What is weighted distribution in retail?

What is weighted distribution in retail?

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.

What is numeric distribution in FMCG?

Numeric distribution percentage This is the percentage of stores that sell an FMCG product within a given area. The value can be determined by dividing the number of stores distributing a product by the total number of stores in the zone. This number is then multiplied by 100 to obtain a percentage.

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What is the meaning of numeric distribution?

Numeric distribution is based on the number of outlets that carry a product (that is, outlets that list at least one of the product’s stock-keeping units, or SKUs). It is defined as the percentage of stores that stock a given brand or SKU, within the universe of stores in the relevant market.

What is weighted distribution with example?

For example, a product with 75\% ACV Weighted Distribution means that item is sold in stores which account for 75\% of total sales. \%PCV Distribution follows the same principle as ACV Weighted Distribution, but weights according to sales of the Category, or Product Class.

What is weighted distribution in FMCG with example?

Weighted Distribution: The percentage of the total sales volume that comes from the served outlet. Let’s clear this by an example: you have 10 outlets in a beat, now out of these 10 outlets if your product is present in 4 outlets then numeric distribution is 40\%.

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How is weighted distribution calculated?

The percent share of each store is calculated as Total Store Sales / Total Category Sales. Now then one product is selected Weighted Distribution is Sum of Store Share only for stores where selected Product has been sold.

What does numeric weight mean?

A number value (“weight”) assigned to a specimen seen by a consultant in histopathology, which reflects the case’s macroscopic and microscopic complexity.

How do you find the weighted selling distribution?

Weighted Sales Distribution: Percentage of stores selling product weighted by product category store sales. (Equal to share of category sales by sellers.)

Which is the most suitable answer for a brand in terms of numeric and weighted distribution?

Therefore, Brand A has a better quality of distribution than Brand B. Typically the weighted distribution of a brand is higher than its numeric distribution. Brands usually try to be available in the stores where consumers spend the most in their category….Numeric distribution vs. Weighted distribution.

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Brand A Brand B
Weighted distribution 78.9\% 68.4\%

How do you grow a weighted distribution?

In our example, we can see that Brand B is present in more stores than brand A. However, Brand B isn’t present in the most important store in terms of category sales. This heavily impacts the brand’s weighted distribution….Numeric distribution vs. Weighted distribution.

Range Availability Brand A Availability Brand B
Store 5 No Yes
Store 6 No Yes
Store 7 Yes Yes

Does higher weighted distribution signify better quality of distribution?