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Application of Network Analysis for FMCG Distribution Channels

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Models, Algorithms, and Technologies for Network Analysis (NET 2016)

Part of the book series: Springer Proceedings in Mathematics & Statistics ((PROMS,volume 197))

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Abstract

The paper presents the approach for multidimensional analysis of marketing tactics of the companies employing network tools. The research suggests omni-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, and door to door). The comparison is grounded on measuring pairwise distance between nodes in eight-dimensional space. Pairwise distance measured by Euclidean 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 16 fast moving consumer goods (FMCG) distributing companies from direct selling industry.

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Acknowledgements

The study has been funded by the Russian Academic Excellence Project ‘5-100’.

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Correspondence to Nadezda Kolesnik .

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Kolesnik, N., Kuskova, V., Tretyak, O. (2017). Application of Network Analysis for FMCG Distribution Channels. In: Kalyagin, V., Nikolaev, A., Pardalos, P., Prokopyev, O. (eds) Models, Algorithms, and Technologies for Network Analysis. NET 2016. Springer Proceedings in Mathematics & Statistics, vol 197. Springer, Cham. https://doi.org/10.1007/978-3-319-56829-4_16

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