An indicator of the distribution of services or goods in a certain territory or, taking into account the distribution channel. There are two main types of distribution: weighted and numerical (quantitative). If earlier the manufacturer's market came to the fore, that is, companies producing goods set their own conditions, now the consumer market is in the first place. The place of shopping and their convenience becomes more important. Which, in turn, affects the cost of the product.

Weighted and Numerical Distribution

Weighted, or quality, distribution is a measure that reflects the share of sales of a product in a certain category. To calculate the weighted distribution, only those outlets that have at least one SKU of the product are taken into account.

Numerical, or quantitative, distribution is an indicator that reflects the percentage of outlets in which at least one SKU of products is presented.

Today, the place where a certain product is presented is of particular importance. After all, products of the same category are almost the same, and their cost and packaging. We must not forget that without distribution, the buyer will not be able to purchase the product physically. Moreover, if it is wrong, much fewer people will buy the product than if it is correct.

Distribution of goods is necessary in order for the products to reach the end consumer from the manufacturer. As a rule, marketing channels are used for this purpose: transport, logistics, warehousing and retail. Unexpected moves to this stage can contribute to a significant breakthrough in sales.

Product positioning

Many companies to enter large supermarkets, are ready to sell their products almost at a loss. Positioning obliges them to cooperate with such stores, that is, physical distribution is carried out. What is it and how does it depend on positioning? How and where the product will be presented depends on what the indicator of physical distribution will be. What will it be: selective, intensive or exclusive. For example, representatives of companies with a reputable and fashionable brand are obliged to ensure that their brand products are not sold in markets or in shopping malls consisting of small pavilions, as this affects the position of this brand.

Multilevel Marketing

This approach to sales, like multi-level marketing, allows you to achieve enormous turnover. But such distribution (what it is in marketing, we have already defined) occupies a special position in the minds of consumers. On the one hand, many people with this position are deprived of the opportunity to purchase products sold only through the chosen distribution system in ordinary stores. But still, the loss of this part target audience compensated by attracting additional buyers, who, thanks to this method of distribution, get the opportunity to arrange entire presentations to promote the product.

It should be noted that, in principle, mediation is not approved by the public, and not only in Russia, but also in almost all countries of the world. It is believed that intermediaries earn on the air, and because of them, the final cost of the goods is several times higher than

Perhaps it is worth starting with the fact that manufacturers and distributors understand quantitative and qualitative distribution differently. Yes, it is not surprising. Let's take a closer look at how both businesses calculate their metrics and how.

Quantitative (numerical) shows how many outlets work with the manufacturer's product. But the supplier evaluates how many outlets the product is on the shelf, and the distributor - how many outlets he shipped the manufacturer's goods per month.

If we talk about the calculation of the quantitativedistribution, then the formula for the manufacturer looks like this:

Numerical distribution = The number of outlets where the product was at the time of the audit (storecheck) / The total number of outlets that were checked.

For example, a product availability audit was conducted on 100 outlets, and 75 of them were manufacturer's goods. So, quantitative distribution is 75%. This indicator is average and has a large error, since the audit was carried out on a small number of outlets in the territory of the distributor.

The formula for calculating the quantitativedistribution for the distributor looks like this:

Numerical distribution = Number of outlets where the goods were shipped for a period of one month / Total number of outlets that are in the territory.

This indicator is more realistic than the previous measurement, but it has another minus, that the goods could only be shipped at the beginning of the month, and two days later they were already sold or lying around in the warehouse of the outlet. The second thing that is not known here is how many OKBs (total customer base). Where did you get this figure, from what sources? It is best if this was done during the period of sensus (inventory) of the territory, which the distributor conducts regularly 1 time in 6-12 months. Of course, this process is very time consuming, and it is difficult to process information later on, which points were audited and which were not. And often the sensus remains in Excel with the supervisor, and it is not known whether he took these outlets into work or not.

The best solution for conducting a territory sensus with entering data into an accounting program (not Excel) is, which includes an audit unit for outlets, which works as follows. On the sales representative’s mobile device, directories are filled in for conducting a sensation: the territory tab (by geographical feature or by consumer behavior), the “segments” tab (by type of building or by specialization), as well as the “states” tab (PAKB, problematic, repurposed). A counterparty assigned to a specific outlet is also entered. In addition, the point type is entered - basic or direction, depending on the amount of generated profit. The data entered on the merchant's mobile device is automatically synchronized from 1C to the PC. And the supervisor checks the data in the accounting program, including the location of the outlet and even the state of showcases and shelves.

qualitydistribution

In the understanding of the qualitative construction of distribution (KPD) from the standpoint of the manufacturer, it is really quality distribution can be said if and only if the following three indicators are taken into account:

• 100% availability of TOP-assortment matrix on the shelf
• 100% product dominance over competitors
• 100% availability of POS-materials standards

To calculate the indicators, two parameters are introduced: the coverage ratio (KP) and the distribution ratio (KD).

KP: shows the share of retail outlets that have been audited and have a full standard (assortment matrix, shelf share, POS-materials).

CD: shows the proportion of the presence of standard attributes in retail outlets.

Quantitative distribution, while characterizing the scale of the business, has the disadvantage that the storecheck analysis is done on paper and is not automated at all. In addition, as already mentioned, in this method of evaluation it is possible to audit only a large number retail outlets, which does not allow for a comprehensive picture of the region. The best solution for the analysis of the supply structure is IT-KPD with the merchandising block included in it. With it, you will see the full coverage of the situation in the following indicators:

• data on the area where the goods are located (zone A, B or C);
• availability of POS materials;
• the number of SKUs on the shelf at the time of the audit.

From the point of view of the distributor, the main indicator of the built quality distribution is the indicator of system outlets (CTT). Of the entire active client base, only those with a systemic level of 75% are considered really working. If, for example, it is planned to make 4 visits to a retail outlet in a month, and only one is applied, then the level of consistency is 25%. Naturally, you need to strive to ensure that at least 3 out of 4 visits are made. This indicator is also recorded in

At first glance, a simple question: “How to evaluate the quantitative and qualitative distribution? » But, asking it to a representative of a manufacturing and distribution company, you will probably receive completely different evaluation criteria.

In our practice, when carrying out work to improve the work of distribution, we often have to agree on criteria for assessing quantitative and qualitative distribution. And we often come across the fact that the distributor evaluates the quantity and quality of work with retail, and the manufacturer evaluates the quantity and quality of work with the shelf. Those. the distributor determines his quantitative distribution by the number of outlets where the goods were shipped, and the manufacturer determines the number of outlets where his products are present.

If a distributor evaluates quality distribution by the shipment of key items at retail, then a manufacturer evaluates it by the presence of key items on the retail shelf. Of course, in recent times manufacturer and distributor quality distribution is determined by the presence of key positions on the shelf (high competition affects FMCG market, where the struggle is not for the outlet, but for a place in the outlet). But even here, manufacturers often do not correctly evaluate quality distribution. In practice, manufacturers evaluate the quality of the distributor's work in terms of high-quality distribution on the basis of a store check, making a cut by territory. This cut, as a rule, includes outlets with which the distributor works and does not work, which does not give an accurate assessment of the distributor's work in terms of quality, because the distributor evaluates the quality distribution precisely for those outlets to which he ships the goods.

In fact, a distributor may not develop quantitative distribution, but it may achieve high rates of qualitative distribution. Hence all the inaccuracies in the search for the potential for sales growth - either to look for it in an increase in quantitative distribution, or in a qualitative one.

It is our deep conviction that the absence common standards distribution work leads not only to disagreements between production and distribution companies, but also sows a seed of discord between marketing and distribution departments, forms a distorted picture of reality in the eyes of the owner.
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There are no uniform evaluation criteria, no reliable system control, there is no way to track how distribution works. But in all these “nos” there is a huge growth potential for the company.

To evaluate the work of your distribution, you can use our expert assessment. At the request of distribution and manufacturing companies, we carry out diagnostics of the distribution system in order to find the answer to the question: “What qualitative changes in the work of distribution will allow us to get an increase in shipments of goods to retail? ".

Distribution (distribution) in marketing - complex logistics activities, consisting in the promotion of products from manufacturers to end consumers, the organization of distribution of products in the segment, in the territory, the organization of 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:
• long (multilevel distribution channels),
• short (usually with one intermediary);
• on interaction with the buyer:
• direct (direct sale to the buyer),
• indirect (resale to other intermediaries).
• 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.

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) seeks to control the distribution channels of the distributor and manage the process of distribution and promotion in this channel, as well as analyze the causes of failures in distribution, 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 a product passes only to end customer. The transfer of ownership of the goods from the manufacturer (supplier) to the distributor makes the latter a 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 members, if their participation is 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 monitoring of distribution indicators, inventory, prevents overstocking, the need for price protection and the return of goods 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 is the final achievement of the specified indicators of qualitative distribution and quantitative distribution with minimal cost(efforts, time and means) to complete the task.

The concept of "distribution" comes from the English word « distribution" which literally means distribution, location of objects.

Considering this definition in the context of business processes, it is worth noting its narrower use. Yes, for business. distribution is the effective distribution of goods sold throughout the distribution network . A competent distribution policy is characterized by the use various tools, fully covering sales network.

Importance of distribution for business:

Distribution is constituent element concept of the marketing mix, better known as the 4Ps. This fact emphasizes the critical importance of this process for any company that wants to succeed in building a successful marketing policy. Distribution is also a key part of any marketing program. Described relationship "product - pricing - distribution - communication" once again emphasizes the importance of the process of competently building distribution processes within the company.

What is distribution? Definition

Distribution is a clear and effective organization of logistics, supply chain management, physical delivery of goods to points of sale, merchandising, etc.

All the processes described above, properly adjusted, contribute to minimizing the costs associated with the presentation of the product. potential consumers, and also provide for the competent positioning of goods on store shelves. This term can be considered as a combination of the process setting up the entire sales process and the geographical distribution of the product in the markets . Thus, distribution covers the entire process of delivering goods from the seller to the final buyer.

In understanding the essence of distribution, the concept of a distribution channel plays an important role. This term is used to describe the entire chain of firms that are involved in the process of delivering a product to the final consumer. It includes the total number of all firms through which a product passes before it is purchased. This includes various intermediary firms, sales offices, sales agents, etc.

Distribution types

Due to the large number of different characteristics of both the concept of distribution itself and the concepts associated with it (distribution channel), modern marketing discipline distinguishes several types of distribution. Below are the classification properties and distribution types that correspond to these properties.

• Interaction with the end customer - direct and indirect.

In the first case, the product is sold by the supplier to the final buyer, in the second case, the goods are sold to intermediaries.

• Distribution channel length – short and long.

For short distribution, work with one intermediary is typical, while for a long one, a multi-level organization of distribution is provided.

• Geographic feature – local, national, transnational.

Local distribution is aimed at regional impact, national - within the state. Transnational distribution covers a separate region.

Sometimes you will come across phrases such as active and passive distribution . They do not carry a conceptual load. The use of these definitions is only a subjective attitude towards the activities of the intermediary on the part of the supplier. Active distribution provides for effective, clear and coordinated actions of the intermediary, while passive distribution reflects the intermediary's less zealous desire to sell the received batch of goods.

Ownership of the product being sold

It is also worth paying special attention to ownership in the process of product movement through the distribution channel. In the classical sense of distribution ownership passes only to the final consumer during the purchase process . If, moving through the distribution channel, any of the intermediaries acquires ownership of the goods, we are talking about the acquisition of goods as a wholesale buyer. In this case, this process cannot be described as the movement of a product through a distribution channel.

Integrated distribution

The essence of integrated distribution is to create close ties between the supplier and the distributor. In this case, it is possible to provide a certain independence in decision-making of distributors, while following the strategy developed jointly with the supplier. At the same time, in the ideal case, the entire work of the distribution channel is controlled by an intercompany management team, which only directs and coordinates the actions of distributors.

Distribution efficiency

The effectiveness of the use of distribution tools is reflected in the following characteristics:

• the speed of delivery of goods to the final consumer,
• degree of customer satisfaction with the presented product,
• information awareness of the buyer of the characteristics of the purchased goods.

Proper implementation of the distribution process is characterized by a number of costs, however, the benefits derived from effective organization this process, covers all costs incurred. First of all, this is achieved due to the greater coverage of the target audience, the presentation of the product on the set various markets and, as a result, a multiple increase in sales.