An Empirical Strategy Research On Everyday Chemicals Market Using Market Share Analysis Arithmetic

Increasing Market Share is every enterprise’s development goal, the bigger the marketshare, the higher of the status of the company in the market. Especially for the everydayChemicals market, the industry entry barrier is very low, the flow of the product is fast, nomuch technical inside the product, so many brands; the larger the market share it is, the morecapable it is to gain revenue, and more easier to survive from the fierce competition of themarket environment nowadays, actually, the market share is one of the index to identify acompany which is operation well and capable to gain profit. It is the fundamental point ofevery enterprise’s behavior.First of all, this article analyses the concept of the market share and its influence factors.The market share’s influence factors are: Brand, sale price, value promotion, brand promotionetc. and at the same time, this article analyzes how the factors affect the market share.Secondly, base on the theoretical foundation of attractive model, this article analysisMultinomial Logit [MNL] model, apply mostly likely estimation to its parameters, anddescript how we use MNL model to predict market share. Base on this model, calculate theelasticity of brand, price, brand promotion, value promotion, i.e. to analyze the intensity of theeffects from those factors, and work out a strategy for sale promotion base on the result.Finally, we will apply Multinomial Logit model to do simulation analysis on the marketshare data. To do research on the effects of those factors, such as brand, price, brandpromotion, value promotion. The research result shows that brand is the most valuable factorsto market value. The price will have effect on the market share, but the influence is small. Thevarious promotion activities is another major factors of market share, different promotionhave different result, brand promotion is the best among those promotions, good to adoptthem.At last the research reveals that: by applying the mathematic model, such as the MNLmodel, to compare the effects of brand, value promotion and value promotion, then theenterprise can use the result to optimize the enterprise’s resource, hence to increase theenterprise’s market share and its lasting competitiveness. By applying the model introduced inthis article, the everyday chemicals company can develop a system to assist the market shareprediction and help the management to form the strategy, to optimize resource configurationof the company in realistic.