Hello! In this article we will talk about the analysis of the company's sales volume.

Today you will learn:

• Why is it necessary to analyze the sales volume of an organization;
• How to conduct sales research correctly;
• What methods of sales volume analysis exist.

Purpose of sales analysis

Sales volume – one of the most important indicators of company performance. A change in this indicator in one direction or another may indicate changes in market development trends, shortcomings in the organization’s work, which, in the absence of a timely response, can lead to serious problems. To avoid “unpleasant surprises,” it is necessary to regularly monitor your company’s sales.

In addition to preventing possible problems, sales volume analysis solves the following problems:

• Allows you to obtain information on the basis of which the manager can make an effective management decision (both tactical and strategic);
• Identifies “profitable” and “unprofitable” products in the company’s product portfolio. Allows you to make the right decision regarding the development or removal of a product from the range;
• Allows you to evaluate the efficiency of your company’s departments, for example, department or sales;
• Largely determines the company's sales policy;
• Helps.

If you are faced with at least one of the listed tasks, you should conduct sales monitoring.

The market today is developing very quickly. New brands are appearing, old products are being replaced by new products, and the consumer is becoming more and more demanding. It is these factors that determine the frequency of product sales analysis. Experts recommend monitoring changes in your company’s sales at least once a month.

The main stages of analyzing company sales

Before we begin to explore how to analyze a company's sales volume, it is necessary to consider the main stages of this process.

Sales volume analysis- one of the types. Unlike market analysis, when studying sales volume, exclusively secondary intra-company information is used. Collecting this information constitutes the first stage of the sales analysis process.

The second stage is the determination of indicators for analyzing the company’s performance. We will examine them in more detail when considering specific analysis techniques.

The third stage is the analysis of the collected information and evaluation of the result.

The fourth stage is the identification of influencing factors.

Types of sales volume analysis

Depending on the purpose, sales volume analysis can take the following forms:

• Analysis of sales volume dynamics. In this case, our task is to determine the change in the company's sales volume compared to the previous period. This type of analysis is necessary for timely detection of changes in market trends, as well as searching for problem areas in the organization’s work;
• Structural sales research carried out to justify management decisions regarding the company’s product range. If you sell only one type of product, then there is no need to carry it out;
• Benchmark analysis of sales volume. It is carried out to compare planned indicators with actual ones. Necessary for timely taking corrective actions. It is carried out more often than others.
• Factor analysis implemented after any type of sales volume analysis. Allows you to determine the factors of the internal and external environment of the organization that influenced the evaluation indicator.

Each of the presented types of monitoring has its own tools. Let's get to know him.

Sales analysis methods

Before you begin to study methods of sales analysis, you need to become familiar with the concept of KPI, since the same method can be based on different KPIs.

KPI – indicators of the company’s performance.

When assessing a company's sales volume, we will analyze various indicators, depending on the type of analysis.

Methods for analyzing sales dynamics

This type of analysis will allow you to evaluate development trends. You can conduct both comprehensive research and research on individual product categories.

As a result of the analysis, you will get an increase, decrease or stagnation of the indicator used for the assessment compared to the previous period.

As part of assessing the dynamics of sales volume, it is necessary to carry out the following types of work:

• Analysis of the dynamics of enterprise profit – compare revenue for the current and previous periods. Sales volume may increase, but revenue may fall. This is possible, for example, when the price of a product decreases;
• Estimation of sales uniformity. There are seasonal goods, the demand for which needs to be stimulated during unfavorable periods. An analysis of the uniformity of sales will help identify seasonality. To do this, keep a chart of sales volumes for several seasons (you can take a year, but do not forget to take into account the impact of changes in product prices, discounts and other incentives) and see in which periods there was a significant increase and decrease in sales (several times). If such fluctuations are observed, then you need to think about sales promotion during unfavorable periods.

Methods of structural sales analysis

Based on the results of the structural analysis, the manager makes a decision on the development or liquidation of the product, on expanding or expanding the range. Let's look at the most effective methods of structural sales analysis.

ABC analysis.

This type of research is aimed at assessing the value of each product in the company's product portfolio. The value of a product is determined by the amount of profit that the product brings to the common treasury.

According to ABC analysis, the company’s entire product range can be divided into three groups:

• Group “A”– products that bring the greatest amount of profit;
• Group “B”– “middle peasants”, they are not so valuable for the company, but still collectively bring a fairly large amount of profit;
• Group “C”- a heavy burden for the company, these products bring very modest income.

Using ABC analysis, you can determine the value of product categories not only by the volume of profit, but also by the share of categories in the product portfolio.

The numerical boundaries of each group are presented in the table.

Please note that this table displays the Pareto principle. The Pareto principle states that 20% of production brings 80% of a company's profit.

At the same time, using ABC analysis, you can evaluate the contribution of not only individual products to the company’s profit, but also the value of suppliers, buyers, distribution channels, and conduct production analysis.

ABC analysis steps:

1. Determination of the object of analysis: product, suppliers, buyers, sales channels, or others;
2. We determine the KPIs by which the object will be evaluated. This does not have to be revenue or the share of a product group in the product portfolio (or the share of deliveries, purchases, sales, depending on what you are analyzing); you can take the volume of sales, sales or any other financial results as an indicator for evaluation. It all depends on your goal;
3. We collect information on each KPI, determine the share of each object, calculate the indicator on an accrual basis and rank the objects;
4. We fill the groups and draw conclusions.

At the same time, if any products in your range fall into group “C”, this does not mean that you definitely need to get rid of them. This could lead to the loss of an entire consumer segment.

Particular attention should be paid to products that fall into category “A”, since if consumers are dissatisfied with the quality of products in this category, the company will lose a large amount of profit.

Let's see how ABC analysis works using the example of analyzing the product line of a McDonald's restaurant.

As we can see, the company's most profitable products are sandwiches, potatoes, sauces and drinks. These product lines should be expanded.

Desserts and sets were included in group “B”. If desired, these products can be transferred to category “A” through active promotion and improvement of product quality.

Break even.

It is necessary in order to determine the minimum volume of products that the company needs to sell at a certain price per unit of product so that sales income covers the full costs of the enterprise. This method of analyzing sales volume is indispensable when introducing a new product to the market.

In order to build a break-even point, the following data is required:

• Product cost (average bill);
• Sales volume for the period;
• Fixed costs;
• Variable costs;
• Full sales;

Stages of building a break-even point:

1. Draw a coordinate system. We call the “x” axis “number of purchases”, and the “y” axis “revenue”.
2. We build two direct lines: product turnover (y=cost*x) and total costs (y=volume variable costs*fixed costs).

The point of intersection of these two lines is the break-even point. On the “x” axis you will see the minimum volume of products that you need to sell in order not to work at a loss.

Cost-benefit analysis.

A company's existing products need to conduct a cost-benefit analysis. This will allow you to timely identify products that are no longer profitable.

And if you compare the profitability of your products with the profitability of identical competitors' products, you can identify the strengths and weaknesses of your company's product range.

Benchmark analysis of sales volume

Control is carried out by comparing the planned sales volume with the actual one. If a deviation is identified, it is necessary to conduct a factor analysis and begin corrective action.

Factor analysis

You have analyzed sales volume and identified a deviation. What to do next? It is necessary to identify the factors that influence the indicator and reduce or eliminate their influence.

To do this, use two formulas that will allow you to evaluate the impact of price and sales volume on the company’s revenue:

• Volume deviation = (Actual volume – Planned volume)*Planned price. The resulting number is the change in profit (in monetary terms), which occurred under the influence of changes in the sales volume of the analyzed product;
• Price deviation = (Actual cost – Planned cost)*Actual volume. The resulting number is the change in profit (in monetary terms) that occurred under the influence of a change in the price of the analyzed product.

Excel as a tool for analyzing sales volume

Any financial analysis is a rather labor-intensive process, rich in mathematical calculations. In the age of high technology development, it would be strange to keep records and analysis on paper. We won’t offer you this, because there is an excellent electronic substitute for a paper sheet - good old Excel.

Excel is an ideal tool for analyzing sales volume because:

• Provides quick search for information, just enter data into tables;
• Automatically calculates complex formulas;
• Simplifies the process of analyzing results by visualizing them in the form of diagrams (especially useful when conducting benchmark analysis and analyzing sales dynamics);
• Knows how to build charts (indispensable when constructing a break-even point);
• You know how to work with him;
• Even purchasing a licensed version of the program will not hurt your wallet.

The bank's product line is a full range of banking services provided by the bank to its clients.

The classification of banking services is quite complex, therefore, to structure the bank’s product line, a multidimensional classification is used in a hierarchical manner. The hierarchical classification method is the sequential distribution of a set of objects into subordinate classification groups. First, a set of objects is divided according to some selected characteristic into large groups, then each of them is divided according to another characteristic into a number of subsequent groupings, while the object of classification is specified. Thus, subordination (hierarchy) is established between classification groups.

The main criterion for the classification of banking services (the first level of the hierarchy) is the “type of client”. For example, Sberbank of Russia classifies its clients into the following groups: private clients; small business; corporate clients; financial organizations. It should be noted that there is no single classification of clients - each bank classifies its clients in its own way. Thus, Promsvyazbank, one of the leading private banks in Russia, one of the 500 largest world banks, offers its services to the following categories of clients: individuals; Private Banking; business; corporations; credit organizations.

Alfa-Bank, which is a universal bank that carries out all main types of banking operations represented on the financial services market, divides its clients into two groups: individuals; business.

The services offered to each category of clients are quite diverse and divided into groups according to the client’s needs, therefore the next criterion for classifying the product line (the second level of the hierarchy) is “client need”. For example, for private clients, Sberbank of Russia groups banking services as follows: loans; deposits; bank cards; translations; payments; investments and securities; additional services.

The classification of banking services according to the criterion of “customer needs” for small businesses in Sberbank of Russia is as follows: loans and guarantees; banking services; services for business management; placement of funds and investments.

The product line for Sberbank clients - financial organizations is represented by the following banking services: investment products and capital markets; placement of funds; banking services; financing.

Further, each category of services for different types of clients is expanded into separate services (third level of hierarchy). Let's give an example. Services classified as “deposits for individuals” are presented as follows: time deposits; OnL@yn contributions; deposits for settlements; special deposits.

For example, in the “time deposits” category of Sberbank of Russia the following banking products are presented: “Happy Interest” deposit; “Save” deposit, “Replenish” deposit; “Manage” contribution; “Give Life” deposit, “Multicurrency Sberbank of Russia” deposit; contribution "International"; savings account.

Each of the proposed types of banking products has its own terms of attraction (minimum amount and currency of deposit, placement period, interest rate) and exceptional features (possibility and conditions of partial replenishment and withdrawal, early closure, etc.).

To manage the bank’s product line, a register of services is created, which includes a detailed description of each banking product and analytical indicators that comprehensively characterize it: deposit replenishment is not provided; partial withdrawal is not provided; conditions for calculating interest - interest is accrued at the end of the deposit term, they can be withdrawn and also transferred to another account; early termination is carried out based on the interest rate on the deposit “On demand of Sberbank of Russia”; automatic extension is carried out on the terms of the “Happy Interest” deposit on the date of contract extension. At the interest rate in effect at the bank on the deposit “On demand of Sberbank of Russia” on the date of extension of the agreement; For the deposit, you can draw up a savings book, a power of attorney and draw up a testamentary disposition. Based on the analysis of indicators characterizing banking services, the bank effectively manages its line of banking products.

The main indicators characterizing the bank’s product line include:

• 1. The degree of complexity of the service implies the division of services into simple (developed and implemented by one functional division of the bank) and complex (developed and implemented by two or more divisions).
• 2. Geography of service implementation (whether the service is provided exclusively at the head office or is available to clients of the bank’s branches and branches).
• 3. Client segment. The current state of affairs with banks' product lines is characterized by a lack of real segmentation, targeting a specific consumer and the difference between similar products. Often, in the same bank, one bank product begins to compete with another. This happens because at the stage of creating a product line, the place and role of each specific product is not always taken into account: the client segment is not precisely defined enough, there is no clear positioning, and promotion channels are poorly defined.

To avoid such overlaps, it is advisable to approach the creation not of a separate product, but of the entire line as a whole. The main task should be the development and implementation of basic products for each business area. In this case, the main principles must be observed: simplicity of the product, transparency of the sales scheme, and a tariff policy that is understandable to the client. After this, for each basic product a product line is formed, consisting of different products for a specific customer segment. If a certain segment of clients can use several basic products, then these products should harmoniously complement each other: one client should be offered several banking services at once, which will give him the necessary benefits and convenience. Of course, basic products must be standardized. When it comes to customer segments, any product line must cover almost all major customer segments.

• 4. Dynamics of the number of clients to whom a specific service is provided (for the bank as a whole and by branches and departments). In conditions of growth, it is necessary to maintain the current level of profitability of the banking product; In practice, this means that extensive growth is excluded due to a decrease in the specific profitability of the product. To do this, it is necessary to gradually exclude from the client base that part that in the financial result forms a net loss. However, this may negatively impact the market share of the product.
• 5. Customer awareness (assessed how fully information about the service is presented on the bank’s official website, in periodicals; whether an advertising campaign is carried out on television, radio; whether advertising printed materials have been developed and properly distributed. And also whether they have complete information about this specific employees of head offices, branches and branches, bank employees not directly involved in the provision of this service).
• 6. Product technology assessment. A bank’s ability to implement an effective product policy largely depends on the degree of universalization of product banking technologies. However, there are contradictions between the requirements for the universalization of product technologies and the differentiation of banking products: the desire for maximum technological standardization can damage the marketing component of products. In the context of banking technologies, the following concept of product formation has been adopted: the presence of a certain “basic set” of products means that the bank has a corresponding set of key technologies for providing services. And only at the level of the range of basic products does the problem of product technologies arise, which can be reduced to the modification of individual elements of the bank’s current technological standards. To do this, it is necessary to clearly distinguish between the constant and variable components of technological standardization. Constant parameters of product technologies include:
  • list of banking services, chart of accounts, transaction parameters, programming methods and tools for performing account transactions, channels for accumulating and transmitting information about clients and transactions;
  • modular elements of product technology (contact with a potential client, acceptance and examination of documents, risk assessment, decision-making on a transaction, its documentation and accounting in the banking information system, subsequent control and post-sale support of transactions).

These characteristics of product technologies are characterized by versatility, relative stability and finiteness of elements, which facilitates their standardization.

Variable technological components provide unlimited possibilities for changing and combining them in different products. This is expressed in various variations:

• set of services offered;
• composition of product technology modules; sales channels;
• quantitative values ​​of transaction parameters;
• requirements for the client and the documents presented to him;
• ways to assess risks and make decisions;
• methods of tariffication, calculation and collection of remuneration.

In this interpretation, the technological component of product production

formation is based on the systematization of already existing key standard technologies of a limited (finite) list of banking services and comes down to the establishment and maintenance of various product directories, to combining them with variable modules and parameters. In this case, the universalization of the offer of banking products is nothing more than their construction from standard technological modules of banking services and parameterization.

7. Assessing the quality of banking customer service when providing a specific banking service.

One of the elements of managing a bank’s product line is improving banking services, introducing new products to the market and withdrawing old ones based on an analysis of their life cycle. To do this you need:

• position them correctly in selected target markets;
• constantly monitor and evaluate the market performance of your product portfolio from the perspective of its compliance with changing customer needs and preferences;
• formulate requirements for discontinuation or modernization of existing products, and, if necessary, for the introduction of new services and products.

New banking product:

• forms its own market for a previously non-existent banking service;
• allows you to enter the market with a new service for the bank.

“Classically innovative” banking products are always

a technological breakthrough based on revolutionary ideas, the search and implementation of which often involve waste of resources.

Modernized banking product:

• complements the range (range) of the bank’s existing products, increasing the coverage of the market or its segment;
• updates the nomenclature (range) of current bank products, replacing outdated products due to the greater consumer value of the services offered;
• repositions existing products, introducing them to other markets or market segments.

There have been no revolutionary breakthroughs or the creation of completely new products in recent years and are not expected. It is important to be able to use the products that already exist and offer the client the one that is most suitable for him at the moment.

• Isin Zh. M. Marketing in Russia and abroad. 2009. No. 4.
• CrevensD. V. Strategic marketing / trans. from English 2nd ed. M.: Williams, 2003.