July 23, 2007

Case Study, Part Two

Click on the image to enlarge.

Yesterday, we addressed the first part of a case study of an online golf brand that is struggling to grow sales in the Accessories division.

A big part of a Multichannel Forensics analysis is a forecast of future sales by product, brand, channel or title. In this case, focusing on an online pureplay, we look at future sales by merchandise division.

In this case, each division will grow by less than five percent per year, given the forecast for new customers and anticipated repurchase dynamics.

Upon being hired, the chief merchant of the Accessories division anticipated that her merchandise would be so liked by customers that customers who only buy Accessories will see an increase in annual corporate repurchase rate from 30% to 36% --- an increase of 20% per year.

That's a bold statement. What kind of impact would that have on the total business? Make your guess in the comments section, we'll reveal the answer tomorrow.