Measuring SKU performance beyond distribution breadth

This research investigates the relationship between distribution breadth and market share for stock-keeping units (SKUs) by replicating the Reibstein-Farris (RF) model across seven product categories. It further examines the influence of individual SKUs' product- and distribution-related characteristics on deviations from expected market share performance. The findings confirm the validity of the convex, increasing relationship between distribution breadth and market share, and also reveal that both product- and distribution-related SKU characteristics can affect the above- or below-average market share deviation from the RF model. An SKU’s pack size, brand type, presence across retail chains, share of different store sizes and sales consistency across different store sizes have the strongest relative effect on market share. Regardless of a brand’s size or rank in the market, small and big brands have the opportunity to gain additional market share by strategically accommodating product features and distribution tactics.