Measures the distribution of sales across different products and product categories.
What it Measures ?
Which products earn us more money.
Relevant StakeHolders
Product Managers, Finance Teams
In-depth Use Case / Real-world Example
Product Mix Analysis evaluates which products or categories generate the most sales and profit. For example, a manufacturer of industrial machinery may sell more units of basic components (high volume, low margin) but generate higher profits from specialized machinery (low volume, high margin). By analyzing the product mix, the company can identify opportunities to prioritize high-margin products or cross-sell complementary items. It also helps forecast production needs, as high-demand products may require scaling up manufacturing, while low-demand ones might be phased out. This KPI helps ensure that sales strategies are aligned with product profitability.
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