Market Share Index (MSI) Calculator
Potential Market Share Index
Understanding the Market Share Index (MSI)
The Market Share Index is a powerful marketing metric used to estimate a brand's potential market share based on the customer's journey. Unlike current market share (which looks at actual sales), the MSI identifies where a company is losing potential customers in the marketing funnel.
The MSI Components
- Market Awareness: The percentage of target customers who know your brand exists.
- Product Preference: The percentage of aware customers who prefer your product over competitors.
- Intent to Buy: The percentage of those who prefer your product and actually plan to purchase it.
- Product Availability: The percentage of customers who can easily find and purchase your product (distribution strength).
- Price Satisfaction: The percentage of customers who feel the price represents a good value for the service provided.
How to Use the MSI Calculation
The MSI is calculated by multiplying these five factors together. Because each factor is a percentage, the resulting MSI will always be lower than your lowest individual score. This highlights the "weakest link" in your marketing strategy.
If your Awareness is 50%, Preference is 40%, Intent is 30%, Availability is 80%, and Satisfaction is 70%:
0.50 × 0.40 × 0.30 × 0.80 × 0.70 = 0.0336 or 3.36% MSI.
Strategies to Improve Your MSI
To increase your Market Share Index, you must identify the stage with the lowest percentage. If Awareness is low, invest in advertising. If Availability is low, improve your supply chain or retail partnerships. If Intent to Buy is low despite high preference, look at your pricing strategy or immediate call-to-action barriers.