The relationship between distribution and market share in different channels, regions and product lines in an emerging market

Abstract

Despite the interest and potential, many companies are seeking to identify effective strategies in an emerging market environment. The marketing literature has developed studies applied to this type of market in order to fill some gaps. Specifically, consumer packaged goods companies have the challenge of managing their existing products and launch new ones offered to consumers through different retail formats and regions. Because retail environment in emerging markets is less concentrated than in developed economies, understanding the pattern of marketing variables is of importance, including patterns according to different regions and channels. Specifically, the variable of distribution has received greater attention from researchers. This is also due to its sales elasticity. Some evidences show that the effect of an increase in distribution on sales is higher than the effect of an increase in advertising and promotion. In this project, we propose to study the relationship between distribution and market share in Brazil. We also propose to contrast this relationship according to four different retail formats in two different regions. Data for this study spans four years and include more than 170 brands and 1,000 stock-keeping units (SKUs). (AU)