Square Inch Analysis

Posted in Marketing and Strategy Terms, Total Reads: 622

Definition: Square Inch Analysis

Square Inch Analysis is defined as an analytical tool that measures the performance of each and every product based on the demand of the customers in a catalog. The products which are in high demand are featured while eliminating those with little or no demand.

Through a complete analysis of sales per square inch for each product and product category in the catalog helps the company observe the performance of the high demand products, low demand products, and marginal products. After comparing sales per square inch with the cost per square inch gives the company a measure of which products are giving the results for the money spent and which needs to work upon. It tells how each product is performing in the catalogue.


The recommendations about the placement of the products on the catalog is also important

1. Putting more items on one page makes more sense.

2. The items should be sold not only on the website but also on the catalog.

3. Pruning out of the unprofitable pages by removing some items or pages.

4. Feature those products in which the customers are more interested in make it more attractive.

5. All white space should be taken into account for every inch of space on the page.

6. Items which perform better should get more space whereas those performing below average should get less space.

7. If a product is generating adequate sales even in small space than give that space to an underperforming item to measure its performance.

The ultimate goal of the square inch analysis is to understand whether the items are profitable or not.


Hence, this concludes the definition of Square Inch Analysis along with its overview.


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