Skip to main content Navigation

Sales Strategy

Building Sustainable Growth Through Regional Market Saturation October 15, 2025 (0 comments)

Building_Sustainable_Growth_.jpg

Boulder, CO--Market saturation, or being available across multiple retail locations within one focused area, is one of the most effective ways to grow a brand sustainably. According to New Hope Network, expanding region by region enables brands to control performance, strengthen retailer relationships, and build meaningful momentum before entering national distribution.

[Image via iStock.com/lemono]

According to the article, Jennifer Barney, Principal at 3rd and Broadway, notes that new brands often overextend by going national too early. When distribution spans multiple territories, managing promotions, ensuring placement accuracy, and understanding why reorder rates fall short become challenging. A regional rollout, on the other hand, enables brands to execute more effectively, reduce costs, and enhance data consistency.

The article highlights several benefits of regional market saturation:

Concentrate on One Territory

According to the New Hope Network article, the playbook begins with onboarding an anchor retailer, followed by smaller chains and independents that utilize the same distributor.

This strategy enables merchandising teams—typically hired per region—to efficiently maintain shelf presence across all locations. The article notes that consistent store visits improve visibility and encourage staff familiarity, reducing the risk of products getting lost or delisted.

Once a market is saturated, marketing activities such as demos, sampling, or launch events generate stronger returns since customers are more likely to encounter the product in multiple stores. This leads to faster sales velocities and improved ROI on local marketing efforts.

The article also emphasizes cross-shopping behavior as a key advantage of regional saturation. On average, consumers shop at 5.2 retailers per month (as reported by Coupons in the News), meaning multi-store presence ensures that customers can easily find the brand wherever they shop.

Using ACV to Track Market Saturation

New Hope Network explains that All Commodity Volume (ACV) is a key metric for measuring distribution breadth and market saturation. ACV reflects the proportion of stores where a product has sold at least one unit within a given time period—commonly measured over four weeks to align with velocity tracking.

Barney suggests evaluating ACV at both retailer and regional levels. Per the article, a strong in-store execution rate shows 90%+ ACV among authorized stores. Regionally, a brand reaching around 10% ACV is generally considered ready to expand to new territories.

Even without purchasing syndicated data, brands can approximate ACV using distributor reports. As per the article, reviewing several four-week data periods smooths out fluctuations caused by promotional spikes and provides a clearer view of consistent product movement.

A Smarter Way to Scale

The article notes that regional expansion provides emerging brands with the control and efficiency needed to build lasting velocity. By focusing on one market until it's fully saturated, brands create stronger retailer partnerships, sharper insights, and sustainable growth before taking the next step.

Read the entire article by New Hope Network for more.

Share This:

Leave a Comment:

Human Check