A positive correlation between market share and ROI.
Data base shows market share is related to ROI. Specifically, as market share increases, a business is likely to have a higher profit margin, a declining purchases-to-sales ratio, a decline in marketing costs as a percentage of sales, higher quality, and higher priced products.
Data also indicate that the advantages of large market share are greatest for businesses selling products that are purchased infrequently by a fragmented customer group.
Analysis also proves the strategic implications of the market-share/ROI relationship.
It is now widely recognized that one of the main determinants of business profitability is market share. Under most circumstances, enterprises that have achieved a high share of the markets they serve are considerably more profitable than their smaller-share rivals.
The FMCG market in India is expected to increase at a CAGR of 14.9% to reach US$ 220 billion by 2025, from US$ 110 billion in 2020.
The Indian FMCG industry grew by 16% in CY21 a 9-year high, despite nationwide lockdowns, supported by consumption-led growth and value expansion from higher product prices, particularly for staples.
The rural market registered an increase of 14.6% in the same quarter and metro markets recorded positive growth after two quarters.
Final consumption expenditure increased at a CAGR of 5.2% during 2015-20.
According to Fitch Solutions, real household spending is projected to increase 9.1% YoY in 2021, after contracting >9.3% in 2020 due to economic impact of the pandemic.
The FMCG sector’s revenue growth will double from 5-6% in FY21 to 10-12% in FY22, according to CRISIL Ratings.
Price increases across product categories will offset the impact of rising raw material prices, along with volume growth and resurgence in demand for discretionary items, are driving growth.
The FMCG sector grew by 36.9% in the April-June quarter of 2021 despite lockdowns in various parts of the country.
Number of households shopping on modern-trade channel grew 29.15% YoY in the September quarter and shopping volume on the channel went up by 19.2% YoY.
In September 2021, rural consumption of FMCG increased 58.2% YoY; this is 2x more than the urban consumption (27.7%).
In the third quarter of FY20 in rural India, FMCG witnessed a double-digit growth recovery of 10.6% due to various government initiatives (such as packaged staples and hygiene categories); high agricultural produce, reverse migration, and a lower unemployment rate.
Rise in rural consumption will drive the FMCG market. The Indian processed food market is projected to expand to US$ 470 billion by 2025, up from US$ 263 billion in 2019-20
Market size and projected growth rate
In the last 10 years, the revenue in FMCG industry in India has been growing at the rate of 21.4%.
There was a drastic change in revenues in FMCG sector growing from US$ 31.6 billion to US$ 52.8 from 2011 to 2017-2018 respectively.
FMCG industry in India is expected to grow at the rate of 27.9% CAGR (Compounded Annual Growth Rate) to sum to US$103.7 billion by 2020.
Additionally, the rural FMCG market is projected to grow at a CAGR of 14.6% to reach US$100 billion by 2020 and US$220 billion by 2025. The rural setting accounts for 45% revenue share while the urban setting dominates with 55% revenue share of the total revenue of the FMCG industry.
More than 65% of people in India stay in rural places and those people spend around 50% of their total expenditure on FMCG products.
The number of people buying consumer goods online in India is projected to reach 850 million by 2025.
Driving factors leading to growth rate
- Increased population of working women
- Increased disposable income and growing per capita expenditure
- Increased purchasing power of the customers
- Increased awareness of online shopping
- Higher brand recognition and consciousness
- Constant change in consumer preference
- Banking policies and government’s regulations
- Growing interest for foreign investors
|Company’s Name||Market Share (%)|
|Hindustan Unilever (HUL)||14%|
Characteristics in Technology
Since the emergence of the internet, people have adopted the research online, purchase offline (ROPO) method. As a result, FMCG companies have installed advantaged manufacturing machines for better quality purpose and have decreased their profit margin to match with their competitors.
Marketing drive and research
Indian customers prioritise getting the best deals possible and as a result are less likely to stay loyal to a brand. Thus, FMCG companies are constantly trying to influence customers with their promotional deals and many firms offer combo deals to attract customers to buy their product.
Low capital intensity
Most of the companies operating in FMCG require relatively less capital for investments in manufacturing plants, machinery, equipment and other fixed assets.
The turnover is typically about five to eight times the invested capital at a fully upgraded manufacturing plant.
Companies have low capital intensity as transactions in businesses are still carried out on credit and cash basis.
High initial launch cost
Unlike FMCG industry in the US which is dominated by few big companies, India’s industry is highly fragmented.
Increasing the market share for companies is getting more challenging due to increase in number of competitors.
Promotions and advertisements, cost of product development, testing market compatibility, market research and mainly, the launch of the product to create awareness requires high initial costs.
Trend towards Natural Products
The premium end of the market is shifting towards natural products, which are produced entirely from naturally occurring ingredients.
The market size of the best FMCG companies in india and their projected growth rate
For the past 10 years, the revenue generated in the FMCG industry in India has seen a growth rate of 21.4%. The peak in the change in the revenue came from FMCG US$ 31.6 billion to US$ 52.8 from 2011 to 2017-2018 respectively. The FMCG industry in India is expected to grow with a rate of 27.9% CAGR (Compounded Annual Growth Rate) to sum to US$103.7 billion by the year 2020. The rural FMCG market is expected to grow at the rate of a CAGR of 14.6% to reach US$100 billion by 2020 and US$220 billion by 2025. The setting rural accounts for around 45% revenue share while the urban rules with the 55% revenue share of the total revenue of the FMCG industry. According to the current stats, 65% of people in India stay in rural places and those people spend around 50% of their total expenditure on FMCG products. The amount and number of people who are buying goods online in India are around 850 million by 2025.
The factors leading to the growth rate Of FMCG MNC Companies in India
Increase in the population of working women
Increased the disposable income and growing per capita expenditure
The power of purchases by the customers increased
Increased awareness of online shopping
Higher brand recognition and consciousness
The constant change in consumer preference
The change in Banking policies and government regulations
The growing interest of foreign investors
Since the internet is emerging people tend to work and research online more than contextual. They research this online and purchase it offline (ROPO) method. Result of the internet growth FMCG have installed some advantaged manufacturing machines for better quality purposes and that resulted in decreased their profit margin to match with their competitors.
Marketing drive and research
In India, the priority is to hit the best deals which are the usual mindsets of the people which makes them change different brands. This makes them less likely to stay loyal to a brand. This is the sole reason that FMCG companies are trying to influence and lure the customers with all the promotional deals and offer different combos which attract the customer. These deals directly influence the market and sales.
Low capital intensity
The companies who are investing in FMCG require less capital for investment in the manufacturing plants, machinery, equipment, and other fixed assets. This results in a total turnover of five to eight times the invested capital at a fully upgraded manufacturing plant. The companies tend to have low capital intensity as transactions in businesses are still carried out on a credit and cash basis.
High initial launch cost
The FMCG industry in the US is dominated by some big companies but here in India, the industry is highly fragmented. If you increase the market share of companies it is getting more challenging due to the increase in the number of competitors. The promotions and advertisements, cost of product development, testing market compatibility, market research, and mainly, the launch of the product that is required for the promotions need a high investment.
Natural Products Trend
According to today’s time, the premium end of the market is shifting toward natural products that are made using natural products and ingredients.
Factors to select the best FMCG stocks to buy in India
The factors in selecting the best FMCG stocks in India are
#1. Diversified product portfolio
It is critical to understand an FMCG company’s product mix since it dictates the player’s categories. Companies in essential categories such as toothpaste, soaps, and detergents typically have stable sales, whereas companies in categories such as perfumes, beauty products, and so on frequently report declining sales during recessions such as the one we are currently experiencing due to COVID-19 lockdowns. It would help if you always favored businesses with a comprehensive product portfolio that caters to various demands. Additionally, dominance in one or two specialized categories with little competition might bolster its market position by acting as a price setter.
#2. Market share and brand equity
A firm that achieves a significant market share benefits from several factors. It provides a solid connection with distributors and long-term contracts. If a firm has a considerable market share in a particular product, it does not need to give highly significant discounts since the increased volume compensates. Therefore, choose a business with the largest market share in one or two product categories. For example, Nestle has a 96 percent market dominance in Infant Cereals. Cerelac accounts for 46 percent of Nestle’s total sales in its Milk Products & Nutrition sector. To achieve this level of market share, a firm must develop brand equity for the product; brand equity refers to the level of customer loyalty that a company’s product enjoys. When brand equity/loyalty is high, people are prepared to pay a premium for the development and are hesitant to move to rival brands.
#3. Strong Distribution Network
Every FMCG business monitors changing customer preferences and trends and adjusts its marketing strategy appropriately. It is critical to have a healthy rural-urban sales mix in India because it can help balance out any uncertain impact on one segment. For example, during the lockdown, most urban areas were closed due to the spread of COVID-19, but rural areas had fewer infections. Hence, companies with a more substantial distribution reach in rural areas benefited. Businesses with a more extensive dealer network expand the reach of their products, which is advantageous in this sector—additionally, firms with a worldwide presence benefit, particularly during home market downturns.
#4. Supply chain management
A business’s capacity to supply a product when a consumer desires it is almost certainly the essential element driving sales and promoting consumer loyalty. Additionally, it encourages wholesalers and retailers to stock the goods before the start of the seasonal demand. FMCG companies have lately engaged in supply chain-related information technology projects to improve their inventory management and collection efficiencies. For example, during the country’s lockdowns, all supply networks were affected by worker migration, except firms that had made significant investments in automated supply chains. E-commerce channels/Omni-channels are new developing trends in which even the largest FMCG companies have begun investing. Apart from this, investors should look at specific essential characteristics such as the company’s operating margin growth (percentage) over the previous three and five years, as well as its debt-to-equity ratio; usually, FMCG do not maintain a debt-to-equity ratio. Debt-to-equity ratio should be less than 0.50. Additionally, you should consider Same-Store Sales Growth (SSSG percent ), critical for businesses operating in the quick-service restaurant industry. Jubilant Foodworks, Westlife Development, and Burger King India are just a few examples.
Market share of Top FMCG companies in India
There is a long list of FMCG companies in India. Listed below are the top FMCG companies in India. We have discussed their market share and other pertinent information.
|Company’s Name||Market Share (%)|
|Hindustan Unilever (HUL)||12%|
|Procter & Gamble Co.||10.74 %|
|Johnson and Johnson||7.12%|
Top FMCG Companies in India in details
We have mentioned the top FMCG Companies in India. These are the Best FMCG Stocks companies in India to invest in in 2021 and in the future.
#1. ITC Limited
ITC Limited was founded in 1910 and is a diversified conglomerate with interests in Fast Moving Consumer Goods such as Foods, Personal Care, Cigarettes and Cigars, Branded Apparel, Education & Stationery Products, Incense Sticks and Safety Matches; and Hotels, Paperboards and Packaging, Agri-Business, and Information Technology. ITC is one of India’s leading FMCG brands. It is the example of another fastest growing FMCG Companies in India.
51,321 crore rupees in revenue
Market Capitalization: 320,094 Cr.
Market Share: 14%
The Imperial Tobacco Company of India Limited was founded on August 24, 1910. It is the second largest of India’s top five fast-moving consumer goods firms.
#2. Hindustan Unilever Limited
Hindustan Unilever Limited is an FMCG manufacturing Company in India and India’s most significant consumer packaged goods (FMCG) firm, with more than 70-75 years of presence. It is the largest among the top five fast-moving consumer goods firms in India. It is one of the fastest-growing FMCG companies in India.
Every 9/10 households own at least one HUL brand. The company’s three divisions – Are home Care, Beauty & Personal Care, and Foods and Refreshment.
Revenue Generated: 40,511 crore rupees
Employment: 5,645 employees
Market Share: 12%
#3. Procter & Gamble Co.
Procter & Gamble is one of the most well-known and successful FMCG companies in India. P&G operates in India through three subsidiaries: Procter & Gamble Hygiene and Health Care Limited, Gillette India Limited, and a wholly-owned subsidiary named Procter & Gamble Home Products in the United States. Procter & Gamble India is one of the best FMCG companies in the country, serving 650 million people.
The firm operates five production units and approximately nine contract manufacturing locations. According to the 2017-2018 Annual Report, the company has a revenue of INR 58590 and a workforce of 125000.
Famous products are olay, oral B, Gillette and etc
Situated in the United States of America
83 Billion Dollars in Revenue
Market Share: 10.74%
#4. Parle Agro
Parle Agro beverages, one of India’s top FMCG companies, has reached a milestone status in the business and is on its path to becoming India’s first global food and beverage powerhouse.
Best products of Parle Frooti, Bailey, Fizz, etc.
Headquarters: Mumbai, Maharashtra
1 billion dollars in revenue (Approx)
Market Share: 8%
#5. Colgate Palmolive
Colgate evolved from a bit of toothpaste and candle manufacturing operation in the nineteenth century. New York is a world leader in personal healthcare goods.
Products related to Colgate: Colgate Toothpaste, Colgate Plax Active Salt Mouthwash, Halo Shampoo, Palmolive Naturals, and Protex Soap are all popular products. Colgate-fundamental. Palmolive’s principles of care, worldwide collaboration, and continuous development have established them as a household name not just in the Indian Fast Moving Consumer Goods market but around the world. According to the 2017-2018 Annual Report, the company employs around 38000 people and generates revenue of INR 12045 crores.
Situated in the United States of America
Revenue: 18.08 Billion Dollars
Market Share: 7.06%
#6. The Johnson & Johnson Company
Johnson and Johnson Company, an FMCG Manufacturing company in India.
An American Brand Company and the world’s most valuable corporation FMCG MNC companies in India.
Johnson & Johnson’s most well-known consumer products in India include the Clean & Clear face wash, Johnson infant shampoo, Stayfree, and Neutrogena skincare brands.
#7. Marico Limited
Marico has its headquarters in more than 20 countries, mainly in Asia. Marico offers several products in men’s grooming, fabric care, edible oils, skincare, haircare, and health foods.
Marico’s home or office includes Parachute, Parachute Advanced, Saffola, Hair & Care, Nihar, Nihar Naturals, Livon, Set Wet, and Mediker. In contrast, the company’s worldwide portfolio includes Parachute, HairCode, Fiancée, Civil, Hercules, Black Chic, Isoplus, Code 10, Ingwe, X-Men, and Thuan Phat. Marico products are consumed by one in every three Indians, making it one of the most successful fast-moving consumer goods companies globally.
Headquarters: Bandra, Maharashtra
61 Billion Dollars in Revenue
Market Share: 5%
#8. Nestle India Private Limited
List of FMCG companies in india. Nestlé tops the list as the largest food and beverage corporation in the world. The firm owns over 2000 brands, ranging from global landmarks to regional favorites, and operates in 191 countries. Following a more than century-long relationship with the nation, NESTLÉ India now has a presence throughout the country through eight production sites and four branch offices. It is India’s third-largest FMCG company.
12117 Cr. in revenue
Market Capitalization: 139,532 Cr.
Market Share: 3%
#9. Britannia Industrial Limited
Britannia Industries Limited is one of India’s oldest FMCG firms, acquired by the Wadia Group. Britannia and Tiger biscuit brands and dairy goods are the company’s most popular brands in India.
Britannia’s product line includes biscuits, bread, cakes, rusk, and dairy goods such as cheese, beverages, milk, and yogurt.
11,211 crores in revenue
Employees: 75,893 Cr.
Market Share: 3%
#10. Godrej Enterprises Ltd
Godrej is a company with interests in consumer products, real estate, appliances, and agriculture.
Godrej enjoys a strong market position in India, Indonesia, Sub-Saharan Africa, and Latin America. Its products, particularly home items, personal care, and hair care products, are in great demand.
Good Night, Ezee, soap, and toiletries are a few of their most well-known products. With a heritage spanning 120 years, the Godrej Group has firmly established itself as one of the top FMCG companies in India.
Situated in Mumbai, Maharashtra (Corporate Office)
4 Billion Dollars in annual revenue
Market share: 2%
Best FMCG stocks, Amul with a strong brand value and history holds the number one position in Dairy Products.. Amul began in 1946 as a response to the exploitation faced by peasants due to intermediary participation. To fight the cartels’ disruptive presence, peasants in Gujarat founded the Kaira District Co-operative Milk Producers Union Ltd, led by Vallabhai Patel, Morarji Desai, and Tribhuvandas Patel.
This cooperative was founded based on two local dairy cooperative organizations and is today known as Amul Dairy. Amul is considered the best dairy and consumer products industry, and it is precise because of this trust that it is one of the top FMCGs.
Dabur is a prominent manufacturer of Ayurvedic goods in India and a pharma company focused on natural consumer products. Dabur is also a market leader in Ayurveda and health & personal care goods.
#13. Varun Beverages Private Limited
Outside the United States, PepsiCo is the world’s second-biggest franchisee of carbonated soft drinks (“CSDs”) and non-carbonated beverages marketed under PepsiCo-owned trademarks and a significant participant in the beverage sector. It is ranked eighth on the top ten fast-moving consumer goods businesses in India for 2020.
The best products are Pepsi, Seven Up, sting and etc are all PepsiCo CSD brands owned by Varun Beverages.
India is a developing country with steadily rising levels of life. FMCG plays an important role in a country’s growth and development.
We have named why it is essential to buy the best FMCG stocks.
These businesses are the greatest in the FMCG industry owing to their high production standards, product quality, packaging, and continual innovation. Due to their excellent goods and a history of keeping customers and households satisfied, these finest FMCGs have carved out a niche for themselves in highly competitive sectors.
What is Market Share?
Market share refers to the portion or percentage of a market earned by a company or an organization. In other words, a company’s market share is its total sales in relation to the overall industry sales of the industry in which it operates.
Say, for example, the purchasing activity of consumers as a whole is 100 tubes of toothpaste, and a certain toothpaste maker sells 60 tubes. It implies that the company holds a 60% market share. The calculation of market share takes into consideration a company’s total sales over a particular time period and the total sales of the industry in which it operates over that period.
- Market share refers to the portion or percentage of a market earned by a company or an organization. In other words, a company’s market share is its total sales in relation to the overall industry sales of the industry in which it operates.
- The calculation of market share takes into consideration a company’s total sales over a particular time period and the total sales of the industry in which the company operates over that period.
- For example, the purchasing activity of consumers as a whole is 100 tubes of toothpaste, and a certain toothpaste maker sells 60 tubes. It implies that the company holds a 60% market share.
Formula for Market Share
The market share is calculated as follows:
Impact of Market Share
An increase in a company’s market share can allow the company to operate on a greater scale and increase profitability. It also helps the company develop a cost advantage compared to its competitors.
2. Increased sales
An increase in market share also helps boost a company’s total sales. When consumers notice the brand loyalty of a majority of their peers, the remaining consumers are also driven to purchase that product.
3. Increased customer base
An increase in market share also helps a company widen its customer base. When a majority of the consumer base is loyal towards one brand or product, the rest may also follow.
An increase in market share helps enhance the reputation of a company. A good reputation, in turn, helps boost sales and broaden the customer base.
5. Dominating the industry
With an increase in market share, a company increases its dominance over the industry it operates in.
6. Increased bargaining power
With an increase in market share, a company starts to dominate an industry. With increased dominance over the industry, a company can exercise certain powers such as greater bargaining power. The company starts to enjoy an upper hand and can negotiate to its advantage with suppliers and distribution channel members.
How to Increase Market Share?
Innovation is an excellent method of increasing market share. Innovation can be in the form of product innovation, production method innovation, or simply introducing new technology to the market that competitors are yet to offer. With innovation, a company can gain an edge over its competitors and dominate the industry.
2. Lowering prices
A company can also expand its market share by lowering its prices. Lowering prices will attract more customers and help widen the customer base and increase sales, hence increasing the market share of the company.
3. Strengthening customer relationships
By strengthening their existing customer relationships, companies protect their existing market and ensure no loss of the existing customer base owing to high competition. This also increases customer satisfaction, which in turn helps increase customer base through word-of-mouth.
Advertising is an expensive yet effective way to increase market share. With heavy, cutthroat competition in the market, advertising is an excellent way of gaining an upper hand over competitors.
5. Increased quality
Customers are getting increasingly conscious about the quality of a product in addition to its price. By ensuring higher quality standards, a company can increase its market share.
Acquiring a competitor is a sure method of establishing dominance over an industry. By acquiring a competitor, a company not only gains access to a new customer base, but it also reduces competition and helps establish dominance over an industry and increase market share.
- Apple Inc.: Apple is an excellent real-life example of a business that commands a large absolute market share and dominates the industry within which it operates. In the smartphone industry, it is one of the market leaders, fighting very strong competitors such as Samsung and Huawei. In the majority of the markets in which Apple operates, the US-based company enjoys, on average, a market share of 70%.
- Colgate: Colgate is another excellent example of a company that commands a large absolute market share. In the toothpaste industry, Colgate accounts for over 80% of all toothpaste sales.
Why Market Share Is Profitable
- Economies of scale: The most obvious rationale for the high rate of return enjoyed by large-share businesses is that they have achieved economies of scale in procurement, manufacturing, marketing, and other cost components.
- A business with a 40% share of a given market is simply twice as big as one with 20% of the same market, and it will attain, to a much greater degree, more efficient methods of operation within a particular type of technology.
- Market power: Many economists, believe that large-scale businesses earn higher profits than their smaller competitors, it is a result of their greater market power: their size permits them to bargain more effectively, “administer” prices, and, in the end, realize significantly higher prices for a particular product.
- Quality of management: The simplest of all explanations for the market-share/profitability relationship is that both share and ROI reflect a common underlying factor: the quality of management. Good managers are successful in achieving high shares of their respective markets; they are also skillful in controlling costs, getting maximum productivity from employees, and so on. Moreover, once a business achieves a leadership position—possibly by developing a new field—it is much easier for it to retain its lead than for others to catch up.
How Market Share Relates to ROI
Analysis of the data base sheds some light on the reasons for the observed relationship between market share and ROI.
When we compare businesses with market shares under 10%, say, with those having shares over 40%, we are not observing differences in costs and profits within a single industry. Each subgroup contains a diversity of industries, types of products, kinds of customers, and so on.
Differences Between High- and Low-Share Businesses
1. As market share rises, turnover on investment rises only somewhat, but profit margin on sales increases sharply.
ROI is, of course, dependent on both the rate of net profit on sales and the amount of investment required to support a given volume of sales. Exhibit II reveals that the ratio of investment to sales declines only slightly, and irregularly, with increased market share.
Exhibit III Effect of Vertical Integration on Investment/Sales Ratio
Nevertheless, Exhibit shows that the major reason for the ROI/market-share relationship is the dramatic difference in pretax profit margins on sales. Businesses with market shares under 10% had average pretax losses of 0.16%. The average ROI for businesses with under 10% market share was about 9%. Obviously, no individual business can have a negative profit-to-sales ratio and still earn a positive ROI. The apparent inconsistency between the averages reflects the fact that some businesses in the sample incurred losses that were very high in relation to sales but that were much smaller in relation to investment. In the PIMS sample, the average return on sales exhibits a strong, smooth, upward trend as market share increases.
Why do profit margins on sales increase so sharply with market share? To answer this, it is necessary to look in more detail at differences in prices and operating expenses.
2. The biggest single difference in costs, as related to market share, is in the purchases-to-sales ratio.
As shown in Exhibit II, for large-share businesses—those with shares over 40%—purchases represent only 33% of sales, compared with 45% for businesses with shares under 10%.
How can we explain the decline in the ratio of purchases to sales as share goes up? One possibility, as mentioned earlier, is that high-share businesses tend to be more vertically integrated—they “make” rather than “buy,” and often they own their own distribution facilities. The decline in the purchases-to-sales ratio is quite a bit less (see Exhibit IV) if we control for the level of vertical integration. A low purchases-to-sales ratio goes hand in hand with a high level of vertical integration.
Exhibit IV Purchase-to-Sales Ratio Corrected for Vertical Integration.
Biggest FMCG company in India is ITC. If you exclude tobacco business than HUL (Hindustan Unilever) is the biggest FMCG company in India.
If count dairy under FMCG than Amul is second biggest company after HUL.
In Overall FMCG, HUL contributes 12–13%. Patanjali contributes 4–5%.
Pepsico, Dabur, Godrej, Nestle, Marico, GSK, Reckit, P&G, Colagate – These 9 companies contribute 2% to 3% each in FMCG pie.
Coke, Emami, Jyothi Lab., Himalya, Cadbury, Parle, Britannia – These companies contribute 1% to 0.5% each.
Wipro, Nivea, Unicharm, Perfetti, Fererro Rocher, Parle Agro, Cargill, Adani-Wilmer, Vinni cosmetics, Bajaj Corp, Johnson & Johnson, Tata Chemical – These kind of companies contribute less than 0.5% each.
Only 50% of FMCG is organised and comes under these companies.
Remaining 50% contribution by commodities like Rice, wheat, pulses, edible oil etc. and few other regional or small companies. There are lots of other small unorganized companies also.
How is market share calculated in the FMCG?
It is simply a brands share of a category.
So simply a brands total value sales divided by the total value sales of the category expressed as percentage.
However, market share can also be calculated using units to get unit market share or litres of the product to get volume market share.
Image below should make it clear:
What are some examples of an FMCG brand effectively using social media to develop itself and increase its market share/sales?
One recent example although there are many…
When the Austrian daredevil Felix Baumgartner made his great leap from space last year, it was not only the record-breaking nature of the jump that inspired the Earth-bound. It was also, and more so, the video of the leap — the camera shot heard ’round the world. The YouTube version of the dive went immediately viral. The footage gave people a taste — a spinning, heavy-breathed, terrifying-even-through-a-computer-screen taste — of what it was like to be in Baumgartner’s shoes. Or at least in Baumgartner’s chute.
Now, to mark the record-breaking dive’s one-year anniversary, Red Bull (Baumgartner’s sponsor for the dive) released another video of Baumgartner’s freefall — this one explicitly shot from Baumgartner’s point of view. It’s the same spinning and breathing and terror-mongering you might recognize from the originally published video, except even more intimate. And even more exhilarating.
Red Bull is one of the world’s most successful brands at marketing itself on social media. Its posts, particularly on YouTube, tout its daredevil, extreme image…