In-Stock and Out-of-Stock Distribution


Exhibit 28.13   Stockout and loss of distribution.

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, which usually is the norm, then weighted distribution is the same as the value share of category sales by handlers.

In the context that a product handler may run out of stocks, what is required is the clear distinction between in-stock distribution, out-of-stock (OOS) distribution and loss of distribution.

Consider Exhibit 28.13, which depicts a brand’s incidence of purchase and stocks over four time periods. The brand was in-stock in January and February, and it was out-of-stock (OOS) in March. The brand lost distribution in April because there are no sales, no purchases and no stocks — it did not exist in the store at any time during the month.

Now suppose there was some closing stock in March, and as before, no purchases in April and no stocks by end of April. In this case (Exhibit 28.13b), the status in March changes from OOS distribution to in-stock distribution.


Exhibit 28.13b   Stockout and loss of distribution.

Is this store still considered a non-distributor in April?

No, because the stocks at the end of March are opening stocks for April. These stocks would have sold during the month. So, in this scenario, the store is a handler that is experiencing stockouts for the product.

Previous     Next

Note: To find content on MarketingMind type the acronym ‘MM’ followed by your query into the search bar. For example, if you enter ‘mm consumer analytics’ into Chrome’s search bar, relevant pages from MarketingMind will appear in Google’s result pages.







Marketing Analytics Workshop

Marketing Analytics Workshop

In an analytics-driven business environment, this analytics-centred consumer marketing workshop is tailored to the needs of consumer analysts, marketing researchers, brand managers, category managers and seasoned marketing and retailing professionals.


Business Intelligence - Market and Trade

Business Intelligence - Market and Trade

Suite of interactive, online dashboards that seamlessly integrate retail and consumer data sources in a manner that makes it easier to glean insights.


Scan Track

Scan Track

Suite of dashboards to visualize/analyse retail scan data.


What they SHOULD TEACH at Business Schools

What they SHOULD TEACH at Business Schools


Is marketing education fluffy too?


Experiential Learning via Simulators | Best Way to Train Marketers

Experiential Learning via Simulators | Best Way to Train Marketers


Marketing simulators impart much needed combat experiences, equipping practitioners with the skills to succeed in the consumer market battleground. They combine theory with practice, linking the classroom with the consumer marketplace.


Online Apps to train Category Managers

Online Apps to train Category Managers


The Plannogrammer is an experiential learning facility for category managers, trade marketers, and retailers in consumer markets. Ideally suited for hybrid learning programmes, Plannogrammer imparts hands-on training in the planning and evaluation of promotions and merchandising.

It supports a collection of simulation and analysis platforms such as Promotions and Space Planner for optimizing space and promotions, Plannogram for populating shelves and merchandising, a Due To Analysis dashboard that decomposes brand sales into the factors driving sales, and a Promotion Evaluator to evaluate the volume, value and profit impact of promotion plans.