Numeric and Weighted Distribution

Exhibit 28.12   What is the numeric and weighted distribution of brands X, Y and Z? (Universe is shops A, B, C and D).

Distribution, the metric commonly used for tracking product availability, is usually measured in numeric and weighted terms. It may be weighted in either volume or value.

Numeric Distribution is the percentage of stores handling product.

Weighted Distribution is the percentage of stores handling product weighted by product category store sales. If the weight is in value terms, then weighted distribution is the same as the value share of category sales by handlers.

Consider the example in Exhibit 28.12. Brand X is handled by shops A, B and C; its numeric distribution therefore is three out of four or 75%. Its weighted distribution is the total weight of shops A, B and C in terms of category sales, which is equal to 50% (5 + 20 + 25). Note also that the brand’s weighted distribution (50%) is the same as the trade share of shops A, B and C, which handle brand X.

Unless otherwise specified, distribution is weighted in terms of category value sales. Defined as a percentage of where money is spent on the product category, it reflects the quality of distribution.

Considering that brand X’s weighted distribution (50%) is lower than its numeric distribution (75%), one may conclude that the quality of the brand’s distribution is relatively weak. In comparison brand Z with 50% numeric and 70% weighted distribution is handled by stores that contribute more to category sales.

Occasionally categories are weighted in terms of ACV (i.e. sales value of all categories sold by store). This is advisable in case of small, new/growing categories with few brands. For such categories, ACV weighted distribution provides a better reflection of the quality of distribution.

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