Definition

The Commercial Pressure Index compares stock share to market share.

Calculation

Commercial pressure index = stock share / market share

Example

A company has a 10% market share and a 20% stock share. It is therefore twice as much stored as sold. Its commercial pressure index is 200%.

Tip

For a given company, a "Stock Ratio" greater than 100% suggests an over-stocking situation. This could be due for example:

  • to a deliberate strategy of over-storage
  • to direct supply flows where competitors go through the wholesaler
  • to a possible optimization of the pharmacist's stocks. The pharmacist can indeed store the products of the company where he has the most turnover and work in just-in-time with other laboratories

The commercial pressure index is less relevant to new entrants, for whom sales and stock indicators are by nature very volatile.

Terminology

The commercial pressure index can be translated into English by Stock ratio.

Subscription

Use & Analytics Advanced subscription

Did this answer your question?