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Building your plan - 7.1 What should I think about before building an External Factor?

Written by Stephen Wood

External Factors are not actions β€” they are assumptions.

They should reflect what will happen regardless of your plan.

Key considerations:

  • Is this truly outside your control?
    If you can influence it, it should not be an external factor

  • What is the direction of impact?
    Will it increase or decrease base volume?

  • What is the scale of impact?
    How significant is the effect on volume?

  • Timing and duration
    When will the factor take effect, and for how long?

  • Consistency across SKUs
    Does this apply to all products or only specific ones?

External Factors directly affect:

  • Base volume (unpromoted)

They do not represent investment or commercial activity, but they materially impact:

  • All downstream components (e.g. promotions, funding, pricing)

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