All Commodity Volume (ACV)
Summary: All Commodity Volume (ACV) is the annual total store volume for a given geography.
Your go-to spot for CPG terms you might not know but probably should.
Summary: All Commodity Volume (ACV) is the annual total store volume for a given geography.
Assortment is the CPG product mix a retailer stocks and sells.
These items have a high probability of being delisted by a retailer during their next line review.
Average price is the weighted average of non-promoted and promoted prices.
Base price is the estimated average non-promoted price across all stores, not just those stores that are not running a promotion.
Best in Class items have the highest combination of sales, sales growth and sales per point of distribution versus all items in the category.
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.
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.
Retailers (also known as buyers) employ category management teams and/or category managers to oversee categories of their stores.
Large format retail stores that typically sell larger packages, at a lower equivalized price, and require customers to pay a membership fee.
A small format retail business that sells everyday and immediate consumption items, sometimes as part of a gas station.
NielsenIQ defines county type by size, location and other demographic markers to create meaningful categories for CPG data.
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.
In the CPG/FMCG industry, most of the time "CPG company" refers to CPG manufacturers.
CPG marketing is distinct from marketing in other industries in a few important ways.
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.
This is the difference between a products promoted price and non-promoted price calculated as 1 - (promoted price / non-promoted price).
This is the number of weeks when a given product was on an in-store display outside of the everyday shelf.
Distribution is made up of all the SKUs your brand offers multiplied by each store selling.
A small format store selling General Merchandise and Grocery products typically in smaller packages at discounted price, but not necessarily just a dollar.
The average spend per household (HH) for product buyers within a given geography and time period.
The average price per unit for a given product is known as dollar spend per unit.
Dollar at risk measures the amount of a product's sales that are at near-term risk of being delisted by a retailer.
$/TDP (sales per distribution point, also known as velocity) measures the sales per point of distribution for a given product.
The amount a shopper spends on a given product per product trip is known as dollars per trip.
Items that have been discontinued or removed from distribution in a given geography.
Measures the volumetric impact from a price change holding all other variables constant.
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.
These are shoppers that buy in the category at least twice and are exclusively buying one brand.
These are buyers that have increased their purchasing in the latest period in a given geography versus the prior period.
This measures the amount of support given to a product in a given geography versus that product's share of sales in that geography.
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.
This is the number of weeks when a given product was in the Circular/Leaflet/Flyer (Feature).
Households that switch from flavor to flavor in a given category.
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.
NielsenIQ divides the US into 4 geographic regions: East, South, Central and West.
Purchase Frequency measures the purchase cycle of a product and gives you an indication of how often people are buying the product.
A store primarily focused on selling food and consumable products.
The categorization of shoppers by frequency of purchase help CPG manufacturers better identify retail and marketing tactics that work (and those that don't).
Hurdle rate is a measure of the threshold that a retailer uses when determining which products to carry.
The sales above baseline (lift) sold for every week of promotion activity.
The net amount of volume that a brand would gain when the product was added to the shelf.
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.
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.
The amount of dollars spent on a product by shoppers of a retailer, outside of that retailer.
This is a proprietary segmentation that classifies households into a group with other like households based on their demographics and purchase behavior.
A speciality store that sells primarily Alcohol including Beer, Wine and Spirits.
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.
Geographic regions built around key cities, including their suburbs, to help understand differences in performance across the country.
This is the percent of sales that a given product represents of a given product hierarchy level.
A large format retailer that sells a large quantity of different grocery and general merchandise products to a large number of shoppers.
Stores typically located on military bases that sell products to active and retired military personnel.
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.
A classification of households based on their change in purchase behavior on a given product across two time periods.
The specific language used to communicate a product's promoted price.
The percent change in sales for a given category and time period versus the same time period year ago.
This means dollars of lift divided by dollars spent on the promotion. The higher the efficiency rate, the more productive trade promotion.
The percent of total volume (Promoted Volume/Total Volume) sold with a price reduction and/or feature/display support.
The percent change in sales for a given product and time period versus the same time period year ago.
This measures the percentage of stores in the universe that carry a particular product.
Measures the number of unique buyers that a product contributes to the category that do not buy another less incremental product.
A speciality store that sells products primarily targeted to Pets. NielsenIQ uniquely offers data from neighborhood pet retailers.
This uses price elasticity to quantify the expected volume change due to the proposed price change.
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.
Indicates how a product is priced when compared to the category average for a market.
The percent of volume that moves at or below the price of the product in the category.
A key or "hot" price point that drives a greater response from shoppers versus what would have been expected.
The average price per unit charged for a given product when on promotion.
The amount of volume sold at a price reduction and/or with the presence of Feature/Display support.
Incremental activity during a promotion outside of just the price discount designed to draw attention to the promotion.
Optimizing Promotion Timing is an often over-looked component of setting an optimal promotion strategy.
The proportion of promotional sales that are incremental or beyond what are are expected to sell on a given week.
This is the decomposition of total volume in what drives shoppers to buy CPG products.
NielsenIQ uses what's known as a "hierarchy" to categorize products into the relevant department, supercategory, category, subcategory and more.
Retail data analytics is an umbrella term for a whole host of business intelligence that helps CPG manufacturers sell more.
Summary: Key Performance Indicators (KPIs) help consumer packaged goods (CPG) manufacturers measure their effectiveness and progress towards achieving their growth goals.
This identifies the retailers that a given product are carried in, and the percent of total market sales sold by those retailers.
These are buyers who shop a given category at least twice and spend more than 65% of their category dollars in a single retailer.
The number of retailers per household that a shopper visits for a given product.
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.
This refers to state geographies with either Total Grocery or Total FMCG Retail sales as noted in the market label.
Identifies the stores whose shopper demographic profile most closely match the demographic consumers of a given product.
This refers to volume sold on promotion that would have sold at full regular price had the promotion not been run.
The volumetric impact of crossing a key consumer price point (threshold).
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.
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).
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.
CPG manufacturers and retailers follow a schedule that dictates their annual activities.
Trade efficiency measures how much promotional lift is associated with each $ spent marking down an item on promotion.
Trial & Repeat are used to measure the initial adoption and ongoing viability of a new product.
The number of product units bought per product trip.
Velocity is the measure of sales per distribution point. Use this measure to tell retailers how you will perform with an increase in distribution.