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TERM
% Subsidized Volume
Shows the percentage of sales volume sold with trade or promotional support.
Definition
Percent Subsidized Volume measures the share of product volume sold under a discount or promotion compared to total volume.
How to Calculate
Divide the volume sold on promotion by the total volume sold, then multiply by 100.
Why it Matters
It shows how much of your sales depend on promotions, which affects profitability.
Key Advantages
Helps balance promotional and base sales for sustainable growth.
Example
If 200 units out of 1,000 were sold on promotion, the percent subsidized volume is 20 percent.
Use it to
Estimate the share of promoted sales that would have occurred without the promotion to understand subsidy. Reduce subsidy by adjusting depth, audience, or timing so a greater share of promoted volume is incremental.
