Distribution, the metric commonly used for tracking product availability, has several variations — purchase, sales, and handler distribution; in-stock and out-of-stock (OOS) distribution; forward stock and total stock. It is calculated as a numeric ratio and as a weighted ratio, and the weights may be in volume or value.
The following are key measures, encompassing various terms and variations, that are pertinent to distribution:
Numeric Distribution tells us the proportion of stores distributing a product. Weighted distribution, on the other hand, reveals the product’s presence as percentage of category sales by handlers. It is a better reflection of the quality of distribution.
Usually, the weighted distribution of a product is greater than its numeric distribution. This is because bigger stores typically carry more brands; they tend to be the stores that brands would enter into first.
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