Product Sales Mix
The product mix and sales mix are related but different concepts. The product mix refers to the range of products or services offered by a business, while the sales mix refers to the proportion or percentage of total sales attributed to each product or service in the product mix.
For example, a company might have a product mix consisting of smartphones, tablets, and accessories. Their sales mix would then represent the proportion of sales generated from each of those categories (smartphones, tablets, accessories).
To determine the best sales mix, consider the following steps:
- Analyze customer demand and market trends.
- Evaluate product profitability, including costs, pricing, and margins.
- Assess product lifecycle stages and potential cannibalization.
- Identify resource constraints, such as production capacity and supply chain limitations.
- Use data analysis and forecasting tools to predict sales and revenue.
- Consider your target market, competition, and brand positioning.
- Continuously monitor and adjust the sales mix based on performance data.
Analysis Tools Used
Product life cycle analysis
Break-even analysis
Contribution margin analysis
Market research and customer surveys
Break-even analysis
Contribution margin analysis
Market research and customer surveys