What is Width of Distribution???

Distribution channel width is measured by the number of different entities available for providing the same distribution function (as a distributor, wholesaler or retailer) at different stages in a distribution channel

  • Width of Distribution – No. of sales points the product or service is available against total sales points in the region.

For Example A Brand X width of distribution in a city with 5000 FMCG outlets would be in how many outlets the Brand X product is present. If it is present in 4500 outlets, its width of distribution for that geography would be 90%.

With the advent of new POS with e-commerce sites, the entire rule of the gap has changed.

Parameters of Width of Distribution:

    1. Visibility of the product – More outlets stocking will result in more people seeing the product and hence more the chances of the product being recalled and thereby sold.
    2. Channel commitment to sell the product – More quantity stocked will increase the pressure on the retail POS to quickly liquidate the product and earn a profit.
    3. The other parameter to measure is the Depth of Distribution. This signifies the range of SKUs present in the distribution channel of the brand.