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Level 2 · lesson 1 of 7 · about 5 minutes

Distribution: numeric and weighted

Counting stores is not the same as counting where shoppers spend.

In one line

Numeric distribution is the share of stores that stock your brand. Weighted distribution is the share of the category's sales that pass through those stores, so a big supermarket counts for more than a kiosk.

What it does

  1. Retail audits report both. Weighted distribution is also called ACV (all commodity volume) distribution in the United States.
  2. Bigger stores tend to list a brand first, so weighted distribution usually runs ahead of numeric. In Countermove a brand listed in half of a channel's stores reaches about two thirds of that channel's sales.
  3. Sales follow weighted distribution, not store counts. Thousands of small shops can add many points of numeric distribution and very little of the money.
  4. Listings are not permanent. Retailers drop slow sellers, so a listing you win has to keep earning its space.

Business and brand

Impact on the businessP&L, cash, share price

  • Losing one big retailer can cost more sales than winning hundreds of small ones adds.
  • Listing fees and trade terms are the price of shelf space; judge them on the share of category sales they open up.
  • Rate of sale (sales per point of weighted distribution) is what buyers look at when they decide whether to keep you.

Impact on the brandMemory, loyalty, pricing power

  • Physical availability is half of being bought: people who think of you still need to find you.
  • Being where heavy category shoppers buy matters most for light buyers, who will not hunt for you.
  • A brand that sells well where it is listed earns the case for the next listing.

Try it

Win or lose a retailer

Pick a retail channel and set how many of its stores list Brightwater. The engine runs four quarters with the rest of the plan unchanged.

Retail channel
0%
6,000 stores, 52.5% of category sales. Starts at 85%.
Measured over
Numeric distribution34%▼ 12.2 pts vs today
Weighted distribution31%▼ 45.6 pts vs today
  • Units sold▼ 47.1%
  • Net sales▼ 40.4%
  • Value share▼ 8.0 pts
0%25%50%75%100%0%20%40%60%80%100%WeightedNumeric

Brightwater's distribution across all retail channels, by the share of supermarkets stores that list it →. End of the first quarter.

Notice: Numeric distribution ▼ 12.2 pts, weighted ▼ 45.6 pts, units sold ▼ 47.1% in the quarter. Supermarkets is 6,000 stores with 52.5% of the category's sales, so weighted distribution moves more than numeric, and sales follow weighted.

Runs Countermove's market engine: the reference soft-drinks market, three brands, rivals holding their plans so only your change moves the result.

Sources

  • Farris, Bendle, Pfeifer & Reibstein (2010), Marketing Metrics, Wharton School Publishing: numeric, ACV and product category volume distribution
  • Reibstein & Farris (1995), Marketing Science: market share and distribution, a generalization
  • Sharp (2010), How Brands Grow, Oxford University Press: physical availability

Check itThree questions, instant answers

Question 1 of 3A brand is in 30% of stores, and those stores sell 70% of the category. Its distribution is:
Question 2 of 3Which listing usually adds more sales?
Question 3 of 3Why does weighted distribution usually run ahead of numeric?