1. Nielsen/IRI Intro Session

2. 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

3. 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. 4 Data Dimensions
Market
Product
Time
Measure

5. 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 company’s sales force organization, I.e. Colgate= North, South, Pacific)
North
South
East
West
Ie, in which regions are diff ap/ deo forms the strongest?
Stick, north/ pacific
Gel, pacific
Aerosol, south

6. UAP CATEGORY- Size Trend - by COT
Large sizes are increasing, small decreasing

7. Dimension: Product The Brand? Particular Flavor? Particular Size?
You can select more than one SKU (including competitors).

8. 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

9. 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

10. Measures
Volume
Distribution
Sales
Price

11. Measure:Volume Baseline Incremental
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

12. Changes in Volume (Baseline)
Distribution Related
Velocity Related
Price
Support (coupon, TV)
Awareness/Image
Competition

13. Volume Promoted Non-Promoted Sold on either
Display
Feature
Price Decrease (TPR)
Non-Promoted
Actual sales recorded for the weeks with no promotional activity.

14. 10 cases of subsidized volume (volume that would have been expected without a promotion)

15. Measure: Distribution
All Commodity Volume (ACV)
ACV Weighted Distribution
% Stores Selling
Average Weekly ACV Wtd

16. 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%)

17. 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.
ACV
Brand X
Brand Y
Store A
$30 MM X
Store B
$40 MM
Store C
$15 MM
Store D
Total Mkt
$100 MM
70%
30%

18. Measure: Distribution
How Much Distribution Does My Brand Have Over a 4 Week Time Period?
Store
%ACV
Wk 1
Wk 2
Wk 3
Wk 4
4Wk Total
Store A
30% X
Store B
40% 0%
Store C
15%
Store D
Total Mkt
100%
Answer: 30%

19. Measure: Distribution
How Much Distribution Does My Brand Have Over a 4 Week Time Period?
Store
%ACV
Wk 1
Wk 2
Wk 3
Wk 4
4Wk Total
Store A
30% 0%
Store B
40% X
Store C
15%
Store D
Total Mkt
100%
55%
Answer: 55%

20. Measure: Distribution
ACV Weighted Distribution vs. Stores Selling Over a 4 Week Time Period?
Store
%ACV
Wk 1
Wk 2
Wk 3
Wk 4
4Wk Total
Store A
30% 0%
Store B
40% X
Store C
15%
Store D
Total Mkt
100%
55%
ACV Wtd Distribution=40% + 15%= 55%
% Stores Selling=2/4=50%

21. Measure: Distribution
ACV Weighted Distribution vs. Avg Weekly ACV Weighted Distribution Over a 4 Week Time Period?
Store
%ACV
Wk 1
Wk 2
Wk 3
Wk 4
4Wk Total
Store A
30% 0%
Store B
40% X
Store C
15%
Store D
Total Mkt
100%
55%
ACV Wtd Distribution=40% + 15%= 55%
Avg Weekly ACV Wtd Distribution=( )/4=27.5%

22. 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.
(Product’s Volume in Market/Population in Market)
(Product’s Volume in Total U.S./Population in Total U.S.)
X 100

23. Sales CDI – Category Development Index BDI – Brand Development Index
Measures the Category’s volume development in a market compared to the category’s development in the Total U.S.
BDI – Brand Development Index
Measures the Brand’s volume development in a market compared to the brand’s development in the Total U.S.
PDI – Product Development Index
Measures the Product’s volume development in a market compared to the product’s development in the Total U.S.

24. Sales Example: Product Development Index Sales Population Sales/Pop.
NY Mkt.
150,000
8,484,000
.01768
Total U.S.
4,550,000
206,000,000
.0221
PDI = (.01768/.0221) x 100 = 80

25. 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
90-110: Average Development
111 or above: Highly Developed

26. Sales Basic Merchandising Conditions: Any Merchandising Feature
Includes all types of trade merchandising
Feature
Display
Feature and Display
Special Pack
Price Reduction (5% or greater)

27. Sales Feature Only vs. Any Feature Display Only Feature Any Display

28. Sales Merchandising Measures: % of Volume % of ACV
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

29. 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 year’s share – last year’s share
Look at relationship between share changes and category volume changes
i.e. Deo/ Ap 54 oz equiv cases

30. COT Segmentation - EQ Share
Mass is the largest and fastest growing COT
1999 Category EQ Volume by Class of Trade
(% Change vs. YAG)
Mass is the largest and fastest growing Class of Trade
Special Sales, Military and Other make up a relatively small percent of the business 25

31. Category Dynamics -Consumer Hierarchy of Needs
Consumers choose an AP/Deo product based on a hierarchy of needs which begins with form, first and foremost
1. Form
2. Gender
3. Brand
4. Type
5. Scent
6. 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
Decision hierarchy
Price is not first
untit purchase statt oz. purhcase - sign part of decision process
Low
Transferable
Demand
High
Transferable
Demand
Source: Nielsen Household Panel

32. Measure: Price Retail price facts are gathered from:
Retailer’s 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)

33. Price Price Metrics Price per unit Price per Equivalent 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

34. Okay, so how does this relate to Brand Management and my job this summer?

35. Volume % Chg vs. YAG (G/D/M)
So, How Does This Apply to BM?
Hey Fuqua Intern, How can we sell the sales force on supporting Diet Mtn Dew?
Volume % Chg vs. YAG (G/D/M)
Diet Dew
Diet Flavors
Extra 560 MM Cases between Diet Rite Flavors at 10MM, Diet Dad’s, and other regional Diet CSDs
It’s a share game with a little bit of category growth.
Diet CSDs
Diet Colas
Source: IRI G/D/M 7/00

36. So, How Does This Apply to BM?
Hey Fuqua Intern, which SKUs do we really need to get out on shelf?
Channel ACV Weighted Distribution
Grocery C&G
Diet Dew Diet Pepsi Diet Dew Diet Pepsi
6 Pack 45% 76% 9% 43%
12 Pack 88% 99% 22% 79%
24 Pack 28% 67% NA 12%
2 Liter 92% 98% 25% 85%
20 oz 48% 87% 91% 98%
TM 99% 100% 92% 100%
Source: IRI ‘99

37. So, How Does This Apply to BM?
Hey Fuqua Intern, Which 15 markets should we sample Diet Mtn Dew in?
Extra 560 MM Cases between Diet Rite Flavors at 10MM, Diet Dad’s, and other regional Diet CSDs
It’s a share game with a little bit of category growth.
Source: IRI G/D/M 7/00

38. Questions?