Marketting Analysis

&

Sales Analysis

BY :

TAISON K.J.

Goals of sales analysis:

To determine the attractiveness of a market and to

understand its evolving opportunities and threats as they

relate to the strengths and weaknesses of the firm.

A market analysis studies the attractiveness and the dynamics

of a special market within a special industry. It is part of the

industry analysis and thus in turn of the global environmental

analysis. Through all of these analyses the strengths,

weaknesses, opportunities and threats (SWOT) of a company

can be identified. Finally, with the help of a SWOT analysis,

adequate business strategies of a company will be

defined. The market analysis is also known as a documented

investigation of a market that is used to inform a firm's

planning activities, particularly around decisions

of inventory,purchase, workforce expansion/contraction,

facility expansion, purchases of capital equipment,

promotional activities, and many other aspects of a company.

MARKET ANALYSIS:

Dimensions of Market Analysis:

Market size (current and future)

Market growth rate

Market profitability

Industry cost structure

Distribution channel

Market trends

Key success factors

Distribution Channel

The following aspects of the distribution system are useful in a

market analysis:

Existing distribution channel:

can be described by how direct they are to the customer.

Trends and emerging channels:

new channels can offer the opportunity to develop a competitive advantage.

Channel power structure:

for example, in the case of a product having little brand equity, retailers have

negotiating power over manufacturers and can capture more margin.

Sales analysis examines sales reports to see what goods

and services have and have not sold well. The analysis is

used to determine how to stock inventory, how to

measure the effectiveness of a sales force, how to set

manufacturing capacity and to see how the company is

performing against its goals.

SALES ANALYSIS:

Usually a sales analysis will compare one time period to

a comparable period in the past. For example, clothing

retailers might want to examine how their back-to-

school sales did compared with last year. They might

take a look at this year's sales from Aug. 1 through

Labor Day and then compare those numbers to the same

period a year ago. Other companies look at month-over-

month sales, or sales this month compared with the

same month last year, or some other time period,

depending on the nature of the business. Break-even

analysis shows a company what minimum level of sales

is needed to make sure it does not lose money. It also

shows how sensitive the break-even point is to changes

in both fixed and variable expenses

Analysing your sales over several years enables you to

establish sales patterns. This will assist you in setting

your sales budgets in the future. It is especially

important to include the analysis when you are

developing your marketing plan each year. Your sales

analysis will also help you identify where your strengths

lie within your product or service range.

activities can then be allocated accordingly to support

the products or services that represent the greatest

opportunity for future profitable growth.

WHY IT IS IMPORTANT?

For example: if one product or service represents the

majority of your sales you may need to allocate enough

marketing and sales support to continually protect it from

your competition.

TIPS:When analysing your sales performance consider the

following:

Pricing changes e.g.. price increases or discounting.

Competitors – competitors entering or exiting the

market.

New product or service launch growing sales.

New product or service cannibalizing existing product

or service sales.

Customers moving between products or services.

Changes in customer demand e.g.. increasing or decreasing.

The segments and distribution channels you operate in

THANK YOU