Distinctive Product Mix Model
In our continuous effort to equip suppliers and distributors with the insights needed to enhance their strategic decision-making, we introduce the Distinctive Product Mix Model. This Model Output, tailored for suppliers using their data, is designed to provide a comparative analysis of a distributor’s performance against other distributors in terms of distinctive product mix.
The Distinctive Product Mix Model: An Overview
The Distinctive Product Mix Model evaluates a distributor’s performance concerning specific products that are deemed innovative, high-margin, or otherwise distinctive within the supplier’s catalog. These products are often new entries in the market or hold significant strategic value for the supplier.
Key Metrics Evaluated
- Percentage of Purchases/Sales for Key SKUs:
- This metric measures how much of the distributor’s total purchases or sales are comprised of the key identified SKUs. It provides insight into the distributor’s commitment to promoting and selling innovative or high-margin products.
- Growth in Purchases/Sales for Key SKUs:
- This metric tracks the growth rate of purchases or sales of these key SKUs over a specified period. It highlights how well these products are gaining traction in the market compared to their initial launch phase.
- Overall Growth Compared to All SKUs:
- This metric compares the growth rate of the key SKUs against the growth rate of all SKUs. It helps in understanding whether the distinctive products are driving overall growth or lagging behind.
Example Model Output:
Let’s examine an example Model Output to illustrate how the Distinctive Product Mix Model can be used to benchmark a distributor’s performance:
In this example, the distributor’s performance is assessed across three key metrics:
- % Distinctive Mix: The percentage of the distributor’s total purchases that are made up of distinctive products. Here, the distributor has a 63% mix, ranking 47th out of 51
distributors. - % Distinctive Growth: The growth rate of distinctive product purchases. The distributor shows a 0.1% growth, placing them 24th out of 51.
- % Distinctive Growth vs % Total Growth: The difference between the growth rate of
distinctive products and the total growth rate. The distributor has a -17 points difference, ranking 45th out of 51.
The Distinctive Product Mix Model helps suppliers identify distributors who excel or lag in promoting and selling key products. This insight can drive targeted strategies to improve adoption rates of innovative or high-margin products, ensuring that suppliers and distributors align their efforts for mutual success.
Looking Ahead
In our next post, we will explore End-User Targeting. This model helps businesses identify and prioritize potential sales leads through data-driven methodologies.
At Precision, we are committed to helping you unlock the full potential of your data. Our statistical models are designed to provide the insights you need to make informed decisions and drive your business forward. For more information on how Precision can help your business leverage these models, visit our website or contact us directly.
Related Blog Posts
Part 6: End-User Targeting with Precision’s Data Analytics
Part 5: Distinctive Product Mix Model
Part 4: Cross-Category Correlation Model
Part 3: Customer Segmentation & Churn Prediction Model
Part 2: Sources of Revenue Model
