SALES & DISTRIBUTION METRICS

FMCG DISTRIBUTION
Availability – Base for Distribution
Steps Involved in Retail Audit
Retail Audit

Data Analysis & Report Generation

Data Collection
Selection of panel outlets
Analysis of census data

Census of Outlets
 Definition of a Handler
A Handler is defined as a retailer who has either
the stock (opening or closing) or has purchased
the brand in either fortnight in the month.

Brand Segment
Handler Handler
 Distribution measures

No. of brand handlers

Numeric Distribution = -----------------------------------------------  100
for a brand Total segment (industry) handlers

Sales vol. of the brand handlers

Weighted Distribution = ---------------------------------------------  100
for a brand Sales volume of the segment handlers
(or Industry handlers)
 Num = 3/5*100 = 60% Num = 3/5*100 = 60%
Distribution - An Wtd.
Example
Wtd. = (30+100+80)/ 370 *100 = (70+100+90)/ 370 *100

Brands Total Outlet Sales

Outlets A B C D
1 10 - 20 - 30
2 - 20 20 30 70
3 20 30 30 20 100
4 30 - 10 40 80
5 - 40 40 10 90
Total Brand Sales 60 90 120 100 370
 Out of Stock

No. of OOS retailers for the brand

Numeric OOS = ----------------------------------------------  100
Total brand handlers

Avg. sales of the OOS retailers for the brand

Weighted OOS = -----------------------------------------------------  100
Avg. sales of the brand handlers
 OOS - An Example

Brands Total Outlet Sales

Outlets A B C D
1 10 - 20 - 30
2 - 20 20 30 70
3 20 30 30 20 100
4 30 - 10 40 80
5 - 40 40 10 90
Total Brand Sales 60 90 120 100 370
 Pipeline Stocks
Pipeline stocks is the number of days that the stock of a
brand would last with the retailers at the current rate of
sales for the brand.

Stock of brand among handlers

Pipeline Stocks = ----------------------------------------------  30
Total brand sales
 Facings

No. of facings for the SKU in the month

Share of Facings = ------------------------------------------------------  100
(SOF) No. of facings across all SKUs in the month

SOF for the SKU in the month

SOF Index = ----------------------------------------------------------  100
Share of market for the SKU in the month
 Level of Facings

LOF implies that at the current rate of daily sales for

the SKU, “x” no. of days’ stock is showing as facings.

No. of facings (packs) for the SKU in the month

LOF = -------------------------------------------------------------------  100
Avg. daily sales of the SKU (in packs) in the month
 Freshness
No. of outlets reporting stock for current month (M) for
the SKU in the month
Freshness = -----------------------------------------------------------------------  100
(Numeric) Total number of outlets reporting freshness for the SKU in
the month

Sales volume of the outlets reporting stock for current

month (M) for the SKU in the month
Freshness = -----------------------------------------------------------------------  100
(Wtd) Total volume of the outlets reporting freshness for the SKU
in the month
RETURN ON INVESTMENT