FMCG Glossary.xlsx

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1		MARKETERS GLOSSARY
2	Term	What it stands for	What it means
3	£/KG	Price per Kilo	A unit price that is based on the weight of a product. It can help compare pricing by using the same measure of weight (kg).
4	£/L	Price per Litre	A unit price that is based on the volume of a product. It can help compare pricing by using the same measure.
5	ARP	Average Realised Price	Average RSP that is calculated with promotional and non-promotional sales
6	AWD	Account Weighted Distribution	The percentage of stores in which a product is available. Each store is weighted proportional to their sales of the total category. Therefore a higher number means that your brand is stocked in the most important stores
7	AWP	Average Weight of Purchase	The average amount bought by each household that purchased the product in a time period. Could be expressed in terms of Spend, Volume or Units.
8	Awareness	Awareness	Typically "prompted" (i.e. have you heard of xxxx) and "spontaneous" (name a cereal). The first named brand in an unprompted list is called "top of mind." Typically expressed as a percentage of the sample - e.g. Brand x has 23% prompted awareness
9	Back Margin	Back Margin	Income from suppliers such as discount and allowances, entry fees, gate fees or promotional fees.
10	Barker	Barker	A small piece of PoS which goes on the shelf at a grocery store
11	Base	Base	A brand's core volume (or value) without any promotional activity
12	Basket Spend	Basket Spend	The average amount of money that is spent in a single shopping trip or transaction.
13	BOGOF	Buy One Get One Free	A promotional mechanic - two for the price of one
14	Brand EAR	Brand Equity At Retail	A data driven measure showing how strongly shoppers value each product/brand (if all shopper decision drivers were equal: Pack Size, Seasonality, Dist, Price, etc.)
15	Cannibalisation	Cannibalisation	The opposite of incrementality - A loss in sales caused by a company's introduction of a new product that displaces from it's current products. A company wants to see none or very little cannibalisation to justify a npd for example as it wants incremental sales.
16	Capex	Capital Expenditure	Capital expenditures are a company's major, long-term expenses while operating expenses are a company's day-to-day expenses. Examples of CapEx include physical assets, such as buildings, equipment, machinery, and vehicles. Examples of OpEx include employee salaries, rent, utilities, and property taxes.
17	Cat Strat	Category Strategy	A plan that outlines how to manage and optimise the a category. It helps to align similar areas of a business, identify opportunties and create added business value. Suppliers will often bring their strategies to the retailers as a way of becoming a strategic partner.
18	Category	Category	A group of similar or related products that share similar characteristics. It helps businesses to organise, promote and price products; it helps consumers to shop. Examples may be Haircare, Butters & Spreads, Cereal, Tinned Veg, Beer Wine & Spirits
19	COGS	Cost of Goods Sold	The direct costs of producing the goods sold by a company. It's an important driver of a brand's rofitability.
20	Consideration	Consideration	The extent to which consumers are willing to consider a brand when making a purchasing decision
21	Convenience	Convenience	A smaller shop, usually wth extended opening hours, that stocks a limited range of household goods and groceries.
22	Discounters	Discounters	A retailer which products are sold at prices that are in principle lower than an supposed 'full retail price'. For example Aldi, Lidl, Home Bargains
23	Econometrics	Econometrics	A technique which helps understand how much each marketing activity contibutes to sales, and therefore how much to spend on each marketing activity.
24	ESOV	Excess Share of Voice	When a brand's share of voice (see SOV) is greater than a brand's share of market, it is said to have ESOV
25	F&D	Feature and Display	Feature space and display space are the gondola ends or special "stacks" of product. Brands are especially interested in the number of weeks that a product gets on feature and display as it's a great way to be more visible to shoppers
26	Freq	Frequency	The number of times that consumers/customers make a purchase within a time period.
27	FSDU	Free Standing Display Unit	Usually made from cardboard, free-standing display units are a popular retail display solution
28	Gate Fee	Gate Fee	A fee that a supplier pays to a retailer to unlock feature space. This is in addition to the cost of producing any point of sale material.
29	GP	Gross Profit	The selling price of your product (less VAT if applicable) minus the cost of producing it. This can also be expressed as a percentage. For example a 40% GP on a product that costs £1.00 to buy (excl VAT) means that it cost 60p to produce.
30	Incremental	Incremental	An uplift in sales, it is the difference in sales you generate during a specific promotion vs the sales you estimate you would have generated without the promotion over the same period. It can also work for other measures i.e. for the difference in sales if you were to bring a new product to market....what additional sales would it bring vs. your existing product range, what new shoppers would it bring vs who currently already shop the fixture. It can be a useful way to sell in a product to a business if it is favourable in bring incremental sales.
31	IRI	IRI	Data company. Typically used by businesses to get 'till data' to understand sales performance and insights.
32	JTBD	Job to be done	A key task for a brand, usually in a brand planning year.
33	Kantar	Kantar	A company that collects data from a consumer panel (a group of people chosen to represent a larger group of people) to share understanding of audience's motivations and needs. They use a sample which is representative of the larger population.
34	KPI	Key Performance Indicator	A measurable and quantifiable metric used to evaluate and assess the performance of a business. For brands, this could be something like penetration, awareness, sales volume, growth % etc
35	L12W	Last 12 Weeks	A period of time (the 12 weeks prior to the specified date), it enables a business to then compare this data set with another 12 week period and offers a better perspective on a trending performance vs. just looking at a week of sales for example or one month. Other common time frames are L4W, L52W
36	MAT	Moving Annual Total	A measure of time - a rolling 12 months up to the current date
37	MMM	Market Mix Modelling	A technique which helps understand how much each marketing activity contibutes to sales, and therefore how much to spend on each marketing activity.
38	MOI	Mobile Optimised Image	Image used by brands in online stores that is optimised for viewing on a mobile device. Often a simplified version of the pack.
39	MRRSP	Manufacturers Recommended Retail Selling Price	The price that a product's manufacturer recommends it be sold for at the point of sale. However, the retail selling price is at the sole discretion of the retailer. The manufacturer is not allowed to set the retail price - only make a recommendation.
40	MU	Merchandising Unit	Pre-filled by the manufacturer or co-packer, MUs are sent through the supply chain arriving at the retail environment ready for immediate display.
41	NDA	Non Disclosure Agreement	An agreement between 2 or more parties that the information they share with each other is not to be shared beyond that group.
42	Nielsen	Nielsen	Data company. Typically used by businesses to get 'till data' to understand sales performance and insights. They do also collect data from a consumer panel (a group of people chosen to represent a larger group of people) to share understanding of audience's motivations and needs. They use a sample which is representative of the larger population.
43	NP	Net Profit	The amount of money your business earns after deducting all operating, interest and tax expenses over a given period.
44	NRR	Net Realised Revenue	Total revenue less discounts etc received by a supplier
45	Num Dist	Numeric Distribution	Actual number of stores a product is stocked as a % of total number of stores (NOT category sales weighted)
46	Off-License	Off-License	Premises selling (alcoholic) beverages where the consumption does not happen at the point of sale, i.e. supermarkets, grocery shops, wine & spirit merchants etc.
47	OID	Off Invoice Discount	A reduction in price given to a retailer often in return for purchasing specific quantities of goods with a specified time. This discount is given at the time of invoicing.
48	OL	Own Label	A product that a retailer sells under it' own brand name. The retailer controls the management of that product i.e. name, packaging design etc. For example Sainsbury's "Taste the Difference" range
49	On-License	On-License	Premises selling (alcoholic) beverages where the consumption happens at the point of sale, i.e. bars, restaurants, pubs etc.
50	Opex	Operating Expenditure	Capital expenditures are a company's major, long-term expenses while operating expenses are a company's day-to-day expenses. Examples of CapEx include physical assets, such as buildings, equipment, machinery, and vehicles. Examples of OpEx include employee salaries, rent, utilities, and property taxes.
51	OTG	On The Go	Bigger than convenience stores. Anywhere someone might grab and go product
52	Over rider	Over rider	A retrospective discount paid on achieving a specified volume from the supplier.
53	PE	Price Elasticity	The % change in volume for each 1% change in price. e.g. Elasticity of -2.5 = Price down 1%, Volume up 2.5% (the minus means volume goes in opposite direction to price). Is exponential.
54	Pen	Penetration	The number of consumers who bought your product. It's usually expressed as a % of the total market.
55	PL	Private Label	A product that a retailer sells under it' own brand name. The retailer controls the management of that product i.e. name, packaging design etc. For example Sainsbury's "Taste the Difference" range
56	POS	Point of Sale	The place where a sale is meant. However it is usually used when referring to display / advertising items like posters etc
57	PPA	Price Pack Architecture	A pricing ladder of different pack sizes at different prices. With strategic thinking, this allows profit and revenue to be maximised.
58	Profit Elasticity	Profit Elasticity	The Gross Profit change when commercial figures are applied to price elasticity measures. Is exponential.
59	Prompted Awareness	Prompted Awareness	Usually expressed as a % of the total population, the number of people who when shown an image (or name) of a brand say that they recognise it.
60	PUV	Per Unit Volume	Used to cover volume being in Kg or Ltr. i.e. Costs £x PUV
61	Retainer	Retainer	A regular (often monthly) fee paid to agencies by a client to have access to their team. This could be for a set number of hours or deliverables.
62	RFI	Request for Information	Request for Information. Usually issued by Procurement Professionals prior to having a detailed set of requirements. It’s used to qualify suppliers in/out based on capabilities, sector experiences, financials, etc.
63	RFP	Request for Proposal	Request for Proposal. Usually written by Procurement professionals, based on requirements defined by the business stakeholders. Typically used when the challenge/opportunity is big and complex.
64	RFQ	Request for Quotation	Request for Quotation. More commonly used when the specification is well defined, relatively easy to understand, and more of a commodity (but not always).
65	ROAS	Return on Ad Spend	The amount of revenue that is earned for every £ spent on a campaign. Tis is different to RoI.
66	ROI	Return on Investment	Used to evaluate how well an investment has performed. Expressed as a %, calculated by diving net profit by it's initial cost. Anything over 100% is generating more profit than it cost to do that activity.
67	RoS	Rate of Sale	Normally expressed as a number. It is the average number of units per store per week that you've sold.
68	RRP	Recomended Selling Price	The price that a product's manufacturer recommends it be sold for at the point of sale. However, the retail selling price is at the sole discretion of the retailer. The manufacturer is not allowed to set the retail price - only make a recommendation.
69	RSP	Retail Selling Price	The price that the shopper pays for the product when purchasing it from a store
70	SEM	Search Engine Marketing	Using paid advertising to ensure that your business's products or services are visible in search engine
71	SEO	Search Engine Optimisation	The process of improving your website to increase its visibility in Google etc
72	Share of Till	Share of Till	Your share of the total spend in a retailer. This can also be expressed as a share of total <<category>> till
73	Shipper	Shipper	A packaged display of two or more items
74	SKU	Stock Keeping Unit	A number (usually eight alphanumeric digits) that retailers assign to products to keep track of stock internally, once it arrives from a warehouse or distributor.
75	SOM	Share of Market	Expressed as a percentage it is the amount of a category that your brand represents. Usual in volume or value (RSP) terms.
76	SOV	Share of Voice	Usually refering to the % of category media spend that a brand has. e.g. a butter brand could have 20% SOV - meaning that the other butter brands combined account for 80% of the butter media spend
77	Spend per Trip	Spend per Trip	How much does a consumer spend per 'shop visit' at a retailer. It is useful as a measure as retailers always want to increase this in their stores vs a competitor
78	Spontaneous Awareness	Spontaneous Awareness	Usually expressed as a % of the total population. The number of people who, when asked to name a product in a certain category, respond with that brand name spontaneously.
79	SRP	Shelf Ready Packaging	The secondary packaging that products are shipped in that can be used on supermarket shelves without any (major) amends - the packaging is ready to be put on the shelves
80	STP	Segmentation Targeting Positioning	An audience led way of marketing (rather than product centric)
81	TOM	Top of Mind Awareness	Similar to Spontaneuous Awareness, and also expressed as a % of the total population, this is the number of people who said this brand name first.
82	TOV	Tone of Voice	How a brand "talks" - the brand personality
83	TPR	Temporary Price Reduction	a temporary discount for your product in a store
84	Val	Value	The total amount of value (RSP) from selling goods over a certain time period, measured in £s.
85	Vol	Volume	The total amount of goods sold over a certain time period, usually measured in kg, litres,etc depending on product type.
86	VSOD	Volume Sold on Deal	Usually represented as a %, it is the volume of product sold on a promotional discount (deal).
87	WAGJLL	What a good job looks like	Pronounced "wag jill" - sometimes a field to be completed in a retailer or large FMCG company's agency briefing template (often in excel, the horror!), so a description of what a good job would be. Also can be a mockup of the execution in store of point of sale material to give direction to store colleagues or a partner agency applying a point of sale creative to print artwork.
88	WIGIG	When it's gone, it's gone	A promotion with a limited volume. When the promotional volume is gone, the promotion is over.
89	YTD	Year to Date	A measure of time - the current trading year up to the current date
90	YTG	Year to Go	A measure of time - the remaining time in the current trading year
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