Sales and Distribution

Exhibit 30.0   Distribution network, shipments and covered sales.

Money, as is often quoted, is the fuel that keeps a business going. And the income derived from sales, is the prime source of money for the business. It is therefore, vitally important for a company that its sales remain buoyant. Which is why companies constantly track and report their primary, secondary and retail sales.

Sales is the outcome of supply and demand, and it needs to be, therefore, tracked and analysed through a suite of metrics that relate to these fundamental components that drive the market.

As can be seen from the list of contents, this chapter covers the analysis and diagnosis of sales and distribution, in detail. It is devoted to addressing five key managerial objectives — building distribution network, targeting the right channels and chains, optimizing assortment, securing retailer support and managing stocks in trade.

A wide array of metrics are reviewed to address these priorities, including measures for stock and distribution, metrics for depth of sales such as share in handlers, rate of sales, cash rate of sale and rate of gross profits. The chapter also covers a host of techniques and metrics for evaluation of assortment including average number of items stocked, stock turns, portfolio analysis and fragmentation analysis.


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What they SHOULD TEACH at Business Schools

What they SHOULD TEACH at Business Schools

Marketing has changed. More so in practical terms, and marketing education is lagging.

The fundamental change lies in the application of analytics and research. Every aspect of the marketing mix can be sensed, tracked and measured.

That does not mean that marketers need to become expert statisticians. We don't need to learn to develop marketing mix models or create perceptual maps. But we should be able to understand and interpret them.

MarketingMind helps. But the real challenge lies in developing expertise in the interpretation and the application of market intelligence.

The Destiny market simulator was developed in response to this challenge. Traversing business years within days, it imparts a concentrated dose of analytics-based strategic marketing experiences.

Dare to Play

Dare to Play

Like fighter pilots, marketers too can be trained with combat simulators that authentically reflect market realities.

But be careful. There are plenty of toys that masquerade as simulators.

Destiny is unique. It is an authentic FMCG (CPG) market simulator that accurately imitates the way consumers shop, and replicates the reports and information that marketers use at leading consumer marketing firms.

While in a classroom setting you are pitted against others, as an independent learner, you get to play against the computer. Either way you learn to implement effective marketing strategies, develop an understanding of what drives store choice and brand choice, and become proficient in the use of market knowledge and financial data for day-to-day business decisions.