Branding is a corporate identity of an organization. The history of branding originates in antiquity. There are allegations that brands have the same number of years as civilization. Based on the research, evidence is provided that branding history can be traced back to 2250 BC. It is worth noting that the Russian history of branding is much shorter. This justifies the fact that a significant number of well-known brands in Russia are very young. Branding is different in every country in the world, as a rule, due to differences in target audiences and mentality. It is clear that the implementation and creation of brand building programs depend on the intentions of company leaders.
To increase the competitiveness of the organization, a scientific and methodological rationale for branding is used. The essence of branding lies in the method of product differentiation, and also defines the tools for promoting the goods on the market. We can say that this is the language of modern society, which is based on market relations.
Let's analyze abc analysis in an accessible and understandable language. This is one of the tools that identify key products, categories, brands of a particular company. It is based on the Pareto rule, which states that 20% of units bring 80% profit to the company. This principle can apply not only to goods. Analysis in a similar way is possible for customers, human resources, suppliers, activity.
In order to carry out abc analysis, a specific organization must keep a mandatory record of the object to be analyzed, its movement, reflected in the software. Otherwise, there will be nothing to analyze.
First you need to generate a sales report for a specific period of time for a certain category and transfer the received data, for example, to excell. At a minimum, the report should contain the article number of the analyzed object, if products are being analyzed, and direct sales should be reflected. For starters, it’s easier to generate a report in Excel, because this program is quite flexible and the most common.
Then the data must be sorted as sales decrease. Thanks to this, we will get the total amount and we can allocate 80% and 15% from it.
Then you need to summarize sales, starting with the maximum performance, entering the results in an additional column. As a result, cumulative totals will be reflected in it. Where the amount will be equal to our 80% indicator, it is necessary to set the border. Thus, class A will be obtained.
Then we get class B, calculating the following 15% of our profit by the same principle. We have a class. All remaining products will be assigned to class C.
abc analysis includes three classes:
Class A contains the goods that bring the greatest profit to the organization if the profit is analyzed. Therefore, this category requires closer attention.
Class B includes goods that also make a profit. Moreover, a number of products in this class can be developed to class A.
Class C contains goods with the potential to be removed from the assortment because they unjustifiably freeze the assets of the organization, occupy a significant part of the space in warehouses and shelves, and spend transport or human resources. It is worth noting that one hundred performing abc analysis, it is not necessary to draw hasty conclusions until you see the big picture.
It is possible and necessary to experiment with objects of analysis. Profit, turnover, gross turnover can complement the analysis. By performing several options for such an analysis, you can get the combined classes AB or CA, for example, turnover + profit. Even in this analysis, the essence of branding is reflected in the difference in private interests, which are united by the interests of one territory.