Market share is the percent of sales a specific product attains in relation to the total sales of all similar products. For example, Tide may have a 30 percent market share in the domestic detergent market. Holding or maintaining market share is a defensive strategy that seeks to protect the market that has already been conquered. Managers should defend their markets against competitor attacks.
Determine which of your products are in danger of losing market share. Cut the price of those products.
Launch effective advertising and promotion campaigns.
Introduce new, improved products. Innovative products can help maintain or increase market share.
Safeguard your distribution channels by keeping the shelves full of popular and new products.
Improve customer loyalty by knowing their preferences (e.g. by customer surveys) and working toward total customer satisfaction.
Tip
Consider if you really want to maintain your market share or actually increase it. Increasing market share is more risky and resource-intensive but offers more rewards. If your product has a large market share but you predict little market size growth, maintain your market share. If you predict the market size is growing invest more to increase your market share.
