What it is
Supports marketeers to project expected sales by decomposing volume.
Brand volume in a given period is product of penetration, average purchase frequency and average units per purchase.
How to use
Projection of sales can be used in different ways. For existing brands, it can be used to build marketing plans and objectives. Once volume growth target is defined, break down objectives for penetration, purchase frequency and units per purchase to achieve volume growth. For new launches, determine required performance targets by lever, to achieve overall volume objective.
What to consider
What is underlying time period (e.g. year, quarter)?
Define unit metric: is it packs, kg, or revenue?