Market Share 101
Growth > Industry =
Gaining Share
Did we grow Market Share?
Ketel One Vodka -10%
Industry Growth +2%
Category Growth +8%
No; KOV < Industry Growth
What are the three types of volume metrics?
1. Consumer Pull
2. Depletions
3. Shipments
Is it possible to grow volume & value and not share?
Yes; If the sum of volume & value are not greater than industry growth, then share is not gained.
Did we grow Category Share?
Ketel One Vodka +2%
Industry Growth -5%
Category Growth +8%
No; KOV < Category Growth
Freight on Board (FOB) refers to what?
Also known as Free on Board, it indicates the point at which the costs and risks of shipped goods shift from the seller to the buyer.
In Diageo language, the price the distributor pays for product. ie. Gross Sales / Case "Shipments"
What are the three growth drivers for sales and thus share?
Volume + Price + Mix
Did we grow Market and/or Category share?
Ketel One Vodka +3%
Industry Growth +5%
Category Growth -3%
Market Share: No; KOV < Industry Growth
Category Share: Yes; KOV > Category Growth
______ is a key Diageo metric as it measures our ability to generate “top line growth” – in essence, growing ____ is the platform for growth throughout the P&L.
Net Sales Value (NSV)
239 millions cases of spirits were sold in the US in 2019. Of that, vodka represented 31% of total volume sales. How many cases of vodka were sold in 2019?
74.15 million cases
Did we grow Market Share? If so, by how many points?
Ketel One Vodka +6%
Industry Growth +2%
Category Growth +8%
Yes; KOV > Industry Growth by 4ppts
What is the difference between Depletion Net Sales Value (dNSV) and Net Sales Value (NSV)?
NSV is based on shipments and dNSV is based on depletions.
U.S., supplier sales of distilled spirits in the U.S. were up 5.3% in 2019, increasing by $1.5 billion, to a new record of $29 billion.
Vodka revenues were up 2.9% to $6.6 billion.
1.Did the vodka category grow market share?
2. What percentage market share did vodka own in 2019?
1. No; Vodka +2.9% < US Spirit Sales +5.3%
2. 22.75% (Versus 31% volume market share)
Did we grow Market and/or Category share? If so, by how many points?
Ketel One Vodka +2%
Industry Growth +1%
Category Growth +5%
Market Share: Yes; KOV > Industry Growth by 1ppts
Category Growth: No; KOV < Category Growth by 3ppts
Also known as Earnings Before Interest & Taxes (EBIT), this key profitability measure can be found by dividing operating profit by net sales value.
Operating Margin measures how much profit a company makes on a dollar of sales, after paying for variable costs of production, such as wages and raw materials, but before paying interest or tax.