Weighted Distribution is the percentage of stores handling product weighted by product category store sales. Defined as a percentage of where money is spent on the product category, it reflects the quality of distribution.
How do you find the weighted distribution?
Weighted Sales Distribution: Percentage of stores selling product weighted by product category store sales. (Equal to share of category sales by sellers.) Weighted Purchase Distribution: Percentage of stores purchasing product weighted by product category store purchases.
Why is weighted distribution important?
Weighted distribution shows your brand’s presence as a percentage of where money is spent in the category. In every market there are different types of stores, and to increase your quality of distribution, you want to be present where your customers spend the most in your category.
What is numeric distribution in FMCG?
Numeric distribution is the number of outlets in which a product or reference is available. This indicator is generally compared with the total number of points of sale in the universe studied to calculate the percentage of digital distribution.
Why do we calculate weighted average?
A weighted average is most often computed to equalize the frequency of the values in a data set. In a weighted average, the final average number reflects the relative importance of each observation and is thus more descriptive than a simple average.
What is KPI in FMCG?
A FMCG KPI or metric is a measurable value that helps to monitor and accomplish pre-defined organizational goals. Key performance indicators for the FMCG industry consider branch-specific characteristics such as its fast-moving nature, high consumer demands and short sales cycles.
What is the benefit of using a weighted distribution measure like ACV or PCV?
It is weighted by the sales volume of the stores in which a product is distributed and is NOT simply the number of stores where a product is sold as a percentage of the total number of stores operated by a retailer or in a market. It gives more weight to stores with higher sales than to those selling less.
What is weighted distribution and what is the difference between?
Weighted distribution is the # o$ stores that a product is sold in. but weighted by the importance o$ the outlets %usually on category volume&… There$ore…. $ you have a universe %sample or geography& that contains ‘ stores and the product is present in. one store then numeric distribution ( )*#.
What is the formula for weighted distribution of sales?
Standard Weighted Distribution formula: Weighted distribution = Sales volume of the category in stores which sell(stock*) a product ÷ Total Sales Volume of the category in all stores *) Stock is relevant for countries with manual Retail Audit only
What does weighted distribution mean in retail audit?
ABOUT RETAIL AUDIT Weighted Distribution is an additional measure of product presence in stores that gives an opportunity to understand the quality of distribution (or distribution efficiency).
How can category managers use weighted distribution metrics?
A common benchmark for retail distribution is % ACV or Weighted Distribution %. This metric measures the portion of a retailer’s or market’s total sales generated by the stores in which a product (or brand) is currently sold. Sales can be expressed by total store or total category by store. It is weighted by the sales volume …
