SALES ANALYSIS

Submitted by: Diksha

Meaning
 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.
Contd…
 sales analysis involves analysing the sales made by
a company over a period of time.
 Many companies have a weekly sales analysis, a
monthly sales analysis or a quarterly sales analysis.
Contd…
 A regular sales analysis helps the company
understand where they are performing better and
where they need to improve.
 Every company has a sales target which its
salesmen have to achieve.
 It helps determine where the company stands in
terms of sales and then helps in sales strategy to
reach a predetermined goal.
Contd…
 Sales analysis is done from the bottom level to the
top level of the company.

 Even the CEO of the company does a sales analysis

to understand segments where the company is
gaining in sales and segments where it is dropping
in sales. Such sales analysis can also help product 
development.
Importance of sales analysis
 Future decision
 Market trends
 Customer analysis
 Missed opportunities
 Detailed analysis
Future decisions
Sales data will help a company to take a future
decision in terms of inventory management,
marketing activities, schemes or offers to be rolled
and changes in manufacturing processes if
applicable.

Based on Sales data, major decisions like

continuing or discontinuing a product is taken.
Market trends
Sales analysis will also show the current market
trends to the company.
While the company may be preparing to launch a 
new product, Sales Analysis would show a drastic
increase in Sales of the earlier product after an
activity, showing that it was the lack of awareness
which was a hindrance in realizing Sales and not
the product.
Contd..
 Also, Sales of a certain product may skyrocket
during a festival or decrease seasonally.
Customer Analysis
Sales Analysis is nothing but Customer Analysis.
Answering why did a particular customer buy the
product in a particular month may give crucial
customer insights which will help with the planning
 of the company.
Missed opportunities
Analyzing the available data can show the
company where it has missed the opportunity and if
or not that can be claimed. 
Market research will play an important role in this
presenting data to compare while the field force
will prove of valuable assistance in informing the
practicalities of the situation.
Detailed Analysis
A detailed Sales Analysis is broken down product
wise, customer wise, year and month wise and
geography wise is a source of huge information for
the company.
Types of sales analysis
1) Periodic Analysis :
This can be a month on month or year on year or
year till date compared to previous year till date as
the need may be. This gives insight into the impact
of time on sales.
2) Product wise Analysis :
Sales of products during different times in different
areas can be used. This is majorly used in large-
scale equipment.
Cont…
 Channel of distribution wise :
  This will give the trend of where the sales are

maximum and answering.

 Why will give more insights and help the company

decide whether or not to continue with the current 

channel of distribution.
contd….
 4) Forecast analysis :
This gives the details of sales which were used to
forecast the numbers – and inventory was arranged
accordingly .
contd…
Break-Even Analysis
 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.
Contd..
Competitor Sales Analysis
 In some industries, sales made by your competitors

are listed in public sources.

 For example, automobile sales are reported

monthly by major manufacturer, major brand and

model. This sales data are informative for all
manufacturers, showing how well each competes
against the rest.
Techniques of sales analysis
 Market trend analysis
 Brand analysis
 Demand forcasting
 Market size analysis
 Competitor analysis
 Market & sales channel analysis
 Pricing Analysis
 Non customer analysis
Market size analysis
  Market size analytics is the process of working out
how large the market is for your products and
services, and whether there is sufficient growth
potential.
Contd…
 The size of the market is measured in terms of
volume (how many units sold), value (money
spent in that market) or frequency (how often a
product or service is sold).
 Useful data includes government data, trade
association data, financial data from competitors,
and customer surveys.
Demand forcasting
Demand forecasting is an area of predictive
analytics that seeks to estimate the quantity of a
product or service your consumers are likely to
buy.
Contd…
 It goes beyond educated guesses and looks at
historical sales data or current data from test
markets. Analytic techniques such as time series
analysis can be very useful here.
Market trend analysis
 Market trend analytics is a process of establishing
whether a market is growing, stagnant or in decline
and how fast that movement is occurring.
Understanding market size is important but
knowing whether that market is trending up or
down is also vital.
Contd…
 To monitor market trends you can run business
experiments or scenario analysis to see what the
market would look like and how it would impact
your business in either a growing, stagnating or
growth market. Customer surveys and focus groups
can also help.
Competitor analytics
 Competitor analytics is important for marketing
and strategic planning by identifying who your real
competitors are, and how they are positioned in the
market and in relation to your business.
 By understanding their strengths and weaknesses
you can identify opportunities to exploit and threats
to navigate.
Contd…

 You could even have an employee, friend or family

member buy a product or service from your key
competitors and assess their experience.
Pricing analytics
 Pricing analytics is the process that delivers that
outcome.
 In short, it involves analysing price sensitivity in
market segments and is especially useful in highly
competitive markets.
Contd..
 Pricing analytics requires data mining and the
development of forecasting models and algorithms.

 It also often involves multiple, concurrent business

experiments that can be run quickly and easily so
you can measure what is likely to happen with each
price change.
Marketing and sales channel analytics

 Marketing and sales channel analytics allows you

to assess the different channels available to you and
establish which are the most effective.

 It is likely you will reach different segments of

your market via different channels but is it still
good to know which ones are working and which
are less effective.
Contd…
 For each of your current marketing and sales
channels and any potential as yet unused channels
you will need to set some conversion rate goals so
you know what you want that channel to deliver.  
Brand analytics
Brand analytics seeks to determine the strength of
your brand compared to your competitors.
Your brand is more than just your logo and your
commercial livery – it’s the look and feel of your
products and what they represent to your
customers.
Contd…
 It’s important to really understand how customers
perceive your brand as this will impact your
decision making and strategic direction.

 You can source this sort of data anywhere your

customers and potential customers are discussing
your brand, such as customer service
conversations, sales conversations, online forums,
blogs, review sites, and social media.
Non cusomer analysis

 Non-customer analytics is about understanding what

people ,who are currently not your customers think about
your product, services or brand.

 By identifying who is not buying from you (and why),

you can expand your market to include those individuals
Contd..
 If you want to know why people are not buying your product
or service, you need to ask them: interviews, questionnaires
and focus groups can help.