Why is tracking the distribution level so important?
The percentage of numeric distribution allows measuring the coverage of each product or reference in a distribution network. This is a key indicator for evaluating the sales potential of a product and calculating sales forecasts.
Innovation products in particular are very sensitive to this and achieving an adequate level of numeric distribution, and therefore their availability for shoppers, is a key factor in their commercial success.
Numeric distribution can be theoretical or observed:
- Theoretical: corresponds to the level of distribution agreed with the customer
- Observed: corresponds to the actual level of distribution found during visits of the sales representatives or calculated with sell-out data.
When compared with weighted distribution, we can determine that:
- If numerical distribution < weighted distribution: the product is present in fewer stores, but those stores have a greater impact on the business.
- If numerical distribution > weighted distribution: the product is present in many stores, but not in the ones that are most important to the business.