CPG Terms Defined

Consumers who purchase a brand and increase their total category spending or volume, indicating that the brand is contributing to category growth rather than simply shifting share from competitors.

Consumers who purchase only one brand within a category during a defined period, showing no recorded purchases of competing brands. Exclusive buyers indicate strong brand loyalty within the category.

Inventory levels that exceed projected demand or optimal stock thresholds, resulting in overstock conditions that may lead to markdowns, storage costs, or product obsolescence. Excess inventory ties up working capital and can impact margin.

Sales adjusted to a standardized unit of measure to allow comparison across different package sizes, formats, or configurations within a category. Equivalized sales normalize volume to a common basis for accurate performance analysis.

An integrated software system used to manage and automate core business processes, including finance, supply chain, inventory, procurement, and order management. ERP systems centralize operational data to improve planning, visibility, and efficiency.

The sale of products through electronic channels, including online marketplaces, retailer websites, mobile apps, and other digital platforms. Electronic retailing enables consumers to purchase products without visiting a physical store.