Money, as is often quoted, is the fuel that keeps a business going. And the income derived from sales, is the prime source of money for the business. It is therefore, vitally important for a company that its sales remain buoyant. Which is why companies constantly track and report their primary, secondary and retail sales.
Sales is the outcome of supply and demand, and it needs to be, therefore, tracked and analysed through a suite of metrics that relate to these fundamental components that drive the market.
As can be seen from the list of contents, this chapter covers the analysis and diagnosis of sales and distribution, in detail. It is devoted to addressing five key managerial objectives — building distribution network, targeting the right channels and chains, optimizing assortment, securing retailer support and managing stocks in trade.
A wide array of metrics are reviewed to address these priorities, including measures for stock and distribution, metrics for depth of sales such as share in handlers, rate of sales, cash rate of sale and rate of gross profits. The chapter also covers a host of techniques and metrics for evaluation of assortment including average number of items stocked, stock turns, portfolio analysis and fragmentation analysis.