A Strategic Analysis of Market Share for a Non-Seasonal Packaged Product‪.‬

Executive Summary There are many skin cream products for women, and it is very difficult for a single brand to capture the major share of the market. The competition is intense to get the attention of the target audience, and therefore each brand strives to increase the rate at which women try new products and make repeat purchases, through advertising and relative pricing. The purpose of the current study is to quantify the impact of advertising dollars, share of advertising voice, and relative price in order to establish the proper strategic direction of the marketing activities in the efforts to increase or defend the market share of a brand. A nonlinear regression approach is proposed here to study the elasticities of pricing and advertising efforts. The frequently changing marketing environment, with its many new product introductions, would make the long historical data irrelevant, and therefore a few quarters of the immediate past had to be analyzed in order to arrive at conclusions that could be appropriate to the immediate future.