Grow Market Share
Growing market share is a big, big job. If you operate in a clearly defined market and you know your approximate share of this market now, then you’re in a great position to set goals around where you want to be in the future.
Market share increase goals are usually set by a CEO and the executive team, and ideally supported by deep investment in product and innovation. Once that foundation is set, it’s then up to marketing teams to increase demand.
To do this, understanding what actually drives an increase in market share is critical.
Luckily two very smart folks have already done a bunch of research on it. Les Binet and Peter Field in “The Long And The Short Of It” found that there’s a relationship between Excess Share of Voice (ESOV – the more dominant and present you are in the market) and Market Share.
The magic formula? An ESOV of 10% leads to market share growth of 0.6%-0.7% per year – depending on whether you’re a B2C or B2B brand.
So, if you have a market share of 10% and want to grow to 15% – a ESV of 30% will get you there in around 5 years.
How Foresight Can Help You Achieve Your Excess Share Of Voice
1. Give you the tools to determine how realistic your market share growth goals are
2. Help you calculate the excess share of voice necessary to achieve your market share growth
3. Identify the best marketing channel mix and budget breakdown over time – generally this is more heavily weighted toward brand marketing
4. Determine any pricing promotional adjustments to best fit the expected growth trajectory
5. Calculate the budget mix between brand verses activation (there is a specific formula for this and it changes depending on B2B, B2C, your category and your brand maturity)
6. Analyse Share of Voice short term with proxy metrics like Share of Search, as well as long term analysis by commissioning brand and market share research studies.
Foresight Market Share Growth Solutions
The first step in growing your market share is to engage us in one of the following ways:
– Brief Foresight on a long term campaign designed to shift market share
– Engage Foresight’s CMO Consulting and Advisory services and we’ll support you in creating an in depth brief and budget from start to finish
We’ll also assess your current brand messaging to ensure it has the strength to carry the excess share of voice planned. If not, our Brand Messaging service is recommended to be applied prior to any major media investments.
Once a strategy and brief has been set, creative, channel and media planning can begin. Generally market share growth objectives require major investments across both online and offline channels.
Where needed, we’ll work seamlessly with our vetted creative and web development partners (or any of your existing agency partners), to achieve joint objectives.