How do FMCG companies measure their performance?

Case Study: Net Revenue Management in Excel

Gauthier Georgis

Category Manager

KPIs

Market Share

Percentage of a market's total sales

Growth

Measures the growth over time

Measuring market share

KPI #1: Market Share (%)

Goal

Compare vs. competitors
Percentage of a market's total sales

Calculation

Market Share = $ \frac{ Your Sales }{Total Category Sales} $

Pie chart indicating the market share of fictitious brands

Measuring growth

KPI #2: Growth (%)

Goal

Measures the company/product/portfolio growth over time

Calculation

Sales growth = $ \frac{SalesCurrentPeriod}{SalesPreviousPeriod } -1$

Example of growth calculation

Measuring our KPI's over time

Image of a clock

Time Periods:

Year
Month
Year-To-Date (YTD)
Moving Annual Total (MAT)

Yearly sales

Period #1: Year

Growth Year = $ \frac{SalesThisYear}{Sales Last Year} -1 $

Table indicating which periods should be used to calculate yearly growth

Monthly sales

Period #2: Month

Growth Month = $ \frac{June This Year}{June Last Year} -1 $

Table indicating which periods should be used to calculate monthly growth

Year-to-Date sales

Period #3: Year-To-Date (YTD)

Growth YTD June = $ \frac{YTD June This Year}{YTD June Last Year} -1 $

Table indicating which periods should be used to calculate YTD growth

Moving Annual Total Sales

Period #4: Moving Annual Total (MAT)

Growth MAT June = $ \frac{MAT June This Year}{MAT June Last Year} -1 $

Table indicating which periods should be used to calculate MAT growth

Unit vs. value sales

Unit Sales

Total number of products sold
E.g.: 100 bananas sold

Value Sales

Total dollar amount
E.g.: $100 in sales

The dataset

HealthMax: a shampoo company
External data from a retailer
Analyze monthly shampoo sales by region, subcategory, and supplier from 2018 to 2023
Goal: Compare the performance of HealthMax vs. the performance of competitors

Example of a shampoo shelf in-store

Metadata sheet

Link

Screenshot 2023-08-28 at 10.13.04.png

Let's practice!

Case Study: Net Revenue Management in Excel