Definition
For a given product, average monthly sales are the average monthly sales volume calculated based on selling pharmacies.
NB: Average weekly sales may also be available on the same basis as part of a subscription to the Week option.
Terminology
The average monthly sales (VMM) indicator can be translated into English by average monthly sales (AMS).
Calculation
Average monthly sales = average monthly sales / volume of pharmacies selling
The interpretation of average monthly sales based on a distribution below 5% should be taken with caution.
Tutorial
Example
In the example below, the average monthly sales calculated over 12 months are 3.7 = ([46 + 43] / 2) / 12
Tip
To keep in mind: turnover = average monthly sales * number of pharmacies selling * weighted average price.
High VMMs are compatible with low market share .
Indeed, if a product A has a VMM of 100, but it is sold in only 1 pharmacy, then its MDP of A will be close to 0 at the national level.
A decrease in VMM is compatible with an increase in sales volume . For example, in the event of winning new customers (gain of ND ), if these new customers generate on average less sales than the existing customers, which is generally the case, then the average of the whole will automatically decrease while these new sales will be added to the sales of the existing customers. Example:
A selection of products may have declining VMMs even though each individual product has a rising VMM.
This may be due to the fact that, over period N, the products are sold in far fewer common points of sale than over period N-1, even though the respective DNs remain stable.
This will increase the overall DN for the two products but will lower the VMM level, as the total volumes are divided by a larger number of points of sale.
To go further and understand the overlap of DNs for several products or product selections, you can perform cross-DN analyses.
Example:
Let us consider a universe of 20,000 French pharmacies. In the example below, the two products maintain a stable DN between N-1 and N, but the volume increases.
The respective AMS are therefore growing. However, we can see that the overall DN for the two products is increasing significantly, which means that the respective customer lists have changed and are now very different for the two products.
Visual representation of the evolution of the cross-DN of the two products:
Attention point
In SMKT, the indicator noted AMS goes up the average periodic sales according to SMKT periods (Example: SMKT week, SMKT period)
It would be incorrect to:
sum the AMS of several references, as it is possible (and highly probable) that the same pharmacy sells several products within the scope under consideration, without reporting the duplication of references.
calculate the average AMS of several references, as the volume and distribution of each of them are different.
Geographic territories
In pharmacies, this indicator is available in the following areas:
Metropolitan France except Corsica
Corsica
Monaco
DROM-COM
You can study the indicator in 3 ways:
Aggregated on all the territories you follow,
Individually for each territory,
Aggregated in your geographic sectorization.
Limitations
Provision of Corsica-Monaco-DROM-COM data:
From the 15th of each month following the last month due
PHARMA ONLY
Interpretation of the indicator for Monaco studied individually (not aggregated with other territories):
Given the disparity of pharmacies in this territory, precautions should be taken on the interpretation of the indicator when you study this territory alone
Subscription
Sales & Marketing Advanced subscription