Let’s break down some Nielsen metrics that are core to our FMCG game. To make it relatable, let’s talk about biscuits – everyone’s favorite tea-time companion in India.
Imagine a market with multiple biscuit brands battling it out on supermarket shelves. Here’s how these metrics would apply:
1️⃣ Market Share:
This tells us how much of the total biscuit market belongs to a specific brand.
• Case Study: If the total biscuit sales in a city are ₹1 crore a month and our hero brand, Bharat Biscuits, sells ₹20 lakh worth, their market share is 20% (₹20L/₹1Cr).
2️⃣ Share Among Handlers (SAH):
This shows the market share of your brand only among stores that stock your biscuits.
• Case Study: Out of 1,000 stores in the city, Bharat Biscuits is available in 300. If these 300 stores generate ₹40 lakh in total biscuit sales, and Bharat Biscuits contributes ₹20 lakh, their SAH is 50% (₹20L/₹40L).
3️⃣ Numeric Distribution (ND):
This measures the percentage of stores stocking your brand compared to all stores in the market.
• Case Study: Out of 1,000 stores, Bharat Biscuits is available in 300. Their Numeric Distribution is 30% (300/1,000).
4️⃣ Weighted Distribution (WD):
This measures the sales potential of the stores stocking your brand. It’s about being present in stores where customers actually buy biscuits.
• Case Study: Out of the 1,000 stores, 200 premium stores contribute 70% of total biscuit sales (₹70 lakh). If Bharat Biscuits is available in all these premium stores, their Weighted Distribution is 70%.
Why Do These Metrics Matter?
Let’s say Bharat Biscuits wants to grow. Should they:
• Focus on increasing ND by entering more stores (even those with low sales)?
• Or aim to boost WD by targeting high-sales stores?
The choice depends on their strategy – go broad or go deep?
Final Takeaway:
In biscuits (and FMCG), it’s not just about being everywhere (ND); it’s about being where it matters most (WD). Market Share and SAH then tell you how well you’re performing in these stores.
Remember, just like you wouldn’t settle for a soggy biscuit, don’t settle for just “presence” in stores. Aim for the right shelves, at the right places, at the right time!
What’s your go-to strategy for distribution wins? Let’s discuss!
FMCG SalesStrategy NielsenMetrics IndianFMCG
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