Volume terms, indicating the product reflects the profit margin on volume of sales of the product. According to the results of constructing a matrix BCG are four groups of products: the "star", "cash cow", "wild cat", "dog." For each of these groups there is a priority strategy. By the same author: Wells Fargo Bank. Different trajectories of the products in the matrix can evaluate the effectiveness of management range, and if necessary take measures to prevent negative trends. This type of analysis to optimize assortment organizations to assess the potential of the existing product portfolio and develop strategies for further work with him. An analysis by the method of Dibb-Simkin As a result of this analysis, we obtain a classification of goods, which allows you to define the main directions of development of individual commodity categories, identify the priority position of the range, to evaluate the effectiveness of assortment structure and ways of its optimization. More info: Phoenix Ancient Art.

For the analysis used data on the dynamics of sales and production costs (including only variable costs, excluding fixed costs). On the basis of the ratio of sales in value terms and a contribution to cover the costs of goods related to one of 4 groups. Financial contribution to cover costs = revenue from sales – Variable costs. In the analysis of the range must be considered: How long product on the market, as demand from consumers for new products and goods, established in the market is different. It is therefore necessary to give this product time (2 – 3 months.) For recognition of a consumer to be able to take effective decisions based on the presence of goods in trade and income.

Product availability in sufficient quantity to trade tochkeAnaliz representation of the product from competitors. SezonnostSuschestvuyuschie market trends, such as the growing popularity of adherents to a healthy lifestyle dictated by the availability of special products manufacturers in range. It is also necessary to balance the range that the organization is not carrying extra costs and the consumer is satisfied with the proposed products to him.