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Channel/Category |
Definition |
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| 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 | |||||||||
| Export Solutions | This Dictionary created by Export Solutions www.exportsolutions.com all rights reserved | |||||||||
| 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 | |||||||||
| Export Solutions | This Dictionary created by Export Solutions www.exportsolutions.com all rights reserved | |||||||||
| 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 | |||||||||
| Export Solutions | This Dictionary created by Export Solutions www.exportsolutions.com all rights reserved | |||||||||
| 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” | |||||||||
Greg Seminara, Export Solutions
