Product Category VolumeFeedback.png


Definition

Product category volume (PCV) is the weighted measure of distribution based on store sales within the product category. Product category volume is a refinement of all commodity volume (ACV). It examines the share of the relevant product category sold by stores in which a given product has gained distribution.[1]


Purpose

Product category volume measures a firm’s ability to convey a product to its customers in terms of total category sales among outlets carrying the brand. It helps marketers understand whether a given product is gaining distribution in outlets where customers look for its category, as opposed to simply high-traffic stores where the product may get lost in the aisles.

When detailed sales data are available, PCV can provide a strong indication of the market share within a category to which a given brand has access. If sales data are not available, marketers can calculate an approximate PCV by using square footage devoted to the relevant category as an indication of the importance of that category to a particular outlet or store type.

Construction

Product category volume (PCV) is the percentage share (or dollar value) of category sales made by stores that stock at least one SKU of the brand in question, in comparison with all stores in their universe.

      Product Category Volume (PCV) Distribution (%) = 100 x Total Category Sales of Outlets Carrying Brand ($) ÷ Total Category Sales of All Outlets ($)
      Product Category Volume (PCV) Distribution ($) = Total Category Sales of Outlets Carrying Brand ($)

See also


References

  1. ^ Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; and David J. Reibstein (2010). Marketing Metrics: The Definitive Guide to Measuring Marketing Performance (Second Edition). Upper Saddle River, New Jersey: Pearson Education, Inc. <http://www.amazon.com/Marketing-Metrics-Definitive-Measuring-Performance/dp/0137058292>

NewComment.png
We welcome comments that will help us improve the precision and clarity of our definitions. To submit a suggestion, please click on the Add Discussion bar below.
Notes:
  • Comments are limited to registered users of this site. Click “Join” at the top right hand side of this page to apply.
  • If you would like to suggest a new marketing definition or have a general comment, please visit our home page.