Launching a new product in a store is always a risk and an opportunity. To understand the success of a new item, it is necessary to analyze its sales on a regular basis.

Key metrics for analyzing the sales performance of a new item

Analyzing sales performance involves evaluating a number of key metrics:

1. Sales Volume - the total number of units sold for a given period.
2. Revenue - total revenue from the sale of a new item.
3. Return on sales - the percentage of profit from total revenue. This metric is calculated using the formula:

Return on sales = (Profit / Revenue) * 100%

This parameter allows you to determine how profitable it is to sell a new product.

4. Average receipt- an indicator that shows the average amount of purchase with the inclusion of the new product.
5. Return rate - the percentage of goods that customers returned.
6. Merchandiseturnover rate- the rate at which products is sold and replaced with new arrivals.

How to analyze sales of new merchandise

1. Comparison with peers

Comparing a new product with its already introduced counterparts helps to understand how much it is in demand. Evaluating price, sales of similar products, and customer feedback helps you understand how well the product meets market expectations. If the product has unique characteristics, it is important to consider how much they are in demand among the target audience.

2. Evaluating sales dynamics

Sales dynamics helps to determine how the demand for a new product is developing. If there is a sharp increase after the launch of the product, this may indicate a successful advertising campaign. However, a downturn in sales later on may indicate a lack of sustained demand or low customer loyalty. On the contrary, a gradual increase in demand indicates that the marketing strategy is working effectively and attracting new customers.

3. Optimize pricing

If sales are lower than expected, it is worth reconsidering your pricing policy. It is not always the case that a price reduction leads to an increase in sales - it is important to take into account the consumer's perception of the value of the product. A/B testing of prices will help you determine the best option.

4. ABC-analysis

Allows you to divide all products into three groups:

• A - goods with the highest share of revenue;
• B - products with average performance;
• C - goods with the lowest sales.

If a new product falls into category A, the launch can be considered a success.

5. Analyzing demand through BI tools

For in-depth analysis of new product sales, it is most convenient to use specialized BI (business intelligence) services. For example, BI service Datawiz offers a report “SKUs entered”, which helps:

• Customize the algorithm to display new products.
• Analyze the sales performance of new SKUs at different levels (stores, network as a whole).
• Visually track the dynamics of the introduced product items.
• Evaluate the impact of each new SKU set on the overall sales dynamics.

The use of such tools allows you to respond to changes in demand and adjust your strategy in a timely manner.

How to increase sales of new goods

To increase the sales of a new product, it is worth using the following methods:

1. Increase visibility in the store - the location of the product on the shelf plays a key role in its sales. Try to change its location, allocate a special zone or use POS-materials.
2. Staff training - salespeople should know the features of the new product and be able to present it.
3. Promotion through promotions and discounts - bonuses on purchase, temporary discounts or “1+1” promotions will help to attract the attention of customers.
4. Analyzing feedback - promptly responding to feedback from customers.
5. Using digital tools - online advertising, social media and e-mail marketing can help to reach a wide audience.
6. Promoting through opinion leaders - collaborating with bloggers and experts.

How to correctly forecast demand for a new product?

There are several methods for forecasting demand for a new product:

1. Analytical assessment of a specialist or expert in the field of procurement. This method is based on the professional opinion of an expert, which makes it dependent on the experience and competencies of a particular specialist, as well as possible subjective factors.
2. Formation of an insurance stock with adjustment for logistic units. This approach is most often used for the initial purchase of new products, allowing you to test its demand, and then already based on the actual sales history.
3. Establishment of a sales database, in which the volume of new product shipments is adjusted during a trial period. In the process of testing, information sufficient to objectively analyze demand and adjust further orders is gradually accumulated.
4. Similar goods method. In this case, to forecast demand for a new product is used to analyze data on similar products from the current assortment. This method allows you to take into account the patterns of past periods and make more accurate sales forecasts.

Analyzing the sales efficiency of a new product in a store is a complex work, including evaluation of key metrics, comparison with peers, study of dynamics and use of BI tools. The use ofBI Datawizand its report “SKUs entered” helps to study sales in depth and adjust the strategy in a timely manner. Competent analysis and adaptive approach allow to achieve effective sales and maximize profit from a new product