The open question in the above case can be resolved by dividing sales regardless of outlet into a sales rate per million dollars.Īssume in a city there are two hardware retailers. A large share of sales in Des Moines may or may not be as important as having a lesser share in New York City. When dividing total sales for an outlet into ACV million dollar blocks, it allows for equivalization across inherently different sized market or retailers in size. This is the annual dollar sale for a geography in millions of dollars. In other words, ACV is the percentage of sales in all categories that are generated by the stores that stock a given brand (again, at least one SKU of that brand) (note: ACV can be expressed as a percentage or as a dollar value (total sales of stores carrying brand).Īll Commodity Volume (ACV) Distribution (%) = 100 x Total Sales of Stores Carrying Brand ($) ÷ Total Sales of All Outlets ($) Usage discussion of ACV Construction Īll-commodity volume (ACV) is a weighted measure of product availability, or distribution, based on total store sales. Purpose Īll-commodity volume measures a firm's ability to convey a product to its customers in terms of total sales among outlets carrying the brand. Balancing a firm's efforts in "push" (building and maintaining reseller and distribution support) and "pull" (generating customer demand) is an ongoing strategic concern for marketers. For marketers who sell through resellers, distribution metrics reveal a brand's percentage of market access. Often, outlets are weighted by their share of category sales or "all-commodity" sales. Distribution metrics quantify the availability of products sold through retailers, usually as a percentage of all potential outlets. The total dollar sales that go into ACV include the entire store inventory sales, rather than sales for a specific category of products – hence the term "all commodity volume."ĪCV is best related to the key marketing concept of placement ( Distribution). This measure is a ratio, and so is typically measured as a percentage (or on a scale from 0 to 100). All-commodity volume or ACV represents the total annual sales volume of retailers that can be aggregated from individual store-level up to larger geographical sets.
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