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PRODUCT SALES
Category Performance Analysis/Category
Management
Category performance analysis, also often referred to as category management, provides insight
into merchandise performance by product, category, geography and vendor. Product, store and
channel managers analyze sales performance to understand which products and categories are
selling well and which are selling poorly, in which geographies and stores, during which time periods.
Key Performance Just this basic level of knowledge allows managers to optimize their product mix, ensure inventory
Indicators levels are appropriate, and offer specific product selections demanded locally by consumers. Using
% Change in # Orders more advanced features of business intelligence, marketers are able to identify statistically significant
Top 10 Products in Sales
product relationships (which products sell well together, which products sell well at the POS) and
Profit Per Unit
optimize merchandising strategies through “what if” analysis and predictive modeling.
Top 3 Related Products
% Change in Sales
Sample Report: Geographic Product Trends
Bottom 10% of Products
by Sales
ICUP Ice Cream Company
Cumulative Profit by Customer Sales Geography: Metro Washington DC Sales Type: Retailer
Segment: Grocery Product Type: Print
Units Per Transaction Chain/Independent: Chain
Flavor Store Price Average Retail Quantity - Quantity - Volume Volume %
Tier Retail Price Promotion Previous Current Difference Change
Vanilla Marketfresh Full $ 2.49 no 65,421 70,655 5,234 8%
Foodcat 33% off $ 1.74 yes 98,132 107,945 9,813 10%
Crunchmonkey Full $ 2.99 yer 32,547 32,987 440 1%
Chocolate Marketfresh Full $ 2.49 no 32,547 25,387 (7,160) -22%
Foodcat Full $ 2.49 no 48,821 49,854 1,034 2%
Crunchmonkey 10% off $ 2.71 yes 16,274 20,324 4,068 25%
Strawberry Marketfresh 25% off $ 1.89 yes 12,548 16,689 4,141 33%
Foodcat Full $ 2.49 no 18,822 15,654 (3,168) -17%
Crunchmonkey Full $ 2.99 no 6,547 4,897 (1,650) -25%
This report shows overall changes in sales volume by region for an ice cream manufacturer. Sales, product,
merchandising and marketing managers can see at-a-glance which territories require attention. Drilling into
the flavor sales distribution for underperforming regions at the region, flavor or store level, managers can
identify factors contributing to under- or over performance and correct or replicate tactics.
COMMON BUSINESS QUESTIONS
• Which regions are experiencing the most growth in Product A sales?
• What are my top selling products?
• What other products are selling at the same time as my top seller?
• What is the contribution to sales of my top products?
• Which products have declining sales momentum?
• How have sales of Product A changed year over year?
• What items did Customer X buy in her last transaction?
• What is the annual sales trend of each product?
• What is the profit per unit for Product A?
60 Applications of Industrial-Strength BUSINESS INTELLIGENCE
