Slide 9 of 17
Notes:
All Commodity Volume (ACV) is an important reality in consumer marketing. The
first challenge for a new brand is to get retail distribution, since the consumer
cannot buy a product that is not on the shelves. Firms generally have ACV targets
which trigger the start of an advertising campaign. For example, it makes little
sense to begin advertising when a a consumer cannot find the product on shelf.
ACV also points out the unequal representation some grocers have in the
marketplace. Even though a grocer may have only 10 of 50 stores in a major
market, these stores can be categorized as "SuperStores" where their volume is
well in excess of $1 million per week. Therefore, the share that a large retailer
may generate is often in excess of their mathematical representation of the 3 of
outlets over the total outlets in a market.