Promotion Evaluation: Volume, Value and Gross Margin
Notes
- Baseline: Weekly baseline sales volume, value, COGS and gross margin. (Estimates of these metrics for those weeks where there are no promotions and no stock outs).
- Volume: Expected weekly sales volume and gain/loss in volume due to the cumulative impact of all causal factors (promos, merchandising).
- Value: Expected weekly sales value, cost of promotion (feature advertising) and gain/loss in sales value due to the cumulative impact of all causal factors.
- Gross Margin columns: Expected weekly COGS, gross margin and gain/loss in gross margin due to the cumulative impact of all causal factors.
- COGS: Cost of goods sold (COGS) = Sales Value − Purchase Cost and Promo Cost.
- Promotion Details: Move cursor over rows to check details on causal factors including merchandising and promotions.
- Promo earnings and costs: Cost of promotions pertains to cost of features, and earnings relate to displays.
- Features are co-operative advertisements in newspapers, pertaining to in-store promotions. The cost of these ads is split 50:50 between retail chain and supplier.
- Large feature inserts cost $1,200 whereas smaller inserts cost $800.
- The retail chain earns $2,000 from suppliers for each product, each week on regular display, $3,500 for endcap (gondola end) displays and $5,000 for special displays.
- Gross Margin: Gross Margin = Sales Value − COGS.