Presentation on theme: "Introductie tot AC Nielsen"— Presentation transcript:
1 Introductie tot AC Nielsen 2de Lic Toegepaste Economische WetenschappenA.O. Meertalige bedrijfscommunicatie12 Oktober 200427 Oktober 2004
2 AGENDA What does AC Nielsen Marketing Research stand for ? Retailing in Belgium and EuropeStructure of AC Nielsen informationBusiness Case
3 Hoe heet de Amerikaanse zakenman die het presteerde om tijdens de Grote Depressie een Food & Drug Index op te bouwen?
4 A.C. Nielsen Company Worldwide Founded in 1923 by Arthur Charles Nielsen in ChicagoCurrently active in more than 100 countriesEmploys full time personsTurnover: 1,75 billion euroN°1 marketing research company in the worldPart of VNU since beginning of 2001
5 VNU employs some 38,000 people worldwide, and is active in more than 100 countries. Around half of our EUR 3.9 billion in total revenues is generated in North America.Activity: Group managed by the office in:Marketing Information New York (US) and Haarlem (Europe)Media Measurement New YorkBusiness Media London (Europe) and New York (US)Directories Brussels
6 The fundamental problem BrandManufacturersPerformance of my products versus market & competitors?Supply ChainRetailers
7 ? MARKET DYNAMICS MARKET SIZE? SHARES? DISTRIBUTION? PRICE? Retailers and manufacturers need information and insight into four key areasMARKET DYNAMICS?MARKET SIZE? SHARES? DISTRIBUTION? PRICE?
8 ? MARKET DYNAMICS KEY COMPETITORS Retailers and manufacturers need information and insight into four key areasMARKET DYNAMICSKEY COMPETITORS?What’s My Competition Doing? Are They Winning? How Can I Succeed Versus My Competitors?
9 MARKET DYNAMICS KEY COMPETITORS CONSUMER DYNAMICS Retailers and manufacturers need information and insight into four key areasMARKET DYNAMICSKEY COMPETITORSCONSUMER DYNAMICSWHO? WHAT? WHY? WHEN? WHERE?
10 MARKET DYNAMICS KEY COMPETITORS CONSUMER DYNAMICS Retailers and manufacturers need information and insight into four key areasMARKET DYNAMICSKEY COMPETITORSCONSUMER DYNAMICSAdvertisingCouponsPromotionsEXTERNAL INFLUENCES
11 Our Mission: we strongly believe that our package of client service expertise, tools and high quality data can play a significant part in helping our clients achieve its strategic priorities and associated business objectives.TOOLSPEOPLEAsk the participants the question about how do we deliver value through Tools, People and Expertise?EXPERTISE
12 Tracking What Happens at the Retailer Point of Sale . . . 1.Retail MeasurementTracking What Happens at the Retailer Point of Sale . . .ACNielsen Collects Data:Of more than 500 product categoriesIn over 150,000 retail outlets (± in Europe)In over 80 countriesOn six continentsThrough Scanning and Auditing
13 An output example of Retailer Point of Sales Data: Cream Cheese in Europe 167 Millions KG% Evol:+4%
15 But for a More Complete Picture . . . 2.But for a More Complete Picture . . .Volumetrics by RetailerMarket SharePriceCausal FactorsRetail Measurement
16 Link Store Information to . . . The Consumer Behind the Purchase Volumetrics by RetailerMarket SharePriceCausal Factors- Who buys what?- Where they shop?- How often they shop?Consumer PanelRetail Measurement
20 Advanced analytics & modeling 3.Advanced analytics & modelingOne Step BeyondWhich drivers influence items, brands or category results?Which drivers influence store or chain results?What is the marginal contribution of each marketing mix driver on item, brand, category, store or chain?Given the scope and and granularity of the current data-sets advanced mathematical models make it possible to respond to the above questions.Richard Sears said once that of each dollar spend on advertising half is wasted, but he did not know which half. Today we can not only identify which half is wasted but we can even identify on which marketing variables will return the greatest revenue or profits.
21 An example: what is my optimal price? A Little Step BeyondAn example: what is my optimal price?
22 A Big Step BeyondSpecific Issues; Specific Answers Decomposing historical brand sales ensures clients can quantify return on investmentBuy 1 Get 1 Free Offer Return On Investment AnalysisIncremental Volume: 1 million litresIncremental Contribution: £400,000Cost Of Promotion: £300,000Return On Promotion Investment: £100,000
23 AGENDA What does AC Nielsen Marketing Research stand for ? Retailing in Belgium and EuropeStructure of AC Nielsen informationBusiness Case
24 A.C. Nielsen Company Belgium 50 years on the market!25 Million €170 full time persons200 regular clients
25 The Retail index Desk Research Field Research Sample Universe one time onlycontinuousIndividualshouseholdsretailstoreswholesalerswith the sample stores we count 12.5% of total turnoveror the purchases of 500,000 households
29 Private consumption (Billions Euro) = 2003: ACNielsen Food Universe = 64 % of food retailing = 23 % of retailing = 11 % of total private consumptionPrivate consumption (Billions Euro) =28.3 Billions Euro6%11%53%30%17%7%11%50%32%18%8%12%46%34%20%Source: Fedis & ACNielsen
30 Retail is losing market share in total private consumption... Source: Fedis & INS
31 Hoeveel voedingswinkels waren er in 1970 in België?
32 Evolution of the number of stores (000 stores) = stores
33 AC Nielsen SHOPTYPES MARKET F1 : GROTE SUPERMARKTEN Ruim assortiment, nationale merken en PL.F1 : Mass Retail (limited list)Colruyt, Delhaize Le Lion, Carrefour (CRF, Super GB), Match, Mestdagh (Super M Champion) & CoraF2 :ONAFHANKELIJKE WINKELSRuim assortiment, nationale merken (en PL).F2 : Medium Non-Integrated DistributionAD Delhaize, Spar, GB-Partner, GB- Contact, Alvo, Samgo, IntermarchéHD: HARD DISCOUNTERS.Beperkt assortiment, PL, lage prijs.HD : Hard DiscountAldi & LidlF3 : WINKEL OP DE HOEKBeperkt assortiment, nationale merken.F3 : Small DistributionAll Self-Service Shops with a surface < 400 m² (and not belonging to one the shop types above.Company OwnedIndependant
34 Market share by new shoptype New ShoptypesMarket share by new shoptype03 vs. 02
35 New ShoptypesAverage turnover per store in : (en 000 Euro) - current prices
36 Evolution number of Hard Discounter stores New ShoptypesEvolution number of Hard Discounter stores+52
47 Growth of discounters in Europe Market share (value)Source: Euromonitor, NatWest Securities and AIM estimates
48 Is there a country which is not threatened by pan european discounts? ItalyGermanySpainUKPortugalGreeceAustriaBubble Size:Discount sales per capitaFranceBelgiumGrowth in No. of storesNetherlandsDenmark+Value Market Share
49 magine! i This is not imagination: each statement is true! Purchase power of €50 million per item!Attracting 35% of shoppers weekly!Spending €30 per trip, while saving €30!Selling €200 million in 12 minutes!1 Hard discount store per inhabitants!Discount retailers capture 50% of the market growth!80% of consumers judge hard discount product quality equal to supermarkets!Price reduction strategy of the brands do not work!This is not imagination: each statement is true!
54 2 1 3 4 5 MARKET 1. ACNielsen shoptypes F1 F2NI F2I F3 2. AC Nielsen AreasArea 1 = Oost- en West-VlaanderenArea 2 = Limburg, Antwerpen en Vl. BrabantArea 3 = 30 gemeenten rond BrusselArea 4 = Henegouwen en Waals BrabantArea 5 = Luik, Namen en Luxemburg
55 Currently coöperating distributors : MARKET3. AC Nielsen Chain DataCurrently coöperating distributors :Carrefour, Colruyt, Delhaize, Match, Mestdagh, AD Delhaize, Battard, Profi, Intermarché, Spar, Prima.Aldi & Lidl:Based on ticket collection at exit through field team.
56 The 4 ACNielsen dimensions : Products MarketsProducts1. Markets2. Products
57 PRODUCTSCLIENT databases are structured according to the clients wishes, based upon the ACNielsen characteristics.Total MarketManufacturerBrandSizeFlavor
58 The 4 ACNielsen dimensions : Periods MarketsProducts1. Markets2. ProductsFacts3. Periods
59 PERIODData are received on a weekly basis and can be produced and delivered weekly (9 days delay).However most clients receive 4-weekly data delivered from 1 to 13 times per year.In the database periods are defined by the last day included in the period :SEP1704 : starts August , ends SeptemberCumulation of 13 periods = One year (MAT).Other cumulation -> (YTD, season, …)
61 FACTSA. SALES (not for chains)1. Sales units equivalized- sales expressed in the equivalized unit the client has chosen (liters, kilos, ...)2. Sales units- sales expressed in “Number of EAN’S”12 Pick Up singles = 12 (EAN’S scanned)1 Pick Up 12 pack = 1 (EAN scanned)3. Sales value- Sales expressed in Euro
62 FACTSB. DISTRIBUTION (not for chains)1. Numeric Distribution- % of shops in the market breakdown that have sold the product (at least once) during the considered period 4 weeks)2. Weighted Distribution- % of turnover those shops represent within the total turnover of the product class
63 FACTSC. SHARES and PRICES1. Average Retail Price Equivalized- Sales Value / Sales Units Equivalized2. Share Units- Market Share expressed in Units.3. Share Units Equivalized- Market Share expressed in Kg...4. Share Value- Market Share expressed in euro
70 INPUT EXCEL Files with data on a certain market : Products : Markets : One Marketbesides PL, three important brands and one booming new brandMarkets :Total BelgiumAll Shop Types3 RegionsPeriods :4-weekly periods3 years backdataFacts :SalesDistributionShares & PricesPromo & shelf
71 INPUT 11 EXCEL Files UG-SU Sales Units UG-SUE Sales Units Equivalized UG-SV Sales ValueUG-WD Weighted DistributionUG-ND Numeric DistributionUG-PWD Promo WDUG-P PriceUG-SHU Share UnitsUG-SHUE Share Units EquivalizedUG-SHV Share ValueUG-SHELF Shelf Space
73 OUTPUTA written report (including charts) to be submitted on 21/12/04 (MTB) or 22/12/2004 (lic TEW)In 2 copiesMaximum 10 pages (no appendix)What are the major market trends ?What is the position of our brand ?What are the major trends for our brand ?What are your recommendations ?