Traditional marketing used expansion strategies as primary tools for revenue growth. But with looming concerns of recessions and unfavourable market conditions, CMOs are forced to rethink their existing marketing strategy and approach to revenue growth. It is now time to grab your market share, by planning ahead of the curve rather than playing on the sides. Innovation and brand reinvention are the keys to sustenance. Take the case of Apple.

Apple introduced the iPhone sometime in 2007. It came with internet capabilities and a plethora of other features, which at that time were new to the consumer. With this strategy, Apple instantly earned 3% of the market share. Thus, began Apple’s upward journey to revenue growth success. Today, the company boasts 50% of the mobile phone industry market share.

What is market share?

Put simply, the market share is defined as the percentage of an industry earned by a particular company over a period of time. Sales targets are translated and incorporated into the market share to demonstrate whether growth has been attained by capturing portions from the competitors.

Measuring your market share is pivotal, as it is an indicator of your success. Raising market share involves making calculated business decisions aimed at sales and customer retention.

The Market Share Formula

Calculate your share of the industry as follows: Take the actual sales figure of a particular time frame, and divide it by the total industry sales across the same time frame.

Increasing market share

To increase your share in the industry, you must make more sales than your competition. Although the sentence sounds pretty simple, the process is easier said than done. Where should you begin? What are the changes involved in your go-to-market approach? Let’s start with the basics of market expansion.

1) Tapping your niche

Find your niche and set yourself apart from competition. Identify your brand characteristics and distinguish them from others. Make your brand look sleek, professional and recallable. From an assembly of similar-looking items, consumers should be able to identify your product line.

If a company has recognisable brand identity customers perceive their products and services to be of higher quality as against competition. For a company that has already found success with a previous launch, this strategy is bound to increase your market share, and for others it’s a stepping stone to successful outcomes.. The consumers know what to expect, which also acquaints you with their purchase decisions.

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2) Adapting to consumer tastes

Update and innovate continuously, according to the changing needs of the customers. Sony has been setting a great example with its PlayStation console since 1994. The company is always innovating, and finding newer ways to connect with its customers. It regularly upgrades video game consoles, quicker than competition. Today, the company commands around 68% of the market share for home consoles.

3) Acquisitions

Acquiring a company that aligns well with your products and services can instantly increase your market share. Typically, this strategy is adopted by larger enterprises to augment their portions. The process does require some research to find the right company that can be a positive addition to your suite of products and services.

4) Customer Delight

Netflix is one of the best examples of customer delight and subsequently, loyalty. While reinforcing its algorithm periodically, the company is also adding newer and more original shows, thus constantly refining and reinventing itself. Netflix today commands a 90% market share of the streaming service market. Even with several competitors foraying into the market, customers did not give up on their Netflix memberships because of the way they felt about the brand. Similarly, businesses can stabilise themselves and attract better customer retention and loyalty for a simultaneous increase in market share.

Moving from market expansion to market gain

With strategic planning and expansion finished, you are now vying to aggressively capture more of the market share through revenue growth and competitive displacement. There are several Go-To-Market approaches that you must adopt when you shift from market expansion to gain.

Define the competitive landscape

When you shift to the market gain strategy, begin by defining the market share gain efforts, time and resources required to develop your reach. Get a firm grasp on the competitive landscape so that you have enough clarity about the market that you are targeting. This must include both traditional and non-traditional competitors. Redefine the markets that you are going to play in once you have pivoted to market share gain from expansion. Gather all inputs and then lay out plans to capture revenue or wallet from competitors.

Define the competitive landscape

When you shift to the market gain strategy, begin by defining the market share gain efforts, time and resources required to develop your reach. Get a firm grasp on the competitive landscape so that you have enough clarity about the market that you are targeting. This must include both traditional and non-traditional competitors. Redefine the markets that you are going to play in once you have pivoted to market share gain from expansion. Gather all inputs and then lay out plans to capture revenue or wallet from competitors.

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Cross-functional involvement

Product, marketing and sales functions must come together to align all strategic plan objectives. Different sets of activities with unique capabilities are required to ascertain and capture the market share. Define this before addressing existing gaps and modifying your growth strategy.

Chalk out the ideal workflow and inputs required by each of these functions to be successful. Open up communication channels between departments so that ideas can be exchanged smoothly. Leaders of the respective functions must align their efforts and progress with each other. They must revisit engagements periodically to ascertain if the project is moving in the right direction. Ensure that all three functions are operating in unison with distinctly stated roles to win the market share gain environment.

Executing Go-To-Market

Executing a market share gain strategy is significantly different from implementing a market expansion. In the gain strategy, emphasis is placed on capturing new logos and clients, seizing revenue from both customers and competitors. Focus on newer and more possible tactics such as conducting a feature gap analysis, mapping customer lifecycle, deploying consumer-oriented marketing, aligning players, and accounts, especially if the decision is to retain some of the existing base. Ultimately, it should all lead to beating the competition.

Connecting the dots

Companies in 2020 and 2021 have entered a new environment. There is now a heightened focus on gaining market share and growing the customer base. A few definite changes are required along with market clarity, commercial functions’ alignment and modifying execution tactics so that the refreshed setup for gain is successful.