What is Width of Distribution???
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 – In how many sales points is the product or service available with the advent of new POS with e-commerce sites, the entire rule of the gap has changed.
Parameters of Width of Distribution:
- 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.
- Channel commitment to sell the product – More quantity stocked will increase the pressure on the retail POS to quickly liquidate the product and earn profit.
- The other parameter is competition tracking.