This document provides an overview of retail distribution metrics and what they mean for businesses. It defines numeric or physical distribution, all commodity value weighted distribution, and product class value weighted distribution as percentages that measure how widely available products are in stores. It explains that low numeric distribution means products are not in many stores, while low weighted distributions mean products are not in the highest-performing stores. The document advises businesses to analyze distribution data to find opportunities to expand into more profitable stores and markets.
This document provides an overview of retail distribution metrics and what they mean for businesses. It defines numeric or physical distribution, all commodity value weighted distribution, and product class value weighted distribution as percentages that measure how widely available products are in stores. It explains that low numeric distribution means products are not in many stores, while low weighted distributions mean products are not in the highest-performing stores. The document advises businesses to analyze distribution data to find opportunities to expand into more profitable stores and markets.
This document provides an overview of retail distribution metrics and what they mean for businesses. It defines numeric or physical distribution, all commodity value weighted distribution, and product class value weighted distribution as percentages that measure how widely available products are in stores. It explains that low numeric distribution means products are not in many stores, while low weighted distributions mean products are not in the highest-performing stores. The document advises businesses to analyze distribution data to find opportunities to expand into more profitable stores and markets.
Overview This job aid provides an overview of some distribution numbers and what they mean for your business. Use Distribution data to:
■ Track how widely available your products are*
■ Measure support for your brand in trade channels
■ Compare your product to your competitors
■ Find expansion opportunities into more stores, chains and markets
*Distribution is calculated using number of outlets not facings.
The numbers
What it’s called What it is How it’s calculated
The percentage of stores that a (# of stores a product is sold
Numeric or Physical Distribution product has sold in in/Total # of stores) ✕ 100
All Commodity Value (ACV) The percentage of total store
Weighted Distribution* turnover a product is sold in (Store turnover (where product *Depending on your product or A better measure of the total sold)/Total store turnover) ✕ 100 category, you may see this as All traffic that goes through the Commodity Volume. stores that sell your product
The percentage of total store
turnover a product is sold in (Category turnover (where Product Class Value (PCV) product sold)/Total category Weighted Distribution A better indicator of where turnover) ✕ 100 customers look to buy a particular category of product
Summing the Wtd Distribution
Measures the breadth and depth for all items contained within a Total Distribution Points (TDP) of distribution of a product brand (or category) during a specified time period
Distribution by the numbers What they mean for your business Remember that every market, region, product and business is unique. These are general guidelines, not rules based on NielsenIQ data. If you have questions, please contact your NielsenIQ rep.
What you see What it could mean What you can do
Conduct analysis to see which parts of the
Numeric Distribution Your products aren’t in a large market are drivers of numeric distribution is LOW number of stores. level in order to act accordingly.
Review growth trends in different market
breakdowns and identify opportunities All Commodity Value Your product is not in the stores against existing distribution patterns. Note (ACV) Weighted doing the most business in your that it may not always be possible to get Distribution is LOW area. 100% ACV if your product class is not sold in all stores.
Look into competition behavior as well as
Product Class Value Your product is not in the stores more more granular market analysis to (PCV) Weighted that matter most to your business. specify areas/regions with improvement Distributions is LOW opportunities.
Consider whether the cost of increasing
Numeric Distribution Your products are in fewer stores, distribution is viable; you may need to is LOW and Weighted but those stores have a bigger reach a lot more outlets to reach the Distribution is HIGH impact on your business. missing part of the market.
With good breadth of distribution, you
Numeric Distribution Your products are in a lot of stores, need to identify the contribution of is HIGH and Weighted but not the ones that matter most different store types so you can distinguish Distribution is LOW to your business. between higher and lower performers.