Business Intelligence and FMCG Glossary: #weighteddistribution
WP: weighted distribution
What is weighted distribution?
The weighted distribution is the percentage of points of sale where a product is available, assigning to each of them a weight proportional to their sales.
Weighted distribution allows you to identify stores in a channel based on their weight in the sales of a category or a product.
How is weighted distribution calculated?
Weight of a store in WD = (total sales of the category in the store ÷ total sales of the category in all stores of the channel) × 100
The analysis of this KPI allows to focus the resources and objectives of the company on the most important stores in terms of potential for the development of a product or a category. For example, define a store visit plan for the sales force based on the most important points of sale.
When compared with numerical 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.
