What is it?
Average % ACV (also commonly shortened to Avg ACV) measures a brand or item’s average distribution in a market (like a retailer or channel) over a period of time. This number will represent a percent presence in the market between 0% and 100%.
Why is it important?
Very similar to Maximum % ACV, but the main difference is that instead of being a maximum value, this is an average value, therefore giving a more balanced view of a brand or item’s distribution presence in a marketplace. A value of 50% for the last 52 weeks would mean that a brand or item was present in about half of the stores on average over the past year.
What are some examples?
Let’s say you’re tracking a brand over 4 weeks:
Week | % Stores Selling | Avg ACV % |
---|---|---|
1 | 40% | 35% |
2 | 55% | 50% |
3 | 60% | 55% |
4 | 70% | 65% |
Max ACV = 65% (highest week).
Average ACV = (35% + 50% + 55% + 65%) ÷ 4 = 51.25%
In short, Max%ACV = your “personal best” in distribution. Average ACV is like your “season average.” Sometimes they are similar, but if they are wildly different, that can be a reason to ask why – perhaps a seasonal force-out made the maximum versus average look higher, or an out-of-stock issue forced the average lower than the maximum.