Question

Dependency analyzed are starting a line of women's activewear. ((Dependancy analysis) : Are you dependant on anyone to happen before your products can see in volume. Workflow/lifestyle changes on the part of the customer. Are other products required, are their economic conditions, supply change modifications, laws to change, Other infrastructure/product/behavior, changes? If so, what? When will it happen, what happens to your company when it doesn't, and why metrics should be used to measure chain

Answer 1

Volume of products is definitely based on the Demand, which is influenced by many factors such as Workflow/lifestyle changes, economic conditions like Inflation or Purchase Power Parity of Consumers, supply change fluctuations- could be warehouse locations or delivery locations too exterior to reach, governmental laws changes in buying via a particular channel, market transaction rules, product utility/ cost/ value for money/ reliability/ durability and accordingly the consumer buying behaviour.

These all metrics needs to be considered while forecasting the demand of your product. A company will always be affected by these factors, no matter size of company or type of products. It may see more influence in products like Consumer Goods, Retail sector etc.

Example- Demand of a Jumbo Mutton Burger.

Sales of this burger depends on-

• Demographics of customer, how many people based in tier-1/ 2 cities are who would prefer to buy this high cost burger, their purchase capability
• If they are interested to eat a mutton burger, how often they buy and at what all kinds of stores/ online- Psychographics, will show metrics like share of wallet of customer, life time value of customer., number of burgers to be produced and stored etc.
• If government norms allow Mutton products to be sold and under what terms, if any
• Is it enough healthy ? complies health safety rules?
• How long is it fresh or edible ? till 1/2/3 days etc.

Hence, all metrics are quite important to any product and company.