Sell in vs sell out: a fundamental KPI of logistics efficiency and demand
Sell In and Sell Out are two concepts associated with the sale of the product, from the moment it leaves the factory until it reaches the final consumer.
The 3 fundamental KPIs in times of inflation
Inflation has returned after decades of nearly stable prices. We thought double-digit price increases had disappeared forever and here they are, rewriting the rules of the game that seemed engraved in stone.
On-shelf availability and out of stock
Out of stock, Absence and how to remedy it. The fact that a reference is not present in store can have various causes, the main ones being:
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.
“E-commerce” and FMCG: threat or opportunity?
The pandemic from which we don’t seem to be emerging has had an unexpected accelerating effect on the entire field of the digitalization of society with important consequences in our daily lives
Obtaining and exploiting sell out data: obstacles and accelerators
The availability and analysis of sell out data make it possible to mitigate sales development by correctly activating key levers such as: efficient distribution and assortment, effectiveness of the introduction of innovations, fight against out of stocks, Effective promotions
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.
Product-in-store innovation: an increasing challenge
The number of innovations in FMCG has declined regularly for ten years, as shown by the study “Radar of Innovation 2020” carried out by Kantar and Promarca
From product marketing to shopper marketing
Modern marketing was formally born in the 30s in the United States when manufacturers moved from a production strategy (the famous quote by Henry Ford: “The customer can choose the color of his car, as long as it is black”) to a sales and marketing strategy in which the goal is to meet the consumer’s expectations in terms of product availability and characteristics.
