Market Shares of Stores:

The effect of marketing strategy variables on the market shares of shore is examined. Both manufacturers and retailers play equally important roles in the functioning of marketing channels. In spite of this, the impact of marketing strategy variables on the competitive performance of stores, rather than that of brands, has been far less commonly examined in the literature. A market share model is developed and then tested using state-of-the-art scanner data. The results show statistically significant differences in the effects, on store share, of price and promotional variables between leader and follower brands. In addition, the market share models are able to predict store market shares with a high degree of accuracy in a hold-out sample. The model is then expanded to include variables with respect to competitor brands and competitor stores and then tested. Various managerial implications of the differential effects of brand strategy are discussed.