1. Introductie tot AC Nielsen
2de Lic Toegepaste Economische Wetenschappen
A.O. Meertalige bedrijfscommunicatie
12 Oktober 2004
27 Oktober 2004

2. AGENDA What does AC Nielsen Marketing Research stand for ?
Retailing in Belgium and Europe
Structure of AC Nielsen information
Business 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 Chicago
Currently active in more than 100 countries
Employs full time persons
Turnover: 1,75 billion euro
N°1 marketing research company in the world
Part 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 York
Business Media London (Europe) and New York (US)
Directories Brussels

6. The fundamental problem
Brand
Manufacturers
Performance of my products versus market & competitors?
Supply Chain
Retailers

7. ? MARKET DYNAMICS MARKET SIZE? SHARES? DISTRIBUTION? PRICE?
Retailers and manufacturers need information and insight into four key areas
MARKET DYNAMICS ?
MARKET SIZE? SHARES? DISTRIBUTION? PRICE?

8. ? MARKET DYNAMICS KEY COMPETITORS
Retailers and manufacturers need information and insight into four key areas
MARKET DYNAMICS
KEY 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 areas
MARKET DYNAMICS
KEY COMPETITORS
CONSUMER DYNAMICS
WHO? WHAT? WHY? WHEN? WHERE?

10. MARKET DYNAMICS KEY COMPETITORS CONSUMER DYNAMICS
Retailers and manufacturers need information and insight into four key areas
MARKET DYNAMICS
KEY COMPETITORS
CONSUMER DYNAMICS
Advertising
Coupons
Promotions
EXTERNAL 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.
TOOLS
PEOPLE
Ask 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 Measurement
Tracking What Happens at the Retailer Point of Sale . . .
ACNielsen Collects Data:
Of more than 500 product categories
In over 150,000 retail outlets (± in Europe)
In over 80 countries
On six continents
Through Scanning and Auditing

13. An output example of Retailer Point of Sales Data: Cream Cheese in Europe
167 Millions KG
% Evol:+4%

14. In welk land is roomkaas het goedkoopst?

15. But for a More Complete Picture . . .2.
But for a More Complete Picture . . .
Volumetrics by Retailer
Market Share
Price
Causal Factors
Retail Measurement

16. Link Store Information to . . . The Consumer Behind the Purchase
Volumetrics by Retailer
Market Share
Price
Causal Factors
- Who buys what?
- Where they shop?
- How often they shop?
Consumer Panel
Retail Measurement

17. Over 128,000 Households Worldwide
Consumer Panel
Over 128,000 Households Worldwide
Country Households Service Type
U. S. 52,000 Homescan
U.K ,450 Homescan
France ,000 Homescan
Canada ,600 Homescan
Germany 9,000 Homescan
South Africa 4,000 Homescan
Australia 5,000 Homescan
New Zealand 1,500 Homescan
Italy ,000 Homescan
Mexico ,000 Homepanel
Colombia 3,000 Homepanel
Spain ,500 Homepanel
Finland ,600 Homepanel
Greece ,250 Homepanel
Israel 2,000 Homepanel
Switzerland 3,750 Homescan

18. Hoeveel keer koopt een gemiddeld Frans gezin een pakje roomkaas aan?

19. An example: Consumer spending data in France

20. Advanced analytics & modeling3.
Advanced analytics & modeling
One Step Beyond
Which 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 Beyond
An example: what is my optimal price?

22. A Big Step Beyond
Specific Issues; Specific Answers Decomposing historical brand sales ensures clients can quantify return on investment
Buy 1 Get 1 Free Offer Return On Investment Analysis
Incremental Volume: 1 million litres
Incremental Contribution: £400,000
Cost Of Promotion: £300,000
Return On Promotion Investment: £100,000

23. AGENDA What does AC Nielsen Marketing Research stand for ?
Retailing in Belgium and Europe
Structure of AC Nielsen information
Business Case

24. A.C. Nielsen Company Belgium
50 years on the market!
25 Million €
170 full time persons
200 regular clients

25. The Retail index Desk Research Field Research Sample Universe one time
only
continuous
Individuals
households
retail
stores
wholesalers
with the sample stores we count 12.5% of total turnover
or the purchases of 500,000 households

26. Disproportionate sample

27. Retailing Some facts and some figures

28. Turnover of the ACNielsen food universe
+ 4.9%

29. Private consumption (Billions Euro) =
2003: ACNielsen Food Universe = 64 % of food retailing = 23 % of retailing = 11 % of total private consumption
Private consumption (Billions Euro) =
28.3 Billions Euro 6%
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) & Cora
F2 :
ONAFHANKELIJKE WINKELS
Ruim assortiment, nationale merken (en PL).
F2 : Medium Non-Integrated Distribution
AD Delhaize, Spar, GB-Partner, GB- Contact, Alvo, Samgo, Intermarché
HD: HARD DISCOUNTERS.
Beperkt assortiment, PL, lage prijs.
HD : Hard Discount
Aldi & Lidl
F3 : WINKEL OP DE HOEK
Beperkt assortiment, nationale merken.
F3 : Small Distribution
All Self-Service Shops with a surface < 400 m² (and not belonging to one the shop types above.
Company Owned
Independant

34. Market share by new shoptype
New Shoptypes
Market share by new shoptype
03 vs. 02

35. New Shoptypes
Average turnover per store in : (en 000 Euro) - current prices

36. Evolution number of Hard Discounter stores
New Shoptypes
Evolution number of Hard Discounter stores
+52

37. Wie behoort tot de Top 3 in retail?

38. European Retailing

39. Europe today
km² million inhabitants ( 77% = urban) food stores (01/01/1999)
4.900 hypermarkets { >2500m² } ( = 1.1%)
Large supermarkets { >1000m² } ( = 3.3%)
Small supermarkets { >400m² } (= 10%)
Superettes { >100 m² } ( 24.1%)
Clerk service shops (61.5%)

40. Hyper- & Supermarkets take most of the EURO’s (Turnover split by shoptype)
Hypermarkets
32.4€
L Supermarkets
23.3€
S Supermarkets
25.1€
Conv. SM
13.1€
Trad
6.1€

41. … however Europe is still a mosaic

42. How different are France, Belgium & Holland?

43. Retailing Private Labels in Belgium

44. Global Market Share of Private Labels in Belgium
Food + Non-food (value share)

45. Value Share of Private Labels YTD P09/04
PAPER
PETFOOD/CARE
HOT BEV.
NON ALC BEV
CONFECT.
FABRICS

46. Hard Discount in Europe

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?
Italy
Germany
Spain UK
Portugal
Greece
Austria
Bubble Size:
Discount sales per capita
France
Belgium
Growth in No. of stores
Netherlands
Denmark +
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!

50. BREAK

51. AGENDA What does AC Nielsen Marketing Research stand for ?
Retailing in Belgium and Europe
Structure of AC Nielsen information
Business Case

52. Structure of the information
AC Nielsen information is always structured around the same four dimensions.

53. The 4 AC Nielsen dimensions : Markets

54. 2 1 3 4 5 MARKET 1. ACNielsen shoptypes F1 F2NI F2I F3
2. AC Nielsen Areas
Area 1 = Oost- en West-Vlaanderen
Area 2 = Limburg, Antwerpen en Vl. Brabant
Area 3 = 30 gemeenten rond Brussel
Area 4 = Henegouwen en Waals Brabant
Area 5 = Luik, Namen en Luxemburg

55. Currently coöperating distributors :
MARKET
3. AC Nielsen Chain Data
Currently 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
Markets
Products
1. Markets
2. Products

57. PRODUCTS
CLIENT databases are structured according to the clients wishes, based upon the ACNielsen characteristics.
Total Market
Manufacturer
Brand
Size
Flavor

58. The 4 ACNielsen dimensions : Periods
Markets
Products
1. Markets
2. Products
Facts
3. Periods

59. PERIOD
Data 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 September
Cumulation of 13 periods = One year (MAT).
Other cumulation -> (YTD, season, …)

60. The 4 ACNielsen dimensions : Facts
Markets
Products
1. Markets
2. Products
Facts
Periods
3. Periods
4. Facts

61. FACTS
A. 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. FACTS
B. 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. FACTS
C. SHARES and PRICES
1. Average Retail Price Equivalized
- Sales Value / Sales Units Equivalized
2. Share Units
- Market Share expressed in Units.
3. Share Units Equivalized
- Market Share expressed in Kg...
4. Share Value
- Market Share expressed in euro

64. En nu even oefenen!

65. Let ’s practice ... WD : 20 ND : 40 WD : 50 ND : 45
What can you say about our distribution ?

66. Let ’s practice ... Sales Value : 2.000.000 Sales Units : 20.000
Sales Volume (kg) :
Sales Value :
Sales Units :
Sales Volume (kg) :
What did we do ?

67. Let ’s practice ... Sales Value : 2.000.000
Sales Units Equivalized:
Share in Value : 25 %
Share in Units Equivalized: 15 %
What can you say about our pricing?

68. Let ’s practice ... Sales Value : 4.000.000 Any Promo WD : 10
Sales Unit Equivalized :
Sales Value :
Any Promo WD : 40
Sales Unit Equivalized:
What happened ?

69. En nu de finale: the business case!

70. INPUT EXCEL Files with data on a certain market : Products : Markets :
One Market
besides PL, three important brands and one booming new brand
Markets :
Total Belgium
All Shop Types
3 Regions
Periods :
4-weekly periods
3 years backdata
Facts :
Sales
Distribution
Shares & Prices
Promo & shelf

71. INPUT 11 EXCEL Files UG-SU Sales Units UG-SUE Sales Units Equivalized
UG-SV Sales Value
UG-WD Weighted Distribution
UG-ND Numeric Distribution
UG-PWD Promo WD
UG-P Price
UG-SHU Share Units
UG-SHUE Share Units Equivalized
UG-SHV Share Value
UG-SHELF Shelf Space

72. INPUT

73. OUTPUT
A written report (including charts) to be submitted on 21/12/04 (MTB) or 22/12/2004 (lic TEW)
In 2 copies
Maximum 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 ?

74. Contact: Joëlle Lontie Plejadenlaan 73 1200 Brussel E-mail: Joelle
Contact: Joëlle Lontie Plejadenlaan Brussel