In one line
Volume share is your slice of the units a category sells. Value share is your slice of the money shoppers spend in it.
What it does
- Value share is volume share weighted by price. A brand priced above the category average has a bigger value share than volume share; a cheap brand the reverse.
- Raise your price and volume share falls first. Value share falls by less, because each unit you still sell is worth more.
- Retail audits from Circana and NielsenIQ report both. Boards usually set targets on value share, because that is the money in the category.
Business and brand
Impact on the businessP&L, cash, share price
- Net sales track value, not units, so value share is closer to revenue.
- Volume share drives factory load and unit cost: fewer units spread fixed costs thinner.
- Investors read value share gains bought with price cuts as weaker than gains from more buyers.
Impact on the brandMemory, loyalty, pricing power
- A value share above volume share shows shoppers pay a premium for the brand.
- Volume share is the better read on how many people you reach, so on future memory.
- Chasing value with price alone can shrink the buyer base you need later.
Try it
Move your shelf price
Change Brightwater's price for one quarter and watch both shares. Every other brand holds its plan.
Value share change▲ 0.0 pts
Volume share change▲ 0.0 pts
Notice: At the starting price Brightwater's two shares are almost the same, because it is priced near the category average. The premium rival's value share sits well above its volume share.
Runs Countermove's market engine: the reference soft-drinks market, three brands, rivals holding their plans so only your change moves the result.
Sources
- Farris, Bendle, Pfeifer & Reibstein (2010), Marketing Metrics, Wharton School Publishing: unit and revenue market share
- Bijmolt, van Heerde & Pieters (2005), Journal of Marketing Research: price elasticity meta-analysis