and grocery market. Here is some information that you need to know about the company:
- There is one corporate office and manufacturing plant based in Michigan, with a total of 100 total employees.
- There are regionally based locations, which currently cover six Midwestern states:
- Currently there is one sales manager (you) and 12 sales representatives.
- The sales representative territory is set up geographically with two representatives per state.
- Compensation is based on a salary of $25,000 per year, plus a yearly bonus.
I want to thank you for giving me an opportunity to assist you.
Note: I am assuming that the Market is a mature market and there are only two players in our market based on the provided information.
There are three different marketing life cycle stages: Breaking-in, Ramping-up and Breaking-out. The Breaking-in stage allows for new companies or startups to bring new innovative technology to the market. The Ramping-up stage has a rapidly growing market that allows companies to ramp up their marketing operations. The Breaking-out stage has companies in mature markets that want to break away from their competition. Since we are in a mature market, we need to develop a breaking-out marketing strategy. In order to increase our market share, we need to increase demand for our products, accelerate our market's maturity as we increase our share of the market and improve our products through innovation and develop growth opportunities. We can increase demand for our products by increasing the number of products owned by our existing customers, convert some of Joe's widget customers, increase our market share by customers adopting/purchasing our new innovative products. We can accelerate ...
The solution discusses how would you increase your market share to gain a greater pie of the overall market.