All worked cases
Distinguish wallet share from market share in Surat
Surat, Gujarat · Fictional practice case
The decision
A supplier sells ₹18 lakh annually to a buyer that spends ₹60 lakh on packaging. Its overall sales are ₹90 lakh in a local packaging market worth ₹18 crore.
Which metric supports an account expansion decision?
Worked solution
Reveal the visual and solution
- Align annual periods, categories and geography. Wallet share uses this buyer’s ₹60 lakh denominator, while market share uses the entire local market.
- Compute ₹18 lakh ÷ ₹60 lakh = 30%, and ₹90 lakh ÷ ₹18 crore = 5%. The remaining account spend is ₹42 lakh before considering eligibility.
- Identify the categories the supplier can serve and compare incremental margin and service capacity. Use market share to benchmark position, not to infer this account’s purchasing intent.