Recommended
Recommended
More Related Content
Similar to Value waterfall model
Recently uploaded
Recently uploaded (20)
Value waterfall model
- 1. An Understanding of the VALUE WATERFALL MODEL
- 2. INTRODUCTION Value = Volume x Price 4 things that can affect value change Y-O-Y 1. Loss in volume due to discontinued SKUs 2. Gain/loss due to change in volume of existing SKUs = ViPi) where Vi is the change in volume sold over previous year. This could be a positive or negative change and the product shall assume the sign accordingly Pi is the average price of each SKU 3. Gain/loss due to change in average price of existing SKUs 4. Gain in volume due to introduction of new SKUs If price bands are to be considered and value is to be analyzed at each price band, change in average price needs to be checked for a corresponding shift of the SKU from one price band to another
- 3. METHODOLOGY 2006 2007 2008 2009 2010 A1,1 … … … … … … … … … … … Ai,j … … … … … … … … … … … Am,n Where Ai,j is the number of units of ith SKU sold in jth year To see which SKUs were introduced in 2007, select everything from 2007 and select blanks from 2006 To see which SKUs were discontinued in 2007, select all from 2006 and select blanks from 2007 To see which SKUs were continued across both years, deselect blank in both 2006 and 2007