PERF RMANCE 04 - The Performance Portal - Ernst & Young

The distribution equity effect
The assessment of the client’s distribution
equity, however, revealed key areas which
seemed to explain the reasons behind the
underperformance.
1. Network strategy
Mapping the quality of the distribution
chain with market share revealed a
mismatch in the nature and type of dealers
deployed in specific markets. For example,
“ While only partway
through
implementation,
the client
witnessed a 50%
increase in its
market share.”
some high-performing dealers had been
allocated less attractive markets (see
Figure 5a and 5b).
In order to improve strategic deployment, a
detailed review was required of the client’s
existing network, with implementation
plans for each category of dealer (see
Figure 6).
Figure 5a. Mapping districts in MP based on market
potential vale and “cost to serve”
Figure 5b. Mapping of districts in MP based on quality of network
presence
22
21
25
23
24
Chambal
26 27
38
Malwa 1
20
32
28
2
2
9 13 17 19
9
29 37
33 33
4
CMP 18
14
30
40
5
7 10
6
34
36
15
31
16
35
8
11
12
39
EMP
Excellent Good Decent Poor Dealer present and
above threshold sales
Dealer present and
below threshold sales
Dealer with less than
4 billing in 6 months
Vacant territory