Market Analysis Explained

SOP (Share of Prize)

SOP is a method to estimate the market share of a brand or segment in comparison to the total market size. It helps companies understand their competitive position in the market.

Formula:
SOP = (Brand Sales / Total Market Sales) * 100

Example:

Brand	Sales ($ million)	Total Market Sales ($ million)	SOP (%)
Brand A	500	2000	25%
Brand B	300	2000	15%
Brand C	400	2000	20%

CAGR (Compound Annual Growth Rate)

CAGR is the yearly growth rate of a market or category over a specified period. It’s used to assess the performance of a market over time.

Formula:
CAGR = ((Ending Value / Beginning Value)^(1 / Number of Years)) - 1

Example:

Year	Market Value ($ million)
2020	1000
2023	1500

Calculation:
CAGR = ((1500 /1000)^(1/3)) - 1 = 14.47%

S2P Vertical (Size to Prize)

The S2P Vertical is a strategic approach that helps identify and quantify opportunities (prizes) by understanding the current market size and potential growth.

Example:

Market Segment	Current Market Size ($ million)	Potential Market Size ($ million)	Opportunity (Prize) ($ million)
Segment A	1000	1500	500
Segment B	700	900	200
Segment C	1200	1800	600

MAT 25-27 (Moving Annual Total 2025-2027)

MAT is a cumulative total of the last 12 months of sales data, covering the periods MAT 25, MAT 26, and MAT 27. It helps track market trends and performance over a rolling period.

Example:

Year	MAT Sales ($ million)
MAT 2025	1200
MAT 2026	1400
MAT 2027	1600

Analysis:
The data shows a consistent growth trend in the market, indicating a promising opportunity for brands.

SOP Numbers

SOP Numbers represent the market share of a brand or segment within a specific subcategory or market. These numbers are crucial for competitive analysis and strategic decision-making.

Example:

Subcategory	Brand	Sales ($ million)	SOP (%)
Subcategory A	Brand A	500	25%
Subcategory A	Brand B	300	15%
Subcategory B	Brand C	400	20%
Subcategory B	Brand D	200	10%