Bangladesh University of Professionals

Course Title: Marketing Metrics

Course Code: 4201

Comprehensive Metrics Analysis of

Walton

Submitted to:
Md. Tanvir Alam Himel
Aast. Professor
University of Dhaka

Submitted by:
Nusrat Jahan Marin
2025171081
Section: A, Session: 2019-20
Department of Marketing
Faculty of Business Studies
Introduction:
Walton, founded in 2006, has rapidly evolved into a prominent player in the Bangladeshi
electronics market. Initially focused on manufacturing and marketing refrigerators, the
company has diversified its product portfolio to include a wide range of electronics, such
as smartphones, televisions, and home appliances.

Why Metrics are Important:

Metrics play a crucial role in evaluating the performance and health of a business. For
Walton, utilizing key performance indicators (KPIs) enables the company to assess
various aspects of its operations, make informed decisions, and stay competitive in the
dynamic electronics industry.

Revenue Market Share of Walton and its Importance:

Hypothetically, Walton holds a 25% revenue market share in the Bangladeshi electronics
market. This metric is crucial as it reflects the company's position relative to competitors.
A higher market share indicates a strong presence, enhancing Walton's bargaining power
with suppliers and retailers.

Example: If the electronics market in Bangladesh is valued at $1 billion, Walton's

revenue market share of 25% would amount to $250 million.

Relative Market Share and its Importance:

Relative market share compares Walton's market share to that of its largest competitor. A
relative market share exceeding 1 indicates a dominant position, while below 1 signals a
potential vulnerability.

Example: If Walton's market share is 25%, and its main competitor holds 20%, the
relative market share is calculated as 25/20 = 1.25.

Margin and Gross Margin of Walton and its Example:

Assume Walton's margin is 15%, indicating the percentage of profit generated from sales.
Gross margin, which represents the profit after deducting the cost of goods sold, is a
crucial metric.

Example: If Walton sells a product for $100 with a 15% margin, the profit is $15.

Profit Margin of Walton and its Importance:

Profit margin measures the percentage of revenue retained as profit after all expenses. A
higher profit margin signifies effective cost management.

Example: If Walton's profit margin is 8%, it means $8 in profit is retained for every $100
in revenue.

Average Price per Unit of Walton and its Importance:

The average price per unit indicates the pricing strategy's effectiveness and helps
optimize the product mix.

Example: If Walton sells 1,000 units at an average price of $150, the total revenue is
$150,000.

Break Even Volume of Walton and its Importance:

The break-even volume represents the point at which total revenue equals total costs.
Knowing this helps Walton determine the minimum units it must sell to cover costs.

Example: If Walton's fixed costs are $50,000 and the contribution margin per unit is $20,
the break-even volume is $50,000/$20 = 2,500 units.

Penetration Share of Walton and its Importance:

Penetration share evaluates the brand's market presence. A higher penetration share
indicates successful market penetration.

Example: If Walton's products are in 30% of households, the penetration share is 30%.

Usage Index of Walton and its Importance:

Usage index measures the frequency or intensity of product usage, providing insights into
customer behavior.

Example: If Walton's smartphones are used daily by 40% of customers, the usage index is
40%.

Share of Requirements of Walton and its Importance:

This metric assesses the portion of a customer's needs fulfilled by Walton's products,
aiding in refining marketing strategies.
Example: If Walton meets 70% of a customer's electronics needs, the share of
requirements is 70%.

Brand Penetration of Walton and its Importance:

Brand penetration measures the percentage of the target market aware of and purchasing
Walton's products.

Example: If 60% of the target market recognizes and buys Walton's products, the brand
penetration is 60%.

Reservation Price:
The maximum price a consumer is willing to pay for a product.
Example: If the reservation price for Walton's flagship smartphone is $500, customers are
unlikely to purchase if the actual price exceeds this threshold.

Product Category Volume:

The total quantity of units sold within a specific product category.
Example: If Walton sells 50,000 refrigerators in a year, the product category volume for
refrigerators is 50,000 units.

All Commodity Volume:

The overall quantity of all products sold by Walton across all categories.
Example: If Walton's total sales volume, including smartphones, televisions, and
appliances, is 200,000 units, then the commodity volume is 200,000 units.

Category Performance Ratio:

The ratio of a specific product category's sales to the total sales of all categories.
Example: If the sales of Walton's smartphones contribute 30,000 units to the total sales of
200,000 units, the category performance ratio for smartphones is 30,000/200,000 = 0.15
or 15%.
Sales Goal:

Definition: The targeted volume of sales that Walton aims to achieve within a specified
period.
Example: If Walton's sales goal for the next quarter is 80,000 units of all products
combined, the company aims to reach this specific sales target.
BDI (Brand Development Index):
A metric comparing the sales of a brand within a specific market to its sales nationwide.
Example: If Walton's BDI for smartphones in Dhaka is 120, it indicates that Walton's
smartphone sales in Dhaka are 20% higher than the national average.

CDI (Category Development Index):

A metric comparing the sales of a product category within a specific market to its sales
nationwide.
Example: If the CDI for Walton's refrigerators in Chittagong is 80, it suggests that
refrigerator sales in Chittagong are 20% lower than the national average.
Understanding and analyzing these metrics will allow Walton to make informed
decisions, refine marketing strategies, and align business objectives with market
dynamics in the competitive Bangladeshi electronics industry.

Conclusion:
In conclusion, a comprehensive understanding of these metrics is vital for Walton's
strategic planning, decision-making, and overall business success. Regular monitoring
and analysis will enable the company to adapt to market changes, enhance
competitiveness, and sustain long-term growth in the Bangladeshi electronics industry.