WinningKPI - Sales - KPI for Measuring of Sales from Launched Product/Services as a % of Total Sales posted in category Sales KPI details: This indicator is for measuring of the sales from launched products/ services, in a specific time period as a % of the total company sales.
More details:
This is used to measure the profitability of a new product/service, and can be compared against its initial sales forecast. For more in depth analysis, the company can also compare the % of sales against the cost of launching the product (for instance, as a % of the total cost of sales).
A company’s aim would be to maximise the % of total sales for newly launched products or services, by putting in place strategic marketing and sales campaigns.
Formula
Total sales from launched product or service/ total company sales x100
KPI Units: %
KPI Time Frame: update quarterly or once a year Posted by Oana Boteanu | Help to protect community: Flag for moderation
Ideas suggested by WinningKPI community:Here are comments:
A famous cereal company developed a new type of cereal based on a market research. The predicted sales forecast was of 10% of total sells of the 1st quarter (when the new product was launched).
The company sold a total of $900 000 in the measured period, with $150 000 coming from the newly launched product
150/900 x 100 = 16.6% - average 17%
Such a high growth in the sales forecast would represent an extraordinary success in the product launch. This could be due to the product quality, efficient marketing and advertising, great relationship with suppliers etc.
In this unlikely case of the product doubling its sales forecast, the company will increase production and try applying similar techniques to future new launches.
Oana Boteanu | September 6, 2012 at 7:56 am
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