Your team brings you a plan for a new product, with an optimistic distribution target and a market share forecast to match. Approving it commits retailer fees before anyone knows whether those numbers are realistic. How do you check them before you sign off?
Products with wider distribution hold more market share per point of distribution.
Data chart
Number of the 37 product categories, by how market share rises across products with wider distribution: faster and faster, roughly in step, or more and more slowly.
Products with wider distribution hold disproportionately more market share in most categories, with four exceptions.
Counts from manuscript p. 10 and Table 3 (p. 23), 2003-2005: 33 categories with faster-rising share, 3 approximately in step (Diapers, Men's Fragrances, Toothbrushes), 1 with slower-rising share (Laxatives). The manuscript's printed percentage disagrees with its count; this chart uses counts.
Data chart
Number of the 37 product categories in which products within a brand show faster-rising market share at wider distribution, by the brand's rank in category market share.
Products within leading brands most often show disproportionately more share at wider distribution. The pattern is less common at lower brand ranks.
Table 6 (manuscript p. 26), 2003-2005. Each count includes categories where the brand at that rank has a statistically reliable faster-rising relationship across its products at the 95% confidence level. An uncounted category does not establish a straight relationship. Counts replace the manuscript's inconsistent percentages.
Key takeaway
The distribution and share pattern of a brand's existing products is a useful check on a new product's plan.
The study covers US grocery, drug and mass-market packaged goods from 2003-2005, excluding Wal-Mart, club, convenience, vending and private-label products. It measures associations, not profit or the gains from adding distribution.
Source
Wilbur, K. C., & Farris, P. W. (2014). Distribution and market share. Journal of Retailing, 90(2), 154–167. https://doi.org/10.1016/j.jretai.2013.08.003
Exact values behind the rounded figures: 29.3% of new products launched in 2004 failed completely by year-end.