Trade marketing kpis: products (2/5)
Posted: Wed Dec 04, 2024 6:38 am
As we have already said, in Trade Marketing, measuring is essential to be able to boost results. Indicators are those reference points on the compass of success. After the initial article in the Trade Marketing KPI series, in which we talked about People , today we continue the series with those related to the Product at the point of sale. This list will help to make a good diagnosis that allows for the design of optimal strategies. What data should be analyzed in relation to the product within trade marketing? Let's analyze the Trade Marketing KPIs associated with Products.
Table of Contents
Trade Marketing KPIs associated with Products
Assortment of products
Number of SKUs
Sales by SKU
Stock
Stock predictability
GMROI
Conclusion
Trade Marketing KPIs associated with Products
Assortment of products
The product mix is the star within the point of sale. Are we achieving the winning combination? Not all points of sale that sell the products of a brand have the same products. This indicator must be continuously monitored to see which assortment is the most profitable in each POS.
Trade Marketing - Product assortment at the point of sale
The key is to include all the most interesting items in the industry, taking into account the shopper profile and the data previously obtained. In addition, it is key that the point south korea b2b leads of sale manager is present to guarantee perfect execution and make the continuous changes that are needed.
Number of SKUs
The Stock Keeping Unit or SKU can be defined as the smallest sales unit. We can analyze this Trade Marketing KPI associated with Products at different levels: by category, segment, brand or geographic area, for example.
With this reference we can make a diagnosis of the profitability at each point of sale according to the percentage of growth by SKU and also the share of the assortment compared to the competition.
In terms of numerical analysis, the key is to buy by unit, volume or value the ratio of assortment share to sales share . Depending on the company's strategy, it will be a matter of optimizing on one side or the other.
Sales by SKU
Transaction volume by SKU and the penetration of new products are two key data to enrich trade marketing. With this indicator in hand, we will be able to evaluate the real efficiency of the brand's portfolio .
This data is not easy to obtain in many cases, if the retail point of sale is not properly managed. Therefore, it is essential to maintain continuous communication and verification, and to rely on technology to be able to apply intelligence and strategy in actions.
In addition, keeping an eye on the sales trend of a product is also an important point. The GPV must always keep in mind which dates are key, such as Christmas, Father's Day or holidays in the area where the point of sale is located.
Stock
Especially with regard to the most strategic SKUs, it is the task of the point of sale manager to review the stock supply on a daily basis and to ensure that category management is being carried out.
Trade Marketing - Stock control at the point of sale
Monitoring items at the point of sale, at distributors or in transit is what allows for optimal trade marketing planning . This Trade Marketing KPI associated with Products focuses on ensuring product supply, thus avoiding shortages.
It is essential to have a good technological solution to control this point, since in some cases there are phantom products. This happens when the inventory contains a product that is not really there, but the system has become outdated.
Stock predictability
As Tony Robbins says, “Anticipation is the ultimate power, and while most react, leaders anticipate.”
Planning ahead is key to success in any area, and this is no less the case in the case of POS management. We cannot predict the future with a crystal ball, but it is possible to make estimates with the data we have.
Anticipating shortages in inventory is a smart practice for making quick decisions. In addition, we reduce the risk of losing potential sales in the channel. To do this, the key is to anticipate and alert when the limit is being reached, and thus supply, preventing the product from running out on the shelf .
Beyond the lack of stock due to limited product items, there are sometimes deviations caused by damage to the goods. Maintaining a safety margin is always a good practice, given that breakdowns or thefts during transport may occur or a product subject to expiration may perish.
GMROI
An indicator that helps us know if a company is financially healthy is the GMROI . In other words, it is the Gross Margin of the Return on Inventory Investment, which relates the gross margin with the rotation of the products in stock.
Table of Contents
Trade Marketing KPIs associated with Products
Assortment of products
Number of SKUs
Sales by SKU
Stock
Stock predictability
GMROI
Conclusion
Trade Marketing KPIs associated with Products
Assortment of products
The product mix is the star within the point of sale. Are we achieving the winning combination? Not all points of sale that sell the products of a brand have the same products. This indicator must be continuously monitored to see which assortment is the most profitable in each POS.
Trade Marketing - Product assortment at the point of sale
The key is to include all the most interesting items in the industry, taking into account the shopper profile and the data previously obtained. In addition, it is key that the point south korea b2b leads of sale manager is present to guarantee perfect execution and make the continuous changes that are needed.
Number of SKUs
The Stock Keeping Unit or SKU can be defined as the smallest sales unit. We can analyze this Trade Marketing KPI associated with Products at different levels: by category, segment, brand or geographic area, for example.
With this reference we can make a diagnosis of the profitability at each point of sale according to the percentage of growth by SKU and also the share of the assortment compared to the competition.
In terms of numerical analysis, the key is to buy by unit, volume or value the ratio of assortment share to sales share . Depending on the company's strategy, it will be a matter of optimizing on one side or the other.
Sales by SKU
Transaction volume by SKU and the penetration of new products are two key data to enrich trade marketing. With this indicator in hand, we will be able to evaluate the real efficiency of the brand's portfolio .
This data is not easy to obtain in many cases, if the retail point of sale is not properly managed. Therefore, it is essential to maintain continuous communication and verification, and to rely on technology to be able to apply intelligence and strategy in actions.
In addition, keeping an eye on the sales trend of a product is also an important point. The GPV must always keep in mind which dates are key, such as Christmas, Father's Day or holidays in the area where the point of sale is located.
Stock
Especially with regard to the most strategic SKUs, it is the task of the point of sale manager to review the stock supply on a daily basis and to ensure that category management is being carried out.
Trade Marketing - Stock control at the point of sale
Monitoring items at the point of sale, at distributors or in transit is what allows for optimal trade marketing planning . This Trade Marketing KPI associated with Products focuses on ensuring product supply, thus avoiding shortages.
It is essential to have a good technological solution to control this point, since in some cases there are phantom products. This happens when the inventory contains a product that is not really there, but the system has become outdated.
Stock predictability
As Tony Robbins says, “Anticipation is the ultimate power, and while most react, leaders anticipate.”
Planning ahead is key to success in any area, and this is no less the case in the case of POS management. We cannot predict the future with a crystal ball, but it is possible to make estimates with the data we have.
Anticipating shortages in inventory is a smart practice for making quick decisions. In addition, we reduce the risk of losing potential sales in the channel. To do this, the key is to anticipate and alert when the limit is being reached, and thus supply, preventing the product from running out on the shelf .
Beyond the lack of stock due to limited product items, there are sometimes deviations caused by damage to the goods. Maintaining a safety margin is always a good practice, given that breakdowns or thefts during transport may occur or a product subject to expiration may perish.
GMROI
An indicator that helps us know if a company is financially healthy is the GMROI . In other words, it is the Gross Margin of the Return on Inventory Investment, which relates the gross margin with the rotation of the products in stock.