A leading shampoo brand has lost five points of market share in two years. What would you look at?
Clarify whether share is measured by value or volume, and in which channels. Find where it was lost by segment and channel, and whether the brand missed growing segments. Check price, distribution and promotions, whether buyers left or bought less often, and which rivals gained.
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Example answer
50/100
A leading brand losing share is usually about competition or marketing. I'd look at the four Ps.
Price is one. Distribution is another. Are they in fewer stores, or have they lost shelf space or promotion slots? The third is the product and brand. Maybe the formula or the packaging feels dated.
I'd want to see if it was one big rival, store brands, or a lot of small new brands.
Then I'd recommend more marketing or a new product to win the share back.
What holds it back
It blames competition or marketing up front and reaches for the four Ps. It never asks whether the category moved, and it recommends more marketing before finding where the share went.
Can I check how share is measured? Is it share of value or of bottles sold, and across which channels? I'd look at it in three layers, from the outside in. The first is whether the category is shifting under them. So I'd split the category by segment, meaning mass, premium and salon, and by need, like dandruff or color care. Then by channel, meaning supermarkets, drugstores, discounters and online. The second is whether they're losing inside their own segments. I'd check three things. Price is one. Has the gap to the nearest rival and to store brands widened? Distribution is another. Are they in fewer stores, or have they lost shelf space or promotion slots? The third is the product and brand. Are fewer households buying it, or are the same households buying less often? The last layer is who took the share. I'd want to see if it was one big rival, store brands, or a lot of small new brands. That should show where the five points went. I'd start with share by segment and channel.
Can I check how share is measured? Is it share of value or of bottles sold, and across which channels? I'll assume it's value share across all channels, down from 25% to 20%. I'd look at it in three layers, from the outside in. The first is whether the category is shifting under them. Share can fall with nothing wrong in the brand if the growth is in parts of the category it doesn't sell in. So I'd split the category by segment, meaning mass, premium and salon, and by need, like dandruff or color care. Then by channel, meaning supermarkets, drugstores, discounters and online. If the growth is in premium products sold online and this is a mass brand in supermarkets, the five points are a gap in the range. The second is whether they're losing inside their own segments. I'd check three things. Price is one. Has the gap to the nearest rival and to store brands widened? Distribution is another. Are they in fewer stores, or have they lost shelf space or promotion slots? The third is the product and brand. Are fewer households buying it, or are the same households buying less often? Losing buyers, with distribution unchanged, points to the brand's appeal. Buying less often points to promotions, or to people adding a second brand. The last layer is who took the share. I'd want to see if it was one big rival, store brands, or a lot of small new brands. Those call for different responses. You can answer one rival's price cut. A dozen small brands growing at once means shoppers want something this brand doesn't offer. My hypothesis is that it's mostly the first layer, with small premium brands growing online and in drugstores. That's my guess, and the split will test it. I'd start with share by segment and channel for the last three years. Is that available?
What the interviewer listens for
- Do you ask how share is measured, in value or volume and in which channels?
- Do you separate a shifting category from a brand losing inside it?
- Do you cut the loss by segment and by channel before explaining it?
- Do you ask who gained the five points?
- Do you say what each answer would mean for the brand?
Common mistakes
- Starting with the brand's own marketing.If the growth is in premium or online products the brand doesn't sell, better advertising for the current range won't bring the share back.
- Reciting the four Ps as the structure.It covers the ground but gives no order, and it skips the question of whether the category itself changed.
- Reading lost share as lost sales.The brand's revenue can be flat while share falls, which points to growth elsewhere in the category.
- Looking only at the big named rivals.Store brands and many small new brands can take five points between them without any one standing out.
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