Presentation on theme: "Nielsen/IRI Intro Session. What are Nielsen & IRI? Supplier of information to consumer packaged goods industry Information supplied: –Scanner data –Manufacturer."— Presentation transcript:
Nielsen/IRI Intro Session
What are Nielsen & IRI? Supplier of information to consumer packaged goods industry Information supplied: –Scanner data –Manufacturer coupons & features –Manufacturer displays Information helps companies to make more informed decisions
How is Data Collected? Sample of stores (Grocery, Drug, Convenience, Mass Merch., Warehouse stores) Scanner data –UPC info, Price, Quantity all recorded Features –Centrally collected and coded (daily) Displays –Collected by store auditors (1X/week)
4 Data Dimensions Market Product Time Measure
Dimensions:Markets Markets can be organized by class of trade, region, or both (also custom markets created by firms) –COT Food Drug Mass Combined –Region (usually dependent on companys sales force organization, I.e. Colgate= North, South, Pacific) North South East West
UAP CATEGORY- Size Trend - by COT Large sizes are increasing, small decreasing
Dimension: Product The Brand? Particular Flavor? Particular Size? You can select more than one SKU (including competitors).
Product Category:Carbonated Soft Drinks Manufacturer:Pepsi-Cola Company Type:Pepsi Colas Trademark:Pepsi Colas Flavor:Pepsi Colas-Wild Cherry Diet Regular:Pepsi Colas-Wild Cherry R Caff. Free:Pepsi Colas-Wild Cherry Regular C Size:Pepsi Colas-Wild Cherry Regular Caff.12oz. 6 ct can
Time Generally 2 years available in database Broken into periods by Weeks –52 Weeks –26 Weeks –13 Weeks –Months – 4 or 5 Weeks –Individual Weeks Customizable periods Back data available
Measures Volume Distribution Sales Price
Measure:Volume Baseline –Normal expected volume for the product in absence of any store level promotional activity –Estimated through modeling Incremental –The proportion of total volume exceeding expected (baseline) volume. Incremental Volume = Actual - Baseline
Changes in Volume (Baseline) Distribution Related Velocity Related –Price –Support (coupon, TV) –Awareness/Image –Competition
Volume Promoted –Sold on either Display Feature Price Decrease (TPR) Non-Promoted –Actual sales recorded for the weeks with no promotional activity.
10 cases of subsidized volume (volume that would have been expected without a promotion)
Measure: Distribution All Commodity Volume (ACV) ACV Weighted Distribution % Stores Selling Average Weekly ACV Wtd
Measure: Distribution Measure: All Commodity Volume (ACV) Definition: The total annual dollar sales of all items sold. ACV can be expressed for a particular geographic area, retail outlet type (Food, Drug, Mass), key account or RMA. New York Total Market $100MM ACV New York Pathmarks $30 MM (30%) New York A&P $15MM (15%)
Measure: Distribution How Much Distribution Does My Brand Have? Measure: ACV Weighted Distribution Definition: The % of total ACV represented by stores where at least one of a product was scanned. ACVBrand XBrand Y Store A$30 MMX Store B$40 MMX Store C$15 MMX Store D$15 MMX Total Mkt$100 MM70%30%
Measure: Distribution How Much Distribution Does My Brand Have Over a 4 Week Time Period? Store%ACVWk 1Wk 2Wk 3Wk 44Wk Total Store A30%XXXX Store B40%0% Store C15%0% Store D15%0% Total Mkt100%30% Answer: 30%
Measure: Distribution How Much Distribution Does My Brand Have Over a 4 Week Time Period? Store%ACVWk 1Wk 2Wk 3Wk 44Wk Total Store A30%0% Store B40%XX Store C15%0% Store D15%XX Total Mkt100%40%55%15%0%55% Answer: 55%
Measure: Distribution ACV Weighted Distribution vs. Stores Selling Over a 4 Week Time Period? Store%ACVWk 1Wk 2Wk 3Wk 44Wk Total Store A30%0% Store B40%XX Store C15%0% Store D15%XX Total Mkt100%40%55%15%0%55% ACV Wtd Distribution=40% + 15%= 55% % Stores Selling=2/4=50%
Measure: Distribution ACV Weighted Distribution vs. Avg Weekly ACV Weighted Distribution Over a 4 Week Time Period? Store%ACVWk 1Wk 2Wk 3Wk 44Wk Total Store A30%0% Store B40%XX Store C15%0% Store D15%XX Total Mkt100%40%55%15%0%55% ACV Wtd Distribution=40% + 15%= 55% Avg Weekly ACV Wtd Distribution=( )/4=27.5%
Measure: Sales Development Index: Per capita sales of a product/category/brand in a particular geography indexed to per capita sales of the same product/category/brand at Total U.S. (Products Volume in Market/Population in Market) (Products Volume in Total U.S./Population in Total U.S.) X 100
Sales CDI – Category Development Index –Measures the Categorys volume development in a market compared to the categorys development in the Total U.S. BDI – Brand Development Index –Measures the Brands volume development in a market compared to the brands development in the Total U.S. PDI – Product Development Index –Measures the Products volume development in a market compared to the products development in the Total U.S.
Sales Example: Product Development Index SalesPopulationSales/Pop. NY Mkt.150,0008,484, Total U.S.4,550,000206,000, PDI = (.01768/.0221) x 100 = 80
Sales Why use Development Indices? –Help you to understand development by market –Identify needs and opportunities Guidelines for Reading Development Indices: 89 or below: Underdeveloped : Average Development 111 or above: Highly Developed
Sales Basic Merchandising Conditions: Any Merchandising –Includes all types of trade merchandising Feature Display Feature and Display Special Pack Price Reduction (5% or greater)
Sales Feature Only vs. Any Feature Display Only Feature Only Any DisplayAny Feature Feature & Display
Sales Merchandising Measures: % of Volume –Percent of retail volume sold in conjunction with trade merchandising activity % of ACV –Measures support –Percent of geography ACV that participated in the trade merchandising activity
Measure: Share Share is a calculation based on unit, equivalized unit, or dollar volume. Share measures –Share = (product vol/ category vol) * 100 –EQ share (EQ units = # of equivalent weighted units scanned for a product class or item) –Share change vs. year ago (point change) This years share – last years share –Look at relationship between share changes and category volume changes
COT Segmentation - EQ Share Mass is the largest and fastest growing COT 1999 Category EQ Volume by Class of Trade (% Change vs. YAG)
Category Dynamics - Consumer Hierarchy of Needs Low Transferable Demand High Transferable Demand 1. Form2. Gender3. Brand4. Type5. Scent6. Size Sticks Gels Aerosols Roll-On Soft Solids Male Female Unisex Speed Stick Right Guard Lady Speed Stick Secret AP Deo Scented Unscented Large Small Consumers choose an AP/Deo product based on a hierarchy of needs which begins with form, first and foremost Source: Nielsen Household Panel
Measure: Price Retail price facts are gathered from: –Retailers tapes –Retail displays (marketing reps) –Feature ads (feature coders) Price data is gathered separately from store movement data (if feature prices found are lower than tape prices, tape price is over-ridden)
Price Price Metrics –Price per unit Package price for all scanned sales of a particular product –Price per Equivalent Unit The package price for all sales of a particular product divided by the custom- defined unit equivalency (i.e., price per pound) –Average price Weighted average price for all scanned sales of a product (weighted average price for a period is computed by dividing total dollars during the period by total units sold [instead of dividing total price each week by the number of weeks]) –Non – promoted price Actual product price in absence of a trade promotion (feature, display, tpr) –Promoted price Price in stores with a feature, display, or tpr
Okay, so how does this relate to Brand Management and my job this summer?
Hey Fuqua Intern, How can we sell the sales force on supporting Diet Mtn Dew? Source: IRI G/D/M 7/00 Volume % Chg vs. YAG (G/D/M) Diet Dew Diet Colas Diet Flavors Diet CSDs So, How Does This Apply to BM?
GroceryC&G Diet DewDiet PepsiDiet DewDiet Pepsi 6 Pack45%76%9%43% 12 Pack88%99%22%79% 24 Pack28%67%NA12% 2 Liter92%98%25%85% 20 oz48%87%91%98% TM99%100%92%100% Hey Fuqua Intern, which SKUs do we really need to get out on shelf? Channel ACV Weighted Distribution Source: IRI 99 So, How Does This Apply to BM?
Hey Fuqua Intern, Which 15 markets should we sample Diet Mtn Dew in? Source: IRI G/D/M 7/00 So, How Does This Apply to BM?