All Commodity Volume (ACV)

Posted in Finance, Accounting and Economics Terms, Total Reads: 881
Advertisements

Definition: All Commodity Volume (ACV)

All Commodity Volume or ACV is a sum of all category sales in a store. ACV is a ratio & hence is measured as a percentage. It is a very important measure in the retail world because it helps to grow your sales & it helps in better placement(distribution). All Commodity Volume helps companies to adopt strategies & to achieve a balance between a “Push” & a “Pull”.

Let us understand ACV with an example-

Your company’s ACV gives you the measure of how effectively you are communicating your brand to your customers & in change how well is that working out for your sales.

ACV is given by:

ACV (%)= 100 * Total Sales of Stores Carrying Brand /  Total Sales of all Outlets

Example:

We have two Stores:

Store A: $ 400 In Total Sales  ( All Products)

Store B: $ 100 In Total Sales (All Products)

Total Value: $ 400 + $ 100 = $ 500

If suppose a ketch up “Maze” is sold only in store A, then  What is the % ACV ??

Store A % ACV – 80% [ 400/500]

Store B % ACV – 20% [100/500]

ACV helps us to answer the following question:

  • Are all retailers carrying my product ?
  • Are the distribution goals being met ?
  • My Store Sales are down. What is really happening in the stores ?
  • Can I identify which retailers are at least selling one of my new products ?

Thus to conclude we can say that % ACV  is the “% of stores selling” but with stores weighted based on their size & we get more credit for being there in large stores than in smaller ones.

Hence, this concludes the definition of All Commodity Volume (ACV) along with its overview.

Advertisements

Browse the definition and meaning of more terms similar to All Commodity Volume (ACV). The Management Dictionary covers over 7000 business concepts from 6 categories.

Search & Explore : Management Dictionary



Share this Page on: