How To Calculate Market Share

There are only three ways to grow your business - new product or service development, line extensions or growing your market share.

Most businesses don't know how to identify their market share, but I'm happy to show you how I do this for my clients.

It's a three-step process.

1. identify the competitors in your market
2. find out what their turnover is.
3. Compare your share of market % with the rest of the market.

If you're in a small category and you know who your competitors are, you can jump straight to step two. Otherwise my advice is to use AI, such as ChatGPT. Bing Copilot or Perplexity.

You can put in your company name or web address and ask it to list direct competitors or ask it to find a list of companies within your category. I'd suggest both, and make sure you use all variations of what your category might be referred to.

And a tip, you don't need all of your competitors large and small for this to be valuable. A good chunk of the category will be enough to show you where you sit and who is outperforming the rest.

For step two you can actually search the Companies House site for financial reports to gain insights on turnover. Some AI tools, such as Perplexity, will search multiple sources for you but I'm a big fan of Pomanda. It searches all the available sources and where it can't find an absolute number is able to provide a reasonably accurate estimate.

Finally, stick it all in excel and create a pie chart.

That's it.

You now know how much market share you have and how much room for growth there is.

A good marketer can then use that insight to build a solid and focused marketing strategy and plan, generating sales and growing market share over time.