Hi,
This is a very typical case, which could be solved via table structure.
Let’s say you know, that your client sells 1000 cups of coffee for takeaway at the price of 1 GBP each. And there are 4 market segments (by income) in this town: mass, mass affluent, affluent, HNWI.
Now lets draw a table with the following structure:
• Columns: market segment, segment revenue pool, segment price sensitivity, segment coffee quality sensitivity, segment geo location sensitivity, your offering, competitors offering
• Lines: mass, mass affluent, affluent, HNWI
The next step is to fill this structure:
• Market segment column - names of segments
• Segment revenue pools
- Mass - 100 pounds
- Mass affluent - 400 pounds
- Affluent - 450 pounds
- HNWI - 50 pounds
• Segment price sensitivity
- Mass - High
- Mass affluent - Low
- Affluent - Low
- HNWI - Low
• Segment coffee quality sensitivity
- Mass - Low
- Mass affluent - High
- Affluent - High
- HNWI - High
• Segment geo location sensitivity
- Mass - Low
- Mass affluent - Low
- Affluent - Low
- HNWI - Low
• Your offering
- Same for all lines: 1 GPB per cup, high quality, center location
• Competitor’s offering
- Same for all lines: 0,5 GPB per cup, medium quality, center location
Now we can see that your competitor offers a cheaper product with lower quality. This might only affect the mass clients as they have higher price sensitivity and care less about the quality.
What does it mean in terms of market share?
You might loss is 100 GPB revenue pool, which is equal to 10% market share (10% share in current market terms, but you have to take into account, that the whole market will be 950 GBP).
I used random assumptions in this solution to illustrate the approach.
I have a few ideas how to add sophistication for this case and draw a more detailed table. However, I can't attach it here. Message me and I will send it to you.
Good luck with your preparation!
Anton