1. Market Share Proof

1. Definition

Market share proof refers to the comparison of sales or sales volume in a particular market or market segment with its competitors to reflect the relative advantages or disadvantages of an enterprise in that market.

2. Methods

There are several common methods for proving market share:

Absolute market share: refers to the absolute value of sales or sales in a particular market or market segment, usually expressed as a percentage or decimal. For example, if an enterprise has sales of 1 billion yuan in a certain market segment in a certain year, and the total sales of the market segment is 5 billion yuan, the absolute market share of the enterprise is 10/50=0., that is, 20%.

Relative market share: The ratio of a firm's sales or volume to its largest competitor in a particular market or segment, usually expressed as a multiple. For example, if an enterprise has sales of $1 billion in a particular market segment in a given year and its largest competitor has sales of $0.8 billion, the enterprise's relative market share is 10/8=1., or 1.25 times.

Growth rate: refers to the growth rate of sales or sales in a particular market or market segment over a certain period of time (usually one year), usually expressed as a percentage. For example, if an enterprise has sales of 1 billion yuan in a certain market segment in a certain year and 0.8 billion yuan in the previous year, the growth rate of the enterprise is (10-8)/8=0., or 25%.

3. Cases

Champ Consulting has provided market share certification services for an automaker. The automaker has a leading position in China's auto market, but faces fierce challenges from domestic and foreign competitors. By collecting and analyzing sales data of various market segments (such as cars, SUVs, MPVs, etc.), Shangpu Consulting calculated the absolute market share, relative market share and growth rate of the automaker in each market segment, and compared it with its competitors. Champ Consulting found that the automaker still maintains high absolute and relative market shares in the sedan and SUV segments, but the growth rate is lower than the industry average, indicating that its competitive advantage in these segments is weakening. In the MPV segment, the absolute and relative market shares of the automaker are low, but the growth rate is higher than the industry average, it shows that it has great development potential in this market segment. Based on these analysis results, Shangpu Consulting has put forward corresponding strategic recommendations for the automaker, including strengthening the brand image and product innovation in the car and SUV segments, and expanding market coverage and improving in the MPV segment. Product quality, etc.

4. Evaluation

The proven advantages of market share are:

Simple and easy to understand: Market share is an intuitive indicator that can clearly reflect the position and competitiveness of the company in the market, and is convenient for the company and stakeholders to understand and communicate.

Comparable: Market share can be compared with companies in the same industry or different industries, and can be compared with data in different regions or different time periods, which can help companies discover their own strengths and weaknesses, as well as market opportunities and threats.

Operable: Market share can be used as the basis for enterprises to formulate strategies and decisions, and can also be used as a standard for enterprises to evaluate the effectiveness of strategies and decisions, which can help enterprises adjust and optimize their own resource allocation and market behavior.

The disadvantages of the market share proof are:

One-sided: market share can only reflect the quantitative performance of the enterprise in the market, but not the performance of the enterprise in terms of quality, efficiency, innovation, satisfaction, etc., nor the impact of the enterprise on society and the environment.

Dynamic: Market share is a changing indicator, affected by many factors such as market size, competitive structure, consumer demand, technological progress, etc., so it needs to be updated and revised regularly and cannot be used as a fixed target or standard.

Relative: Market share is a relative indicator, which depends not only on the performance of the company itself, but also on the performance of competitors. Therefore, enterprises can not only rely on improving their own market share, but also pay attention to the dynamics and strategies of competitors.

Proof of 2. market leadership

1. Definition

Proof of market leadership refers to the evaluation of a company's influence, authority, and innovation in a particular market or market segment to reflect the company's leading and shaping role in that market.

2. Methods

There are several common ways to demonstrate market leadership:

Brand awareness: refers to the consumer's awareness of the company or its product (service) name, logo, image and other identification elements, usually expressed as a percentage or decimal. For example, an enterprise conducted a brand awareness survey in a certain year, and the results showed that 800 out of 1000 respondents could correctly name the enterprise or its products (services), then the brand awareness of the enterprise or its products (services) was 800/1000=0., that is, 80%.

Brand loyalty: refers to the degree of consumer behavior or attitude towards the enterprise or its products (services), such as preference, trust, satisfaction and repeat purchase, usually expressed as a percentage or decimal. For example, an enterprise conducted a brand loyalty survey in a certain year, and the results showed that 600 of the 1000 consumers who had purchased the enterprise or its products (services) expressed their willingness to buy or recommend them to others again, then the brand loyalty of the enterprise or its products (services) was 600/1000=0., that is, 60%.

Market share: refers to the ratio of sales or sales volume of an enterprise to its competitors in a particular market or market segment, usually expressed as a percentage or decimal. For example, if an enterprise has sales of 1 billion yuan in a certain market segment in a certain year, and the total sales of the market segment is 5 billion yuan, the market share of the enterprise is 10/50=0., that is, 20%.

Technological innovation: refers to the new technologies, new methods, new products (services) adopted by enterprises in a particular market or market segment to improve their competitiveness and meet the needs of consumers. It is usually measured by indicators such as the number of patents, R & D investment, and the launch of new products (services). For example, if an enterprise applies for 20 patents in a certain market segment in a certain year, invests 0.5 billion yuan in research and development, and launches 10 new products (services), the enterprise has a higher level of technological innovation.

3. Cases

Champ Consulting has provided market leadership certification services for a mobile phone manufacturer. The handset maker is a leader in the global smartphone market, but faces competitive pressure from other handset makers and emerging technology companies. Shangpu Consulting collects and analyzes data on brand awareness, brand loyalty, market share and technological innovation in various regions and market segments (such as high-end, mid-end, low-end, etc.), and compares it with its competitors. Shangpu Consulting found that the mobile phone manufacturer has high brand awareness and brand loyalty in the global smartphone market, especially in Europe and North America; occupies a large market share in the high-end smartphone segment; It also performed well in technological innovation and launched a number of new products with innovative functions and designs. Based on these analysis results, Shangpu Consulting has put forward corresponding strategic suggestions for the mobile phone manufacturer, including strengthening brand promotion and channel construction in Asia and Africa, and improving product performance in the mid-end and low-end smartphone segments. Cost-effectiveness and differentiation, etc.

4. Evaluation

The proven advantages of market leadership are:

Comprehensive: Market leadership proves that it not only considers the quantitative performance of the company in the market, but also considers the performance of the company in terms of quality, efficiency, innovation, and satisfaction, which can reflect the company's comprehensive strength and influence in the market.

Dynamic: Market leadership proves to be able to capture market changes and trends, reflect the advanced and leading nature of the company in the market, and help companies grasp market opportunities and challenges.

Initiative: market leadership proves that it can stimulate the initiative and creativity of enterprises, promote the leading and shaping role of enterprises in the market, and improve the competitive advantage and market value of enterprises.

The shortcomings of the market leadership demonstration are:

Complex: Proof of market leadership involves multiple indicators and dimensions, requires the collection and analysis of large amounts of data and information, and requires the use of multiple methods and techniques, making it more complex and time-consuming.

Subjective: Market leadership is proved to be influenced by the company's own goals, values, culture and other factors, as well as by consumer preferences, trust, expectations and other factors, so there is a certain degree of subjectivity and bias.

Mutual: Proof of market leadership depends not only on the performance of the company itself, but also on the performance of competitors and partners. Therefore, companies can not only rely on improving their own market leadership, but also pay attention to the dynamics and strategies of other participants in the market.

3. Market Differentiation Proof

1. Definition

Market differentiation proof refers to the evaluation of the difference between the products (services) provided by an enterprise in a particular market or market segment and the products (services) provided by its competitors to reflect the uniqueness and advantages of the enterprise in that market.

2. Methods

There are several common methods of proving market differentiation:

Product (service) attribute: refers to the difference between the product (service) provided by an enterprise and the product (service) provided by its competitors in terms of function, performance, quality, design, packaging, etc. It is usually displayed with tools such as product (service) attribute matrix and product (service) comparison table. For example, a product provided by an enterprise has 10 features in function, 5 advantages in performance, 3 guarantees in quality, 2 innovations in design, and 1 bright spot in packaging. However, similar products provided by its competitors are not or inferior to the enterprise in these aspects, then the enterprise has strong differentiation in terms of product (service) attributes.

Product (service) positioning: refers to the position or image of the products (services) provided by an enterprise in the minds of consumers, as well as the difference between the products (services) provided by its competitors. Usually use positioning maps, positioning statements and other tools to show. For example, a certain product provided by an enterprise is a high quality, high price, high grade and high enjoyment product in the minds of consumers, while the similar product provided by its competitors is a low quality, low price, low grade and low enjoyment product in the minds of consumers, then the enterprise has strong differentiation in product (service) positioning.

Product (service) added value: refers to the difference between the products (services) provided by an enterprise that not only meet the basic needs of consumers, but also bring additional value or benefits to consumers, as well as the products (services) provided by its competitors. It is usually displayed with tools such as value-added chains and value-added statements. For example, a certain product provided by an enterprise not only has good functions and performance, but also can provide consumers with free after-sales service, preferential membership system, rich community activities, etc., while the similar products provided by its competitors are not or inferior to the enterprise, then the enterprise has strong differentiation in terms of product (service) added value.

3. Cases

Champs Consulting has provided market differentiation certification services for a hotel chain group. The hotel chain group has multiple brands and multiple market segments around the world, but faces competitive pressure from other hotel chain groups and emerging accommodation platforms. By collecting and analyzing data on product (service) attributes, product (service) positioning and product (service) added value for each brand and market segment (e. g., luxury, business, economy, etc.), and comparing it with its competitors. Shangpu Consulting found that the hotel chain group has obvious differentiation characteristics in various brands and market segments. For example, in the luxury market segment, one of its brands is characterized by providing high-end facilities, services and experiences. In the business market segment, one of its brands is characterized by providing convenient networks, meetings and transportation. In the economic market segment, one of its brands is characterized by providing a comfortable environment, hygiene and safety. Based on these analysis results, Shangpu Consulting has put forward corresponding strategic suggestions for the hotel chain group, including strengthening the differentiated communication and promotion in various brands and market segments, and improving product (service) quality and satisfaction in various brands and market segments.

4. Evaluation

The advantages of market differentiation proof are:

Effective: Market differentiation proves that it can help companies stand out in a homogeneous and competitive market, attract and retain consumers, and increase their profitability and market share.

Flexibility: Market differentiation proves that it can choose appropriate differentiation elements and methods according to the enterprise's own resources, capabilities, goals and other factors, as well as the needs, preferences, expectations and other factors of consumers, and can adapt to market changes and development.

Lasting: market differentiation proves that it can form the uniqueness and advantages of enterprises in the market, enhance the brand image and reputation of enterprises, and establish long-term relations between enterprises and consumers.

Disadvantages of the market differentiation proof are:

Risk: Market differentiation proves that it may cause a company to focus too much on a particular market or market segment and ignore other markets or market segments, which may cause the company to lose other opportunities and potential.

Cost: Market differentiation proves that enterprises may need to invest a lot of resources and funds to develop and provide differentiated products (services), to carry out differentiated communication and promotion, to maintain and enhance the effect of differentiation, which may lead to increased costs and reduced profits of enterprises.

Imitation: Market differentiation proves that it may be imitated and preempted by competitors, which may lead to the weakening or disappearance of the enterprise's differentiation advantage.

Proof of 4. market loyalty

1. Definition

Proof of market loyalty refers to the evaluation of consumers' repeated purchase, recommend, trust, satisfaction and other behaviors or attitudes towards the enterprise or its products (services) to reflect the stable and lasting relationship established by the enterprise in a particular market or market segment.

2. Methods

There are several common ways to prove market loyalty:

Repeat purchase rate: refers to the proportion of consumers who have purchased an enterprise or its products (services) within a certain period of time (usually one year), and the proportion of consumers who purchase the enterprise or its products (services) again, usually expressed as a percentage or decimal. For example, an enterprise conducted a repeat purchase rate survey in a certain year. The results show that 400 out of 1000 consumers who have purchased the enterprise or its products (services) have purchased the enterprise or its products (services) again, then the repeat purchase rate of the enterprise or its products (services) is 400/1000=0.4, that is, 40%.

Recommendation rate: refers to the proportion of consumers who have recommend the enterprise or its products (services) to others in a certain period of time (usually one year), usually expressed as a percentage or decimal. For example, an enterprise conducted a recommendation rate survey in a certain year, and the results show that 300 of the 1000 consumers who have purchased the enterprise or its products (services) have recommend the enterprise or its products (services) to others, then the recommendation rate of the enterprise or its products (services) is 300/1000=0.3, that is, 30%.

Trust: refers to the degree of consumer recognition of the reliability, integrity, and safety of the company or its products (services), usually expressed as a percentage or decimal. For example, an enterprise conducted a trust survey in a certain year, and the results showed that 800 out of 1000 consumers who had purchased the enterprise or its products (services) expressed trust in the enterprise or its products (services), and the trust degree of the enterprise or its products (services) was 800/1000=0.8, that is, 80%.

Satisfaction: refers to the degree of satisfaction of consumers with the quality, performance, function, design, etc. of the enterprise or its products (services), usually expressed as a percentage or decimal. For example, an enterprise conducted a satisfaction survey in a certain year, and the results showed that 700 out of 1000 consumers who had purchased the enterprise or its products (services) were satisfied with the enterprise or its products (services), and the satisfaction of the enterprise or its products (services) was 700/1000=0.7, that is, 70%.

3. Cases

Champs Consulting once provided market loyalty certification services for an e-commerce platform. The e-commerce platform has hundreds of millions of users worldwide, but faces competitive pressure from other e-commerce platforms and emerging social media platforms. Shangpu Consulting collected and analyzed data on repeat purchase rates, recommendation rates, trust and satisfaction in various regions and market segments (such as clothing, home appliances, books, etc.) and compared them with its competitors. Shangpu Consulting found that the e-commerce platform has high market loyalty in various regions and market segments around the world. For example, in the clothing market segment, its repeat purchase rate is 60%, recommendation rate is 50%, trust degree is 80%, and satisfaction degree is 70%, while these indicators of its competitors are lower than that of the e-commerce platform. Based on these analysis results, Shangpu Consulting made corresponding strategic recommendations for the e-commerce platform, including strengthening user relationship management in various regions and market segments, and improving product (service) in various regions and market segments. Quality and diversity, etc.

4. Evaluation

The advantages of proof of market loyalty are:

Stability: market loyalty is proven to help companies establish stable and lasting relationships in the market, reduce the loss and transfer of consumers, and increase their revenues and profits.

Economy: market loyalty proves that it can help enterprises reduce the cost of acquiring new customers, increase the consumption frequency and amount of existing customers, make use of the word-of-mouth communication of existing customers, and improve the efficiency and efficiency of enterprises.

Development: market loyalty proof can help enterprises to obtain consumer feedback and suggestions, can promote enterprise product (service) improvement and innovation, can provide enterprises with new market opportunities and potential.

The disadvantages of proof of market loyalty are:

Difficulties: Market loyalty proves that companies need to invest a lot of time and energy to maintain and enhance the relationship with consumers, to collect and analyze consumer behavior and attitude data, to evaluate and improve consumer satisfaction and trust.

Change: market loyalty is proved to be influenced by consumers' needs, preferences, expectations and other factors, as well as competitors' strategies, behaviors, influences and other factors, so it needs to constantly adapt to the changes and development of the market.

Limitations: Proof of market loyalty may lead to an enterprise relying too much on existing customer groups and ignoring other potential customer groups, which may lead to the loss of other opportunities and potential.

Summary

Market position proof is a method to evaluate the competitiveness and influence of enterprises in the market. It can help enterprises to formulate reasonable strategies and decisions. There are four main types of proof of market position: proof of market share, proof of market leadership, proof of market differentiation, and proof of market loyalty. Each type has its own characteristics and advantages and disadvantages. Enterprises should choose the appropriate type according to their own goals and environment.