The Market Penetration Dashboard highlights how well a brand or product is distributed in the market and its overall selling potential. By looking at various metrics such as All Commodity Volume (ACV), % ACV,  and Velocity Gross Receipts, we are able to provide a snapshot on how a brand or product impacts the stores they are in and vice versa.

Skip to: 

• How This Dashboard Can be Used
• ACV
• % ACV
  • How to calculate % ACV
  • % ACV Example & Analysis
• Metric Cards Explained

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How This Dashboard Can be Used 

Together, ACV and % ACV tell a story that can help you understand how well or poorly your products are being distributed. Understanding these metrics can help tackle some tough questions that brands and dispensaries frequently ask themselves, such as:

• Which regions should I focus my distribution efforts on? 
• Despite widespread distribution, why am I not seeing a large number of sales? 
• How am I seeing so much growth despite being in only a handful of dispensaries? 

NOTE: This dashboard includes clickable Drill-Downs (DD) in the Market Penetration Table which allows you to see a more detailed view of the metric card. To reveal the drill-down, simply click the row you’d like to analyze. To return to the original metric card view, click the arrow next to the card name. 

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ACV

AVC - a measure of a brand's market penetration by store count

By itself, this metric simply tells you what percent of dispensaries you are in. If a product called Sheldawg is in 3 out of 4 dispensaries in a region, it has an ACV by store of 75%. Sounds pretty good, right? However, to understand the story entirely, we have to also take % ACV into consideration. 

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% ACV

% ACV - a measure of a brand's market penetration by Gross Receipts

This is a powerful metric that provides insight into which regions to prioritize when it comes to distribution. % ACV is synonymous with weighted distribution and weighs each dispensary selling a product by their total sales.

Hypothetically, if Sheldawg is in 3 out of 4 dispensaries, but the one he is not in sells more than all of the three he is in, combined, it reveals poorly distributed products, and that distributing to most dispensaries does not equate to distributing to the best dispensaries (by sales) alluding to a concept you may be familiar with: quality over quantity. 

How to Calculate % ACV

To calculate % ACV, we aggregate gross receipt of all stores where a product is sold and divide that number by the total gross receipt of all stores in the selected area. This percentage will be impacted when filtered by a region. 

Going back to our example above, if Sheldawg is being sold in 3 dispensaries when there are 4 in the region, the formula would look like this: (D1 = Dispensary 1, D2 = Dispensary 2, ... etc.)

(D1 Gross Receipt + D2 Gross Receipt + D3 Gross Receipt)  
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(D1 Gross Receipt + D2 Gross Receipt + D3 Gross Receipt + D4 Gross Receipt)

Now that we have the formula, let's calculate the % ACV to analyze how well Sheldawg has been distributed. 

% ACV Example & Analysis

Let’s follow Sheldawg and a second brand called 420Probiotic, and calculate their respective ACV, and % ACV to analyze what these metrics are saying about their distribution.  

There are 4 dispensaries in your region 'Treezland', and in the month of June 2020:

• Dispensary 1 made $2,000,000
• Dispensary 2 made $750,000
• Dispensary 3 made $1,200,000
• Dispensary 4 made $900,000

The grand total for the region was 4.85 million. Now, when we look at both brands we see that:

Calculations

Sheldawg was in 3 of the 4 dispensaries giving this brand 75% ACV by Store.

Using our formula for % ACV, we calculate:  

(D1 total gross receipts + D3 total gross receipts + D4 total gross receipts) / (TOTALS)

(2,000,000 + 1,200,000 + 900,000) / (4,850,000) = .8454 x 100% = 84.54% ACV

Analysis

Sheldawg is in 75% of all stores in that region but interacts with 84% of the market. The brand can expand their distribution so they can get access to that remaining 16% of regional sales, but they’ve positioned themselves well to still get the main bulk of potential sales. 

Calculations

420Probiotics was in 2 of the 4 dispensaries giving this brand 50% AVC by Store.

Using our formula for % ACV, we calculate:  

(D2 total gross receipts + D4 total gross receipts ) / (TOTALS)

(750,000 + 900,000) / (4,850,000) = .3402 x 100% =  34.02% ACV

Analysis

Even though 420Probiotics is in 50% of all stores in that region, they are only interacting with 34% of the available market. Meaning, they’re missing out on up to 66% of regional sales by not distributing to D1 and D3! 

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Metric Cards Explained

Brand Scatter 

Shows brands plotted on a grid by Total Gross Receipt and % ACV. Larger circles indicate higher gross receipts.  

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Market Penetration 

Shows a variety of KPIs that impact Market Penetration. Check the below grid for more details. Drill-Downs (DD) are available by clicking the row of the brand, month, and year you’d like to analyze. 

DD: Market Penetration Product 

Shows the same KPIs as before, but applied to individual products. 

Here are the abridged KPI definitions: 

• Unique Stores - shows the count of dispensaries this brand is found in for the indicated month.
• Gross Receipts - shows the total dollar amount collected for the selected Brand & Month.
• AVC By Store - shows a measure of a brand’s market penetration by store count.
• ACV % - shows a measure of a brand’s market penetration by gross receipts.
• Velocity Gross Receipts -  shows the average gross receipts of a brand per store.
• Units Sold - shows the total number of units sold.
• Product Days Out of Stock - a combined number of days inventory was out of stock or unsellable across all unique stores.
• Category Sales % - shows the % of gross receipts that a brand contributes to by product type. 
• Top Products - shows the top 10 products with the highest average gross receipt total per dispensary. 
• Discounted Products - shows the top 10 products with the highest daily discount amount. 

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