Distribution index formula. What types of distribution exist and what is it? How a distribution network is built

Nestle, MARS, MTS, MegaFon and many other well-known companies are investing heavily in maintaining thousands of jobs related to distribution. What is meant by it? Why is it so important to business? What methods does he use?

Diverse distribution

The term itself comes from English word distribution, which means distribution. This is key moment. However, its definitions vary greatly.

In accordance with the first approach, distribution is a set of marketing activities aimed at distributing goods to the widest possible range of potential buyers.

Other definitions draw attention to its analytic side. According to such views, distribution is an indicator that evaluates the promotion of a product in certain territory or through the considered distribution channel.

The types of distribution are also distinguished by the method of its construction. For example, direct sales through its own network and through intermediaries (distributors). And the last method can be divided into short with one or two links and long.

Analytical component

How to soberly assess the state of affairs in the distribution of goods? How to optimize the work of the sales department? The following indicators have been developed to evaluate sales:

Such calculations show what distribution has achieved. This allows you to identify shortcomings in the work and areas in which efforts need to be made.

Predominance of Numerical Distribution

Consider how you can apply the data obtained in the formation of a sales strategy and tactics.

For example, numerical distribution equals 80%, and the weighted one is 15%.

Judging by the figures, the goods are presented in most outlets. However, sales are relatively low. Why is this situation and what can be done? Here are some possible reasons:

    The product is present on the display, but there are no free leftovers. In such a situation, the consumer cannot buy it. Various solutions are possible: organizing a clear system of orders, taking the initiative in working with buyers, training retail sellers, training or changing sales representatives.

    Sellers don't know the product. They are not able to show its benefits to the client. Solution: holding free seminars, telephone consultations and providing visual aids.

    Poor product display. He doesn't catch the eye. By placing it in a more favorable way, you can correct the situation.

    Big competition. There are a lot of alternatives on the adjacent shelves. This requires marketing activities aimed at its individualization and brand attractiveness.

Dominance of the weighted indicator

Numerical score - 20%, weighted - 70%.

A qualitative indicator indicates that the product is clearly in demand. Where he is, he is preferred. However, it is presented only in the fifth part of the possible points. This shows both huge potential and the same lost profits. Why can this happen and what to do?

    The impossibility of covering the entire territory requires the involvement of sub-distributors.

    Insufficient number of sales agents require urgent recruitment and training.

    The inactivity of agents raises the question of their motivation and qualifications.

    Poor work with inactive clients requires control of the work of managers with this group.

It should be noted that numbers alone are not enough to determine the quality of a company's sales department. For example, chronic stock shortages on inventory can reduce quality indicator, and the distributors themselves have nothing to do with it. Analytics are conducted based on local conditions, which helps to identify realistic tasks and determines the development of distribution.

Passive and active distribution

These types of distribution show the attitude of the seller to the distribution of his goods. In the passive form, a minimum of effort is applied. The seller releases the goods on the developed conditions, and the wholesaler undertakes all the work to promote the goods.

In active distribution, the seller and the wholesaler enter into a distribution agreement, which stipulates a much closer relationship. The supplier is responsible for:

    Participation in the sale to the consumer.

    Obtaining information from the distributor and assistance in solving specific problems.

    Motivating the wholesaler and his employees with bonuses, cost compensation and awards.

    Conducting training for distributor employees helps to find customers and negotiate.

With increasing competition, it is essential to get the right organized distribution. Player sales under the old rules will steadily decline. Today, even industries that have traditionally used passive distribution (such as the banking sector) are looking for ways to reach and attract customers.

Such distribution of goods implies a well-defined relationship between the supplier and the distributor. The following aspects are usually discussed:

    The distributor is assigned the right to a monopoly in the sale in a certain territory. The supplier cannot sell its products through another channel.

    The list of SKUs is clearly specified.

    Exclusion of competitive actions of the supplier in relation to the distributor.

    Territory so that there are no disputes with the supplier or other distributors.

    Methodology for supplier control of sales processes.

By entering into such a distribution agreement, both parties benefit. The supplier gets a distributor of his products, who takes on the lion's share of the work, getting the opportunity to control the process and method of sales, and the distributor gets the opportunity to trade without competitors.

Distribution levers

When planning to cover a certain region, a company must decide on its methods. The following promotion methods can be distinguished:

    Office. Internet, phone, fax and emails managers gather a client base and negotiate. All aspects of work are subject to strict control: the number of calls, meetings, shipments.

    Business trip. Regional representatives leave the office in order to find dealers, interest them and motivate them to conduct marketing programs aimed at selling specific company products.

    Working with regional partners. Companies in this role are tasked with achieving sales volume and promotional activities.

    Regional representative permanently working in the region. It maximizes sales by coordinating local distribution systems, increasing partner numbers, controlling product breadth, identifying barriers, and planning and executing marketing programs.

    Regional office. Performs the same function as a representative. Therefore, it is necessary when the latter cannot cope with a large amount of work. In addition, it increases the rating of the promoted brand.

The company chooses its implementation method or a combination of them, based on the prevailing conditions and the tasks set.

Common Distribution Mistakes

When designing distribution activities, most companies make the same mistakes. Leadership presses on internal resource by setting sales volume for managers, number of cold calls, meetings and sales.

All this is effective to some extent, but such a system loses sight of the ultimate goal - the consumer, who feels that something is being imposed on him. For example, excessive balances towards the end of the season will pull the client to the bottom. How much will he get next season? And will he buy at all?

By developing a distribution network that is too large, a company can lose control over important metrics such as retail price, product presentation, and product quality. As a result, the product may lose its reputation and sales will fall.

Therefore, the purpose of distribution is not only the achievement of momentary goals, but also taking into account the prospects for development.

Summing up, we can say that distribution is a complex system that includes analysis and practical actions aimed at effective sales. Its improper organization significantly reduces the success of the company. In the face of growing competition, only those players who learn how to use it will be able to work modern methods fully.

Distribution (distribution) in marketing - a complex logistics activity, which consists in promoting products from manufacturers to end consumers, organizing the distribution of products in a segment, on a territory, organizing sales, pre-sales and after-sales services.

There are several perspectives on distribution- as a process on the part of the supplier and the distributor itself. For a distributor company- this is the organization of the movement of goods from the producer to the buyer and the distribution of goods in a certain territory. Distribution for product supplier is the creation of a sales management system, which is based on the management and planning of sales in various sales (sales) channels. Both views of distribution are correct.

In a broad sense, distribution is distribution. Distribution(or the place place) is one of the four marketing elements included in the marketing mix " 4P".

Distribution channel(distribution channel) - a set of all firms involved in the movement and distribution of goods (distributors, dealers, agents, retail - as a subspecies of the dealer), which assume the right to manage the goods and responsibility for the goods, help transfer ownership of the goods or services to the buyer . These are all organizations through which the goods must pass from the moment of its manufacture to the moment of sale.

Distribution Classification:

  • along the length of distribution channels:
  • on interaction with the buyer:
  • by type of distribution:
    • mass distribution,
    • selective distribution,
    • exclusive distribution;
  • geographically:
    • local distribution (regional),
    • national (within the country),
    • distribution to a geographical region (for example: "distribution to the CIS countries");
    • transnational.
  • by tasks, approximate to the product to be distributed:
    • quantitative distribution;
    • quality distribution;
    • selective (drip, point) distribution.
Quantitative Distribution– wide coverage of the segment (market), maximum presence in the segment (on the market) in terms of the number of points of sale and the number of shelves with products;

Quality distribution- maximum "long shelf" - the maximum number of SKUs of products that are simultaneously present on the shelves at points of sale. Sometimes there is a different definition - the maximum coverage of sales points of category "A" (according to the ABC analysis of gross sales).

Selective distribution– maximum presence only in those points of sale where the required sales and financial sales indicators are provided.

Integrated distribution- deviation from the classical canons of distribution, when the manufacturer (supplier) strives to control the distributor's distribution channels and manage the distribution and promotion process in this channel, as well as analyze the causes of distribution failures in order to strengthen the qualitative and quantitative indicators of distribution. Integrated distribution involves close mutual work of the supplier, distributor, dealer in the market, when the distribution management functions fall on an integrated intercompany management team (ideally).

Sometimes there is a classification of distribution "by right of ownership of the goods"– with transfer of ownership, without transfer of ownership. This classification has nothing to do with distribution, since classical distribution is a commodity and logistics activity, when the ownership of the product passes only to the final buyer. The transfer of ownership of the goods from the manufacturer (supplier) - to the distributor makes the latter wholesale buyer. In this case, in addition to the function of movement and distribution (distribution), this company assumes the responsibility of owning, disposing and managing the goods at its own discretion - as a wholesaler.

Practical steps for suppliers and distributors to create an integrated distribution:

    Reducing the number of distributors of the supplier, in order to isolate the main one from them, which allows the supplier to concentrate the efforts of management, reduce the cost of supporting the distribution channel, and the distributor, who is included in the number of the elect, significantly increase its influence in the market and the efficiency of distribution of the supplier's goods;

    There is a distribution of functions when working with the market between the supplier, distributor and marketing agency, service company, in which the supplier can sell directly to the customer, and the rest of the channel, if necessary, work as subcontractors (deliver goods, promote the brand, provide service support) .

    Integration of the supplier and distributor at the management level, information systems, which provides the supplier with continuous control over distribution indicators, inventory, prevents overstocking, the need for price protection and returns to the supplier;

    Joint production (co-location), i.e., the production of goods necessary for the formed distribution channel, which increases the influence of the distributor and supplier on the market.

Distribution system management is an effective set of business processes related to distribution. Any distribution system must take into account the possibilities of production business processes, determine the most suitable distribution channels, offer the best trading conditions. It all depends on the type and characteristics of the product being sold.

There are concepts active distribution and passive distribution. These terms have no marketing value, they only express the subjective attitude of the supplier and brand owner to the distributor engaged in the distribution of goods, or only from the position of distribution ( passive distribution) or applying significant marketing efforts to promote (push) the product through the marketing channel ( active distribution). As a result of the distribution, movement and redistribution of goods, it is not obvious, but popularity is growing - fame among the masses, but the consequence is not direct and, in many ways, popularity is the result of the owner to promote the brand.

Efficient distribution- this is the final achievement of the specified indicators of qualitative distribution and quantitative distribution with minimal costs (effort, time and money) to complete the task.


Distribution allows you to ensure prompt receipt of complete information about sales. Thus, distribution helps to create a marketing plan for the manufactured product, which ultimately leads to an increase in the profit of the enterprise.

According to dictionaries, correct form words - which in Latin means - distribute.

This word has three meanings: mathematical, linguistic and marketing.

Initially, it came to the Russian language in the meaning - to distribute, therefore, its pronunciation was appropriate - distribution. But recently such a profession as a distributor has appeared, it is because of the name of the current profession that confusion has begun in the correct pronunciation of the word.

In marketing, distribution means − logistics activities, that is, how the transfer of products from the producer to the consumer will take place.

If we analyze this activity in more detail, then this is the organization of the distribution of products to various outlets, namely, this includes:

  • Organization of efficient transportation of the product from one point to another.
  • Creation of warehouses and distribution of manufactured products in them.
  • Creation of a database indicating the following: where, what, and how much a particular product is in stock.
  • Distribution, made orders and creation of fast cargo handling.
  • Analysis of the costs of logistics activities.
  • Provision and effective management distribution infrastructure.
  • Building a communication network.

Distribution channel organization and network building

Distribution channel - a system of companies or individuals directly involved in the movement of a particular product from the manufacturer to the final consumer. Basically, channels consist of a certain size of links that are directly involved in the distribution process.

The chain includes:

  • Manufacturers- create a product that will be sent directly to the consumer.
  • Intermediaries- carry out the transfer of any manufactured item from the enterprise to the buyer.
  • Consumer- acquire the necessary item for sale from sellers.

Types of distribution channels

  • Direct. In this case, the issuing enterprise acts as a seller, since it concludes a deal with the buyer without the use of intermediaries. This usually happens when the manufacturer has its own stores, in which and sells manufactured products.
  • Indirect. This type is divided into two more subspecies: short and long distribution channels. In short chains, only one intermediary is involved, and in long chains, two or more.

Distribution types

Total Distinguish two types of distribution activities:

1. Numeric view or whatever it is called quantitative

Indicates a value that describes the percentage of points of sale selling specific products. For example, out of 1000 stores, the purchase you need is available only in a hundred of them, in this case, the numerical distribution will be equal to 10%.

Dn = number of stores that have the item divided by total amount stores available on the market and multiply by 100%.

2. Weighted or qualitative view

Used to reflect share necessary products in full volume of all purchases made, of a particular product. For example, milk in a store is sold in the amount of 50 thousand rubles a month, and milk from a certain brand is sold in the amount of 10 thousand rubles, in this case the weighted distribution will be 20%. Moreover, the number of products sold can be measured in any units.

Dn = the sum of all products sold divided by the number of sales of a certain category of goods and multiplied by 100%.

The Importance of Economic Calculation Data

Such indicators are used to create a visual picture of what is happening in the goods market. In the event that the numerical distribution decreases, this means that the number of outlets where a certain product is sold has decreased. If quality distribution has decreased, this means that a particular product has become less in demand among buyers.

Thus, having calculated both types of distribution, we can take correct solution for further steps in the production of goods.

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How to make a plan to increase sales?

To create the most effective and profitable sales plan, follow these guidelines:

  • Analysis of macroeconomic and political indicators in the goods market - predict the sales plan for the year at the end of autumn. For analysis, use information about political situation in the country in order to accurately predict various changes in the economy. First of all, it is necessary to take into account such factors as the price of oil, the level of GDP in the country, the level of production, annual sales of specific goods.
  • Analysis of the situation in a specific market - here you need to get all the information about the products you are going to sell. First of all, find out how many competitors there are in the market, then get information about the goods sold for the current year by your company and everyone else. Get information about the actions of your competitors and from the information received, draw appropriate conclusions.
  • Collection of complete information about all sales of a particular product - you need to get detailed statistics on all sold goods, find out the regions in which more goods were sold over the past few years, and you also need to compare statistics on the growth or decline in demand from buyers for this product.
  • Determine in which season the product is most popular For this we need to turn again to statistics. Check how many items were sold each month.

As soon as all the points of the current plan are completed, the necessary information about the manufactured goods will be obtained, and, therefore, an appropriate conclusion can be drawn about further actions to increase the profit of the enterprise.

One way or another, everyone who is engaged in the field of trade prays for Key Indicators Activities ( Key Performance Indicators or KPIs). These indicators can be completely different in different areas: someone has a plan in rubles, someone in tons or pieces, however, all these values ​​eventually turn into a single value that describes the successes and failures of a particular product.
Distribution is the word business prays for...

What is Distribution?

The concept of "distribution" in the field of sales describes the nature and extent of penetration of a product or service in a certain territory.

Distribution corresponds to the "PLACE" component in

Thus, all the efforts of various levels of the sales organization are a system whose task is to “saturate” all levels of consumption with their product.
Distribution allows you to describe the level of "saturation".

If you want, those who are engaged in sales are a kind of "pump" that exerts commodity pressure on the market in general and on each individual consumer in particular. This pump, through a variety of channels (wholesale, retail) delivers the product in the maximum possible volume.
The result of penetration is distribution.

In simple words, we can say this: how accessible is the product or service for the consumer to the consumer at any given time.

Distribution types.
There are two types of distribution:

  • Numerical (or quantitative) distribution(Numerical Distribution, Dn) - A value that describes the percentage of points of sale where the product is available.
    If out of 100 outlets your product is in 60, then the numerical distribution will be 60%.
  • Formula for Numerical Distribution Calculation as follows:
    Dn = number of outlets that have your product / total number of outlets on the market * 100%
  • Weighted (or quality) distribution(Net Weighted Distribution, Dw) — indicator reflecting the share of the product in the gross sales of the product group.
    If, for example, crackers are sold in a store per month for 10,000 rubles, and the brand you are interested in costs 1,000 rubles, then the weighted distribution will be 10%.
    Sales volume can be determined in other units: pieces, liters, kilograms.
  • Formula for calculating weighted distribution:
    Dw=your products sold/total category sales*100%

This indicator very easily and clearly describes the situation on the market: if the numerical distribution decreases, then this means that the product began to be sold in a smaller number of outlets, if the weighted distribution falls, then it began to be consumed less.

In addition, significant gaps in the values ​​of quantitative and qualitative distribution allow us to assess the current situation on the market and take steps to change the situation.



Example 1:
Numerical distribution - 90%, weighted - 20%.
This means that the product is available in almost all points of sale, but the sales volume leaves much to be desired. What could be the reason for such a phenomenon?

Option 1: The product is in stock in the store window, but it is chronically out of stock.
Possible reasons: incorrectly calculated order, insufficient production volume (goods are in short supply)). The culprits of the wrong order volume. as a rule, there are lazy sales representatives or negligent buyers.

Option 2: the product is in the leftovers and is on display.
Here, the reasons can be both insufficient visibility (zone C) or its complete absence, and, for example, an overpricing. The buyer either does not know that the product is in stock, or is not ready to buy at the specified price.

Example 2:
Numerical distribution - 30%, weighted - 80%.
This ratio of numbers indicates insufficient coverage of the territory: the product most likely has a high potential and is in demand by the end consumer, but there are too few places where you can buy it.

This is a signal for the development of the sales structure: either by connecting third-party sub-distributors, or by expanding the staff of sales representatives.
Also, one of the interpretations may not be enough active work teams of sales representatives with an inactive customer base.

It should be remembered that without the necessary volume of goods in the balances, high-quality distribution is impossible, especially in relation to FMCG products. The buyer will easily switch to another brand if he systematically gets into situations where he cannot buy what is in the window.

It is also extremely difficult to sell a product that is in the required volume in the warehouse, but is not on the display, especially considering high level competition for shelf space.

And where the possibilities of an ordinary sales representative are exhausted, marketing tools come to the rescue. But this is a completely different topic.

A complex indicator that reflects the true state of affairs with the distribution of products in the territory. Shows the share of product sales in the studied outlets of the total sales of the selected product group (eng. weighted distribution).

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"WEIGHTED DISTRIBUTION" in books

Sapling 4. Distribution (KP "B")

From the book Get Rich! A book for those who dared to earn a lot of money and buy a Ferrari or Lamborghini author DeMarco MJ

Sapling 4. Distribution (CP "B") By a distribution system I mean any organization or structure that delivers a product to the masses. There are hybrid models that include distribution, information and computer technology. If you invent a new

Balanced, not unlimited generosity

From the book How to Influence. New style management by Owen Joe

Balanced, not unlimited generosity The more you give, the less it is appreciated. Take, for example, Mars bars. If you give one candy bar to a child, he will be happy. He will also accept the second bar without hesitation. The greedy kids will probably beat the third candy bar. But