Application of Network Analysis for FMCG Distribution Channels
The paper presents the approach for multi-dimensional analysis of marketing tactics of the companies employing network tools. The research suggests onmi-channel distribution tactic of a company as a node in eight-dimensional space. Dimensions for node location are defined by frequency of usage of eight communication channels (friends, acquaintances, telephone, home presentations, printed advertisement, internet, e-mail, door-to-door). The comparison is grounded on measuring pairwise distance between nodes in eight-dimensional space. Pairwise distance measured by Euclidian norm is used as a weight of edge between companies. The smaller the Euclidean distance, the higher is similarity. Further we employ network representation of multidimensional statistics to analyze performance and companies’ characteristic, such as product category, market share, education level and average age of distributors. Empirical implication is approved on the sample from 5694 distributors from sixteen (16) fast moving consumer goods (FMCG) distributing companies from direct selling industry.