Myth-busting – “Shelf Space Should Equal Market Share”
“What is the relationship between value sales, volume sales and share of shelf?”
At the heart of the question is one of the biggest myths of retail marketing: that a brand’s share of market should be reflected on shelf. Initially this has a
ring of logic to it. If I have 30% of the market, surely I should have 30% of the shelf? But hang about, should that be value share or volume share? And
share of what – total market? Channel? Retail sales? What about share of the profit the category makes for the retailer? Shouldn’t sales velocity and refill
rates be accounted for? What about GMROII? And oh, and where is the retailer’s strategy in all this? So it’s a complicated issue right?
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