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Volume Decomposition
Definition
An analytical approach used to break down changes in sales volume into key drivers such as distribution, price, promotion, and velocity, helping identify what factors are contributing to growth or decline.
How It's Calculated
Example
A beverage brand sees a 10% increase in sales volume. Through volume decomposition, it determines that 6% came from increased distribution, 3% from higher velocity, and 1% from promotional activity, helping guide future investment decisions.
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