Sales Analysis Using the BCG Matrix

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It is carried out with the aim of identifying precisely those groups of goods from which the profit is expected to be maximum.

The calculations here involve such indicators as sales volumes, the market segment occupied by a particular product, and the rate of market expansion for this product.

Once all calculations are completed, the food and beverage email list so-called BCG matrix is ​​formed, where sales volumes are displayed in the form of circles, and the products themselves occupy positions in accordance with the market share they occupy and the rate of increase of this share. The matrix looks something like this:

Sales Analysis Using the BCG Matrix

The next step in this sales analysis is to map out a strategy for further development for each position:

The star means that this product sells better than others. That is, it is a star among the others, it sells better, and therefore, the profit from it is the largest. The development strategy for it is to maintain the lead.

The cash cow symbol denotes a product that provides a good, constant income, without any additional expenses. Such positions are much more stable compared to stars. The development strategy is to earn money and maintain a stable, reliable position.

The question mark marks rather controversial positions. To make them profitable, monetary investments are required. But is the game worth the candle? The development strategy is to pour in funds.

The dog is placed opposite positions with very low profitability and a high need for investment (which is also unlikely to pay off). The development strategy is to pay less attention to such a product or remove it from the assortment list altogether.

Sales volume analysis for data control purposes
It is carried out in order to determine the difference between planned sales volumes and the actual figures achieved.

Such sales analysis is carried out in both wholesale and retail trade. For each item, a plan for sales volume is outlined (per day, month, year) and then information is collected on how well the planned indicators have been met.

All calculations are based on revenue, profit, profitability and other data that influence sales success.

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Factor analysis of sales
It is carried out with the aim of determining the factors influencing sales volumes and identifying the significance of each of them.

Here you should have an idea that the size of revenue depends on the price of the product and the volume of its sales. And the price is formed based on the cost price.

Once the factors that influence high or low sales levels have been identified, data is collected for two periods (current and previous) and sales are analyzed.