Question

Topic: Strategy

How Do You Define Share Of Consumer/requirements?

Posted by Anonymous on 2/26/2005 at 7:19 PM ET 125 Points
How do you define Share of Consumer or Share of Requirements? Meaning, what is the definition of these terms, are they interchangeable, and what are the various methods for calculating Share of Consumer/Requirements? Does it vary by product category? If so, focus on CPG.
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  • Posted by koen.h.pauwels on 2/26/2005 at 8:02 PM Accepted
    Share of requirements = the money the consumer spends on the brand/ the money that consumer spends on the total category. Therefore, it is calculated per consumer. In contrast 'share of consumer' is typically an aggregate measure of either SOR (see eg https://www.singstat.gov.sg/press/media/bt07072004.pdf) or the number of brand consumers/the number of total consumers.
  • Posted by mgoodman on 2/26/2005 at 10:11 PM Accepted
    It depends a little bit on the context. At Frito-Lay, we used to measure not only the "share of salty snacks," but also the "share of stomach." In some categories, they even measure share of total disposable income.

    Think about a category like board games. You might want to measure share of all toys/games, share of entertainment dollars, and share of board games.

    The measure is almost always considered in the context of the brand/category. Many brands look at multiple share measures ... Example: A refrigerated pudding might look at share of food dollars, share of desserts, share of pudding, share of refrigerated desserts, share of prepared/ready-to-eat desserts, etc.
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