Page 10 - CL Industry Analysis
P. 10
Market Size/Share/Growth
Market size
The number of individuals in a certain market who are
potential buyers and/or sellers of a product or service.
Companies are interested in knowing the market size before
launching a new product or service in an area.
Market share
Market share is calculated by taking a company's sales over
a period and dividing it by the total sales of the industry
over the same period. This metric is used to give a general
idea of the size of a company or segment of a company to
its market and its competitors
Market Growth
It is much easier to increase market share in a growing
market because new customers are entering the picture,
ready to buy and try new products. Companies usually try
to increase market share with a defined strategy
combining effective marketing campaigns and expansion
of stores or distributors.
If a company has sales of £300 million in a total market
valued at £1.5 billion it has a market share of (£300
