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How Well Do You Know The USA ? 100 Industry Terms and Definitions

By: Greg Seminara, Export Solutions


Channel/Category 


Definition

             
CPG   Consumer Packaged Goods - refers to our industry. Similar meaning  to FMCG  
ACV   All Commodity Volume- used to describe brand penetration. i.e. 77 % ACV availability
FDM   Food, Drug, & Mass Channels            
Food Channel Supermarket Channel            
Drug Channel Pharmacy Channel              
Mass Channel Mass Discount Channel: Includes Target & Walmart Discount Stores(not Supercenters) 
Supercenter Hypermarket Format of Walmart. Leading Walmart format and seller of food in USA.
Vendorville Nickname for Bentonville, home office of Walmart        
Club Channel Membership Warehouse Clubs: Costco,Sam's Clubs. Annual fee of $40- $100 to shop at Club.
Dollar Stores Channel of retailers selling items for $1 Dollar or similar. example: Dollar Tree    
Foodservice Channel Channel selling to restaurants, institutions ( schools) and contract feeders ( company cafeterias)
Extreme Value Includes Dollar Stores, but also retailers such as Aldi,Dollar General and SavaLot  
C Store   Convenience store. Includes chains like 7-11 and stores aligned with gas stations  
Grocery Store Supermarket Channel            
Independent Independently owned store/ chain. Not part of a group. Usually 1 store but may be up to 10 units
Peyton   Warehouse owned by Kroger where they stock their specialty and slower selling items
C & S   Large wholesaler which provides contract logistics to many retailers ( Stop N Shop/Ahold)
"Whole Paycheck" Humorous term to describe the respected Whole Foods chain due to their high price image
OTC   Over the Counter products. Healthcare products available without a prescription  
HBC   Health and Beauty care products.          
GM   General Merchandise/Non Food products        
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Grocery    Usually shelf stable food and basic consumer items like paper towels and laundry supplies
Center of Store Grocery items as above. Excludes frozen, chilled, fresh meat, fish,cheese, produce items
Perimeter Dairy, chilled, meat,fish,deli, cheese ,produce items found on the perimeter of the store
Deli   Store department offering primarily individually sliced sandwich meats and cheeses.
Specialty Foods Gourmet food products            
Ethnic Food Food from Asia, Mexico, Middle East etc.        
Natural Foods Organic , natural, or healthy foods. Natural Food channel are primarily health food stores
IRI   Provides syndicated market share data, based upon scanner sales. Competitor to A C Nielsen
Spectra   Database that analyzes demographic purchasing information for brands and categories
Dunhumby Database part owned by Kroger that analyzes purchase data & facilitates targeted marketing
                 
In Store Operations Definition              
Category Review Process of reviewing a category 1/2 times per year to decide on new items to add or delete 
Category Captain Company/Brand owner who is the lead advisor to a retailer for a category.  
Planogram Schematic. Official layout of store fixtures        
Modular   Same as Planogram. Term used by Walmart        
Cut In   Processing of physically making space for your product on the shelf    
Reset   Process of physically updating the planogram of a store or category    
DC'ed   An item that has been discontinued for sale by a retailer.      
Blitz   Process of a rapid deployment of retail sales team to "cut in" new item at store level
OOS   Out of Stock condition at warehouse or store level.        
Price Zone Practice where a chain offers different consumer prices depending on store location
Home Store Process where each supplier/broker assigned to a percent of stores to maintain planograms
Kompass   Kroger's home store program            
Shelf Hog   A brand that takes up more shelf space than other similar category items  
Cheater Pack Item that looks the same as competition, but actually has fewer ounces/grams  
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Organization  Definition                
NSM/RSM National USA  Sales Manager or Regional USA Sales manager for a  Company/Brand  
Team Leader Person who leads a local team at a major customer (Walmart/Kroger) for a company/brand
Category Analyst Team member who analyzes all Nielsen/Spectra and other data for category insights
Category Manager Buyer at a major customer/retailer. Makes decisions (or recommends) on new items/Ads/TPR
Broker   Outsourced agent providing headquarter sales, retail, admin services for brands: primarily supermarket channel
Retail   Sales team dedicated to visiting each store to insure compliance with retailer planogram
Distributor In USA,  a wholesale distributor like UNFI, Kehe, or DPI that stocks 25,000+ specialty food items
                   
Supply Chain  Definition                
SKU   Stock Keeping Unit. An individual item or brand size.  Each SKU has an individual UPC.
DSD   Direct to Store Delivery ( vs. warehouse). Usually just beverages(Coke/Pepsi) & Snacks (Frito)
Case Pack Number of units per case            
Retail Link Walmart portal to share Point of Sale data with their vendors      
Backhaul   Retailer pick up of merchandise at your factory for an allowance    
Spoils   Damaged or expired goods.Some brands offer a "spoils allowance" of .25 % or greater.
Reclamation Cenetr Outsourced center where retailers send damaged goods and bill manufacturers  
VMI   Vendor managed inventory/reorders. Usually for only fast moving items and top 20 suppliers
                 
Promotion Definition              
Robinson Patman Act USA law states that all retail customers should get same price/promotional "opportunity"
EDLP   Every day low price. Strategy used by Walmart and others. Fewer "short term" promotions
Hi Lo   Strategy by some retailers to offer higher everyday prices, but deep discount special offers
Profit Margin Calculation:Retail selling price less cost of item. Difference is divided by selling price for margin
Deal   Special promotion or allowance to a retailer as an incentive to push a product.  
Deal Sheet Form offering a promotional allowance to a retailer      
TPR   Temporary Price Reduction. Usually, 10-20 % price discount for 4 weeks, noted by in store tag.
Roller   Same as TPR above              
Rollback   Walmart price temporary price reduction program. Usuallyat least 10-20 % for 12 weeks
Loyalty Card Card (free) required by some chains to obtain discounts/special offers. Retailers analyze data
Ad   Weekly flier/circular by supermarket chains with special promotions and discounts
Hot Feature Usually lead item in Retailers Ad, with large space and discount of 20-50 % vs everyday price
Menu Cost Standard "List Price" to participate in retailer activities: Ad, Display, Slotting Fee. Negotiable
Slotting Fee Fixed fee to gain entry for a product to a retailers shelf or wholesalers warehouse  
Free Fill   First order delivered for free to fill the shelf. Usually 1-2 cases per item, per store.  
BOGO   Buy One Get One Free Promotion          
Scan Down Discount paid to retailer on  products scanned through the register behind a TPR promotion
In & Out   Temporary stocking of an item. Usually for a Holiday or special season. No Slotting fee.
Billback   An allowance paid by brand owner to a retailer after proof of promotional performance
Off Invoice Allowance Case rate allowance discount provided on vendor invoice      
Forward Buy Incremental weeks of inventory purchased of products with a high promotional allowance
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Shipper   Promotional display piece with point of sale material. Usually higher margin and "in and out"
Bonus Pack Special size of a brand: free ounces or uses versus the normal size. i.e. 80 oz for price of 60 oz. 
Lift   Incremental sales behind a promotion offer versus your normal sales rate   
Dog   Slow selling brand or item            
Demo   In store product sampling or tasting          
Net Net pricing Retailers cost of goods including all discounts, allowances, and special terms  
Endcap Display A larger display at the end of a supermarket aisle        
Aisle Stack Small, 5 - 6 case display in a store aisle          
POP   Point of Purchase. Normally the shelf .          
POS   Point of Sale materials. Promotional materials placed on shelf or display.  
Shelf Talker POS material placed at shelf to provide product information or gain attention.  
Coupon   A discount certificate providing an immediate savings ( .25 - $1.00) on a specific product.
Double Coupon Some retailers double value of coupons (up to .50) at their own expense to attract shoppers
Redemption Rate Coupon redemption rate. Normally 1 %          
Neckhanger Coupon or product literature attached to the neck of a bottle      
FSI   Free Standing Coupon Insert. Coupon distributed via Sunday newspaper  
SPIF   Money to incent a sales representative to sell more of your product. Common in Foodservice.
IRC   Instantly Redeemable coupon. Found in store on a brand package versus Sunday newspaper
Accrual   Promotional fund for retailer based upon a set amount per case    
Spender of the Year Joke: Some state that "Vendor of Year" awards go to the biggest brand "Spenders of the Year"