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Merchandising measures for a product line

Managers look at product line data on sales, distribution, and merchandising and draw conclusions about marketing effectiveness. Therefore measures of these variables for a product line should be as meaningful as possible. We propose that a good measure is one whose changes drive changes in sales. By theoretical analysis and empirical testing of a simple merchandising model, we show that useful measures of merchandising and distribution for a product line can be constructed by taking weighted averages of the data for individual items. The weights are base sales rates at full distribution. An example from Infoscan data for the Ocean Spray Cranberry Juice Cocktail line shows that the proposed measures are better than those currently used.