How is $ share or category share calculated?

Category share or dollar share is a metric that reflects the performance of a specific category within the market relative to the total market size. The correct way to calculate category share is by dividing the total dollar sales of the category by the total dollar sales of the market and then multiplying by 100 to convert it to a percentage.

The formula given in the correct answer relates to the share of a brand within a specific category rather than the overall category share within the market. The proper formula for calculating category share is:

(Category dollar volume / total market dollar volume) x 100.

This reflects the proportion of sales that the category represents in comparison to the entire market, highlighting how well the category is performing overall.

Therefore, understanding that category share is about measuring a category's sales performance against the total market is crucial, and this is why the first option accurately represents the calculation for category share.