Market Share KPI - One-time Purchase Scenario

The market share KPI definition is:

"Measures the percentage of the target market accounted for by the business, from the overall existing market."

It can be measured in two ways:

by sales: your_sales / all_market_sales

by volume: your_units_sold / all_market _units sold

In this workflow we compute the market share KPI for last year assuming that only a fraction of people in the area bought this product as a one-time purchase (like a car, or anything rare enough that people would not buy more than once within a year). We also assume that the people that did the survey can statistically represent the population in the area.

We follow the following steps:

1) compute sales and sold units of our product per year and per month from transaction table

2) compute how many of the survey respondents bought this type of product this year and the shares between the different models available

3) compute the market share only based on the survey proportions and the prices from list of products in the market in the third table

4) estimate the entire industry sold units and sales values of this product type in the region, by running a proportion using as parameter the number of people in the region and as input the shares from the survey

5) we compute (both yearly and monthly) again the market share using on the numerator our actual sales and our sold unit/volume from the transaction table and on the denominator the estimated market size

6) we create a data app to visualize side by side the market size KPI estimated from the survey and from combining our sales data with the survey

URL: KNIME for Finance - KNIME TV on YouTube https://www.youtube.com/playlist?list=PLz3mQ6OlTI0YHApzMfS3NBqctJo8mAMF_

Market Share KPI - One-time Purchase Scenario

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