Entries by Gilles Dallest

How Big Data Analytics Drives Success in the FMCG Industry

Find out how big data analytics is revolutionizing the FMCG industry and how companies can take advantage of it to make informed decisions, identify consumption patterns, predict demand, optimize the supply chain and improve marketing strategies. Gain a significant competitive advantage and achieve business success in this dynamic business environment.

Numeric Distribution and Weighted Distribution: two fundamental KPIs

Distribution is surely the most important of all KPIs. It allows knowing if and where a product is present in store and one thing is certain: if the product is not on the shelves, it will not sell! The distribution of its ranges has therefore to be the first concern of all manufacturers. There are two complementary concepts in terms of distribution: “Numeric Distribution”, or ND, and “Weighted Distribution”, or WD.

With which key lever to start an analysis based on store sell out data?

So, to the question: “with what key levers to start a basic sell-out analysis?” I would answer: “with the one that seems to be most relevant for the category and the channel in question”.
Perhaps it is an answer that helps very little, but it is the most logical. For a manufacturer of “liquid” products such as milk, water or beer that have as characteristics large pack sizes and high levels of rotations leading to in-store replenishment problems, reducing out of stocks will clearly be a priority. On the other hand, for those who are dedicated to manufacturing chocolate bars, a category where fierce competition is focused on the field of promotions, it will be necessary to optimize above all promotional mechanisms and visibility.

The decision tree that hides the forest

How can a decision tree be defined? The most effective is to listen to the shopper to understand his decision-making process. For this we can use ad hoc studies based on focus groups or questionnaires, but the most interesting methodologies are based on observation in store (real or virtual) followed by questions to the shopper.