The Complete Glossary of CPG Terms

All Commodity Volume Distribution Percentage

A measure used in the consumer packaged goods industry to assess the market presence or distribution of a particular brand or product across different retail outlets or channels.

It indicates the percentage of total sales volume within a given market or category that is covered by a specific brand or product.

All Commodity Volume Merchandising Percentage

A method of measuring the breadth of merchandising support. Typically used to evaluate merchandising conditions like feature or display.

% Discount refers to the percentage reduction or price reduction from shelf price offered on a product.

% of Stores Selling refers to the percentage of retail stores or outlets that carry and sell a particular product.

Subsidized Volume Percentage

The percent of promoted volume that would have been sold if there were no promotion, i.e. promoted volume that is also base volume.

2 for 1 or Buy one Get one free

Receive the value of two for the price of one.

Absolute Change

The process of assessing the change to a number of variables across financial years.

Absolute Discount

The monetary difference between a product’s regular sale price and the lower promotional price.

Absolute-Minimum Pricing

The absolute lowest price a product can be sold for.

AC Nielsen Company/Nielsen IQ

ACN, or Nielsen, is a syndicated data supplier, now called NielsenIQ.

Accrual

The recognition of revenues or expenses in a company's financial statements before the cash is actually received or paid. This is based on the accounting principle of matching revenues and expenses in the period in which they are incurred, regardless of when the cash transaction occurs

All Commodity Volume

A metric used in the retail industry to measure the total sales dollars for a given geography (Total, Market, Retailer) - This measurement includes all products sold by the store.

Advertising Allowance

The amount of money a manufacturer pays a retailer to advertise and promote a product or brand.

Advertising Feature

A promotional tactic in which a manufacturer’s product is featured in an advertisement, either print or digital.

Artificial Intelligence

AI involves the creation of computer systems capable of emulating human intelligence to perform a wide range of tasks. These tasks encompass various areas, including machine learning models, speech recognition, visual perception, decision-making, language translators, and more.

Average Items Carried

Refers to the average number of unique products or items that a retailer or store carries in its inventory or assortment.

Average Items Selling

Average Items Selling refers to the average number of units or quantity of products sold per specified time period.

The distribution of resources such as funds, manpower, or time towards various processes or campaigns.

Any Merchandising

Refers to any in-store merchandising activity, including features, displays, temporary price reductions, or any combination thereof.

Any Promotion

Same as any merchandising.

All Outlet Combined

Refers to the collective or aggregate data, metrics, or information encompassing all outlets or retail locations.

Annual Operating Plan

A strategic and financial plan that outlines the goals, targets, and operational activities of a business for a specific fiscal year.

Application Programming Interface

A set of routines, protocols, and tools for building software and applications.

Average Retail Price per Unit

Refers to the average price at which a single unit or item of a product is sold to consumers in a retail setting.

Average Selling Price

The average price at which a company's products or services are sold over a specific period. ASP is calculated by dividing the total revenue generated from sales by the total number of units sold

Assortment refers to the range or variety of products or items available for sale within a particular category or store. It encompasses the different options, variations, and choices offered to customers.

Refers to a specific characteristic or feature of a product.

Audits refer to systematic and independent examinations or inspections conducted to assess and verify compliance, accuracy, or adherence to established standards, procedures, or regulations.

Average Price

Refers to the mean or typical price of a product or service. It is calculated by dividing the total revenue generated from sales by the number of units or items sold.

Business-to-business

Business sells to other businesses (CPG manufacturers are B2B since they sell product to retail outlets who sell to the end consumer).

Business-to-consumer

Businesses that sell to consumers (Grocery stores are B2C, although B2C is becoming more popular for CPG manufacturers as well).

Refers to a specific brand, name, or label under which a group of stores or outlets operate.

A visual representation of data that consists of a series of parallel lines or patterns printed on products, packaging, or labels. It is used to uniquely identify and track products in a retail or supply chain environment.

Refers to the shelf price of a product before any discounts, promotions, or adjustments are applied. It represents the starting point or baseline value for pricing calculations.

Refers to the sales or revenue generated by a product or category without any promotional or seasonal factors impacting the figures.

Volume sold in the absence of a trade promotion.

Volume sold in absence of a promotion.

Business Intelligence

Set of tools and methodologies that can analyze, manage, and deliver information which is relevant to the business.

It includes reporting/query tools and dashboard same as found in analytics. BI technologies provide previous, current, and upcoming views of the business operations.

Bill of material

A list of all the components, parts, materials, and sub-assemblies required to manufacture or assemble a finished product.

Method of promotional payment where the retailer bills back to the manufacturer for the agreed promotional performance or deducts the amount they are owed from their invoice.

Buy One, Get One

A promotional offer where customers purchase one product and receive another product of the same or lesser value either for free or at a discounted price.

Buy One, Get One Free

A promotional offer where customers purchase one product and receive another product of the same or lesser value for free.

Buy One, Get One Half Off

A promotional offer where customers purchase one product at full price and receive another product of the same or lesser value at a 50% discount.

In contrast to top-down planning, bottom-up account plans start at the customer or store level. These plans are more granular and are often aggregated to form a complete picture of company strategy.

A bottom-up sales plan is a sales forecasting and planning approach that starts with individual sales representatives or smaller business units. It involves aggregating their sales projections to create an overall sales plan for the organization.

Brand agencies, also known as branding agencies or brand consultancies, are companies or firms specializing in providing strategic and creative services to help businesses develop and enhance their brand identities.

Brand detailing refers to the process of communicating and promoting a brand's value proposition, features, and benefits to potential customers or clients.

Branding is the strategic process of creating and managing a unique and distinct identity for a product, service, or company.

The break-even point is the level of sales or revenue at which total costs (fixed and variable costs) are equal to total revenue, resulting in neither profit nor loss.

A business model where a company integrates offline (brick) and online (click) presence.

A person/company that buys and sells goods or assets for others. Some CPG manufacturers employ brokers to sell their products into channels and retailers that they typically could not get into on their own.

The financial outline that predicts both the costs and expected revenues associated with various marketing, manufacturing, and sales efforts. Budgets are often segmented by quarter, product line, or promotional campaign.

Budgets and Funds refer to the financial resources allocated or set aside for specific purposes within an organization.

A Bump Chart is a common data visualization tool that displays base sales, incremental sales, and average price, effectively illustrating the "bump" in sales that occurs when prices decrease due to promotional activities.

In a business context, a buyer is an individual or entity responsible for making purchasing decisions on behalf of an organization.

A Buying Committee, also known as a Purchasing Committee or Procurement Committee, refers to a group of individuals within an organization who collectively evaluate and make purchasing decisions.

Buying Rate refers to the number of units (or dollars) of a product that a consumer typically makes over a given period.

Volume stolen from a competitive product(s) or other product(s) in a manufacturer’s product line from either new products or from promoting similar products.

For example, when Company A’s cookies are on promotion, Company B sees decline in Product B, and Company A sees decline in Product C.

Cart abandonment rate is a metric that measures the percentage of online shopping carts that are abandoned by customers without completing the purchase.

A case code is a unique identifier or label assigned to a specific case of a product for tracking and inventory management purposes.

Cash & Carry

Cash & carry is a type of wholesale trade model in which customers, typically businesses or retailers, purchase goods directly from a wholesale supplier or warehouse on a cash basis.

Cash flow refers to the movement of money into and out of a business over a specific period.

Category analysis is a process of evaluating and analyzing the performance, trends, and consumer dynamics of a specific product category within a retail environment.

Category management is a strategic approach used by retailers and consumer packaged goods companies to effectively manage and optimize product category sales and profit.

Census refers to a systematic and comprehensive collection of data or information about a specific population, group, or geographic area.

Retail chains are grouped by the type of stores they provide, typical channels are grocery, foodservice, mass, drug, dollar, natural, and club.

Cost per Increased Dollar

The cost of gaining and incremental dollar in sales.

A type of advertisement sent to a large amount of consumers and distributed in store, typically includes current sales and promotions.

Order from a website and collect from the retailer’s physical location.

An advertising allowance offered by a vendor, payable upon proof of an ad having been run.

A co-pack fee, short for co-packing fee, is a cost or charge incurred when a company outsources the production or packaging of its products to a co-packer.

A co-packer, short for co-manufacturer or contract packager, is a third-party company that specializes in manufacturing, packaging, or both, on behalf of other companies.

Cost of Goods Sold

The direct costs associated with producing and delivering a company's products or services. COGs include the cost of materials, direct labor, and overhead expenses related to the production and delivery of the product or service.

A commercial invoice is a legal document provided by a seller to a buyer that itemizes the goods or services sold.

Commercialization refers to the process of introducing a new product or service into the market and making it available for sale to customers.

Competitive analysis is the process of assessing and evaluating the strengths and weaknesses of competitors within a specific market or industry.

Refers to the changes in market dynamics caused by actions taken by competitors, like new product launches or pricing changes, and how these changes affect a company's strategic planning and operational performance.

Competitive Retailer Marketing Area

Competitive Retailer Marketing Area refers to a geographic region or market area, defined by a specific retailer, but including the retailer’s competitors.

A consumer is an individual or organization that purchases goods or services to satisfy personal needs, desires, or business requirements.

Consumer behavior refers to the study of how individuals, groups, or organizations make decisions and engage in activities related to acquiring, using, and disposing of products, services, or ideas.

Consumer goods analytics refers to the application of data analysis techniques and tools to extract insights and derive actionable information from data related to consumer goods.

A consumer goods cloud platform refers to a cloud-based software platform or solution specifically designed for the consumer goods industry.

Consumer Packaged Goods

Consumer Packaged Goods refers to products that are consumed daily by individuals or households. CPG typically includes items such as food and beverages, personal care products, household cleaning products, over-the-counter medications, and other products purchased and used on a regular basis.

Consumer promotion refers to marketing activities and strategies aimed at enticing and motivating consumers to purchase a particular product or service.

Contracted price refers to the agreed-upon price for a product or service as outlined in a contractual agreement between a buyer and a seller.

The difference between total sales revenue and total variable costs. The term is generally expressed as a percentage.

Convenience refers to the ease, comfort, and practicality offered by a product, service, or retail experience in meeting customer needs or solving problems.

Convenience Channel

A convenience channel, also known as a convenience store channel or c-store channel, refers to a specific type of retail channel that specializes in providing a wide range of convenience products and services.

Conversion rate is a metric that measures the percentage of visitors or potential customers who complete a desired action or goal, such as making a purchase, signing up for a newsletter, or filling out a form.

A voucher entitling the holder to discount a particular product.

Customer Relationship Management

Customer Relationship Management refers to the strategies, practices, and technologies used by businesses to manage and analyze interactions with their customers. CRM often also refers to the software, such as Salesforce, used to manage the above.

Cross-merchandising refers to a retail strategy where complementary or related products are displayed and promoted together to encourage additional purchases.

Cumulative Weighted Week

The reach and frequency of merchandising support is assessed over a given period of time.

Customer segmentation is the process of dividing a company's customer base into distinct groups or segments based on shared characteristics, behaviors, or demographics.

Customer Experience

The impression the company makes on its customers. This includes direct interactions with the organization’s stores and employees as well as the overall perception of the brand.

The process of aligning data from various sources (both internal and external), and transforming it into one cohesive data set.

Database Administrator

DBA is the big data term related to a role which includes capacity planning, configuration, database design, performance monitoring, migration, troubleshooting, security, backups and data recovery.

DBA is responsible for maintaining and supporting the rectitude of content and structure of a database.

Distribution Center

A Distribution Center is a facility used by companies to store, manage, and distribute their products to retailers, wholesalers, or directly to end customers.

How retailers classify products that have never sold or have been in stock for a really long time.

A deal pack refers to a promotional package or bundle offered to customers as part of a marketing or sales promotion. It typically includes multiple products or services bundled together at a discounted price or with added value.

Deductions, also known as trade deductions or trade spend deductions, are reductions in the amount owed by a customer to a supplier or manufacturer due to promotional expenses, order shorts, spoilages, etc.

Delivered pricing refers to the total cost of a product or service, including the price of the item and any associated delivery or shipping charges.

A demand forecast is an estimate or projection of the expected quantity or level of demand for a product or service over a specific period.

A demand plan is a comprehensive document or strategy that outlines how a company plans to meet anticipated customer demand for its products or services.

Depletion data captures the drawdown of product from a location, typically a distributor warehouse. Also called warehouse withdrawal or spin data.

A direct buyer is an individual or entity responsible for purchasing products directly from manufacturers or suppliers on behalf of a company.

Direct Store Delivery

Direct Store Delivery, also known as DSD, is a distribution model where manufacturers or suppliers bypass traditional distribution centers and deliver products directly to retail stores or outlets.

Discounts refer to price reductions or reductions in the cost of goods or services.

Display

Any arrangement or presentation of products that are designed to draw attention, engage customers, and drive sales. In the context of the grocery industry it is typically a secondary location away from the main shelf set.

Display execution refers to the implementation and arrangement of product displays in retail environments.

A distribution channel refers to the pathway or route through which products or services move from the manufacturer to the end consumer.

A distributor is a company or entity that purchases products from manufacturers or suppliers and resells them to retailers, other distributors, or end consumers.

Distributors' brand, also known as private label or store brand, refers to a brand that is owned or developed by a distributor or retailer rather than a manufacturer.

Measures the profitability of each additional unit (or case) sold over base, as a result of a specific promotional activity. It takes into consideration the costs and revenue associated with selling that additional unit.

Dollar sales refer to the total revenue generated from the sales of products or services, measured in monetary terms (dollars). It represents the actual amount of money generated by selling a specific product or category over a given period.

Double stacking refers to a warehousing and logistics practice in which pallets or containers are stacked vertically on top of each other to maximize storage space or transportation efficiency.

Direct to Consumer

Direct-to-Consumer refers to a business model in which companies sell their products or services directly to end consumers without involving intermediaries such as retailers or distributors.

Electronic Commerce

E-commerce, short for electronic commerce, refers to the buying and selling of goods and services over the internet or through electronic platforms.

An Early Bird Allowance is a promotional discount or incentive offered to retailers or customers who place orders or make purchases ahead of a specific deadline or early in a promotional period.

Electronic Data Interchange

Electronic Data Interchange is the computer-to-computer exchange of business documents in a standardized electronic format.

Everyday Low Price

Everyday low price refers to the long-term discounted retail price.

Electronic Retailing

Electronic retailing, also known as e-tailing or online retailing, refers to the process of selling products or services to consumers through electronic platforms such as websites, mobile apps, or other digital channels.

Electronic Point of Sale

Electronic point of sale refers to the electronic way for shoppers to pay.

Equivalized Sales

Physical volume of product sold at retail expressed in a common unit relevant to the category such as ounces or pounds. Useful when comparing products of different sizes.

Enterprise Resource Planning

A process of managing crucial day-to-day activities and other parts of business. It’s often assisted by software and technology.

Extract, Transform and Load

These three functions are combined into one tool to move them from one database to another.

A special promotion, off-price sale, show, store wide sale, or merchandise import fair.

Feature & Display

A retail merchandising event that combines feature and display on the same products, in the same stores at the same time.

First Contact Resolution

A customer service metric that measures the ability of a customer service team or contact center to address and resolve customer issues or inquiries during the initial contact with the customer.

Food/Drug/Mass

A retail market segment (see FDM), excluding Walmart.

Feature

An advertisement of a product in a printed or electronic flier.

Key Account Manager

A field representative, also known as a field sales representative or field service representative, is an individual who represents a company or organization in the field.

First-In, First-Out

An inventory management method used to track and manage the flow of goods based on their acquisition or production dates.

Fixed price refers to a set or predetermined price that remains constant and does not change regardless of market conditions, demand, or other external factors.

Fixed trade spend refers to a predetermined or fixed amount of money allocated by a manufacturer or supplier for trade promotions, incentives, or marketing activities with retailers or trade partners.

Fast Moving Consumer Goods

Products that are sold quickly and at a relatively low cost. FMCG products are typically consumed or used on a daily or frequent basis, and include items such as food and beverages, personal care products, cleaning supplies, and household goods.

Free On Board

FOB destination is a pricing term indicating the buyer is responsible for all costs associated with the delivery of the goods to the buyer's designated destination. The seller is responsible for the cost of the goods, but not for the cost of delivering the goods to the buyer's destination.

Forecasting refers to the process of estimating or predicting future events, trends, or outcomes based on historical data, statistical models, and relevant information.

When a retailer purchases more than they expect the consumer sell-through to be during a promotion.

A standardized classification system used in the transportation industry to categorize and determine the shipping rates for different types of freight.

A freight forwarder is a company or intermediary that specializes in arranging and coordinating the transportation of goods on behalf of shippers or importers.

Frequent Shopper Program

A frequent shopper program, also known as a loyalty program or rewards program, is a marketing initiative implemented by retailers or businesses to encourage customer loyalty and repeat purchases.

Free Standing Display Units

Standalone displays that present specific available products. They’re used in the retail industry to influence buying patterns.

Free Standing Insert

A free standing insert is a manufacturer coupon, included in a printed coupon insert, for use at retail, typically found in Sunday newspapers.

Full Truck Load

A mode of transportation where the entire capacity of a truck is utilized by a single shipment or cargo.

Fulfillment refers to the process of completing an order or request for goods or services.

This term refers to identifying shortfalls between targeted and actual performance metrics and implementing strategies to close those gaps, whether they relate to sales, market share, or other KPIs.

A generic brand, also known as a store brand or private label, refers to a product that is marketed and sold under the retailer's own brand name rather than a well-known or national brand.

Global Food Safety Initiative

A worldwide collaborative initiative that aims to enhance food safety and promote harmonization of food safety standards across the global food industry.

A promotional activity or event where items or prizes are given away for free to participants.

Gross Margin

A financial metric that measures the profitability of a company's products or services.

It is calculated by subtracting the cost of goods sold (COGS) from the revenue generated by sales and expressing the result as a percentage of revenue.

Gross profit margin %, also known as gross margin percentage, is a financial metric that indicates the percentage of revenue that remains after deducting the cost of goods sold (COGS).

Reveals the efficiency with which a company translates its sales into gross profit. It's calculated as the difference between sales revenue and the cost of goods sold, expressed as a percentage.

Gross revenue refers to the total revenue generated by a company from the sale of goods or services before deducting any costs, expenses, or taxes.

Group advertising refers to a marketing strategy where multiple brands or companies collaborate to share advertising costs, resources, or promotional activities.

Gross Sales Value

Gross Sales Value is a financial metric that represents the total value of goods or services sold or transacted on a platform or marketplace.

Harmonized System Code

An internationally standardized system of product classification used for customs and trade purposes.

Revenue generated from incremental sales due to a specific activity (like a marketing campaign or promotion), minus the costs associated with that activity.

Incremental sales refer to the additional or extra sales generated as a result of a specific marketing activity, promotion, or initiative. Incremental sales in POS syndicated data specifically refers to the extra sales generated by in-store trade promotion events.

The additional revenue generate by product sales due to promotional activity either in-store or online

The additional quantity or units of a product sold due to promotional activity either in-store or online

Incremental sales lift, often expressed as an amount or percentage, measures the increase in sales directly attributable to a specific marketing campaign, promotion, or intervention.

Indirect selling refers to a sales approach where products or services are sold through intermediaries or third-party channels rather than directly to end customers.

Institutional and industrial buyers are entities or organizations that purchase goods or services for business or non-consumer purposes.

Institutional buyers include organizations such as government agencies, educational institutions, and healthcare facilities that procure products or services to fulfill their specific needs.

Inventory management is the process of overseeing and controlling the flow, storage, and availability of goods or products within a company or organization.

The number of times during a given period that the average inventory on hand is sold and replaced.

Invoices are commercial documents that provide a detailed record of a transaction between a seller and a buyer.

Information Resources, Inc

IRI is a syndicated data supplier.

Items Per Hour is a productivity metric used in various industries, particularly in logistics, warehousing, and retail operations.

Joint Business Planning

Joint Business Planning is a collaborative approach to business planning and strategy development between two or more companies, typically a supplier and a retailer.

Pricing method of marketing merchandise for resale to an amount that is double the wholesale price or cost of the product (50% gross margin on the sale of the product).

Kitting is a process in which individual items or components are gathered, assembled, and packaged together as a single kit or set.

Key Performance Indicator

A measurable metric used to track and evaluate the performance of an individual, team, department, or organization in achieving specific objectives or goals.

The recognition of financial obligations that are expected but have not yet been billed. These could be pending rebates, incentives, or discounts that will have to be paid out but have not yet been accounted for.

The percentage of increased sales, calculated by dividing baseline sales by incremental sales, and multiplying the result by 100.

Line extension refers to the introduction of new products or variations within an existing product line or brand.

Line trial is a marketing strategy that involves offering samples, trials, or promotions of a product line to encourage consumers to try and experience the products.

List price is the price at which the manufacturer will sell an item to a retailer or distributor. List prices will be marked up by distributors and retailers when setting a retail price.

An item that’s sold below cost, or at a loss, in an effort to attract new customers. Retailers that use loss leaders rely on the fact that once customers are in the door, they buy other items that do turn a profit.

Less Than Truckload

Refers to a mode of transportation where shipments do not require the use of a full truckload but are combined with other shipments to fill a truck.

Margin control refers to the process of monitoring and managing the profit margins of products or services.

Market research is the process of collecting and analyzing data and information about a specific market, industry, or target audience.

The increase or decrease in a brand or product's share of sales within a specific market or category over a defined period, often compared to competitors. It provides insight into the relative performance of a brand in its category.

The marketing mix refers to the combination of marketing tactics and strategies that a company uses to promote its products or services.

A master carton, also known as a shipping carton or case pack, is a larger container used for shipping and storing multiple individual units or products.

Manufacturer Chargeback

Charges sent from distributors to manufacturers, calculated on the number of product cases shipped to a retailer.

Multidimensional Database

A kind of database which is optimized for OLAP (Online Analytical Processing) applications and data warehousing. MDB can be easily created by using the input of relational database.

The breadth and depth of the products carried by retailers. Also known as product mix.

A merchandiser is a person or role responsible for planning, managing, and promoting the sale of products or goods within a retail or wholesale setting.

Merchandising refers to the activities and strategies undertaken to promote and sell products effectively.

Merchandising condition refers to the specific type of merchandising tactic.

Merchandising efficiency refers to the effectiveness of a merchandising activity to produce incremental sales.

Minimum Order Quantity

Minimum Order Quantity is the lowest quantity of a product that a supplier or manufacturer is willing to sell in a single order.

Machine Learning

Machine learning, a component of artificial intelligence, is a computer science field that makes use of statistical strategies to provide the facility to “learn” with data on the computer. Machine learning is used for exploiting the opportunities hidden in big data.

Multi-Outlet

Refers to a data set that combines sales data from multiple retail channels or outlets. It provides a comprehensive view of sales performance across various retail channels, such as grocery stores, drugstores, mass merchandisers, and convenience stores.

The natural channel refers to a specific distribution channel or retail segment that specializes in natural, organic, and health-focused products.

Represents the total revenue earned by a company after deducting any discounts, returns, allowances, and sales-related expenses.

Net Invoice Value

Refers to the total amount of an invoice after deducting any discounts, allowances, or rebates.

Indicates the number of consumers who purchased a brand's product for the first time during a given period. This is typically expressed as an increase in household penetration (% of households purchasing)

Non-additive fact refers to a type of data or measure in business intelligence and data analytics that cannot be aggregated or calculated by simple addition.

The selling price of a product after all trade promotions, discounts, and allowances have been subtracted. It provides a clearer picture of the actual revenue realized from a product sale after accounting for promotional costs.

Non-promoted sales refer to the volume or revenue generated by a product or brand without any specific promotional activities or marketing interventions.

Net Promoter Score

A customer loyalty and satisfaction metric used to assess the likelihood of customers recommending a company, product, or service to others.

A nutritional sheet, also known as a nutrition facts sheet or nutrition label, provides detailed information about the nutritional content of a food or beverage product.

Off Invoice

Refers to a type of trade promotion or discount that is applied directly to the invoice or sales transaction at the time of purchase.

Online Analytic Processing

It is the process by which analysis of multidimensional data is done by using three operators – drill-down, consolidation, and slice and dice.

On-Time Delivery

Refers to the ability to deliver goods or services to customers within the agreed-upon or expected timeframe. It is a measure of reliability and fulfillment of delivery commitments.

Out of Stock

An item that is authorized to sell in a store and has shelf space, but no product is available.

Operating profit margin % is a financial metric that indicates the profitability of a company's core operations.

Operations refer to the activities and processes involved in running and managing a business.

Order capture, also known as order acquisition, is the process of collecting and recording customer orders or purchase requests.

Order fulfillment refers to the complete process of receiving, processing, and delivering customer orders.

Order predictions, also known as demand predictions or order forecasting, are estimates or projections of future customer demand for products or services.

Overpulls, in the context of inventory management or production planning, refers to the situation where more products or materials are pulled from inventory or produced than what is actually needed.

Profit & Loss

A financial statement that summarizes a company's revenues, costs, and expenses over a specific period of time, typically a quarter or a fiscal year.

Packaging refers to the materials and design used to enclose, protect, and present products.

Payments & collection refers to the processes and activities involved in receiving and processing payments from customers.

A perpetual inventory system is a method of tracking and managing inventory in real-time. It relies on technology, such as barcode scanning or RFID (radio frequency identification), to continuously monitor inventory levels, stock movements, and product information.

A pitch deck is a presentation or slide deck used to provide an overview of a business idea, product, or company to potential investors, partners, or stakeholders.

Placement allowance, also known as slotting fees or listing fees, is a payment made by manufacturers or suppliers to retailers for securing favorable product placement within retail stores or on retailer websites.

Product Life Cycle

Represents the stages that a product goes through from its introduction to the market until its eventual decline.

Planogram

A visual representation or diagram that illustrates the placement and arrangement of products within a retail space, such as a store shelf or display area.

Point of Purchase

The setup where retailers plan and execute the promotion of specific products, in the case of brick-and-mortar stores, it’s often near the place where transactions are completed.

Point of Sale

While POS is literally the point where the consumer purchases the product, in this context it typically refers to the data set of sales through the register, or sell-out data.

The evaluation of promotional effectiveness and efficiency with actual performance data after the event has run.

Predictive analytics is the practice of using data, statistical algorithms, and machine learning techniques to analyze historical and current data in order to make predictions or forecasts about future events or outcomes.

Price decrease refers to a reduction in the selling price of a product or service.

A measure of the relationship between a change in the quantity demanded of a particular good and the change in its price.

A statistical approach that estimates how sensitive customer demand is to changes in price. This model helps businesses set optimal pricing strategies to maximize revenue or market share.

Breaks down the factors driving changes in revenue. "Price" refers to changes in revenue due to adjustments in selling price, while "Mix" reflects changes resulting from the sales mix of different products or variants. 

Price Per Equivalized Unit

The amount paid by consumers per equivalized unit (can be measured as pounds, ounces, etc.).

Price per unit refers to the price of a product or service per individual unit or item. It represents the cost of purchasing one unit of the product, regardless of its packaging or presentation.

Involves creating different pricing models to see how each would impact various aspects of the business, such as sales, customer retention, or profitability.

Pricing refers to the process of determining the appropriate selling price for a product or service. It involves considering various factors such as costs, market demand, competition, perceived value, and business objectives.

A brand owned by a retailer or supplier.

Product development refers to the process of creating, designing, and bringing a new product or service to the market. It involves activities such as research, ideation, concept development, prototyping, testing, and commercialization.

Product market fit is a concept that describes the alignment between a product or service and its target market. It refers to the degree to which a product satisfies the needs and demands of a specific market segment.

Product recommendations are personalized suggestions or recommendations made to customers based on their preferences, past purchase behavior, browsing history, or other relevant data.

Promoted sales refer to the sales volume or revenue generated as a result of specific promotional activities or marketing initiatives. It represents the increase in sales directly attributed to promotional efforts, such as advertising, price discounts, special offers, or other promotional strategies.

Promotion refers to marketing activities or strategies used to promote or advertise a product, brand, or company to target customers.

Promotion compliance refers to whether the paid for and agreed-upon activities occurred on the retailer side.

A promotion plan outlines the strategy and tactics for promoting a product, including discount rates, timing, and desired sales outcomes.

Promotion planning and execution involve the strategic development, implementation, and management of promotional campaigns and activities.

Involves using analytics and insights to improve the effectiveness of a promotional campaign. By analyzing variables like customer response, time, and resources spent, companies can refine future promotions for better ROI.

Promotional lift refers to the incremental or additional sales generated as a result of a specific promotion or marketing activity compared to baseline sales without the promotion.

Purchase allowance is a discount or price reduction provided by a manufacturer or supplier to a retailer or customer as an incentive to purchase a product.

Purchase frequency refers to the rate at which customers make repeat purchases of a particular product or from a specific brand.

Purchase size refers to the quantity or value of products or services purchased by a customer in a single transaction. It represents the amount spent by the customer during the purchase.

Quality merchandising refers to the activities that generate the highest promotional lift. In the context of syndicated POS data, this is generally Features and Displays.

A rebate is a partial refund or return of a portion of the purchase price provided to customers after they have made a qualifying purchase.

To reconcile means to ensure that two sets of records are in agreement. In CPG, this often means verifying that promotional spending matches up with budget allocations, or that inventory levels align with shipment records.

Reconciliation refers to the process of comparing and aligning two sets of records or accounts to ensure accuracy and consistency. In the context of trade promotion management, it refers to the financial settlement of a short payment or deduction.

Refrigerated freight

Reefer freight, short for refrigerated freight, refers to the transportation of goods that require temperature-controlled environments during transit.

Rest of Market

Refers to a particular retailer's trademarket, excluding the retailer’s own stores.

Reset, in the context of retail, refers to a comprehensive rearrangement and reorganization of merchandise and displays within a store.

Retail refers to the process of selling goods or services directly to consumers for personal use or consumption.

Retail channels refer to the different avenues or methods through which products or services are made available to consumers in the retail market.

Promotional activity at a retailer aimed at increasing consumer pull.

A retailer is a business or individual that sells products or services directly to consumers. Retailers are the final link in the supply chain and play a critical role in making products available to the public.

Retailer Marketing Area

Also known as “Trading Area” (TA) – a geographic area (used for reporting) created in relation to individual retailers. In the context of syndicated POS data, this term pertains to the sales data of the retailer's own stores, excluding any data related to competing stores or competitors.

Refers to the percentage of products or purchases that are returned by customers to a retailer.

Revenue Growth Management

A strategic approach that aims to optimize a company's revenue growth by maximizing the sales and profitability of its products or services. RGM typically includes pricing optimization, promotion effectiveness, product mix analysis, and trade spend optimization.

Retailer Margin

Retailer Margin is calculated as a percentage of the product's selling price. For example, if a retailer purchases a product from a supplier for $50 and sells it to a customer for $100, the Retailer Margin would be $50 or 100% of the cost.

Return on Investment

A financial metric used to measure the profitability of an investment or project, (Net Profit / Cost of Investment) x 100.

Route to Market

The way a retailer provides the products to the target demographic at the right time. It’s the channel or model of distribution that allows companies to sell their products to shoppers.

This is the periodic evaluation of various metrics and KPIs (Key Performance Indicators) to assess the effectiveness and ROI (Return on Investment) of a campaign, strategy, or overall business operation.

Sales and Operations Planning

A cross-functional business process that aligns sales forecasts, production plans, inventory levels, and other operational activities to meet customer demand while optimizing resources and minimizing costs.

Software as a Service

SaaS allows vendors to host an application and then make this application available over the internet. The SaaS services are provided in the cloud by SaaS providers.

The process of estimating or predicting future sales levels, typically within a specified time period. It involves analyzing historical sales data, market trends, customer behavior, and other relevant factors to forecast the expected sales volume and revenue.

Sales per Million

A metric used to measure the sales performance of a product or brand normalized for distribution.

Sales per Point of Distribution

A metric used to measure the average sales generated per point of distribution or retail outlet. It represents the sales performance or productivity of each individual distribution point.

SPPD is calculated by dividing the total sales revenue by the number of distribution points or retail outlets. SPPD does not take into account distribution points of different sizes.

The distribution or provision of free product samples to potential customers or target audiences.

Refer to the process of using barcode scanners or other scanning devices to capture product information at the point of sale.

This strategic planning method allows organizations to envision different future conditions and how they would impact the business. It's often used to anticipate shifts in market demand, competition, and other external factors.

A sales sheet or product sheet, is a marketing tool that provides key information about a product or service to potential buyers or customers.

A measurement or analysis of a brand's or product's presence and visibility on retail shelves compared to competing brands or products.

The retail price of a product as displayed or listed on a store shelf or in-store display.

A predictive model that estimates the quantity of goods to be shipped over a certain period.

An inadequate supply of a product to meet customer demand or fulfill orders.

Stock Keeping Unit

SKUs are comprehensive descriptions of purchasable items, encompassing all attributes like size, color, and other relevant data crucial for tracking a store's inventory. These SKUs are identified and labeled using UPC codes, providing a unique and standardized way to track products across the supply chain.

Small to Medium-Sized Businesses

Companies that fall within a certain range of size and revenue, typically smaller than large enterprises but larger than micro-businesses or sole proprietorships.

Standard Operating Procedure

A written document that outlines the steps, procedures, and guidelines for performing a particular task or process.

A specific distribution or retail channel that focuses on niche or specialized products within a particular industry or market segment.

Structured Query Language

SQL is a standard programming language that is used to retrieve and manage data in a relational database. This language is very useful to create and query relational databases.

Refers to a group of individuals or entities that are surveyed or studied repeatedly over a specific period. Household panels typically employ longitudinal methodology.

The maximum amount or volume of goods or products that can be held or stored by a business or organization at a given time.

The interconnected network of organizations, individuals, activities, resources, and processes involved in the production, distribution, and delivery of goods or services to end customers.

Refers to practices that aim to meet present needs without compromising the ability of future generations to meet their own needs.

Sustainably Distributed Consumer Goods

Refers to consumer goods that are produced, distributed, and consumed in a manner that aligns with sustainable principles.

A promotional campaign or contest in which participants have the chance to win prizes through a random drawing or selection process.

IRI/Nielsen POS data. Provides consumer purchases, both non-promoted and promoted, with a merchandising audit of various promotion tactics.

Total Distribution Points

The total number of distribution locations or points where a product or brand is available for purchase or distribution.

Tier Index and Height Index

Used in logistics and supply chain management to indicate the stacking configuration or placement of products on pallets or containers.

A marketing strategy that involves linking the sales or promotion of one product or service to another related product or service.

A pricing strategy in which the price of a product or service varies based on different tiers or levels, typically determined by the volume purchased.

A planning approach that starts at the highest organizational level, where executives set the overarching goals and strategies. Lower-level managers then align their objectives and tactics accordingly.

Two distinct approaches to developing plans or strategies within an organization where you either push a topline number down through the product and geography hierarchy, or build a plan from aggregating from the lower levels. Most companies emply both.

Trade Promotion Management

The process of budgeting, allocating, promotional planning and execution, reconciliations,reconciliations and creating financial accruals.

Trade Promotion Optimization

A process that involves using data and analytics to optimize trade promotions to maximize their impact on sales and profitability.

Temporary Price Reduction

A sale price indicated by a shelf tag in store, where the price is reduced for a specific period of time.

Trade Promotion (x includes trade promotion management, trade promotion optimization and effectiveness analytics)

According to the Promotion Optimization Institute (POI), TPx is inclusive of trade promotion management, trade promotion optimization, trade promotion effectiveness and analytics.

An increase of consumer demand with marketing strategies at the channel, account or store level. Or the department within a consumer goods organization that manages the above.

The ratio of trade spend to gross sales 

The funds or investments made by manufacturers or suppliers in promotional activities, incentives, and marketing support provided to retailers or trade partners.

Trading Area

A defined geographic or demographic region in which a retailer or business operates or targets its marketing efforts.

Uniform Communications System Ordering System

A standardized electronic ordering system used in the retail industry for placing product orders with suppliers or manufacturers.

Universal Product Code

A special code printed on product packaging that allows for the identification of a particular item. It consists of two components—a unique series of black bars, which serves as a machine-readable barcode, and a 12-digit number placed below it.

The portion of trade spending or promotional investments where spend is generated per unit sold, the total spend varies based on volume.

Refers to a dedicated retail space or area within a larger store or online marketplace that is specifically designated for a particular vendor or supplier.

Refer to interactions or engagements with customers, clients, or prospects. It could include sales visits, customer service visits, marketing visits, or any other type of planned or scheduled interactions.

A dedicated facility or storage space used for storing and managing inventory or goods.

The process of managing, storing, and handling goods within a warehouse.

A record or documentation of sales activities, transactions, and performance on a weekly basis.

A business entity that buys goods or products in bulk from manufacturers or suppliers and sells them in smaller quantities to retailers or other businesses. Wholesalers act as intermediaries between producers and retailers, providing a distribution channel for goods to reach the market.

Weighted

A measurement used in distribution which gives more “credit” for distribution to larger stores than smaller retail outlets.

Year to Date

Refers to a period of time from the beginning of the current fiscal or calendar year up to the present day.

A data compression or storage technique used to eliminate or reduce the storage of zero values in a dataset or database.

Zero-Based Budgeting

A budgeting approach in which each budget cycle starts from a baseline of zero, requiring all expenses and activities to be justified and approved from scratch.