Anna Marie’s Sweets (AMS) is looking into the All Commodity Volume (ACV) and Product Category Volume (PCV) for its distribution channel. The ACV is 92% while the PCV is 91%. The Category Performance Ratio is 1.125.

Briefly explain to Anna Marie what these measures tell us.

ACV 92% of sales in all categories are generated by stores.

PCV 91% is the percentage share of categories sales made by stores.

The Category Performance Ratio is 1.125 which is greater than 1,therefore, Anna Maris has succeeded in gaining distribution in largest stores and Sweets run above all commodity sales in those stores relative to the market as a whole.

Step-by-step explanation:

ACV:

This is called all commodity volume. It is a measurement of a store’s total sales of all products relative to the sales of all relevant retailers in a given territory. % ACV can provide information on brands with insight into which locations to give priority or lay more emphasis on when it comes to distribution, by showing the “size” of the store not based on physical square footage, but on the amount of product that specific retailer is actually moving off of the shelves. Therefore, 92% of sales in all categories are generated by stores that stock Anna Maris sweet.

PCV:

PCV stands for product category volume. It represents the weighted measure of distribution based on store sales within the product category. It examines the share of the relevant product category sold by stores in which a given product has gained distribution. It measures the ability of a firm to convey products to its customers in terms of total category sales among outlets or stores carrying the brand.

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

Therefore, 91% is the percentage share of categories sales made by stores carrying Anna Marie’s sweet.

Category Performance Ratio:

It represents the relative performance of an outlet in a given product category in combination with its performance in all product categories. Category performance ratio (CPR) is generally represented with percentage (%) and is computed by finding the ratio between PCV (Product Category Volume) and ACV (All commodity volume).

If CPR is greater than 1, then the outlets that comprise that brand perform comparatively better in the sale of the category in question than in the sale of other categories, relative to the whole market.

The Category Performance Ratio is 1.125 which is greater than 1,therefore, Anna Maris has succeeded in gaining distribution in largest stores and Sweets run above all commodity sales in those stores relative to the market as a whole.

i would need to see the dot plot : )