Lesson 8: All-commodity volume

Lesson 8: All-commodity volume

All-commodity volume (value) or ACV represents the total annual sales volume of retailers that can be aggregated from individual store-level up to larger geographical sets. This measure is a ratio, and so is typically measured as a percentage (or on a scale from 0 to 100).
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.”
ACV is best related to the key marketing concept of placement (Distribution). Distribution metrics quantify the availability of products sold through retailers, usually as a percentage of all potential outlets. Often, outlets are weighted by their share of category sales or “all-commodity” sales. For marketers who sell through resellers, distribution metrics reveal a brand’s percentage of market access. 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.

 

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