The Consumer Packaged Goods (CPG) industry operates in a competitive environment where understanding key terms and metrics is essential for success. Whether you're a retailer, supplier, marketer, or analyst, the language of CPG provides the foundation for decision-making, strategy development, and performance evaluation. This glossary is designed to serve as a comprehensive reference, covering essential terminology used across sales, marketing, merchandising, logistics, and analytics. It aims to clarify concepts, standardize definitions, and help professionals navigate the industry's complexities.
Retail 101 Glossary Index:
A
All Commodity Volume (ACV): Measures the total retail dollar sales for an entire store across all products and categories, providing a snapshot of a retailer's size or reach.
% ACV Distribution: The percentage of stores where a product is available, weighted by the stores' total dollar sales.
% ACV with Merchandising: The percentage of stores with merchandising support (e.g., displays, features) weighted by ACV.
Absolute Change (Abs Chg): The numerical change in a variable (e.g., sales, distribution) from one time period to another.
Absolute Discount: The difference between a product’s regular price and its sale price.
Absolute-Minimum Pricing: The lowest price at which a product can be sold, often set by regulation or company policy.
Advertising Allowance: Funds provided by manufacturers to retailers to advertise their products.
Any Promotion: Stores with any merchandising activity, such as price reductions, displays, or features.
AOC (All Outlet Combined): Measures total market sales across all retail channels, including brick-and-mortar and e-commerce.
Attribute: Features or characteristics that differentiate products, such as size, packaging, or flavor.
Average Items Carried (AIC): The average number of unique items a retailer carries in a category or brand.
Average Items Selling (AIS): The average number of items sold within a category or brand.
Average Price: The total sales dollars divided by the total units or volume sold.
B
Base Price: The non-promotional price of a product.
Base Sales: Sales that would occur without any promotional support.
Balanced Features: Promotional strategy pairing high- and low-margin items to optimize profit.
Banner: A retail chain or division under a parent company, often identified by branding.
BOGO (Buy One, Get One): A promotion offering a free or discounted item with purchase.
Buying Committee: A group of decision-makers evaluating products for retail placement.
Buying Rate: The average dollar amount purchased per household over a set period.
C
Case Code (UPC): The unique code identifying products for inventory and sales tracking.
Category Analysis: Evaluation of a category’s performance, identifying opportunities and challenges.
Category Pricing: Setting prices for all items within a category based on strategy.
Channel of Distribution: The path products take from production to consumer purchase.
Circular: Printed or digital advertising highlighting promotions.
Competitive Retailer Marketing Area (CRMA): A retailer’s operational geography.
Consumer Promotion: Marketing efforts targeting shoppers to drive specific actions.
Convenience Channel (C-Store): Stores offering limited stock and quick-service products, such as gas stations.
Cross-Merchandising: Displaying complementary products together to boost sales.
D
Deal Pack: Special product packaging for promotions.
Direct Buyer: Purchases directly from manufacturers, bypassing wholesalers.
Display: Temporary promotional placement, often on endcaps or freestanding units.
Display Execution: The percentage of time a display coincides with additional features.
Dollar Sales: Total revenue from product sales, calculated by multiplying units sold by the average price.
E
Early Bird Allowance: Incentives for retailers to order promotional items in advance.
Equivalized (EQ) Sales: A standard measure of volume, such as pounds or ounces, for comparison.
Electronic Retailing (E-Tailing): Selling products through online platforms.
F
FDMx: Food, Drug, Mass channels excluding Walmart.
Feature: Advertised promotions in circulars or flyers.
Field Representative: Manufacturer’s agents assisting with in-store execution.
Forward Buy: Stocking up on promotional items to increase profit margins.
G
Generic Brand: Products without branding, often sold at lower prices.
Giveaway: Free products or samples offered with purchase.
H
High-Low Pricing: Pricing strategy involving high regular prices and frequent discounts.
I
Incremental Sales: Sales above the base level, often attributed to promotions.
L
Lift: The percentage increase in sales due to promotional activity.
M
Market Share: A brand’s sales as a percentage of total category sales.
Merchandising Condition: Methods used to promote products, such as displays and price reductions.
P
Point of Sale (POS): The location and process where transactions occur, capturing sales data.
R
Reset: Rearranging shelves or displays to accommodate new items or improve layouts.
Retail Channels: Various types of stores or platforms where products are sold.
T
Temporary Price Reduction (TPR): A short-term price discount.
Trade Promotion: Manufacturer-funded retail promotions to increase sales.
V
Velocity: The rate at which a product sells relative to its distribution.
W
Warehouse: Facilities storing products before they are distributed to retailers.
X
xAOC: Extended All Outlet Combined, including all retail channels except convenience stores.
Z
Zoning: Organizing products by store layouts or planograms.
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