RMS & SFA FACT TYPES GLOSSSARY

CONTENTS
Commonly used abbreviations ...........................................................................................................3
Common data selection definitions ....................................................................................................4
RMS Facts ..........................................................................................................................................7
Sales/Share ....................................................................................................................................8
DEFINITION 8
RELATED FACTS 12
REMARKED 13
FACTS IN USAGE 14
Distribution .................................................................................................................................. 15
DEFINITION 15
RELATED FACTS 16
REMARKED 18
FACTS IN USAGE 20
Purchase ...................................................................................................................................... 26
DEFINITION 26
REMARKED 26
FACTS IN USAGE 27
Stock............................................................................................................................................ 29
DEFINITION 29
REMARKED 30
Off-take ....................................................................................................................................... 32
DEFINITION 32
RELATED FACTS 33
REMARKED 34
FACTS IN USAGE 34
Price ............................................................................................................................................ 38
DEFINITION 38

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 RELATED FACTS 39
REMARKED 40
FACTS IN USAGE 41
SFA Facts ......................................................................................................................................... 43
Distribution .................................................................................................................................. 44
DEFINITION 44
RELATED FACTS 44
REMARKED 45
FACTS IN USAGE 45
Stock............................................................................................................................................ 47
DEFINITION 47
RELATED FACTS 48
REMARKED 50
FACTS IN USAGE 51
Merchandising Effectiveness ......................................................................................................... 53
DEFINITION 53
REMARKED 56
FACTS IN USAGE 57

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 Commonly used abbreviations

1. TY - this year. Represents a period within the current year.

2. LY – last year. Represents a period within last year.
3. PP – prior/previous period. Represents the period immediately before the current one.
4. YA - year ago. Represents the period one year earlier than the current one.
5. LP - latest period. Represents the latest period in the database.
6. MAT - moving annual total. Represents the year (12 months) to the latest period of data.
7. YTD - year to date. Represents the period from the selected start of the year to the latest period
in the database, e.g. calendar YTD is the period from January, financial YTD is the period from
the first month of the financial year.
8. SKU - stock-keeping unit. Represents a single product item or barcode.
Example:
Example Period in database What we can understand from abbreviations?

Latest Chosen Selected PP YA LP MAT TY MAT LY YTD TY YTD LY

period in period start
database by user period
1 Jun’14 Jun’14 Jan’14 May’14 Jun’13 Jun’14 Jul’13 – Jul’12 – Jan’14 – Jan’13 –
Jun’14 Jun’13 Jun’14 Jun’14
2 Jun’14 May’14 Mar’14 Apr’14 May’13 Jun’14 Jul’13 – Jul’12 – Mar’14 – Mar’13 –
Jun’14 Jun’13 Jun’14 Jun’13

The same highlight color show the interaction between periods

9. Vol – volume 14. Chg – change

10. Val – value 15. Ave – average
11. Wtd – weighted 16. OOS – out of stock
12. Num – numeric 17. Dist. – distribution
13. Opp – opportunity

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 Common data selection definitions

Note:
“Data Selection” items listed down here will appear when we use Nielsen Answer Desktop. Except “#1”
item, all are the basic selection that we have to define for all facts in “RMS Facts”. In the easier way,
“Data Selection” items are standard and RMS facts are customized based on standard. To see whether
RMS facts are right or wrong, suitable or not suitable for using in each case, we have to define and check
the “Data Selection” items first.
1. Total Market - The Total Market data selection is used to calculate market share, which is
contribution of a selected market to this Total market. Only one selection can be made, which
may be a total country, total channel or total region market as appropriate.
2. Total Product - The Total Product data selection is used for the calculation of product shares,
which will be shares of this market. Only one selection can be made, which may be a total
subscription, total category or total segment as appropriate.
3. #1 - represents the relative selection of the first item in the database items list. For markets this
will usually represent the total market coverage. For products this will usually represent the
total category coverage. This selection method is often used for simple selection of the Total
Market or Total Product where it is useful since it can be applied to different databases.
4. Value Basis - The Value Basis data selection is used to specify the value sales fact that you want
to use from the database. This selection will be used in the calculation of all value expressions,
e.g. Value % Share, Val % Chg YA.
5. Volume Basis - The Volume Basis data selection is used to specify the volume sales fact that you
want to use from the database. This selection will be used in the calculation of all volume
expressions, e.g. Volume % Share, Vol % Chg YA.
6. Unit Basis - The Unit Basis data selection is used to specify the unit sales fact that you want to
use from the database. This selection will be used in the calculation of all unit expressions, e.g.
Unit % Share, Unit % Chg YA.
7. Stock Basis - The Stock Basis data selection is used to specify the stock fact that you want to use
from the database. Stock is a measure of the amount of product found in the store, including

4
 both the forward selling area and the storeroom. This selection will be used in the calculation of
all stock expressions, e.g. Stock % Shr , Stock % Chg YA.
8. Forward Stock Basis - The Forward Stock Basis data selection is used to specify the Forward
Stock fact that you want to use from the database. Forward Stock is a measure of the amount of
product found in the forward selling area. This selection will be used in the calculation of all
Forward Stock expressions, e.g. Forward Stock % Shr , Forward Stock % Chg YA.
9. Reserve Stock Basis - The Reserve Stock Basis data selection is used to specify the Reserve Stock
fact that you want to use from the database. Reserve Stock is a measure of the amount of
product found in the storeroom, i.e. away from the forward selling area. This selection will be
used in the calculation of all Reserve Stock expressions, e.g. Reserve Stock % Shr, Reserve Stock
% Chg YA.
10. Purchase Volume Basis - The Purchase Volume Basis data selection is used to specify the
purchase volume fact that you want to use from the database. This selection will be used in the
calculation of all purchase expressions, e.g. Purchase % Share, Purchase % Chg YA.
11. Price per Pack Basis - The Price per Pack Basis data selection is used to specify the price per fact
that you want to use from the database. This selection will be used in the calculation of all price
per pack expressions, e.g. Ave Price per Pack, +/- Price per Pack YA.
12. Num In Stock Dist. Basis - The Num In Stock Dist. Basis data selection is used to specify the Num
In Stock Dist. fact that you want to use from the database. In stock Dist. is a measure of the
number of stores that had the product available in store at the time of the audit. This selection
will be used in the calculation of all Num In Stock Dist. expressions, e.g. Num In Stock Dist.
13. Num OOS Dist. Basis - The Num OOS Dist. Basis data selection is used to specify the Num OOS
Dist. fact that you want to use from the database. OOS Dist. is a measure of the number of
stores that had either sold or purchased the product during the period, but that did not have the
product available in store at the time of the audit. This selection will be used in the calculation
of all Num OOS Dist. expressions, e.g. Num OOS Dist.
14. Num Purchase Dist. Basis - The Num Purchase Dist. Basis data selection is used to specify the
Num Purchase Dist. fact that you want to use from the database. Purchase Dist. is a measure of
the number of stores that had purchased the product during the time period. This selection will
be used in the calculation of all Num Purchase Dist. expressions, e.g. Num Purchase Dist..
15. Num Total Stock Dist. Basis - The Num Total Stock Dist. Basis data selection is used to specify
the Num Total Stock Dist. fact that you want to use from the database. Total stock Dist. is a

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 measure of the number of stores that had the product available in store during the period, i.e.
those stores that were in stock and those that were out of stock. This selection will be used in
the calculation of all Num Total Stock Dist. expressions, e.g. Num Total Stock Dist.
16. Wtd In Stock Dist. Basis - The Wtd In Stock Dist. Basis data selection is used to specify the Wtd
In Stock Dist. fact that you want to use from the database. In stock Dist. is a measure of the
contribution of the stores that had the product available in store at the time of the audit. This
selection will be used in the calculation of all Wtd In Stock Dist. expressions, e.g. Wtd In Stock
Dist.
17. Wtd OOS Dist. Basis - The Wtd OOS Dist. Basis data selection is used to specify the Wtd OOS
Dist. fact that you want to use from the database. OOS Dist. is a measure of the contribution of
the stores that had either sold or purchased the product during the period, but that did not have
the product available in store at the time of the audit. This selection will be used in the
calculation of all Wtd OOS Dist. expressions, e.g. Wtd OOS Dist.
18. Wtd Purchase Dist. Basis - The Wtd Purchase Dist. Basis data selection is used to specify the
Wtd Purchase Dist. fact that you want to use from the database. Purchase Dist. is a measure of
the contribution of the stores that had purchased the product during the time period. This
selection will be used in the calculation of all Wtd Purchase Dist. expressions, e.g. Wtd Purchase
Dist.
19. Wtd Total Stock Dist. Basis - The Wtd Total Stock Dist. Basis data selection is used to specify the
Wtd Total Stock Dist. fact that you want to use from the database. Total Stock Dist. is a measure
of the contribution of the stores that had the product available in store during the period, i.e.
those stores that were in stock and those that were out of stock. This selection will be used in
the calculation of all Wtd Total Stock Dist. expressions, e.g. Wtd Total Stock Dist.
20. YTD LY Start Period - Select the first period of the YTD (year to date) for last year. YTD will then
be calculated from the selected period to the period one year prior to the last period in the
database.
21. YTD TY Start Period - Select the first period of the YTD (year to date) for last year. YTD will then
be calculated from the selected period to the last period in the database.

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RMS Facts

Sales/Share Stock

Distribution Off-take

Purchase Price

7
 Sales/Share 
DEFINITION

VOLUME
Volume Sales
Volume Sales is the sales to end-consumer expressed in units or a converted volume basis (liters,
kilograms, etc.)
Volume % Share
Volume % Share (or Volume Share) is the contribution of one selected product to volume sales of
selected Total Product.
Calculation
Volume Sales of selected product
Volume % Share = X 100
Volume Sales of selected Total product
Example
- Volume Sales of brand A is 200 Kg
- Total product is selected as segment X
- Volume Sales of segment X is 1000 kg
➔ Volume % Share of brand A in segment X is 20%
Volume % Share of Trade
Volume % Share of Trade (or Volume Share of Trade) is the contribution of one selected market to
volume sales of selected Total Market.
Calculation
Volume Sales of selected Market
Volume % Share of Trade = X 100
Volume Sales of selected Total Market
Example
- Volume Sales of market A is 2,000 Kg
- Total Market is selected as market X
- Volume Sales of market X is 10,000 kg

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 ➔ Volume % Share of Trade of market A is 20%
Volume % Chg vs. YA/PP
Volume % Chg vs. YA/PP is the percentage change in volume sales compared with the same period a
year ago (YA) or compared with the prior period (PP).
Calculation
Volume Sales – Volume Sales YA
Volume % Chg YA = X 100
Volume Sales YA

Volume Sales – Volume Sales PP

Volume % Chg PP = X 100
Volume Sales PP
Example
Brand A October 2013 September 2014 October 2014
800 400 1,000
Volume Sales
Kg Kg Kg
Volume % Chg YA (1,000-800)*100/800 = 25%
Volume % Chg PP (1,000-400)*100/400 = 150%

VALUE
Value Sales
Value Sales is the sales to end-consumer expressed in value (Dong or any other currencies)
Calculation
Value Sales = Volume Sales x Ave Price
Value % Share
Value % Share (or Value Share) is the contribution of one selected product to value sales of selected
Total Product.
Calculation
Value Sales of selected product
Value % Share = X 100
Value Sales of selected Total product
Example
- Value Sales of brand A is 200 Kg
- Brand A belongs to segment X
- Value Sales of segment X is 1,000 kg

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 ➔ Value % Share of brand A in segment X is 20%

Value % Share of Trade

Value % Share of Trade (or Value Share of Trade) is the contribution of one selected market to value
sales of selected Total Market.
Calculation
Value Sales of selected market
Value % Share of Trade = X 100
Value Sales of selected Total Market
Example
- Value Sales of market A is 2,000 Mil. VND
- Market A is a part of market X
- Value Sales of market X is 10,000 Mil. VND
➔ Value % Share of Trade of market A is 20%
Value % Chg vs. YA/PP
Value % Chg vs. YA/PP is the percentage change in value sales compared to the same period a year ago
(YA) or compared to the prior period (PP).
Calculation
Value Sales – Value Sales YA
Value % Chg YA = X 100
Value Sales YA

Value Sales – Value Sales PP

Value % Chg PP = X 100
Value Sales PP
Example
Brand A October 2013 September 2014 October 2014
800 400 1,000
Value Sales
Bil Bil Bil
Value % Chg YA (1,000-800)*100/800 = 25%
Value % Chg PP (1,000-400)*100/400 = 150%

UNIT
Unit Sales
Unit Sales is sales to end-consumer expressed in units (a unit is often an SKU)

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Unit % Share
Unit % Share (or Unit Share) is the contribution of one selected product to unit sales of selected Total

Calculation
Unit Sales of selected product
Unit % Share = X 100
Unit Sales of selected Total product
Example
- Unit Sales of brand A is 2,000 units
- Brand A belongs to segment X
- Unit Sales of segment X is 10,000 units
➔ Unit % Share of brand A in segment X is 20%
Unit % Share of Trade
Unit % Share of Trade (or Unit Share of Trade) is the contribution of one selected market to unit sales of
selected Total Market.
Calculation
Unit Sales of selected market
Unit % Share of Trade = X 100
Unit Sales of selected Total Market
Example
- Unit Sales of market A is 2,000 units
- Market A is a part of market X
- Unit Sales of market X is 10,000 units
➔ Unit % Share of Trade of market A is 20%

Unit % Chg vs. YA/PP

Unit % Chg vs. YA/PP is the percentage change in unit sales compared to the same period a year ago (YA)
or compared to the prior period (PP).
Calculation
Unit Sales – Unit Sales YA
Unit % Chg YA = X 100
Unit Sales YA

Unit Sales – Unit Sales PP

Unit % Chg PP = X 100
Unit Sales PP

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Example
Brand A October 2013 September 2014 October 2014
800 400 1,000
Unit Sales
Units units units
Unit % Chg YA (1,000-800)*100/800 = 25%
Unit % Chg PP (1,000-400)*100/400 = 150%

RELATED FACTS

Volume/Value/Unit % Share in Handler is share of selected product within the stores that handling it.
This fact can help to compare share of products without the distorting factor of different distribution
levels.
Calculation:
Volume/Value/Unit % Share
Volume/Value/Unit % Share in Handler =
Wtd Total Stock Dist. (*)
(*) Refer to page 15 for fact Wtd Total Stock Dist.
Accumulated Volume/Value/Unit % Share is accumulated share contribution of all ranked
SKUs/brands/manufacturers (biggest to smallest) for total brand/manufacturer/segment/category. This
fact is often be used to evaluate the concentration of product portfolio. It answers the question of how
many products accumulate for X% of sales or share.
In some case, terms like “Ave, LP, YA, PP or +/-“ can be added into sales facts. Refer to the “Commonly
used abbreviations” for more details.
Seasonality Index is the comparison of sales in a month to the average sales per month of a whole year
to define which periods are heavy season for particular category/product
Calculation
Seasonality Index = Volume/Value Sales X100

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 Average Volume/Value Sales of 12 latest consecutive
months

REMARKED

Volume/Value/Unit Sales is used to measure total market size, manufacturers/brand performance

Volume/Value/Unit % Share is used to measure relative performance of a manufacturer/brand with
other competitors
Volume/Value/Unit % Share of Total product is always 100%.
Volume/Value/Unit % Share of Trade is used to measure the importance of specific sub-markets to
total market.
The combination between Volume/Value/Unit % Share and Volume/Value/Unit % Share of Trade can
help understand the under/over contribution of one specific market to share gain/loss of a product. For
more details, please refer to “fact in usage” and “real analysis” part.
Volume/Value/Unit % Share of Trade of Total market is always 100%.
Volume/Value/Unit % Share in Handler is particularly relevant for new products, giving an early
indicator of market share potential. It also helps to highlight whether market share gains are coming
from increasing distribution levels or improving performance at store. This kind of fact is suggested not
to use for brands with low distribution (Wtd Dist. < 10%)
Seasonality Index is used to evaluate the importance of seasonality to products, such as Tet for biscuits
category, summer time for beverages, etc. This helps to set a reality scene to explain movements/trends
happening in special periods.
Some notes for using sales fact in Nielsen Answer Desktop:
- In database, volume/value/unit facts can be used for both separated product/markets and
summing/totaling by products/markets.
- In case of summing period, you can also see average sales per month by setting up
volume/value/unit fact in average condition before extracting data.

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 FACTS IN USAGE

Real analyses (refer to Pathfinder - PFD)

Rolling MAT – Trend & Interaction?
Market share long trend & interaction?
Innovation impact for the category?
New launch & incremental sales
Gain / Loss contribution relative to market share?
Concentration curve?
Performance of replacing product
Seasonality

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 Distribution 
DEFINITION

DISTRIBUTION
Num Total Stock Dist. (Often be referred shortly as Num Dist.)
It is the proportion of stores that handled (stocked, purchased or sold) the product during the audit
period.
Calculation
Number of stores that handled the product
Num Total Stock Dist. = X 100
Total number of stores in panel

Example
- One panel has totally 10 stores
- There are 4 stores handling brand A during the audit period
- Num Total Stock Dist. of brand A is 40% (4/10 stores)
Wtd Total Stock Dist. (Often be referred shortly as Wtd Dist.)
It is the proportion of category turnover of stores that handled the product during the audit period.

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Calculation
Category turnover of stores that handled the product
Wtd Total Stock Dist. = X 100
Total turnover of category

Example
- Category’s turnover is 100 (Bil.)
- There are 4 stores handling brand A during the audit period and these stores contribute 70 (Bil.)
in total turnover of the category.
- Wtd Total Stock Dist. of brand A is 70% (70/100 Bil.)

RELATED FACTS

Num In Stock is the proportion of stores that had Wtd In Stock is the proportion of turnover of
the product in stock at the time of audit. stores that had the product in stock at the time of
audit.
Num OOS is the proportion of stores that handled Wtd OOS is the proportion of turnover of stores
the product in the period, but did not have the that handled the product in the period, but did not
product in stock at the time of the audit. have the product in stock at the time of the audit.
Num Purchase Dist. is the proportion of stores Wtd Purchase Dist. is the proportion of store
that purchased the product in the period. turnover that purchased the product in the period.
Calculation: Num Purchase Dist. = (Number of Calculation: Wtd Purchase Dist. = (Category
stores purchased product/ Total number of stores turnover of stores that purchased the product /
in panel)*100 Total turnover of category)*100
Num Relative OOS / Num OOS Rate is the Wtd Relative OOS / Wtd OOS Rate is the
proportion of stores handling the product during proportion of store turnover handling the product
the period that were out of stock at the time of the during the period that were out of stock at the

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audit. time of the audit.
Calculation: (Num OOS Dist. / Num Total Stock Calculation: (Wtd OOS Dist. / Wtd Total Stock
Dist.) * 100. Dist.) * 100.
This fact helps to compare OOS situation more
fairly between brands with different distribution
level.
Example:
Brand A Brand B
Num OOS 8% 5%
Num Dist. 80% 40%
Num OOS rate 10.0% 12.5%
→ OOS situation of brand B is more serious than
brand A when taking into account the
distribution level of these brands.
Relative Num Dist. (Num Dist. Rate) of two Relative Wtd Dist. (Wtd Dist. Rate) of two
product is the ratio between Num Dist. of a product is the ratio between Wtd Dist. of a
product and Num Dist. of the other product. product and Wtd Dist. of the other product (not of

Calculation: (Num Dist. of Product A/ Num Dist. of total category, as Wtd Dist. of category is 100)
Product B) * 100. Calculation: (Wtd Dist. of Product A/ Wtd Dist. of
Product B) * 100.

Maximum Num Total Stock Dist. is the highest Maximum Wtd Total Stock Dist. is the highest
Num Dist. recorded across selected periods. Wtd Dist. recorded across selected periods.

Minimum Num Total Stock Dist. is the lowest Num Minimum Wtd Total Stock Dist. is the lowest Wtd
Dist. recorded across selected periods. Dist. recorded across selected periods.

Number of SKUs handled per store is the ratio Dist. Quality = (Wtd Dist./ Num Dist.)*100
between Num Dist. of all SKUs of one product and Value Cost of OOS = (Value Sales/Wtd In Stock
Num Dist. of that product. Dist.)*Wtd OOS

Calculation: Sum of Num Dist. of all SKUs of the Value Cost Of OOS % Sales is the proportion of
product/ Num Dist. of the product value sales loss due to OOS compared to real value

Total Dist. Point is sum of Num Dist. of all items in sales achieved
a same level of a product (ex: all SKUs/ variants of Calculation: (Value Cost of OOS/Value Sales)*100
a brand, all brands of a manufacturer, etc.). This Value Share Gain Without OOS is the incremental

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fact shows the full effort to build distribution for value share a product would have achieved if it did
the whole portfolio. not have OOS
Calculation: Value Cost of OOS/Value Sales of
Total Category*100
Note: All facts with value are applied the same for
volume.

In some case, terms like “Ave, LP, YA, PP or +/-“ can be added into distribution facts. Refer to the
“Commonly used abbreviations” for more details.

REMARKED

The comparison between Wtd and Num permits to calculate the distribution quality of a product. If the
ratio Wtd/Num is >1, the stores selling product are stores with high potential on the market. In contrast,
if the ratio is <1, products are pushed into small stores and distribution is not effective.
Num Total Stock Dist. is the sum of Num In Stock and Num OOS. The same for Wtd Total Stock Dist.
Num Purchase Dist. is lower than or equal to Num Total Stock Dist. as distribution is counted on stores
having whether purchase, sales or stock of a product. The same for Wtd Purchase Dist.
Num/Wtd Relative OOS shows the seriousness of out of stock of the product. The out of stock level of
the product is lower than others but due to its low Num/ Wtd Total Stock Dist., the out of stock seems
to be serious and makes the product lose chance to sell much comparing to its current capacity.
Wtd Total Stock Dist. of total category is always 100%. Num Total Stock Dist. is 100% for handler panel
(panel designed for only one category) and is lower than 100% for syndicated panel (panel designed for
more than one category). In case Wtd Total Stock Dist. of one manufacturer or brand is 100% and its
panel is syndicated one, the manufacturer or brand still has room to expand distribution by penetrating
into stores that have not handled the category so far.
Maximum Wtd/Num Total Stock Dist. helps to identify the record distribution level reached in
particular period for benchmarking and setting target for future distribution level.
Num Dist. and Wtd Dist. can be used to calculate other facts such as Value/Volume SPPD, Stock PPD,
Purchase PPD. However, these calculations only have meaning if Num Dist. or Wtd Dist. is not lower
than 15%. In case of new launch and distribution level is still low, in order to see performance per point
of distribution, Value/Volume Share In Handler can be used instead of Value/Volume SPPD. (Refer to

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page 12 for fact Value/Volume Share In Handler, page 32 for Value/Volume SPPD, page 30 Stock PPD,
page 26 for Purchase PPD)
Number of SKUs handled per store shows the average number of SKU one store is handling for one
product at a moment. Based on this information, manufacturer can re-evaluate current portfolio and
has new product and stock push strategies in the future. The requirement to calculate this fact for a
product is that the product must be selected directly from database hierarchy (not by using Sum or Total
By), or else it must be selected as a total line.
SKU Efficiency Rate shows the ratio between Number of SKUs handled per store vs. number of active
SKUs (number of SKUs having sales > 0 in a specific period – recommended to be at least 3 consecutive
months)
Calculation: SKU Efficiency Rate = Number of SKUs handled per store/Number of active SKUs*100%
Results of Size of Prize Facts (Value Cost of OOS, Value Cost of OOS % Sales, Value Share Gain Without
OOS) are just relative, as in these cases we are dismissing the possible impact of OOS of a product to
sales of the other product in the category and total sales of the category.
Volume/Value Cost of OOS is used to quantify the volume/value sales loss due to OOS, assuming that
sales per point of distribution remain the same if there was no OOS.
Value Share Gain Without OOS is used to quantify the volume/value share a brand can gain if there was
not OOS, assuming that sales per point of distribution and total category sales remain the same if there
was no OOS.
Some notes for using distribution fact in Nielsen Answer Desktop:
- In database, distribution facts can only be used for separated product and separated markets, not
for summing/totaling by products or summing markets.
- In case you would like to sum or total by products, you have to send request for creating total line in
database.
- If you would like to sum markets, the new market is called customized MBD and must be checked
the standard error and approved to report.
In case of summing period, should use distribution facts with the term “Ave”

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 FACTS IN USAGE
Link with RMS facts
Wtd Total Stock Dist. vs. Volume/Value/Unit % Share vs. Volume/Value/Unit % Share In Handler
Volume/Value/Unit Wtd Total Stock
Share Dist.
+ +
+ -
+ +
+ -
- +
- -
Volume/Value/Unit
Implication
% Share In Handler
We increased share thanks to both
+ distribution expansion and share in
handling stores increase.
We increased share although
distribution declined, as we focused
more on performance at handling
+
stores. Maybe lost stores are not
important stores and we do not need
to recover them. (*)
We gained share in total market
thanks to distribution push effort,
-
while average share per distribution
point declined. (*)
- Impossible case
Although distribution increased, we
lost share in total market due to
-
average share per distribution point
declined. (*)
We are having problem at both
-
distribution and in-store performance
20
 - + + Impossible case

Our performance at handling store

was improved, but we lost share due
- - +
to distribution declined. Consider
whether we lost big stores or not. (*)
(*) Refer to relationship between Dist. and Consumer support for further implication (Pg.35-36)
Wtd Total Stock Dist. vs. Wtd OOS
Wtd Total Stock Wtd OOS Implication
Dist.

Distribution level is expanded but at the same time, OOS

+ +
increases maybe due to:
- Focusing on new stores and forgetting old stores make OOS at
old stores increase and total OOS increase accordingly.
- Resource limitation and cannot ensure the quality of stock
push at new stores leading to OOS increase.
Distribution level is expanded and OOS is fixed, good signal in
+ -
term of sales team’s effort.
Distribution loses in this period due to some reasons in the
- +
previous one, maybe including high OOS. However, when
distribution level decreases, OOS keeps increasing. That alerts
the sales team’s performance and shows a risk for further
distribution loss.
As distribution level decreases, some stores having high OOS
- -
are lost so total OOS now is less serious, that is why OOS
decreases.

Wtd Total Stock Dist. vs. Sales Per Point of Distribution/Purchase Per Point of Distribution/Stock Per
Point of Distribution
Wtd Total Stock Sales Per Point of Implication
Dist. Distribution
(Purchase Per

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 Point of
Distribution/Stock
Per Point of
Distribution)

We are developing distribution and able to gain consumer

+ +
support (retailer support/stock push effectiveness).
Distribution level is expanded but consumer support (retailer
+ -
support/stock push effectiveness).decreases maybe due to:
- Consumer support (retailer support/stock push effectiveness)
for the product in new stores are still low.
- We are losing focus on current stores and support from
consumer (retailer support/stock push effectiveness)
decreases accordingly.
In this case, we should consider sales (purchase/stock)
- +
performance to have final conclusion, if sales (purchase/stock)
decreases, consumer support (retailer support/stock push
effectiveness) increase is just because distribution decrease, if
sales (purchase/stock) increases, we can say that we are doing
well in term of gaining consumer support (retailer
support/stock push effectiveness).
We lose both distribution and consumer support (retailer
- -
support/stock push effectiveness) -> should prioritize to
recover immediately.

Num Total Stock Dist. vs. Num Purchase Dist.

Num/Wtd Total Num/Wtd Implication
Stock Dist. Purchase Dist.

Distribution increases in parallel with having more stores

+ +
purchase the products. Keep up the momentum.
The product is distributed in more stores, but less stores
+ -
purchase the product → Need to check OOS status to
ensure we still take care of current stores in the same time

22
 of expanding distribution.
More stores purchase the product, but some stores were
- +
lost → Need to check OOS status/Stock PPD (at store level)
to find out whether we expand to new stores but forget
current stores or sales team push stock unevenly amongst
current stores.
Less stores purchase the product and distribution declines
- -
→ Need to look at OOS, consumer support to find out root
caused that lead to distribution decline.

Distribution vs. OOS, Purchase and Stock

1st Month 2nd Month 3rd Month 4th Month

Purchase * *
Stock * *
Distribution Yes Yes Yes No
Stock Out No No Yes …
We can give the conclusion about distribution situation of one brand based on stock, purchase or sales
of that brand in stores, in details:
- If the brand has stock in a store, it has distribution in that store
- If the brand has sales or purchase but no stock in a store, it has distribution but is out of stock in
that store
- If the brand has no sales, no purchase and no stock in a store, it loses distribution in that store
Distribution vs. Universe & Sales
- Number of stores handling a brand in a market can be calculated by getting market Universe
multiple to Num Total Stock Dist. (%).
- Number of out of stock stores in a market can be calculated by getting market Universe multiple
to Num OOS (%).
Number of stores = Universe x Num Dist. (%) = (Universe x Num)/100
- Total sales of a brand in one market can be calculated by getting sales per point of distribution
multiple to Wtd Total Stock distribution.
- Sales loss of a brand due to its out of stock issue can be calculated by getting sales per point of
distribution multiple to Wtd OOS.

23
 Sales (value/volume) = Sales per point of distribution x Wtd Dist.
Solus and common handler of different products
- Distribution (Total Stock or Purchase in both Num and Wtd) of a product can be separated into
solus and common handlers with other product(s) as long as the required products’ total lines
are available in the database. The most common facts are dual handler and triple handler.
- Dual Handler of products A and B:
Products need to have in the database : A, B, AUB
Calculation:

BRAND B
BRAND A

4 7 1

% stores only handle brand A

= A – (A∩B) % stores only handle brand B
= B – (A∩B)

% stores handle both brand A & B

(A∩B) = A + B – (AUB)

- Triple Handler of products A, B, C:

Products need to have in the database : A, B, AUB, BUC, AUC, AUBUC
Calculation:

A∩B∩C=AUBUC+A∩B+B∩C+A∩C-A-B-
C
A∩B = A + B - AUB
A∩C = A + C - AUC
B∩C = B + C - BUC

24
Distribution Rate and Accumulated Share
- Distribution rate of an SKU (= Distribution of one SKU/Distribution of total brand) can be used in
parallel with its volume/value contribution to total brand to evaluate distribution focus for each
SKU in comparison to the contribution it brings to total brand. The same for brands in portfolio
of a manufacturer.
Real analyses (refer to Pathfinder – PFD)
Distribution quality
Dual handlers
Triple handlers
Distribution Potential Evaluation
Distribution rate and accumulated share
Relative OOS
Missing sales due to out of stock
Average number of SKUs handled
Assortment analysis
Portfolio management

25
 Purchase 
DEFINITION

Purchase represents deliveries of a specific product to the retailer which is expressed as units or a
converted volume basis (e.g. liters, kilograms, SU, etc.)
Purchase change YA/PP
Purchase – Purchase YA/PP
Purchase % Chg YA/PP = X 100
Purchase YA/PP
Purchase Share is the selected product’s share of purchases for the selected Total Product.
Calculation: Purchases / Purchases for Total Product * 100.
Purchase Per Point of Distribution (Purchase PPD) is the average purchase quantity per each
percentage point of Num or Wtd Dist. for the product
Calculation: Purchase/Num or Wtd Dist.
Purchase Per Point of Purchase Distribution is the average purchase quantity per each percentage point
of Num or Wtd Purchase Dist. for the product
Calculation: Purchase/Num or Wtd Purchase Dist.

REMARKED

Purchase Per Point of Distribution (Purchase PPD) is used to compare purchase quantity per each point
of distribution (or retailer support in term of purchasing product) between products that have different
distribution level.
Purchase Per Point of Purchase Distribution is good to use to compare the average purchase quantity
by those stores that do the purchase (not take into account the handling stores without purchasing in a
period).

26
 FACTS IN USAGE

Link with RMS facts (in the scenario that other elements remain the same)
Purchase and Wtd Purchase Dist.
Purchase Wtd Purchase Implication
Dist.

Product is purchased at more Wtd Dist. point, and the purchase

+ +
quantity also increases
Product is purchased at less Wtd Dist. point, yet the purchase
+ -
quantity increases, implying that it has higher purchase per
point of distribution
Product is purchased at more Wtd Dist. point, yet the purchase
- +
quantity decreases, implying that it has lower purchase per
point of distribution
Product is purchased at less Wtd Dist. point, and the purchase
- -
quantity also decreases

Purchase Share vs. Volume Share/ Volume Share in Handler or Purchase PPD vs. Volume SPPD
Purchase Share/ Volume Share/ Implication
Purchase PPD Volume Share in Note: Need look at trend for a long term to avoid
Handler or seasonality/purchase cycle
Volume SPPD

- If Purchase fact increases before Volume fact increases →

+ +
Retailers support more for the product by purchasing it more
and that may make positive effect on consumer support.
- If Purchase fact increases after Volume fact increases → The
product is bought more by consumers, so that retailer
purchase it more to meet the consumers’ demand.
Need to check further stock, forward stock to confirm if retailer
also stock more and put more forward stock for the product;
and integrate other information to see if stock is driven by any

27
 trade scheme or promotion.
Retailers purchase more for the product, yet it is bought less by
+ -
consumers → Need to check other facts to find out reasons
behind declining consumer support.
Retailers purchase less for the product while it is bought more
- +
by consumers → Opportunity to persuade retailer purchase
more for the product.
- If Purchase fact declines before Volume fact declines →
- -
Retailers purchase less for the product and that may lead to
less stock in store and affect negatively on consumer support.
Need program to push purchase back.
- If Purchase fact declines after Volume fact declines → The
product is bought less by consumers, so that retailer purchase
it less as a result. Need to prioritize on recovering consumer
support before push purchase back.

Real analyses (refer to Pathfinder - PFD)

Purchase share
Source of growth - purchase
Price & retailer reaction

28
 Stock 
DEFINITION

Total Stock
The combined Reserved Stock and Forward Stock of a product on the day of audit expressed as units or
a converted volume basis (e.g. liters, kilograms, etc.).
Calculation: Total Stock = Reserved Stock + Forward Stock
Reserved Stock: Is the stock put in selling area of retail stores.
Forward Stock: Is the stock put outside selling area of retail stores.
Related Facts: Hereinafter, the word “Stock” (if not mention specifically “Total Stock”, “Forward Stock”
or “Reserved Stock”) refers to either one of that three types of stock.
Stock change YA/PP: is the percentage change in stock compared to the same period a year ago
(YA)/prior period (PP)
Stock – Stock YA/PP
Stock % Chg YA/PP = X 100
Stock YA/PP
Stock Share is the selected product’s share of total stock for the selected Total Product.
Calculation: Total Stock / Total Stock of Total Product * 100.
Total Stock to Sales Ratio = Total Stock/Volume Sales
Total Stock Share to Sales Share Ratio = Total Stock Share/ Volume Share
Forward Stock Share to Sales Share Ratio = Forward Stock Share/ Volume Share
Monthly Stock Cover Days (MSCD) is the number of days that stock of a product being sufficient for
consumer demand in a month
Calculation: (Total Stock/Volume Sales)*30.5
Bi-Monthly Stock Cover Days is the number of days stock of a product being sufficient for consumer
demand in two months basis
Calculation: (Total Stock/Volume Sales)*61
Ave Stock Turn shows how many times a product’s stock is sold and replaced over a period

29
Calculation: Total Volume Sales/Total Stock
% Merchandising Effectiveness is the proportion of Total Stock that is displayed as Forward Stock
Calculation: (Forward Stock /Total Stock) * 100
Stock Per Point of Distribution is the average stock quantity per each percentage point of Num or Wtd
Dist. for the product
Calculation: Stock/Num or Wtd Dist.
Ave Stock Per Store = Stock/Number of Store
Ave Stock Per Store Index of a region = Ave Stock Per Store of mentioned region/Ave Stock Per Store in
total market

REMARKED

Total Stock to Sales Ratio is ideally equal to 1, but for product with high velocity it’s generally below 1
while for a slow mover is above 1. Due to the value of this fact depends on nature of category/segment,
we should compare to that of total category/segment and key competitors before deciding if the ratio is
good or bad.
This ratio is used to see if the total stock push is enough to cover the consumer needs (sales out). It
should be look in a long-term period to avoid stock push seasonality or cycle of stock refill.
There are cases when Total Stock to Sales Ratio of a product is high (meaning it’s over stock), its OOS
level is also high. This is a proof that the stock is not pushed evenly (too much in some stores when no
stock for other stores).
Total Stock Share to Sales Share Ratio and Forward Stock Share to Sales Share Ratio: shows if a
product receives a fair proportion of Stock/Forward Stock given its contribution to total sales out. These
ratios of a product are ideally equal to 1 – meaning retailer spend fair space of Stock/Forward Stock to
that product.
Ave Stock Turn shows how efficiently stock of a product is turned into sales. While stock turnover is
different between categories, this ratio of a product should be compared against its category’s average.
A low turnover implies poor sales and, therefore, excess stock. A high ratio implies either strong sales or
ineffective stock. To avoid seasonality effect, this fact should be calculated in a long term period.
Monthly Stock Cover Days (MSCD) shows how many days sales team needs to visit stores to refill stock
or store owners need to make a new order before the product being out of stock.

30
To avoid seasonality or the cycle of stock refill (which may be less or more than 1 month), the facts
relating to ratio between stock and sales should be looked in long term period (e.g. MAT)
Stock Per Point of Distribution is used to compare stock quantity in each point of distribution (or
retailer support in term of stock) between products that have different distribution level.
Ave Stock Per Store Index of a region helps to compare retailers’ stock capacity for the same product
across different regions. It can be used for total FMCG to evaluate the overall size of retailer’s stock
across markets.
For particular brand or category, Number of SKUs handled per store is another fact to evaluate
retailer’s stock capacity.
Real analyses (refer to Pathfinder - PFD)
Stock to sales ratio
Stock target
Monthly stock cover days
Promotion stock push
New launch: Stock & Purchase

31
 Off-take 
DEFINITION

Value SPPD (Wtd)

Value SPPD is the average value sales per each percentage point of Wtd Dist. of a product.
Calculation
Value Sales of a product
Value SPPD (Wtd) =
Wtd Total Stock Dist. of that product

Number of stores in relevant universe

Category turnover of stores
Product turnover of stores
Example
- Value Sales of brand A is 35 (Bil. VND)
- Wtd Total Stock Dist. of brand A is 70%
➔ Value SPPD (Dong/Wtd) is 35/70 = 0.5 Dong per point of Wtd Dist.

Volume SPPD (Wtd)

Volume SPPD is the average volume sales per each percentage point of Wtd Dist. of a product.

32
Calculation
Volume Sales of a product
Volume SPPD (Wtd) =
Wtd Total Stock Dist. of that product
Unit SPPD (Wtd)
Value SPPD is the average unit sales per each percentage point of Wtd Dist. of a product.
Calculation
Unit Sales of a product
Unit SPPD (Wtd) =
Wtd Total Stock Dist. of that product

RELATED FACTS

Val Cost Of O.O.S. is an estimation of value sales Vol Cost Of O.O.S. is an estimation of volume sales
that has been lost due to out of stock, assuming that has been lost due to out of stock, assuming
that the product could generate same level of that the product could generate same level of
value sales SPPD in stores that had OOS as in volume SPPD in stores that had OOS as in stores
stores that had In-stock. that had In-stock.
Calculation: (Value Sales / Wtd Total Stock Dist.) * Calculation: (Volume Sales / Wtd Total Stock Dist.)
Wtd OOS Dist. * Wtd OOS Dist.
Val Cost Of O.O.S. % Sales is the percentage of Val Vol Cost Of O.O.S. % Sales is the percentage of Vol
Cost Of O.O.S. to the value sales that were Cost Of O.O.S. to the volume sales that were
achieved. achieved.
Calculation: Calculation:
Value Cost Of O.O.S. / Value Sales * 100. Volume Cost Of O.O.S. / Volume Sales * 100.
Val Opp Of 100% Dist. is an estimation of the Vol Opp Of 100% Dist. is an estimation of the
additional value sales that might have been additional volume sales that might have been
achieved if the product reached 100% of WTD, achieved if the product reached 100% of WTD,
assuming that Value SPPD then remains the same assuming that Volume SPPD then remains the
as the current Value SPPD. same as the current Volume SPPD.
Calculation: Calculation:

33
(100 - Wtd Total Stock Dist.) * Val S.P.P.D (Wtd). (100 - Wtd Total Stock Dist.) * Vol S.P.P.D (Wtd).
Val Opp Of 100% Dist. As % Sales is the Vol Opp Of 100% Dist. As % Sales is the
percentage of Val Opp Of 100% Dist. to the value percentage of Vol Opp Of 100% Dist. to the volume
sales that were achieved. sales that were achieved.
Calculation: Calculation:
Value Opp Of 100% Dist. / Value Sales * 100. Value Opp Of 100% Dist. / Value Sales * 100.

In some cases, terms like “Ave, LP, YA, PP or +/-“ can be added into consumer support facts. Refer to the
“Commonly used abbreviations” for more details.

REMARKED

Consumer Support (Volume/Value/Unit SPPD) is calculated based on Wtd Total Stock Dist. Therefore,
all conditions applied for distribution facts will be applied for them.

FACTS IN USAGE

Link with RMS facts

Contribution of consumer support and distribution expansion
When sales of a product change (increase/decline), the question will be:
- Does the change come from distribution or consumer support?
- If the change is driven by both distribution and consumer support, what is the contribution of
each factor to that change?
The calculation below can help answer these questions:

34
Note: This calculation is only useful when we observe the same trend of distribution and consumer
support. Besides, the result only shows relatively if the sales change comes mainly from distribution or
consumer support, because most of the changes are driven by both factors at the same time.
Consumer Support vs. Wtd Total Stock Dist.
Wtd Total Stock Volume/Value/Unit Implication
Dist. SPPD (Wtd)

Ideal situation. We are expanding distribution and able to

+ +
increase consumer support.
Distribution level is expanded but consumer support
+ -
decreases. This may be due to:
- Consumer support in new stores is still low.
- We are losing focus on current stores (eg. less
stock/forward stock, less trade scheme/promotion, etc.),
which leads to consumer support in those stores declines.
In this case, we should look at sales performance to have
- +
final conclusion.
- If sales decrease: consumer support increases is
just because distribution decreases
- If sales increase: we can say that we are doing well

35
 in term of gaining consumer support
We lose both distribution and consumer support -> need
- -
to investigate to find how can we fix the problem.

Consumer Support vs. Purchase/Stock PPD

The comparison between consumer support and Purchase/Stock PPD help to understand if stock in
store is sufficient, whether retailers are fairly supporting for our product or not. This also indicates some
hypotheses about the impact between stock push effort of sales team, retailer support and consumer
decision. For more details, please refer to the table below:
Purchase/Stock Volume/Value/Unit Implication
PPD (Wtd) SPPD (Wtd)

We got good support from both retailers and consumers

+ +
as well as did well in term of stock push.
Retailers are supporting us but we are having problem
+ -
with consumers. Need to consider recovering consumer
support to avoid the decrease of retailer support in the
future.
Need to work again with retailers and improve stock push
- +
of sales team as we are gaining consumer support.
The worst situation, we are losing retailer support,
- -
consumer support and do not do well in term of stock
push → need to investigate more to decide which one is
the root cause and should be our first focus. Please refer
to the technique below for more information.
When seeing all facts Purchase PPD, Stock PPD and consumer support in a long trend, depending on the
movement of them, we can find out which one leads to the decrease/increase of the others. For
example, if Purchase/Stock PPD decreases, then consumer support decreases in following months, we
can come up with the hypothesis that the key issue here is retailers, if they finish supporting us, stock
decreases accordingly and finally leads to the decrease of consumer support and sales out.

Consumer Support vs. seasonality, competitor’s activities, promotion, weather…

36
In reality, consumer support is also impacted by other factors like seasonality, competitors’ activities,
promotion, weather, etc.. To conduct any investigation, it is necessary to have enough supported data
about seasonality, competitors’ activities, promotion or weather to combine with the movement of
consumer support and evaluate the impact of each factor on consumer support.

Real analyses (refer to Pathfinder - PFD)

Source of growth - Sales
Distribution & Off-take bubble chart
Size of Prize - Distribution/off-take Roadmap
Promotion Execution

37
 Price 
DEFINITION

Price Per Pack

It is the average price per unit for the product over the time period, representing for average retail
selling price to the consumer. This fact is used to examine/compare pricing trends only for items with
the same or nearly same pack size. It is gotten from data collection and showed in database as Price Per
Pack Basic.
Example
Store selling SKU Price per Pack (VND) Volume Sales

Store A 5,000 10

Store B 6,000 5

Store C 7,000 2

5,000 x 10 + 6,000 x 5 + 7,000 x 2

Price per Pack of brand A = = 5,530 VND
10 + 5 + 2
Ave Price
It is the average price per volume measure, e.g. per litre or per kilogram, over the time period,
representing for the average net retail price. This fact is used to examine pricing trends for a category,
segment or trend where differences in pack sizes make it difficult to examine price per unit.
Calculation
Value Sales of one product
Ave Price =
Volume Sales of that product

38
Example
Volume Sales Price per Pack (VND) Value Sales (VND)

Brand A – SKU 1L 4,000 10,500 42,000,000

Brand A – SKU 1.5L 100 13,000 1,300,000

Total Brand A 4,100 ? 43,300,000

Ave price of Total Brand A = 43,300,000/4,100 = 10, 561 VND / L

RELATED FACTS

Ave Price % Chg YA is the percentage change in Price Per Pack % Chg YA is the percentage
price per volume measure, e.g. per litre or per change in price per pack compared to the same
kilogram, compared to the same period a year ago. period a year ago.
Calculation: (Ave Price - Ave Price YA) / Ave Price YA Calculation: (Price per Pack - Price per Pack YA) /
* 100. Price per Pack YA * 100.
Ave Price % Chg PP is the percentage change in Price Per Pack % Chg PP is the percentage
price per volume measure, e.g. per litre or per change in price per pack compared to the prior
kilogram, compared to the prior period. period.
Calculation: (Ave Price - Ave Price PP) / Ave Price PP Calculation: (Price per Pack - Price per Pack PP) /
* 100. Price per Pack PP * 100.
Ave Price Index To Total Mkt compares the Ave Price Per Pack Index To Total Mkt compares the
Price in the selected market to that in the selected price per pack in the market to that in the Total
Total Market. A value of 100 means that the prices Market. A value of 100 means that the prices are
are the same. A value of less than 100 means that the same. A value of less than 100 means that
the price in the market is below average or the price in the market is below average or
discounted; whereas a value greater than 100 discounted; whereas a value greater than 100
means that the price in the market is above average. means that the price in the market is above
Calculation: Ave Price / Ave Price for the Total average.
Market *100.
Ave Price/Vol Index (Price Index) compares the Calculation: Price per Pack / Price per Pack for

39
average price of the product to that of the Total the Total Market *100.
Product. Ave Price/Vol Index of 100 means that the
prices are the same. A value of less than 100 means
that the price for the product is below average,
indicating a budget-priced product; whereas a value
greater than 100 means that the price for the
product is above average, indicating a premium-
priced product.
Calculation: Ave Price / Ave Price for the Total
Product *100.

In some case, terms like “Ave, LP, YA, PP or +/-“ can be added into distribution facts. Refer to the
“Commonly used abbreviations” for more details.

REMARKED

Price Index (PI) is usually used for divide products into different price groups, in more details:
Price Segment
Economy Mainstream Premium
PI PI<=80 80<PI<=120 PI>120
This classified range is Nielsen normal standard but can be adjusted based on client’s definition.
When using this kind of fact, we need to be careful about the market and target product. In more
details, price index is calculated based one average price of our product, price of target product (means
the product that we would like to compare to) and market of target product (whether it is the same as
our product or it is total market)
Price per Pack is collected at store at lowest price. It shows the retail selling price to consumer and the
real price that consumer has to pay for one product. Price per Pack can only be used for SKU, not
brand/manufacturer as different pack sizes have different price per pack and one brand/manufacturer
also have different pack sizes so if we use price per pack for brand/manufacturer, it does not reflect the
real price.

40
Ave price is not collected at store but is calculated based on value and volume sales. Therefore, it shows
the average selling price and can be used for any product levels (either SKU or brand/manufacturer, etc.)

FACTS IN USAGE

Link with RMS facts

Consumer support/Retailer support vs. Price
Using facts consumer support/retailer support and price can give us some hypotheses about the impact of
price on consumer/retailer’s decision, whether they are impacting by high price or not. However, to come
to the final answer, we need to deep dive more and use explorer to classify stores into different group with
different price gap then evaluate performance in each specific group.
Price vs. Volume Sales
To identify the impact of price on volume sales, we can use many methodologies, such as comparing data
trend of price and sales, data trend of price of different products, data trend of price growth and sales
growth and correlation. For correlation, below is how to calculate it:
Calculation
If correlation from -1 to (-0.4) → Negative impact
If correlation from +0.4 to 1 → Positive impact
If correlation from -0.4 to 0.4 → Cannot conclude

In example below, correlation of the impact is -0.8 imply that volume sale and price are moving in reversed
direction. If price increase then volume sale will be decreased.

41
Real analyses (refer to Pathfinder - PFD)
Price and sales
Price Index – Relative price sensitivity
Price versus volume growth
Target the right price
Manage portfolio by price segment
Piano price chart
Price compliance

42
SFA Facts 
Distribution Stock

Merchandising

Effectiveness

NOTE: SFA facts are named as how clients often refer them to and
may be updated later

43
 Distribution 
DEFINITION

Product/POSM Availability

The percentage of successfully audited stores having product/POSM available in the selling area. In SFA
fact, the product/ POSM is available only when it’s visible to the field auditor.

Calculation:

Product/POSM Number of stores having product/POSM available in selling area

X 100
Availability = Total number of successfully audited stores

Example:

- In the audit period, field auditor visits 10 stores successfully

- There are 4 stores having brand A visible at the selling area

- Availability of brand A is 40% (4/10 stores)

RELATED FACTS

Number of Items available at store shows the number of items available at one store at one moment. In
SFA’s projects, manufacturers mainly check the availability of certain items, not all portfolio, basing on
this information, manufacturers can evaluate if all of their Must Have Items visible or not to have action
plan by store level

44
 REMARKED

Availability fact can only be used for separated product and separated markets, not for
summing/totaling by products or summing markets.

In case of summing period, should use the fact should be calculated by average

FACTS IN USAGE

Link with SFA facts

Product/POSM Availability vs. Merchandising Effectiveness

Product/POSM Merchandising Implication

Availability Effectiveness

More product/POSM available in the selling area and more of

+ +
them are well merchandised to follow merchandising KPIs from
manufacturer
More product/POSM available in the selling area, but less of
+ -
them are well merchandised to follow merchandising KPIs from
manufacturer
Despite less product/POSM is available in the selling area, most
- +
of them are well merchandised to follow merchandising KPIs
from manufacturer
Manufacturer should pay attention because less product/POSM
- -
is available in the selling area, less of them are not well
merchandised to follow merchandising KPIs from manufacturer

Product/POSM Availability in Direct Stores vs. In-direct Stores

45
Product/POSM Availability may be broken down into 2 groups: Direct Stores and In-direct Stores

(*) Direct stores are stores served directly by sales man of the manufacturer
(**) In-direct stores are stores handling products from the manufacturer but not served directly
by sales of that manufacturer

Link with RMS facts

Product Availability vs. Numeric In-Stock Distribution

In most of the cases, client will compare Product Availability in Trade Dimensions with the distribution
level of that product in RMS data and may find a difference. In these cases, there are some steps
required to make a comparison:

- Ensure the store types selected in both RMS and Trade Dimension data are equivalent. Mostly,
Trade Dimensions covers more store types than RMS data does
- Instead looking at Numeric Total Stock Distribution, Numeric In-Stock Distribution should be
applied as only products in selling area are checked in SFA data
- Standard Error is also a reason for the gap
- The methodologies of RMS and SFA are different, minor gap in distribution level should be
accepted

46
 Stock 

DEFINITION

Average Visible Stock Per Store

The average of visible stock in the selling area per stores that field auditor can count in stores having
product available

Calculation:

Average Visible Stock Per Total visible stock in selling area counted
X 100
Store = Total stores having product available

Example:

- In a period, there are 4 stores having brand A available in selling area

- Total visible stock of brand A in these stores are 60 units

- Average Visible Stock Per Store will be 15 units (60/4)

47
 RELATED FACTS

Share of Visible Stock (Share of Visible Inventory - SOVI)

Share of Visible Stock is the contribution of the visible stock of selected products to total visible stock in
the selling area in the same category

Total visible stock of selected product in selling area

SOVI = X 100
Total number of visible stock in the selling area (same category)

Example:

- In the selling area, field auditor counts 30 units of visible stock for brand A and 40 units for brand B and
30 units for the other brands in the same category in selling area

- SOVI of brand A will be 30% (30/(30+40+30))

Cold SOVI

Cold SOVI is the contribution of the visible stock of selected products to total visible stock in the coolers
in the selling area in the same category

Total visible stock of selected product in coolers

Cold SOVI = X 100
Total number of visible stock in the coolers (same category)

Example:

- In the first cooler in the selling area, field auditor counts 30 units of visible stock for brand A and 40
units for brand B and 30 units for the other brands in the same category

- In the second cooler in the selling area, field auditor counts 20 units of visible stock for brand A and 30
units for brand B and 50 units for the other brands in the same category

- Cold SOVI of brand A will be 25% ((30+20)/(30+40+30+20+30+50))

48
Warm SOVI/ Ambient SOVI

Share of Visible Stock is the contribution of the visible stock of selected products to total visible stock in
the selling area in the same category, except the product in the coolers

Total visible stock of selected product in selling area (excl. product in coolers)
Warm SOVI = X 100
Total number of visible stock in the selling area (excl. product in coolers)

Example:

- In the total selling area, field auditor counts 30 units of visible stock for brand A and 40 units for brand
B and 30 units for the other brands in the same category. Only in the cooler, field auditor counts 10 units
of visible stock for brand A and 30 units for brand B and 20 units for the other brands

- Warm SOVI/ Ambient SOVI of brand A will be 40% (30-10)/(30+40+30-10-30-20)

SOVI = Cold SOVI + Warm SOVI/Ambient SOVI

Average Facing Per Store (mostly apply to specific display area)

The average of facing in the specific area per stores that field auditor can count in stores having product
available

Calculation:

Total facing in specific displayed area counted

Average Facing Per Store = X 100
Total stores having product available

49
Example:

- In a period, there are 4 stores having brand A available in selling area

- Total facing of brand A in the displayed area in these stores are 60 facings

- Average Facing Per Store will be 15 facings (60/4)

Share of Facing

Share of Facing is the contribution of the facing of selected products to total facing of the same category
in specific displayed area

Total facing of selected product in specific displayed area

Share of Facing = X 100
Total facing of the same category in specific displayed area

Example:

- In the displayed shelf, field auditor counts 30 facings for brand A and 40 facings for brand B and 30
facings for the other brands in the same category

- Share of Facing of brand A will be 30% (30/(30+40+30))

REMARKED

Normally stock and facing are counted when the products are visible to auditors

These above facts can be calculated at different level or market

SOVI and Share of Display can be calculated only for handler

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 FACTS IN USAGE

Link with SFA facts

Average Visible Stock per Store vs. SOVI

Average Visible SOVI Implication

Stock per Store

The visible stock in selling area is pushed more than previous

+ +
period and pushed more than competitors
The visible stock in selling area is pushed more than previous
+ -
period but pushed less than competitors
The visible stock in selling area decreases in comparison with
- +
previous period while competitors decrease more visible
stock
The visible stock in selling area decreases in comparison with
- -
previous period while competitors push more visible stock

Link with RMS facts

SOVI/ Share of Display vs. Volume Share/ Volume Share/ Vol. SPPD or Volume Share in Handler

SOVI/ Share of Volume Share/ Implication

Display Vol. SPPD or
Volume Share in
Handler

- If SOVI/ Share of Display (in Handler) increases before

+ +
Volume Share/Vol. SPPD/Volume Share in Handler
increases → SOVI/ Share of Display makes positive impact
on shoppers’ decision to buy the product
- If SOVI/ Share of Display (in Handler) increases after
Volume Share/Vol. SPPD/Volume Share in Handler

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 increases → The product is relatively sold more, so that
retailer display it more to meet the consumers’ demand
Visible stock or facing is not effective on shopper’s purchase
+ -
decision, off-take even declines in spite of SOVI/ Share of
Display increases. It may be due to shopper’s pre-store
decision making → Need consumer study to confirm
Consumer support still increase despite of SOVI/ Share of
- +
Display declines → Need to increase SOVI/ Share of Display
to utilize good support.
- If SOVI/ Share of Display (in handler) declines before
- -
Volume Share/Vol. SPPD/Volume Share in Handler declines
→ SOVI/ Share of Display causes negative impact on
shoppers’ decision to buy the product. Need program to
recover visible stock/ Facing right away.
- If SOVI/ Share of Display (in handler) increases after
Volume Share/Vol. SPPD/Volume Share in Handler
increases → The product is relatively sold less than other
products, so that retailer display it less. Need to prioritize
on recovering consumer support before push visible stock/
Facing back.

Notes: As most of stores in NSO projects are big stores, it will be better to compare with RA
data in big stores by using Explorer

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 
Merchandising
Effectiveness

DEFINITION

Position (Hot zone)

Position (Hot zone) indicates if the product/ POSM located at the good place within a store or not. Good
position (Hot zone) means that the product/ POSM must locate at store front or selling area where
consumer can see and catch it easily

Calculation:

Number of stores having product/POSM located in good position

Position (Hot zone) = X 100
Total number of stores having product/ POSM available

Example:

- There are 10 stores having brand A available

- Within these 10 stores, there are 8 stores having brand A located in good position

- Position (Hot zone) of brand A is 80% (8/10)

Quality

Quality indicates if the product/ POSM is in proper status or not

Calculation:

Number of stores having product/POSM located in proper status

Quality = X 100
Total number of stores having product/ POSM available

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Example:

- There are 10 stores having brand A available

- Within these 10 stores, there are 8 stores having brand A located in proper status

- Quality of brand A is 80% (8/10)

Full-face

Full-face indicates if shoppers can see full-face of the POSM or not and if there is anything covering the
POSM or not (usually more than 75% the face of POSM)

Calculation:

Number of stores having POSM located uncovered

Full-face = X 100
Total number of stores having POSM available
Example:

- There are 10 stores having POSM A available

- Within these 10 stores, there are 8 stores having POSM A uncovered by anything

- Full-face of POSM A is 80% (8/10)

Lighting

Lighting indicates if the light of the POSM is turn on in the dark condition or not

Calculation:

Number of stores having POSM’s light turned on

Lighting = X 100
Total number of stores having POSM available
Example:

- There are 10 stores having POSM A available

- Within these 10 stores, there are 8 stores having POSM’s light turned on

- Lighting of POSM A is 80% (8/10)

Working (Normally Working only applied for Cooler)

Working indicates if the POSM (Cooler) is working or not

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Calculation:

Number of stores having POSM working

Working = X 100
Total number of stores having POSM available

Example:

- There are 10 stores having POSM A available

- Within these 10 stores, there are 8 stores having POSM working

- Working of POSM A is 80% (8/10)

Purity (Normally Purity applied for display tool such as Cooler, Rack, Cabinet, Hanger, …)

Purity indicates if there is any product out of our products located in our Cooler or our Rack or not

Calculation:

Number of stores having POSM purity

Purity = X 100
Total number of stores having POSM available
Example:

- There are 10 stores having POSM A available

- Within these 10 stores, there are 8 stores having no other products out of our product in the POSM A

- Purity of POSM A is 80% (8/10)

Planogram Compliance

Planogram Compliance indicates the percentage of stores which meet the Planogram standard defined
by the manufacturer

Calculation:

Number of stores meeting planogram

Planogram Compliance = X 100
Total number of stores successfully audited

Example:

- There are 10 stores audited successfully

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- Within these 10 stores, there are 6 stores which meet the planogram standard provided by
manufacturer

- Planogram Compliance is 60% (8/10)

Store Compliance

The score that the store get to follow all KPIs defined by manufacturer (normally KPIs include different
facts such as Availability, Stock, Facing, Planogram, …). The maximum score for 1 store is 100 score

Store Compliance Rate

Average of Store Compliance in total stores successfully audited

Calculation:

Total Score of Total stores audited successfully

Store Compliance Rate = X 100
Total number of stores successfully audited
Perfect Store

The Perfect Store is store passing all KPIs defined by manufacturer (normally KPIs include different facts
such as Availability, Stock, Facing, Planogram). If the store misses any KPI, it will be not Perfect Store

Perfect Store Rate

Average of Perfect Store in total stores successfully audited

Calculation:

Perfect Store Rate = Number of Perfect Stores X 100

Total number of stores successfully audited

REMARKED
These above facts can be calculated at different level or market

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 FACTS IN USAGE

Link with SFA facts

Product/POSM Availability vs. Merchandising Effectiveness

Numeric Merchandising Implication

Product/POSM Effectiveness
Availability

More product/POSM available in the selling area and more of them

+ +
are well merchandised to follow merchandising KPIs from
manufacturer
More product/POSM available in the selling area, but less of them
+ -
are well merchandised to follow merchandising KPIs from
manufacturer
Despite less product/POSM is available in the selling area, most of
- +
them are well merchandised to follow merchandising KPIs from
manufacturer
Manufacturer should pay attention because less product/POSM is
- -
available in the selling area, less of them are not well merchandised
to follow merchandising KPIs from manufacturer

Link with RMS facts

Store Compliance Rate/ Perfect Store Rate vs. Volume Sales/ Volume S.P.P.D

Trend of Store Compliance Rate/ Perfect Store Rate will be calculated correlation with Volume Sales/
Volume S.P.P.D (try to use the equal channels and market). If the correlation is from 0.6* or more, it can be
concluded that manufacturer can leverage In-store Excellent Execution to gain Sales/ Off-take. If the
correlation is less than 0.6, no implication is concluded

(*) For reference only:

If correlation from -1 to (-0.4) → Negative impact

If correlation from +0.4 to 1 → Positive impact

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If correlation from -0.4 to 0.4 → Cannot conclude

Notes: As most of stores in NSO projects are big stores, it will be better to compare between
Numeric Product Availability and Numeric Distribution in big stores by using Explorer

THE END

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