What will happen to Natura’s total market share in 2015 compared to 2008, assuming that Natura maintains its share in the below four channels from 2008 to 2015?
Understand the Problem
The question is asking to analyze the market share of Natura in different channels from 2008 to 2015 and determine how it changes over that period, assuming their share remains constant in the specified channels. This involves looking at the provided data for the four selected channels and calculating the overall market share for 2015 compared to 2008.
Answer
$46.60\%$
Answer for screen readers
Natura's total market share in 2015 remains unchanged compared to 2008 at $46.60%$.
Steps to Solve
- Identify Natura's Share in 2008 for Each Channel
Gather the Natura's shares for each channel in 2008:
- Grocery Retailers: $0.00%$
- Direct Selling: $40%$
- Beauty Specialist Retailers and Drugstore: $2.6%$
- Internet Retailing: $4%$
- Determine Total Share for 2008
Combine the individual shares to find the total market share for Natura in 2008: $$ \text{Total Share}_{2008} = 0.00% + 40.00% + 2.60% + 4.00% = 46.60% $$
- Identify Changes in Market Share for Each Channel in 2015
Assuming Natura maintains its share, the share values for 2015 from different channels are:
- Grocery Retailers: $0.00%$
- Direct Selling: $40%$
- Beauty Specialist Retailers and Drugstore: $2.6%$
- Internet Retailing: $4%$
Since Nature is maintaining its share, these percentages remain the same.
- Determine Total Share for 2015
Calculate the total market share for Natura in 2015 as well: $$ \text{Total Share}_{2015} = 0.00% + 40.00% + 2.60% + 4.00% = 46.60% $$
- Compare Total Shares for 2008 and 2015
Now, compare the total shares from 2008 to 2015: $$ \text{Change} = \text{Total Share}{2015} - \text{Total Share}{2008} = 46.60% - 46.60% = 0% $$
Natura's total market share in 2015 remains unchanged compared to 2008 at $46.60%$.
More Information
This analysis shows that Natura's market share has remained constant over the analyzed period, despite varying trends in the beauty and personal care industry. The stability can indicate effective market strategies in maintaining customer loyalty and brand value.
Tips
- Forgetting to sum all the shares correctly may lead to an incorrect total market share.
- Misunderstanding that the problem assumes Natura's share remains constant, which can lead to assuming changes in the percentages.
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