1

The company “Vetorex” is engaged in the sale of dairy products. Sales department must analyze the
range of products sold. The trading assortment is presented in table 1:
Table 1
Nr. Product Name Monthly Monthly
sales, EUR sales, units
1 Milk, fat content 29120 582
3.5%

2 Milk, fat content 29840 662

2,5%

3 Baked milk 32000 533

4 Cottage cheese, fat 36000 720

content 15%

5 Fat-free cottage 34900 800

cheese

6 Cream, 10% 16000 266

7 Cream, 20% 18000 276

8 Cream, 30% 15000 188

9 Sour cream, 10%, 46800 710

250 gr.

10 Sour cream, 10%, 7000 58

500 gr.

11 Sour cream, 20%, 12000 100

250 gr.

12 Sour cream, 20%, 14000 70

500 gr.

13 Kefir, 3% 6500 325

14 Kefir, 1,5% 6700 447

15 Ryazhenka 4000 190

16 Fat-free yogurt 8000 267

17 Butter, 250 gr. 30000 429

Total sales = 345860

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The task:
1. Formulate the purpose of the ABC analysis. Indicate the object and characteristic by which the
assortment will be divided.
2. Perform ABC analysis using the data from table 1. Present the results in a table.
3. Explain the differences in the results.
4. Develop suggestions for managing the company's product assortment.
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Table 2 (SORTED BY UNITS)

For controlling purchased units of any product

Nr. Product Name Monthly Share,% Cumulative Class

sales, units %

1 Fat-free cottage 800 10 10 A

cheese
2 Cottage cheese, fat 720 10,4 20,4 A
content 15%
3 Sour cream, 10%, 710 13,6 34 A
250 gr.
4 Milk, fat content 662 8,7 42,7 A
2,5%
5 Milk, fat content 582 8,4 51,1 A
3.5%
6 Baked milk 533 9,3 60,4 A

7 Kefir, 1,5% 447 1,9 62,3 A

8 Butter, 250 gr. 429 8,7 71 A

9 Kefir, 3% 325 1,9 72,9 A

10 Cream, 20% 276 5,2 78,1 A

11 Fat-free yogurt 267 2,3 80,4 B

12 Cream, 10% 266 4,6 85 B

13 Ryazhenka 190 1,2 86,2 B

14 Cream, 30% 188 4,3 90,5 B

15 Sour cream, 20%, 100 3,5 94 B

250 gr.
16 Sour cream, 20%, 70 4 98 C
500 gr.
17 Sour cream, 10%, 58 2 100 C
500 gr.
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Table 3 (SORTED BY SHARE)

Nr. Product Name Monthly Share,% Cumulative Class

sales, EUR %

1 Sour cream, 10%, 710 13,6 13,6 A

250 gr.

2 Cottage cheese, fat 720 10,4 24 A

content 15%

3 Fat-free cottage 800 10 34 A

cheese

4 Baked milk 533 9,3 43,7 A

5 Milk, fat content 662 8,7 52,4 A

2,5%

6 Butter, 250 gr. 429 8,7 61,1 A

7 Milk, fat content 582 8,4 69,5 A

3.5%

8 Cream, 20% 276 5,2 74,3 A

9 Cream, 10% 266 4,6 78,9 A

10 Cream, 30% 188 4,3 83,2 B

11 Sour cream, 20%, 70 4 87,2 B

500 gr.

12 Sour cream, 20%, 100 3,5 90,7 B

250 gr.

13 Fat-free yogurt 267 2,3 93 B

14 Sour cream, 10%, 58 2 95 B

500 gr.

15 Kefir, 1,5% 447 1,9 96,9 C

16 Kefir, 3% 325 1,9 98.8 C

17 Ryazhenka 190 1,2 100 C

3) In the 1st table there are more A class products and less C class products compating to 2 nd table.

4) Building and managing a profitable product mix can give a company a large market share and create
multiple income sources. Coordinate With the Production Department. Seek Consistency for Branding
Purposes. Go for Depth. Assign Mangers to Different Lines. Know Your Limits.