A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Welcome to the CPG Dictionary.

Your go-to spot for CPG terms you might not know but probably should.

a

All Commodity Volume (ACV)

Summary: All Commodity Volume (ACV) is the annual total store volume for a given geography.

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Assortment

Assortment is the CPG product mix a retailer stocks and sells.

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At-risk items

These items have a high probability of being delisted by a retailer during their next line review.

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Average price

Average price is the weighted average of non-promoted and promoted prices.

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b

Base price

Base price is the estimated average non-promoted price across all stores, not just those stores that are not running a promotion.

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Best in class ranking

Best in Class items have the highest combination of sales, sales growth and sales per point of distribution versus all items in the category.

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Brand development index (BDI)

BDI or Brand development index measures the percent of sales for a product in a given market versus the percent of the US population in that market.

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c

Category development index (CDI)

CDI or Category Development Index measures the percentage of sales for a category in a given market versus the percentage of the US population in that market.

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Category management

Retailers (also known as buyers) employ category management teams and/or category managers to oversee categories of their stores.

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Club

Large format retail stores that typically sell larger packages, at a lower equivalized price, and require customers to pay a membership fee.

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Convenience

A small format retail business that sells everyday and immediate consumption items, sometimes as part of a gas station.

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County sizes

NielsenIQ defines county type by size, location and other demographic markers to create meaningful categories for CPG data.

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CPG company

A consumer product good is similar to a fast-moving consumer good in that it encompasses a range of verticals that are sold for relatively low price points.

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CPG manufacturing

In the CPG/FMCG industry, most of the time "CPG company" refers to CPG manufacturers.

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CPG marketing

CPG marketing is distinct from marketing in other industries in a few important ways.

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d

Demand index

This measures the expected sales of a product in a given geography based on the demographic fit of that product's shoppers with the shoppers of the given geography.

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Depth of discount

This is the difference between a products promoted price and non-promoted price calculated as 1 - (promoted price / non-promoted price).

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Display weeks

This is the number of weeks when a given product was on an in-store display outside of the everyday shelf.

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Distribution

Distribution is made up of all the SKUs your brand offers multiplied by each store selling.

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Dollar

A small format store selling General Merchandise and Grocery products typically in smaller packages at discounted price, but not necessarily just a dollar.

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Dollar per HH

The average spend per household (HH) for product buyers within a given geography and time period.

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Dollar spend per unit

The average price per unit for a given product is known as dollar spend per unit.

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Dollars at risk

Dollar at risk measures the amount of a product's sales that are at near-term risk of being delisted by a retailer.

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Dollars per TDP (velocity)

$/TDP (sales per distribution point, also known as velocity) measures the sales per point of distribution for a given product.

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Dollars per trip

The amount a shopper spends on a given product per product trip is known as dollars per trip.

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Dropped items

Items that have been discontinued or removed from distribution in a given geography.

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e

Elasticity

Measures the volumetric impact from a price change holding all other variables constant.

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Everyday Low Price (EDLP)

EDLP or everyday low price is a pricing strategy where either a retailer or a product is limited to no promotions and uses their trade funds to offer a low price throughout the year.

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Exclusive buyers

These are shoppers that buy in the category at least twice and are exclusively buying one brand.

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Expanded category buyers

These are buyers that have increased their purchasing in the latest period in a given geography versus the prior period.

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f

Fair share of geography

This measures the amount of support given to a product in a given geography versus that product's share of sales in that geography.

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Feature and display weeks

The number of weeks when a given product was on both Feature and Display at the same time. Retailers will often place items that were in the Feature on a Display to remind shoppers of the savings when they are in-store.

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Feature weeks

This is the number of weeks when a given product was in the Circular/Leaflet/Flyer (Feature).

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Flavor seekers

Households that switch from flavor to flavor in a given category.

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FMCG (Fast moving consumer goods)

FMCG are products that are sold quickly and at relatively low cost. Examples include non-durable goods such as soft drinks, toiletries, over-the-counter drugs, and many other consumable products.

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FMCG regions

 NielsenIQ divides the US into 4 geographic regions: East, South, Central and West.

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Frequency

Purchase Frequency measures the purchase cycle of a product and gives you an indication of how often people are buying the product.

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g

Grocery

A store primarily focused on selling food and consumable products.

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h

Heavy, medium and light shoppers

The categorization of shoppers by frequency of purchase help CPG manufacturers better identify retail and marketing tactics that work (and those that don't).

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Hurdle rate

Hurdle rate is a measure of the threshold that a retailer uses when determining which products to carry.

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i

Incremental $ lift per week of support

The sales above baseline (lift) sold for every week of promotion activity.

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Incremental to brand

The net amount of volume that a brand would gain when the product was added to the shelf.

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Incremental to category

The amount of volume that will be lost from the category if an item were to be delisted or the amount of volume that a category would grow by if a product were added.

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Incremental Volume

Incremental sales volume measures the increase in sales during a promotion.

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Items per store

Items per store is a good measure of the breadth of your portfolio carried in each store and can help you find instances where retailers are not carrying a full assortment of your product.

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l

Leakage

The amount of dollars spent on a product by shoppers of a retailer, outside of that retailer.

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Lifestage

This is a proprietary segmentation that classifies households into a group with other like households based on their demographics and purchase behavior.

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Liquor

A speciality store that sells primarily Alcohol including Beer, Wine and Spirits.

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Loyal shoppers

These are shoppers who buy in a given category 2 or more times and spend more than 65% of their category sales on one brand.

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m

Major markets

Geographic regions built around key cities, including their suburbs, to help understand differences in performance across the country.

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Market share

This is the percent of sales that a given product represents of a given product hierarchy level.

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Mass

A large format retailer that sells a large quantity of different grocery and general merchandise products to a large number of shoppers.

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Military

Stores typically located on military bases that sell products to active and retired military personnel.

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n

New category buyers

These are buyers who purchased the category in the latest period in a given geography but did not purchase the category in the prior period in the same geography.

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New, lost and retained shoppers

A classification of households based on their change in purchase behavior on a given product across two time periods.

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o

Offer communication

The specific language used to communicate a product's promoted price.

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p

Percent category growth

The percent change in sales for a given category and time period versus the same time period year ago.

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Percent incremental

This means dollars of lift divided by dollars spent on the promotion. The higher the efficiency rate, the more productive trade promotion.

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Percent promoted volume

The percent of total volume (Promoted Volume/Total Volume) sold with a price reduction and/or feature/display support.

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Percent sales change

The percent change in sales for a given product and time period versus the same time period year ago.

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Percent stores selling

This measures the percentage of stores in the universe that carry a particular product.

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Percent unduplicated category buyers

Measures the number of unique buyers that a product contributes to the category that do not buy another less incremental product.

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Pet

A speciality store that sells products primarily targeted to Pets. NielsenIQ uniquely offers data from neighborhood pet retailers.

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Price change impact

This uses price elasticity to quantify the expected volume change due to the proposed price change.

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Price gap

This is simply the difference in price between a pair of products. Price gap is often compared across brands for similar products as a Private Label items versus the equivalent branded item.

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Price index to category average

Indicates how a product is priced when compared to the category average for a market.

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Price percentile

The percent of volume that moves at or below the price of the product in the category.

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Price threshold

A key or "hot" price point that drives a greater response from shoppers versus what would have been expected.

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Promoted price

The average price per unit charged for a given product when on promotion.

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Promoted volume

The amount of volume sold at a price reduction and/or with the presence of Feature/Display support.

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Promotion support

Incremental activity during a promotion outside of just the price discount designed to draw attention to the promotion.

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Promotion timing

Optimizing Promotion Timing is an often over-looked component of setting an optimal promotion strategy.

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Promotional lift

The proportion of promotional sales that are incremental or beyond what are are expected to sell on a given week.

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Purchase drivers

This is the decomposition of total volume in what drives shoppers to buy CPG products.

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r

Retail category

NielsenIQ uses what's known as a "hierarchy" to categorize products into the relevant department, supercategory, category, subcategory and more.

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Retail data analytics

Retail data analytics is an umbrella term for a whole host of business intelligence that helps CPG manufacturers sell more.

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Retail KPI

Key Performance Indicators (KPIs) help consumer packaged goods (CPG) manufacturers measure their effectiveness and progress towards achieving their growth goals.

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Retailer coverage

This identifies the retailers that a given product are carried in, and the percent of total market sales sold by those retailers.

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Retailer loyals

These are buyers who shop a given category at least twice and spend more than 65% of their category dollars in a single retailer.

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Retailers per household (HH)

The number of retailers per household that a shopper visits for a given product.

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s

Speed to market

Use this measure to help identify the retailers that are leaning into innovation in your category the most and target them for your new product launches.

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Stateline

This refers to state geographies with either Total Grocery or Total FMCG Retail sales as noted in the market label.

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Store best fit

Identifies the stores whose shopper demographic profile most closely match the demographic consumers of a given product.

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Subsidized (non-incremental)

This refers to volume sold on promotion that would have sold at full regular price had the promotion not been run.

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t

Threshold impact

The volumetric impact of crossing a key consumer price point (threshold).

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Total distribution points (TDP)

Summary: TDP looks at how many stores a particular item is in and the sales of those stores to identify the reach of the item.

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Total FMCG retailers

NielsenIQ's most comprehensive market, representing over $900B in retail sales, including all brick and mortar volume from retailers that sell predominantly fast moving consumer goods (FMCG).

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Total price reduction (TPR)

TPRs are used by brands and retailers to entice shoppers to buy more of a product or to try a new product they would not have normally bought.

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Trade calendar

CPG manufacturers and retailers follow a schedule that dictates their annual activities.

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Trade efficiency

Trade efficiency measures how much promotional lift is associated with each $ spent marking down an item on promotion.

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Trial and repeat

Trial & Repeat are used to measure the initial adoption and ongoing viability of a new product.

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u

Units per trip

The number of product units bought per product trip.

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v

Velocity ($/TDP)

Velocity is the measure of sales per distribution point. Use this measure to tell retailers how you will perform with an increase in distribution.

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