HP Product Variety

Decision Metrics Metrics

related to order

Contribution towards total

revenue

Revenues/SKU

Frequency of bundle

occurrence

Metrics related to product

Contribution towards total

revenue

Number of orders which

utilize the product

Zero revenue products – essential or

non-essential?

Decision

• Global core product offering De

cision

• Extended offering• Eliminations

Decision Making – Core Offering

18 26 3 5 12 13 20 21 22 11 4 15 14 16 17 6 7 8 9 10 24 1 27 2 19 25 230.000

5.000

10.000

15.000

20.000

25.000

30.000

Revenue Contribution (%)Revenues/SKU (normalized as %)Number of SKUs used

Order Number

%/N

um

ber

Microsoft Excel Worksheet

Decision Making – Extensions and Eliminations

10 40 3 21 13 31 28 18 9 24 1 11 15 32 29 36 30 8 16 19 410.000

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

18.000

Revenue Contribution (%)Number of orders contributed to

Product Number

%/N

um

ber

Microsoft Excel Worksheet

Conclusion - Decision

Core offering- Order 5 (Product

10)• High % Revenue Contribution - Each contributes

4.7%• Lesser number of SKUs used - greater probability

of delivery• Revenue/SKU high – Justifies bundling of product• High Order Frequency – Total contribution is

14.1%Extensions –

Products 4, 6, 21

• High Revenue contribution• Number of orders which

utilize the product are high

Eliminations – Products 8, 23,

41• Least Revenue contribution• Not essential as part of any

bundle• Low Frequency orders