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Product-Level Sales Analysis Framework
1. Category and Sub-Category Performance
Key Metrics:
- Total sales and revenue by product category and sub-category
- Units sold by category
- Sales contribution percentage of each category to total revenue
- Average order value per category
Visualizations:
- Pie chart for revenue share by category
- Bar chart for sales volume by sub-category
- Treemap for product line performance distribution
Business Insights:
- Identify top-selling and underperforming categories
- Understand where most sales volume is concentrated
- Inform category-level decisions on product investment or discontinuation
Category | Sales | Profit | Sales Contribution (%) | Profit Contribution (%) | Gross Margin (%) |
Furniture | 741,999.80 | 18,451.27 | 32.30 | 6.44 | 2.49 |
Office Supplies | 719,047.03 | 122,490.80 | 31.30 | 42.77 | 17.04 |
Technology | 836,154.03 | 145,454.95 | 36.40 | 50.79 | 17.40 |



2. Profitability Analysis
Key Metrics:
- Total profit by category and sub-category
- Gross margin percentage: (Profit / Sales) × 100
- Profit-to-sales ratio
- Profit contribution percentage by category
Visualizations:
- Bar chart comparing profit margins
- Scatter plot of sales vs profit by category
- Bubble chart with category size by revenue and profit
Business Insights:
- Identify categories with strong revenue but weak profitability
- Highlight high-margin product lines worth promoting
- Evaluate impact of discounting or cost inefficiencies


3. SKU-Level (Product-Level) Performance
Key Metrics:
- Top and bottom products by:
- Revenue
- Units sold
- Profit or margin
- Return rates (if available)
- SKU activity duration or sales span
Visualizations:
- Ranked bar charts of product performance
- Bubble plots showing revenue vs margin with units sold as bubble size
Business Insights:
- Spot high-impact products to promote or bundle
- Flag low-performing SKUs for review or phase-out
- Benchmark top products as models for development

4. Time Series Trend Analysis (Sales Over Time)
Key Metrics:
- Monthly sales by category and sub-category
- Month-over-month and year-over-year growth
- Moving average or trendline smoothing
Visualizations:
- Line graphs for sales trends by product group
- Heatmaps showing category performance across months
Business Insights:
- Identify seasonal demand patterns
- Prepare for promotional events or high-demand periods
- Use patterns for forecasting and inventory planning
5. Price Band Analysis
Suggested Price Segments:
- Low-end: under $50
- Mid-range: $50 to $150
- High-end: over $150
Key Metrics:
- Revenue, volume, and margin by price tier
- Average margin per band
- Conversion rates if marketing funnel data is available
Visualizations:
- Box plots for price vs margin distribution
- Stacked bar charts of revenue by price band
Business Insights:
- Evaluate performance of budget vs premium products
- Tailor marketing based on customer price sensitivity
- Adjust pricing strategy and assortment accordingly


6. Product Lifecycle Analysis
Key Metrics:
- First and last sale date per product
- Monthly performance curve per SKU
- Categorization into lifecycle stages:
- Introduction
- Growth
- Maturity
- Decline
Visualizations:
- Product sales timelines
- Sales curve plots over product lifespan
Business Insights:
- Support product launches with early-stage marketing
- Extend the life of mature, stable SKUs
- Plan clearance or replacement for declining products

7. Product Contribution Matrix
Axes:
- X-axis: Revenue contribution percentage
- Y-axis: Profit contribution percentage
Quadrants:
- High sales, high profit: Star Products
- High sales, low profit: Volume Drivers
- Low sales, high profit: Niche Winners
- Low sales, low profit: Phase-Out Candidates
Visualizations:
- Scatter plot with quadrant lines based on mean or median thresholds
Business Insights:
- Focus investment and marketing on star products
- Improve profitability of volume drivers
- Nurture niche winners through targeted sales
- Discontinue phase-out candidates after evaluation



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- Author:Entropyobserver
- URL:https://tangly1024.com/article/1eed698f-3512-8051-99ff-cc22150add48
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