Numerical Distribution
Numeric Distribution (also called Numerical Distribution) is a key trade-sales metric that measures the percentage of your targeted retail outlets that actually stock a particular product.
Formula
Numeric Distribution = (Number of outlets carrying the product / Total number of targeted outlets) × 100%
Why It Matters
- Market Reach: Higher values indicate more shoppers have access to your SKU.
- Coverage Gaps: Identifies regions or channels requiring increased focus.
- Competitive Benchmarking: Compare your distribution against competitors or across channels (modern trade, general trade, e-commerce).
Example
If you target 1,200 outlets and 900 carry your product:
900 / 1,200 × 100% = 75%
This means a 75% numeric distribution.
Common Challenges
- Dynamic Outlet Lists: Stores open, close, or change format frequently.
- Manual Reporting: Paper or offline spreadsheets cause delays and inaccuracies.
- Verification: Without geo-stamped photos or digital signatures, figures may be unreliable.
Best Practices
- Set Clear Targets: Define monthly or quarterly distribution goals per territory.
- Capture Real-Time Data: Use mobile apps to log “Visited” and “Carried” instantly.
- Prioritize Routes: Focus visits on outlets below target distribution thresholds.
- Proof of Placement: Collect geo-tagged images or digital acknowledgments at the point of sale.
- Continuous Review: Track outlet turnover and maintain a reactivation list for lost accounts.
Key Takeaway
Treat numeric distribution as a dynamic KPI—actively monitor and manage it to ensure products are consistently available where your customers shop. This drives sales growth, improves market share, and strengthens competitive positioning.