Portfolio Analysis


Weighted DistributionNumeric Distribution
Outrageous Orange7862
Cheeky Cherryade8770
Ice Cream Soda8267
Original Sarsi8065
Fruitade7258
Groovy Grape6447
Zesty Zappel6240

Exhibit 31.9   Weighted and numeric distribution of the flavours of Rainbow, a soft drink brand. The brand’s overall numeric distribution is 85%.

Product portfolio analysis of sales and distribution

Exhibit 31.10   Weighted distribution and sales per point of distribution for Rainbow’s portfolio of flavours. Label = sales value in $’000.

Exhibits 31.9 and 31.10 provide a visual representation of the portfolio of Rainbow, a soft drink brand, in a lower trade channel. Based on the brand’s overall numeric distribution (85%) and the numeric distribution of its variants, the depth of distribution is 4.8, indicating that the average store carrying Rainbow stocks 4.8 out of the 7 variants available.

The portfolio analysis in the exhibit suggests the need to expand the distribution of Outrageous Orange and Groovy Grape. Distribution should be prioritized on the basis of Sales per Point of Weighted Distribution (SPPD)SPPD. Other factors remaining constant, if a shop keeper wants to stock only one flavour, it should preferably be orange, and if it is three, in that case — orange, grape and Sarsi, since they exhibit the highest SPPD.


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