Winning Share from a Dominant Competitor in a Slow‐growth Consumer Market : A THEORY‐GUIDED EMPIRICAL CASE INVESTIGATION

Winning market share in a major market from a deeply‐entrenched dominant competitor is a tough challenge. Uses Nielsen data on channel‐specific market shares for Brand A and its leading competitor in a major US market to suggest one strategy a marketing manager might use to accomplish that objective. The dependent variable is relatively market share. The independent variables, based on the reference price and advertising share of voice literatures, relate current levels of price and promotional activity for Brand A and the dominant competitor to historical levels of price and promotional activity for the two competitors. A multiple regression analysis of the data indicates that the independent variables are significantly related to the relative market share dependent variable. Provides examples of the effect as well as heuristics flowing from the analysis.