There’s no shortage of data and information. It’s everywhere. But how can you make data useful in order to make better decisions? That’s the hard part.
There are several key metrics that distributors should track in order to improve their businesses. Following are three of these metrics, with examples of reports that Dimensional Insight has developed for our wine and spirits distributors so that they can be easily accessed and analyzed.
1. Product trends
* These graphs are based on hypothetical data.
Wine and spirits distributors are continually trying to optimize their product portfolio. The above trend chart helps them identify potential product changes so they can do so. The doughnut chart on the left shows volume by product category while the line chart on the right shows how product category sales are trending over time. When looking at the doughnut chart, we can see the flavored vodka category has the 2nd most sales in volume with vermouth having the most sales.
When looking at the line chart on the right, we can see that monthly sales for flavored vodka are generally trending upward. This upward trend might indicate it is time to add more flavored vodka products to the distributor’s portfolio. But, before making that decision, it is good to dig deeper. Clicking on the green slice representing flavored vodka will provide a pop-up screen displaying a breakout of flavored vodka products and the volume sales for each.
From this breakout of cases by brand, it appears that two new brands were added. The next question is: are sales for this category are up because the two new brands were added or because the category is up overall? We can investigate by comparing sales between this year and last year. The “Total” line shows this year’s sales are just over double last year’s sales (7,377 vs 3,367). Therefore, this year’s increase in sales for the category is 3,970. The two new brands (Jeremiah & McCormick) contributed 724 cases to the total volume (659 + 65). Since the total increase in category sales (3,970) is about five times larger than sales for the two new brands (724), it appears that the increase in sales is due to an increase in demand for the category, not just the addition of two new brands. It might be time to consider adding new products to the flavored vodka category.
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