Section 1: Market share by volume
In order to obtain the market share by volume for each of these companies, their individual volumes will be divided by the total market volume. Out of a total of 31.4 billion liters, Nestle had 9.58 billion liters. Therefore, its market share was 9.58 billion liters/ 31.4 billion liters = 0.31. PepsiCo had a market share of 4.33 billion liters/ 31.4 billion liters = 0.14. On the other hand, Coca-Cola had a market share of 3.74 billion liters/ 31.4 billion liters = 0.12.
An individual in a management position would require this information to determine the level of performance of a particular company against the market. A business person or marketer would utilize it in making decisions on expansion and possible increases in market share based on the current proportions. The relevance and application of the information in marketing is that it will be crucial in designing of marketing strategies since it gives the total market size and the proportion of each of the companies.
Section 2: Revenue market share point
One market share point implies the whole market share. This is equivalent to 31.4 billion liters. Since the revenue per liter is $ 0.50, one market share point represents $ 0.50 * $ 31.4 billion liters = $ 15.7 billion. In order to calculate the value for 2011, the 48.5% growth will have to be factored. Therefore, the volume in 2011 will be 1.485 * 31.4 billion liters = 46.629 billion liters. This implies that one market share point will be equivalent to $ 0.50 * 46.629 liters = $ 23.315 billion. The information is relevant in marketing since it gives information on the market size and hence marketers can estimate their sales values with the growth in the market.
References
Cain, K. (2013). 6 Key Elements of an Effective B2B Content Marketing Strategy. Content Marketing Institute, 17-21.
Ferrell, O. C., & Hartline, M. (2012). Marketing Strategy. Stamford: South Western Cengage Learning.
