THE EFFECTIVENESS OF THE PREDICTIVE ANALYSIS METHODOLOGICAL TOOLKIT APPLICATION FOR THE PERFORMANCE OF TRADING ENTERPRISES

Abstract

The article provides insights into theoretical premises of applying the analytical method of segmental abstract logical and statistical analysis (SALSA) of a company's product portfolio. The SALSA approach combines a range of semi-dependent blocks of procurement statistics, sales volumes as well as individual brand and product turnover, both in the procurement process and in warehouses. The above predictive analysis technique is an instrument to enhance the performance of strategic and operational marketing departments at the micro- and macrolevels. Performance efficiency in all company units has proved to be a key driver in company development and ultimately in maintaining the market share. The findings reveal that making use of the SALSA analysis approach might facilitate company cost reduction and also contributes to providing a better sense of changes in the market environment and the ability to respond immediately. In addition, predicative analysis enables early strategic planning or adjusting the company current objectives. This paper discusses the key areas, the specifics and the conceptual frameworks of the SALSA approach in predictive analytics which is part of the mandatory set of primary marketing research for a trading company while selecting its marketing strategy in operational settings. It is emphasized that assessing company performance on a regular basis will contribute to building an effective marketing strategy as well as provide an opportunity to change the current product portfolio structure, along with pricing, sales and promotion policies, in particular, in the context of crisis vulnerability or unstable business environment. The SALSA analytics and the embedded relationships, in particular, changes in indicators, will help to improve the accuracy in predicting changes in the external and internal environment and quickly respond to them. It is argued that the SALSA approach used by a trading company as a separate structural element in a predictive analytical paradigm is characterized by high flexibility and independence. In general, the SALSA methodology can be employed both as part of the company's analytics as well as a single analytical framework that demonstrates true company performance efficiency and contributes to predicting changes in the macro- and microenvironment in the future.