a c nielsen retail measurement_edited for uwsb

8/4/2019 A C Nielsen Retail Measurement_edited for UWSB

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ACNielsen Retail Measurement

Service

An overview



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Retail Index

• Periodic (generally monthly) monitoring with a panel of retail outlets.

– Excludes institutional sales, but includes retail channels

• Collecting data on Purchases, Stocks, and/or Sales for product

categories of interest. – Measures and tracks sales units, volume, selling price, observed

promotion and merchandising execution, encompassing anorganization's own brands as well as competitive products

• And projecting it, using statistical techniques to arrive at estimates.



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Objectives of Retail Index

• To Monitor Trends

– Market

– Brands & Competition

• To Understand Distribution

– Width & Depth

– Shelf Competition



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Methodology

• Retail Index data is based on measurement of consumer sales froma sample of outlets designed to reflect the channel being measured.

• The panel is spread across the country and represents all statesacross Pop Strata .

• The same fixed sample is audited on a monthly basis with field

auditors physically counting retail stock holdings, then recordingstore purchases from any source (warehouse, wholesaler or direct).• For the respective category that is to be audited each and every

SKU stock is physically counted• The ongoing measurement of these variables produces consumer

sales as well as vital in-store information. (Opening Stock+

Purchases-Closing Stock = Sales)• Due to the constantly changing retail environment, ACNielsenupdates its defined universe and sample requirements on an annualbasis.

• This is done to ensure the sample is representative of the channelbeing measured.



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Stumped?

Questions we need to ask… .

Answers we need…

Retail Measurement Service is the reliable research toolused worldwide to continuously track the market.

Is the market growing?

• Potential regions?

• Can I introduce a new pack

type/ size and gain?

• Impact of Ads/Promos?

• Is any special segmentgrowing faster?

• Is my product available?

• Are Stocks Fresh?

• Is my distribution efficient?

• Is my brand/pack Out of

Stock?

•Is my brand moving or are mystocks piling up?



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Critical Inputs for Informed Decisions

If You Are Planning A New Launch

Shortlist categories to launch

Take go/ no-go decisions

Find the right product, pack and price mix

Identify markets for launch

Predict potential market share

Monitor performance of the new launch



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If You Are An Existing Player


Evaluate performance vis a vis competition in

various markets

Identify underdeveloped markets for your brands

– Benchmark against competition within category,

and on other categories

Identify gaps in product mixIdentify emerging product, pack & price segments

Assess competition activity

Determine brand potential



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If You Are An Existing Player Manage stocking and servicing levels

Do price sensitivity analysis

Evaluate performance of promotionsExpand distribution

Synergise internal distribution

Benchmark against competition distributionDo production scheduling



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Key Benefits

• Managers can gauge product penetration, overall productperformance, distribution, promotion effectiveness, and pricesensitivity through measurement and integration of the followingvariables: – sales and shares – weighted and numeric distribution – stock data including out of stocks – pricing – in-store merchandising

Analysis of all data is available via ACNielsen Advisor. This flexible

software allows easy yet powerful interrogation of the rich RetailIndex databases.



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Retail Micro Markets

ACNielsen | Retail Micro Markets has been designed to help FMCGmarketers:

• Identify micro opportunities-relevant to their goals

• Devise strategies to optimize :

• Regional distribution• Regional product mix

• ACNielsen | Retail MicroMarkets service monitors andanalyzes the Indian FMCG sector with greater granularity. It trackstrends within more minutegeographies and channels.

• Using the more actionable data,the Marketing and Distributionprofessional can plan, act andmonitor brand performance in amore holistic manner.

• By combining data on categoryperformance, competitivemovement, depth of distribution,stock levels, price movements andnew product introductions,Marketers can now focus ontargeted areas more accurately



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Retail Micro Markets

ACNielsen | Retail Micro Markets can answer the following

business concerns

• How do I plan my distribution expansion programme?

• How do I prioritize markets for new launches?• In which micro geography do I need to improve frequency

of service?

• Do I need to align the product assortment in accordance

to consumer preference in each micro geography andchannel?

• Do I need to modify the product mix to address regional

preferences?



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Example

• Brand C is the third largest national brand in a given category. Nationally, it enjoys aValue Share of 14 percent. However, this brand is present in only 47 percent of dealers nationally; these dealers contribute 69 percent of category sales at an allIndia level.

• By studying the micro level retail data for Brand C, two large opportunity areas for expansion were detected : – The largest market for the given category is Tamil Nadu contributing 15 percent to the national

sales. However, Tamil Nadu contributes only 8 percent to the all India Value Sales of BrandC. – Brand C is nationally under leveraged in the largest channel for the Category : Grocers. It has

a low penetration in this salient channel at an all India level. However, in Tamil Nadu, theoverall penetration is only 23 percent and amongst the Grocers, it is 22 percent.

• Brand C has low market share and penetration in Tamil Nadu. Therefore, it isimperative for Brand C to improve its focus on this market. The marketer of Brand Cneeds to put together an effective Micro Strategy by ascertaining – Channels that needs to be targeted – Action that needs to be taken in the under leveraged channel. – Devising a Channel wise strategy, evaluating implementation and monitoring performance on

a regular basis for each State, is now possible using State X Channel type data from ACNielsen | Retail Micro Markets



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Example

Which Channels should be targeted for increasing sales for Brand C in Tamil Nadu?• Grocers constitute the largest channel in Tamil Nadu followed by Chemists and Pan Plus for

Category X. Though Grocers is the highest contributing channel for Brand C, the brand isnot very well distributed in this channel in Tamil Nadu.

• Brand C reaches only 22 percent of Grocers; these 22 percent contribute to 58 percent of Category X Sales

• Brand C, is under leveraged in Chemists and Pan Plus with17 percent and 6 percent of Brand C sales coming from these channels respectively

• Therefore, Brand C can increase sales by focusing on key channels-Grocers, Chemists andPan Plus.



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Example

• Further analysis, to devise a micro strategy for

improving sales in Grocers, one of the key

channels in Tamil Nadu for Category X.



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Modern Trade Service

• Modern Stores are fast becoming the consumers’ preferredshopping destination as they offer an increased product choice

• extensive product displays, increased level of merchandising,changing nature of promotions and continuous new productlaunches, stimulate a continuous shift in the consumer’s product

preferences – thus affecting unanticipated swings in the brands’Market Shares.

• Micro-level data in the Modern Trade channel on sales relatedparameters, on a month-to-month basis, enables Marketers toemploy tactics that are not only relevant but differentiated enough tobe effective in a unique environment

• Given the unique character of Modern Stores, Marketers need toemploy a differentiated strategy herein – whether it is for determining the product mix, price mix, promotions or in-storeactivities!



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ACNielsen| Modern Trade Service

• Important determinant of a Marketer’s success as itmeasures and monitors key category trends for a brand,and the corresponding competitive set, at a city level –making information actionable.

• It gives a point-by-point comparison with the TraditionalChannels enabling the formation of a differentiatedstrategy.

• ACNielsen| Modern Trade Service helps the Marketer develop suitable micro-strategies for this channel by: – Determining Growth Opportunities – identifying high growth

category segments and markets – Benchmarking Growth Potential – by measuring performance of

own brands with the competitive set – Understanding Consumer Preferences – by studying the winning

Product Mix (Price/ Packs/ Promotions)



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Example - Determining Growth

Opportunities• Brand A and Brand B are competitive

Premium Toilet Soap brands, in the sameprice segment, with an All India presence.

• They are sold through both Traditional andModern channels.

• However, at 7.5%, Brand B has a muchhigher Market Share in Modern Trade ascompared to the 6.6% Market Share of Brand

A.• The difference in Share between Modern andTraditional Channel is also higher for BrandB - indicating that it is well leveraged in theModern Trade Channel.

• This data illustrates that the fast growingModern Trade Channel holds immensepotential for Brand A to increase its MarketShare. How does Brand A go about it? By

concentrating on key markets.



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ACNielsen| Modern Trade Service

What it is?City level estimates of Category andBrand salesInsights into the Traditional trade andModern trade in each cityMonthly reporting reports deliveredwithin 45 days of the month end

What it is not?No individual chain level reportingNo information on POP, Display,Trade Schemes, Dealer margins, In-store Promotions

Categories CoveredHair CarePersonal CareFabric and HomeCareBaby ProductsFood and BeveragesImpulse Foods

ContraceptivesOTCGeneral PurposeCooking MediumLighting Products

Cities Reported AhmedabadSurat

VadodaraChennaiBangaloreHyderabadMadurai

DelhiMumbaiVishakhapatnamKochiCoimbatorePuneNagpur Kolkata



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Market Information Digest

• The ACNielsen | Market Information Digest (MID) is a crucialreference tool for companies interested in Consumer Goods market.

• It provides immediate access to valuable information on a widerange of product categories.

• MID 2006 combines data from the most comprehensive primary and

secondary data sources on India’s consumer landscape to offer aclear snapshot of 78 major product categories in terms of retailsales, media spends along with country background in termseconomic, industry and demographic information.

• Drawing upon India’s only database on the Indian retail market for

branded FMCG and Durable goods, the ACNielsen MID 2006,provides subscribers an insightful tool to analyze market potentialfor a host of categories in the context of the Indian consumers’media habits and brand preferences.



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Application

MID is used extensively by consumer goods marketers, distributors,advertising and media professionals to aid their marketing plans.Questions that can addressed by MID include -

• Which categories should I consider entering? Which categories areshowing above average growth? Which segments andmanufacturers are driving this growth?

• Which manufacturer could be a take-over target? Who are thefastest growing manufacturers? What is the size of their business?

• Which manufacturers do I need to target as a local publisher /broadcaster?

• Are there strong local players? What are their brand sales? Who aretheir competitors?



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Features



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In-store observation

• Conducts in-store observation studies across all channels and markets,• Provides manufacturers and retailers with visually verified information about

categories, brands, items, retail execution and the competition.• Personnel perform on-site observations to assess factors impacting sales

and promotion performance, including the following: – Distribution

– Existence of displays – Display position and prominence – Inventory levels – Out-of-stock occurrences – Shelf facings – Product adjacency to competitors – Linear measurement – Lowest retail price



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Insights into

• Are my product displays set up at the

recommended time and location?

• How many facings are allocated to my brand, by

trade channel?• How does my competitive activity impact my

product's performance?

• Are inventory levels adequate at the onset of myproduct's peak seasonal period?



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Key business benefits:

• Provide insight into store activities not found in standard research reports,through the use of custom observations.

• Enhance decision-making ability with another dimension to Retail MeasuresServices tracking data that enables managers to match in-store observedcausal to actual sales for a more comprehensive understanding of thefactors influencing sales trends.

• Gain visual confirmation of trade promotions to verify proper execution.• Investigate suspected condition problems at the store level to developpractical corrective plans.

• Ensure successful new product launches by tracking promotion compliance.• Assist retailers with assortment decisions by supplying information that

relates market share to shelf space allocation.

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