ABOUT RETAIL AUDIT
In order to calculate Numeric Distribution of the product in the group of markets we can use the following formula (for any product):
Numeric Distribution (group of N markets) = (Numeric Distribution in market 1 * Universe of market 1 + …+ Numeric Distribution market N * Universe of market N ) ÷
(Universe of market 1 + … + Universe of market N)
Example: We need to calculate Numeric Distribution of Product X in two cities (City #1 and City #2)
| City #1 | City #2 |
Sales Volume of Product Х, liters | 100 000 | 350 000 |
Average Sales per store Product Х, liters | 50 | 70 |
Numeric Distribution Product Х | 20% | 40% |
Universe (City #1) = (100 000 ÷ 50) ÷ 20% = 10 000
Universe (City #2) = (350 000 ÷ 70) ÷ 40% = 12 500
Numeric Distribution Product X (Cities #1+#2) = (20%*10 000 + 40%*12 500) ÷ (10 000 +12 500) = 7 000÷22 500 =31,1%
Above formula can be also used to calculate Numeric Distribution in one market if we know its value in the group of markets and other markets from the groups.
Example: We have information about Numeric Distribution of Product X in Country #1 and Region #1 separately and need to calculate Numeric Distribution of Product X in territory of Country #1 without Region #1.
| Country #1 | Region #1 |
Sales Volume of Product Х, liters | 450 000 | 300 000 |
Average Sales per store Product Х, liters | 60 | 150 |
Numeric Distribution Product Х | 20% | 25% |
Universe (Country #1) = (450 000 ÷ 60) ÷ 20% = 37 500
Universe (Region #1) = (300 000 ÷ 150) ÷ 25% = 8 000
Numeric Distribution of Product X (Country #1 without Region #1) = (20%*37 500 - 25%*8 000) ÷ (37 500 -8 000) = 5 500/29 500 =18,6%
Important note: It's not possible to aggregate Numeric Distribution of two (or more) different products within one market based on reported data, request to be sent to Retail Audit agency.