Marketing market analysis: types, stages, methods. How to conduct sales analysis: stages, methods and methods Modern trends in product sales analysis article

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The purpose of sales analysis is to identify trends in changes in sales volumes or structure. The sales analysis system allows you to objectively evaluate the marketing plan and the competence of sales managers. Sales analysis plays a major role in obtaining reliable information about the company's sales and helps in making the right management decisions that help maximize sales volume and, accordingly, the company's profit.

How is it carried out?

The frequency of sales monitoring depends on the external environment in which the enterprise operates: if the company’s business area is stable, strategic sales analysis can be carried out less frequently. If you work in a fast-growing area of ​​the economy, in which innovations appear very often, sales control should be carried out regularly. The frequency of analysis also depends on the level of the organization: the lower the level of the organization, the more often it is necessary to analyze its activities.

If you work in a fast-growing area of ​​the economy, in which innovations appear very often, sales control should be carried out regularly.

Economic analysis of sales can be divided into several stages. To better understand the essence of this process, we will consider each of them in detail.

Data collection stage for analysis

To successfully analyze product sales, an organization needs to collect all the necessary indicators for trading various groups of goods and providing services. The list of these indicators is formed based on the level of the organization whose sales you are analyzing, as well as the goals of the analysis. Collecting relevant data is the key to successful sales analysis.

Calculation of sales dynamics and structure indicators

Indicators of dynamics and structure are the main indicators of the company's performance.

This analysis examines the growth rate of income and profit for the company as a whole, as well as in the context of each group of goods sold. It is also necessary to calculate indicators for the sale of goods on credit and their effectiveness.

This analysis is necessary to assess the impact of market conditions on the company's sales level. This analysis is carried out based on sales figures for several periods. The presence of significant declines in sales may indicate problems in the company’s internal environment and a low level of active sales.

To monitor the activities of sales managers, it is recommended to use, which clearly demonstrate the manager’s ability to interest and retain a client.

Estimation of critical sales volume

This assessment is usually carried out when launching a new product or product line. The critical sales volume shows what minimum quantity of goods the company must sell to cover expenses (there is no profit and loss).

Estimation of profitability of sales

Return on sales is the share of profit in total revenue. Moreover, for this calculation, different types of profit can be used: gross profit, operating profit, net profit. for each product will allow you to identify the most profitable and pay special attention to its sale, as well as eliminate unprofitable products.

Comparing the profitability of individual products with competing companies will reveal the competitive advantages of the company.

Analysis of factors affecting sales profit

Factor analysis of sales profit allows us to identify the impact of each factor on the company’s profit, as well as to highlight methods and tools for influencing profit. Knowledge of statistical and mathematical methods of analysis will allow you to perform a qualitative factor analysis.

The main factors influencing profit are:

• Change in sales volume.
• Change of product line.
• Changes in product costs.
• Changes in the selling price of goods.

Let's give an example of factor analysis. You can use it as a template when conducting this analysis in your enterprise.

Thus, by making a qualitative sales analysis, you will be able to identify the advantages and disadvantages of organizing your business, as well as determine the main methods of increasing competitiveness.

Widely known methods of sales analysis will help you consider sales in terms of volumes, dynamics, structure and assortment. By the way, I have prepared ready-made templates in Excel for almost all analyzes of sales performance, so use them to your health.

1. Analysis of sales dynamics

The goal is to identify the general state of the actual in comparison with previous periods.

Using this method, growth or decline in sales is identified. Dynamics analysis is carried out based on revenue, but you can also use other sales analysis tools: customer base, profit growth, etc. Calculation formula:

Sales growth rate = (Revenue of the current period / Revenue of the previous period) * 100

If the growth rate is:

• More than 100% – positive sales dynamics;
• Equal to 100% – a situation in which sales have not changed;
• Less than 100% – reduction in sales volumes.

There is no special program for sales analysis, but don’t rush to get upset, because everything is calculated quite simply by Excel.

Example

Let's look at how to analyze sales dynamics using the example of an online store. Data in the table below.

Thus, in 2018, the online store’s sales growth rate was 116.67% compared to 2017. We see that sales dynamics are positive.

2. ABC analysis

The goal is to identify the share of a particular product in total sales.

This tool is widely used in retail trade and allows you to see which trade area generates revenue, and which product groups sell very poorly and do not bring benefits to the business.

The basis for calculation is profit or revenue for a specific group of goods or a specific product. The results of product sales analysis help make decisions in the field.

The ABC method is based on the well-known Pareto principle: 80% of total revenue comes from 20% of goods sold. Based on the results, all analyzed products will be divided into three groups:

1. Group A. Trade engines occupy a share of 0 to 80% of revenue on an accrual basis.
2. Group B. Products for which there is good demand, but their revenue accounts for from 81% to 95% on an accrual basis.
3. Group C. Products in this group have a share of over 96% of revenue on an accrual basis, bring little profit, and are unprofitable.

Example

Let's consider the ABC analysis method using the example of sales of a small retail outlet. You can see the source data in the finished table.

An analysis of product sales shows that the most profitable product groups are groceries and drinks, while fish and meat are not profitable.

3. Uniformity of demand (XYZ)

The goal is to determine for which goods the demand will be stable.

Using sales analysis using this method, you can save budget and time by refusing to sell goods for which there will be no demand. By the way, it’s great for analyzing retail sales of goods.

The stages of analysis are as follows: a list of goods and the revenue that the product brings is compiled. The data is entered into an Excel table and the coefficient of variation is determined using formulas. Products are then assigned to category X, Y or Z.

1. Group X Products with a coefficient from 0% to 10%;
2. Group Y. Products with a coefficient from 10% to 25%;
3. Group Z. Products with coefficients of variation greater than 25%.

In simple words, the coefficient of variation is the possible deviation of values. So, deviation in demand affects sales, which creates difficulties in achieving.

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Example

Let's look at how to do a sales analysis using the XYZ method using the example of a specialized sweets store. Sales analysis report in the table below.

We see that the demand for chocolates is the most stable; from month to month it can change within 7%. But the demand for gift sets deviates within 28%.

4. Analysis of the check structure

The goal is to identify the quantity of a certain product on a specific trading platform (outlet, product shelf, store).

This type of sales analysis is relevant for large federal companies, distributors, retail and wholesale trade networks. When applying this method, several indicators are examined:

1. MML sheet (minimum must list)– the minimum required assortment, a list of products consisting of several key SKUs.
2. Average SKU (Stock Keeping Unit)– a unit of goods, a specific assortment position.

Using accounting systems, you can get a report that will show how many SKUs are sold on average at a retail outlet. The higher the average SKU, the greater the market presence. And if you count manually, here is the formula:

Average SKU = Sum of SKUs sold per outlet / Total number of outlets.

The growth of the average SKU indicates an expansion of the presence of your products at the point of sale and an increase in demand for your assortment. That is why the indicator must be considered in dynamics.

Example

We need to calculate how many specific items are sold on average across our customer base. Let's say we are a very large wholesaler and we have 5 regular customers.

Now we calculate the average SKU = (4 * 3 + 10 * 2) / 5 = 6.4.

5. Analysis using the BCG matrix

The goal is to identify priority product groups that will subsequently bring the greatest income.

This method is based on the calculation of the following indicators: market share of a product, market growth rate for this product and sales volume.

After calculations, products are distributed in a matrix depending on market share and market growth rates. Sales volume is displayed using circles. The results of the analysis are compiled into the BCG matrix, sample below.

1. Star. The best-selling products that generate the most revenue. This is a trend, like any superstar, but on a store shelf. Strategy: maintaining leadership.
2. Milch cow. Products that can generate good income without investment. These products have a more stable life cycle than stars. Strategy: make a profit and maintain positions.
3. Question. Products that you don’t know what to do with: invest in them and bring them to fruition, or get rid of them forever. Strategy: we invest additional funds.
4. Dog. A category of goods that require constant investment, but their profitability is very low. The effort spent on them does not pay off. Strategy: we reduce activity or withdraw the product from the market.

Example

We will do the analysis using the example of Tortik LLC. The company specializes in selling handmade chocolates, pastries, ice cream and designer cakes.

Let’s imagine that we have already carried out calculations and determined along the coordinate axis which product goes where and received the following results:

1. Chocolates are “dogs”. They are expensive for customers, but their production costs are high. Such a product is not profitable for the company.
2. Cakes are cash cows. They consistently generate high income. Positions need to be strengthened.
3. Cakes are the “stars”. Now this is a fashionable confectionery direction, Tortik LLC receives high income from their sale.
4. Ice cream is a “question”. This is a seasonal product, sales volume is not stable. You can invest money in expanding the range or focus on other product groups.

6. Control analysis of sales volume

The goal is to identify the deviation between the achieved actual sales figures and the planned ones.

For each product group, a sales plan is set for the day, week, month and year, and then the implementation of the plans is assessed. Suitable for retail sales of goods and wholesale.

The basis for calculations in this method of sales analysis is revenue, profit, profitability and other planned indicators that reflect sales performance.

Example

Let's look at achieving plans using the example of a company that sells flowers.

Let’s say the following planned indicators were set for 2018: sales volume of roses – 2,000 rubles, lilies – 3,000 rubles, violets – 1,500 rubles. You can see the remaining indicators in the finished table below.

Based on the sales results of 2018, we can conclude that the plan for the sale of violets was exceeded by 27%, and compared to 2017, the plan for violets was fulfilled by 100%.

7. Factor analysis of sales

The goal is to identify which factors influence sales volume and to what extent.

To conduct factor analysis, you need to understand what revenue is and that it depends on the price of the product offered and sales volumes. The price in turn depends on the costs.

So, step by step, factors that influence sales volume are identified. The analysis occurs by comparing two periods (current to past).

Example

IP Ivanov Ivan Ivanovich is engaged in the sale of goods in a retail network. Revenue is growing faster than sales profit. How do you know what you can do to increase your profits with standard sales data?

As a result of factor analysis, the following was revealed:

1. Due to a decrease in sales volumes, profit decreased by 2,582 thousand rubles.
2. Due to the increase in assortment, profit increased by 1,708 thousand rubles.
3. Due to increased costs, profit decreased by 11,869 thousand rubles.
4. Due to an increase in business expenses, profit decreased by 4,000 thousand rubles.
5. Due to a decrease in administrative expenses, profit increased by 1,000 thousand rubles.
6. Due to the influence of sales prices, profit increased by 9,743 thousand rubles.

This way you can see the weak points of the business and focus on the influence of certain factors, because the task of any business is to make profits grow.

8. Cost-benefit analysis

The goal is to determine the effectiveness of sales from an economic point of view.

To analyze profitability, it is necessary to have profitability plan data as well as actual data. As a rule, plans are set according to an existing business plan or based on past periods.

Return on sales will give you an understanding of how much profit you can get from one ruble of revenue. This indicator must be greater than zero. Determined by the formula:

Return on sales = Profit from sales / Revenue

As a result of this analysis, plans are set for the following periods, and measures are taken to increase the profitability of sales.

Example

Let's look at how to analyze sales by profitability using the example of a company that sells roses, lilies and violets.

Thus, the most profitable area of ​​sales is the sale of roses; they generate the most profit, but the profitability plan has not been fulfilled. But for violets the plan was exceeded by 2 percent.

9. Customer base analysis

The goal is to identify the growth rate of clients, as well as the degree of development of the existing base.

The volume of customers who have made a purchase (that is, end consumers) directly affects the volume of sales and profits generated.

A client is a person who pays his money to the company. He wants to receive a quality product or service for a fair price. If the quality of the product, price or service is not suitable for the client, the transaction will not take place and the sale will not go through.

Sales analysis is a necessary practice in business to determine the success of a product. By conducting a sales analysis, the entrepreneur finds out the volume of products sold and understands which variety has prospects and what consumers want to see on the shelves. In this article we will look at the types, indicators, stages and effective analysis methods so that you choose the most optimal one and can control sales.

Tasks

Sales analysis helps solve the following problems:

• learn about products that sell more and less to better understand consumers;
• draw up a strategic plan to increase sales;
• understand market changes, identify downturns in order to correct the situation in time;
• evaluate the work of marketers;
• rationally distribute efforts: promote more popular products that are in demand, eliminate unpopular positions, or change promotion tactics;
• review the product sales policy.

Sales analysis should be carried out regularly to avoid unresolved problems and misunderstandings with consumers. Experts advise carrying out this practice once a month or more often, depending on the product niche and market variability.

Kinds

Let's talk about the types of sales analysis. Knowing the types will help you determine exactly what analysis your product range needs.

1. Retail sales analysis. By analyzing this type of sales, we can understand the efficiency of the point of sale and evaluate the work of the staff. When analyzing retail sales, important indicators are in monetary terms, the quantity of goods sold, the size of the average customer check, sales volume and names of popular products. Proper analysis will create the best system for employees to understand everyone's contributions, and we can recognize promising sales positions to promote them.

2. Analysis of the sales plan. For sales to grow, you need to have a sales strategy and plan. Analysis will help evaluate the effectiveness of the plan and the success of its implementation. The sales plan is provided to employees; if they are able to fulfill or exceed it, they will be rewarded in the form of a bonus. Such an analysis should be carried out once every 3 months, or more often.

3. Factor analysis of sales. This practice identifies factors that influence consumer behavior when they decide to make a purchase. Factor analysis indicators are divided into two groups: external and internal. By analyzing them, you can understand what leads consumers to action and how to use it for your own purposes.

4. Analysis of profitability of sales. Profitability shows the efficiency of the enterprise, the ratio of invested and received funds. These indicators are very important to understand the prospects of a niche, whether capital is being managed competently, and whether it is worth moving in the same direction.

5. Analysis of sales effectiveness. Efficiency shows the level of achievement of set goals and the productivity of the outlet. It is important to remember that it is not the essence of the sale itself that is important, but the satisfaction of the client’s needs, good service and the quality of the product. If a customer buys a product but is dissatisfied, he will advise friends and colleagues to avoid you, which will have a bad effect on sales if there are many dissatisfied customers. Therefore, think about the future, meet the needs of clients, hire professional staff, give bonuses. Convince the buyer that the value exceeds the price, and he will return with his friends.

6. Analysis of the sales department. It is important to analyze not only individual indicators and influencing factors, but also the work of the sales department. Sometimes entrepreneurs spend unimaginable amounts on employees who are not useful. Analyze the work of the department, its results, efficiency. If you can’t cope, change your strategy, invite new specialists, look for extraordinary solutions.

7. Analysis of secondary sales. This type of research allows you to find out whether the buyer has contacted your company again. If the customer is satisfied, he can become a regular customer and purchase goods on an ongoing basis. The more such clients, the better.

8. Analysis of sales management. These indicators help managers evaluate the performance of sales managers and adjust their actions in a timely manner. Plans and strategy may be excellent, but if responsibilities are not distributed correctly and the task is incorrectly communicated to managers, then everything will be in vain. Conduct analysis to ensure your strategy and the effectiveness of your managers.

Analysis indicators

During the analysis, you will collect statistical data for the study.

To evaluate the performance of enterprises and personnel, you will need the following indicators:

• Quantity and monetary equivalent. Experts recommend collecting monthly data on unit sales and revenue for a product in a particular segment. This will allow you to evaluate the profitability of positions, the impact of discounts and bonuses, and develop a further strategy.
• Number of clients. This indicator tells about the audience coverage and communication channels with it. You can find out the number of repeat buyers and permanent ones, whether the number of buyers is growing and what the dynamics of sales are.
• Cost of production. It is taken into account in any sales analysis, helps to develop marketing campaigns, conduct competent pricing, and evaluate profitability.
• Sales of goods. The indicator demonstrates the volume of goods sold and the demand for such offers.
• Sales by segment or region. Allows you to assess the level of product sales in a certain segment or location, so that further measures can be taken to improve sales efficiency.

Stages

If you want to independently analyze the sales of your products, you should follow the following algorithm.

1. Step 1: Open Excel and enter your sales figures into a spreadsheet. Rubles, pieces, cost, profitability, average price, profit. Enter all data for a limited period of time: month, quarter, six months, year.
2. Step 2: Study sales dynamics indicators. One of the main indicators of enterprise performance. To make calculations, you need to estimate all income, expenses and profit.
3. Step 3: Analyze sales evenness. It is better to compare several periods and determine whether there is a decline in sales. The numbers will indicate the impact of market conditions on sales. If the quantity of goods sold falls, it is necessary to introduce new sales methods, different sales funnels, motivate staff to work actively and conduct active promotion.
4. Step 4: Research the critical sales volume if you are introducing a new product. Critical volume means the amount of goods sold that covers initial costs and takes us from minus to zero.
5. Step 5: Evaluate profitability. These numbers will tell you what percentage of total revenue is profit and how effective your sales are.
6. Step 6: Identify factors influencing buyer decisions. If you succeed, you will be able to understand the reason for the purchase and return to the store for a new purchase. Such knowledge helps to make customers regular, increase sales and audience loyalty.

KPI

Let's look at the most effective methods of sales analysis. Once you know the most effective ones, you can apply them to different situations.

KPI (Key Performance Indicators) is translated from English as key performance indicators. KPI indicators help establish the quality of work of employees and the entire department, and sales performance.

KPIs come in several types, depending on what is the subject of the study:

• expenses;
• functioning;
• result;
• performance.

Based on these items, the following key performance indicators are distinguished:

• traffic;
• volume of sales;
• middleman check;
• quantity;
• conversion;
• return on investment;
• number of complaints.

Sales have their own characteristics, so each business will have several KPI indicators. Find out what exactly you need to calculate and start doing the calculations. Such indicators help evaluate the performance of entire departments and draw up further sales strategies. It is recommended not to consider more than 10 different types of KPIs so as not to overload the study.

Situation : You need to evaluate the performance of your online store, and you decided to calculate the KPI of customers from all those who came to the site, that is, user conversion. To do this, you need to know the total number of visitors to your store and the number of customers.

If 5,000 people visited the site, but only 500 bought, then the conversion will be 10%.

ABC

The purpose of this ABC analysis technique is to calculate the share of a certain product in total sales. The final results will help you draw conclusions about products that are selling well and not so well, in order to develop a more effective sales plan, or revise the product range.

The ABC method is based on the Pareto 80/20 Principle. That is, 80% of revenue comes from 20% of products. During the analysis, products are divided into three categories (percentages of sales share are indicated on an accrual basis):

1. A – popular goods that bring profit, the share is up to 80%;
2. B – goods that have good demand, but bring only 81-95% of revenue;
3. C – products with a share above 96 are usually considered unprofitable.

Situation : A stationery store decided to conduct an ABC product analysis to identify slow-moving products and revise the assortment policy. It turned out that of all goods sold, notebooks accounted for 53%, pens, pencils and other writing instruments – 24%, adhesives and tape accounted for 3%, various products for appliqués 11%, paints and drawing supplies 9%. From which we can conclude that category A includes notebooks and writing aids, category B includes products for appliques and items for drawing, and category C includes adhesives and tape. This means that scotch adhesives are unprofitable, and you can refuse to sell them.

SWOT

The Russian name for this method is SVU and stands for:

• Strength - Strengths;
• Weaknesses - Weaknesses;
• Opportunities - Opportunities;
• Threats - Threats.

This type of analysis will help you look at your company from all sides, evaluate its advantages and disadvantages, evaluate its potential and prospects, and find out what may threaten its development.

To conduct a similar analysis, fill out the table below:

Positive:

• Internal strengths;
• External capabilities;

Negative:

• Internal weaknesses;
• External threats;

But filling it out is not enough; you still need to analyze the data received. Consider how you can develop your strengths to help you realize opportunities and eliminate potential threats. How to eliminate shortcomings and risks to increase operational efficiency and remain competitive.

Situation : Victoria has companies providing graphic design services. Its employees develop logos, business card designs, stickers and various printed materials to create a brand. She conducted a SWOT analysis and found out that its strengths are: individual approach, reasonable prices, qualified personnel. Weaknesses: the equipment is not good enough, the quality is no better than that of competitors.

Opportunities – increase the average check if you make more types of products. Threats – customers will refuse products due to print quality. To stay afloat and increase sales, Victoria needs to buy new equipment. This will allow it to raise prices and expand the range of products offered, which will attract new customers and increase loyalty among regular ones.

XYZ

The next method is XYZ. It helps you find out the uniformity of demand for your goods. The results of the study will help you understand which products have a stable demand line and are needed by consumers, and which ones can and even should be abandoned.

Open Excel and enter data about products and revenue. Using special formulas, the program will calculate the coefficient of variation for you.

• If the coefficient is from 0 to 10%, then the product belongs to category X.
• If the coefficient is from 10 to 25%, then the product belongs to category U.
• If the coefficient from is more than 25%, then the product belongs to category Z.

The lower the coefficient, the higher the stability of demand, which means that the product is in demand for a long time. If the coefficient constantly jumps and declines, then the product is losing demand and you can think about excluding it from the general list of products sold in order to increase sales efficiency.

Analysis of the assortment will help the owner of the company and make the right conclusions about which products should be discarded.

Optimization of the company's assortment

The strengths of this solution include a clear sequence of actions, following which you can significantly improve the company’s financial results. Among the shortcomings, it can be noted that certain measures regarding assortment optimization cannot always be justified with numbers.

The main signs of an unsuccessfully selected product line:

• increase in warehouse balances both in kind and in value terms; at the same time, the lack of goods in demand by customers;
• an increase in the number of assortment items accompanied by a decrease in profits;
• lack of resources to purchase goods.

In order to bring order to the company’s assortment, it can be recommended to conduct an ABC analysis of the company’s product line, and then develop optimization measures for each selected category A, B and C.

How to conduct an ABC analysis of a company's assortment

To optimize your assortment, use profit data for specific product groups and items. This is the most objective and reliable information about the situation on the market in which the company operates and the needs of customers. Moreover, we are talking specifically about profit in ruble terms. It is not always convenient to use an indicator such as profitability for analysis. If you apply profitability, you will also have to collect data on product turnover, otherwise the results of assortment optimization may be dismal. If you make a decision only on the basis of the profitability indicator, then there is a high risk that the company’s product line will remain items with a high markup (luxury goods), but which are in fairly low demand. The result is a sharp decline in sales volumes and profits in ruble terms.

The initial data can be information downloaded, for example, from 1C into Excel and containing information about profit by product groups. The more honestly the profit on goods is calculated, that is, all expenses for each group are taken into account as much as possible (purchase prices, delivery, packaging, storage in a warehouse, etc.), the more accurately you can carry out optimization.

It makes sense to start with an ABC analysis of profit. Moreover, as practice shows, the use of some more complex techniques simply does not justify itself. Data for analysis (groups of goods and the profit received by the company on them), as a rule, are taken for the maximum possible period of time (a year or more) in order to smooth out the seasonality of various groups of goods and errors in purchasing or production planning, as a result of which the goods are temporarily unavailable in stock.

To conduct an ABC analysis, you will need to generate the amount generated by each specific group of goods, its share in the total amount of profit and rank the groups according to this indicator, as well as calculate the share of profit as an accumulated total (see Table 1. ABC analysis of product groups).

Table 1. ABC analysis of product groups

ABC analysis in relation to the company's assortment involves the allocation of groups in slightly different proportions than those suggested by the classical Pareto rule. When conducting an ABC analysis of product groups, it would be quite justified to use the following criteria:

• Category A – groups of products with the largest contribution to profit (share in profit), which together provide up to 50 percent of the company’s total profit;
• Category B – product groups that in total provide about 35 percent of the profit, and their accumulated share in the profit ranges from 50 to 85 percent;
• Category C – groups with the lowest share of profits, bringing in the remaining 15 percent (cumulative share from 85 to 100 percent).

After conducting an enlarged ABC analysis (by product groups), it is necessary to expand and increase the depth of groups that are strong in terms of profitability and reduce financially disadvantaged categories.

How to optimize the range of products from category A

Product groups allocated to category A bring the company half of all profits, and their optimization should have the greatest effect. But in order to work with this group, you will have to analyze its composition.

It should be noted that a product group may be homogeneous in composition or contain product subgroups. In order to organize all this, the concept of width and depth of assortment is most often used. The width of the assortment of a product group is determined by non-interchangeable subgroups of goods. The depth of the product group, accordingly, is determined by interchangeable goods. They are usually located within a subgroup. For example, products with similar characteristics, produced under different brands.

Group A optimization assumes that the width and depth of the group should be maximized. In practice, most often it is justified to keep no more than 6–7 positions in one depth subgroup, but there may be exceptions in relation to group A. This is the key idea of ​​optimizing the range of goods that bring the greatest profit, and the algorithm for reducing unprofitable items for the company will be as follows.

Step 1. Checking the number of items in subgroups. Within the category A group, an ABC analysis is carried out, similar to that described above. The point is to determine the subgroups of category C and check the number of items according to them.

According to the universal rule, the number of items in each subgroup assigned to this category should not exceed the product of the number of product items in group A multiplied by the share in profit. To make a choice, an ABC analysis is carried out for specific product items - the next step.

Step 2. Name analysis. The logic of actions at this stage is the same - ABC analysis by share of profit, with the only difference being that the object is an analysis of specific product names (see Table 2. Analysis of product names of the “shampoo” subgroup). The reduction includes goods of category C. Although there are some exceptions that need to be taken into account, namely:

• If the company’s situation is not critical, you should not remove products that were launched recently from the assortment. It is clear that the profit on them is lower, if only because such goods are sold for a shorter time than all others;
• Category C may include accessories and related products that stimulate sales of category A products.

Table 2. Analysis of product names of the “shampoo” subgroup

It would also be justified to reduce the range of items that fall into category C, getting rid of “unstable” products. We are talking about those titles whose sales fluctuate greatly from month to month. It is quite risky to bet on such a product, since in case of unfavorable developments it threatens with overstocking of warehouses, an increase in the volume of illiquid stock, in a word, significant losses for the company.

To assess the stability of product sales, XYZ analysis is used. For each product of the analyzed product group, the coefficient of variation is calculated (shows the degree of deviation of the data from the average value). The simplest way is to calculate the coefficient of variation as the ratio of the standard deviation to the average sales volume. In Excel, the standard deviation is easy to determine using the formula "STANDARD DEVIATION".

• X – variation does not exceed 10 percent. Stable sales are therefore the main concentration of effort and resources. Such a product does not promise large losses for the company, even if it is purchased (produced) in a larger volume than required;
• Y – variations within 11–25 percent. A less stable category than X, but still a fairly reliable product;
• Z – spread exceeds 25 percent. It is better to remove such a product from the assortment or work with its supply (production) to order.

Table 3. Analysis of sales stability

How to optimize the range of products from category B

Step 1. ABC analysis of titles. It is quite justified to conduct an analysis immediately by product items for the entire group, without breaking it into subgroups. We will definitely leave the items in category A. From the remaining products of categories B and C, we will have to complete the assortment.

Step 2. Select related products. If you focus only on profitable positions and there are no related products (services) in the assortment, then instead of increasing sales, there will be a decrease in revenue. There are two ways to identify related products:

• firstly, as an expert - to independently conduct such a sample;
• Secondly, related products can be found by conducting cross-analysis. It is done by analyzing receipts in retail or by analyzing invoices in wholesale companies. The point is to collect data on which sets of goods are most often purchased. And as a result, leave in the assortment those items from category B that are most often purchased with goods from category A.

Step 3. Keep products stable. Based on the XYZ analysis discussed above, categories X and Y are returned to the assortment, regardless of sales volume and profit margin. If some products consistently (plus or minus 10–25%) bring the company a profit from month to month, albeit small, but it will most likely be inappropriate to refuse them.

Step 4. Increase the depth of Category A groups.

Step 5. Identify product items that are significant to the buyer. There are several categories of products that should be in stock:

• “traffic generators” is a category that provides a flow of buyers. These are products with a high frequency of purchase. However, they do not necessarily bring significant profits. But when customers come for these goods, they simultaneously acquire other items;
• “cash generators” is a category that provides a large volume of sales, that is, it has the maximum turnover in the group’s assortment. In conditions of liquidity shortage, it is important not to throw this type of product out of the assortment in the pursuit of profit;
• “Defenders” is a category of goods for which the buyer makes a conclusion about the general price level in the organization. As a rule, it is built on a price basis from goods that are traffic generators.

How justified it is to include image products in category B product groups depends on the business strategy and its resources.

Step 6. Keep new items in stock. Regardless of the situation in the company, its financial position will be more stable if new products are periodically introduced into the assortment. The fact that a product is profitable now does not mean that tomorrow customers will lose interest in it. In order not to miss the moment of “degeneration” of “profit generators”, you need to regularly analyze the sales results for the main products (at least once every six months or a year), and track changes in the share of profit.

All other products from category B product groups can be thrown away and disposed of.

How to optimize the range of products from category C

It is better to completely exclude product groups of category C, identified during the preliminary analysis of the assortment, from the assortment and not waste the company’s financial resources on them. Of course, making exceptions for items that have recently appeared in the assortment, they are important related products for category A, traffic generators.

Hello, dear colleague! Today's article will focus on marketing analysis. After all, such an analysis determines the success of absolutely any organization or individual entrepreneur. Marketing determines the relationship of an enterprise or individual entrepreneur with the external environment through the study and conduct of marketing analysis aimed at identifying the competitive position of the enterprise (IP) and its potential opportunities in the relevant market. Therefore, in this article we will look in detail at what marketing analysis is and how it is carried out.

7. Selection of the most effective methods and forms of product sales, development of a marketing strategy for the enterprise

Thus, we have identified 7 main tasks of marketing analysis, having solved which, it will be possible to see the full picture of the enterprise’s activities, both its internal and external aspects.

3. Types of marketing analysis

Marketing analysis can be of several types, differing both in methods and forms of implementation, and in the extent of the analyzed information.

1. Marketing market analysis - the most common type of marketing analysis. Study of market trends and processes. Analysis of economic, geographic, legislative, demographic and other market factors allows us to forecast market development, develop a competitive strategy and carry out market segmentation, and identify the most appropriate market niche.

1. Marketing analysis of competitors allows you to identify the strengths and weaknesses of the enterprise. Develop a competent marketing strategy.

1. Analysis of the enterprise's marketing strategy . Analysis of the existing marketing activities of an enterprise makes it possible to make adjustments and direct the organization’s activities in a profitable direction. Often, an ineffective marketing strategy of an enterprise is one of the factors of its unprofitability.

1. Research of the internal environment of the enterprise aims to compare internal and external processes in order to bring their work to a single coherent mechanism.

1. Research of target audience and target consumer . This type of marketing analysis allows you to see a clear and understandable portrait of the consumer of your goods or services, and, therefore, competently think through the marketing strategy of the enterprise, select possible bonuses and think through the approach. If there are many types of consumers or the group is large enough, then they are divided into segments that share common characteristics.

1. Marketing analysis of intermediaries will allow you to see potential partners of your company and calculate the affiliate program for further expansion.

1. Analysis of the internal marketing environment of the enterprise — this type is aimed at studying the real competitiveness of an enterprise.

So, we have looked at the main types of marketing analysis, let's move on to the methods.

4. Marketing analysis methods

Method for analyzing the marketing activities of an organization is a way of studying, measuring and generalizing processes, phenomena and influences of external and internal factors on the activities of an organization in a market economy.

The choice of a marketing analysis method is a very serious point, depending directly on the purpose and objectives of the study as a whole.

In this paragraph of the article we will consider methods of marketing analysis based on its types.

So, we have looked at the main types of marketing analysis and the methods attached to them.

Since this article is more informational than practical, we will not consider each method in detail.

5. Conclusions

To conclude this topic, I would like to say that science such as marketing and marketing analysis tools play a key role in building a long-term and profitable business.

Marketing analysis is applicable both at the stage of business planning and at any other stage of an existing one.

And finally, I suggest you watch a short video about conducting marketing research:

This concludes my article. I hope that the material contained in it was useful to you. I wish you good luck and see you in the next articles.