1. ACNielsen Data Basics
Beacon United

2. Agenda Retail Sales Basics Fact Review Data Collection
Understanding the Data
Dimension Review
Fact Review
Volume Sales
ACV
Velocity
Merchandising
Pricing

3. Retail Sales Basics

4. ACNielsen Data Sources
Bob’s Grocery
Retail Sales Information:
Retail sales environment
What’s selling, how is it selling, etc
Consumer Information:
Consumer behavior
Who’s buying, how are they buying, etc

5. ACNielsen Data Collection & Processing
Scanner Data
Items scanned at Checkout via UPC code
Price, Quantity, UPC and Item Description Recorded
Scanner Tape and Price Tape Sent to ACNielsen or Data Sent via Modem
Causal Data
Displays - Collected by Store Auditors once a week
Features - Centrally Collected and Coded Daily
ACNielsen Data Processing
Census and Sample based data are integrated for respective markets
DATA
DATA
DATA
DATA
DATA

6. ACNielsen Data Collection & Processing
Census Sample Integration (CSI) means enhanced consistency and accuracy

7. ACNielsen Service Offerings
ACNielsen collects data from the following channels:
Grocery – Food $2MM+
Drug
Mass Merchandisers
Walmart
Warehouse Clubs including Sam’s Club
Dollar stores
Military outlets
Other Retail Measurement Services:
Convenience Stores
Liquor Stores
Ethnic Markets .

8. Data Collection

9. Data Collection: Volume & Price
Data is collected by UPC
Units
Price
Characteristics allow UPC’s to be aggregated
Categories
Segments
SKU’s

10. Understanding the Data
Markets
Products
Facts
Periods

11. Four Data Dimensions Market Product Period Fact
Where did the Purchases Occur?
Product
What Level are You Interested In?
(Category, Segment, Manufacturer, Brand, UPC)
Period
When did the Sales Take Place?
Fact
How will You Measure Performance?
2004

12. Beacon United Databases
PLN_Full_L2
47 Retailer Trading Areas with Remaining Markets
Meijers_Cat0009
Walgreen_Cat0006
Target_Cat7

13. Retailer Markets

14. Market Dimension Retailer Offerings: Trading Area
Retailer defined geography
Census Based
For example, Total Stop & Shop
If Trading Area’s are available it is the preferred view
Remaining Markets are all of an accounts competitors in a specified geography 24

15. What’s the difference between a Market and a TA?
Market Dimension
What’s the difference between a Market and a TA?
Stop & Shop Trading Area
ACNielsen
Boston 2MM+
Food Market

16. Product Dimension

17. Product Dimension
Products are built from the lowest level possible - the individual UPC - which serves as the primary building block for all other product levels

18. Period Dimension

19. Data Delivery: Periods
PLN_Full_L2, Meijers_Cat0009, Walgreen_Cat0006, Target_Cat7
Weekly Data
Updated Monthly
2 Years Weekly/Monthly History
Approximately 2 Weeks Delivery from Close of Period

20. Fact Review Actual Volume Percent Change Share ACV Velocity
Merchandising
Pricing

21. ACNielsen Collects Two Scanned Facts...
Units
SMITH’s
$.74
$1.99
$2.86
Price

22. Fact Dimension Units Equivalent Units Dollars
Number of packages scanned for a product class or item during a specific time period projected to the respective universe
Equivalent Units
Same as above with the exception that each scanned package is exploded by a conversion rate
i.e. Pound Basis, Ounce Basis
Dollars
The measurement of the dollars spent by the customer on items during a specific time period
Calculated not collected
Computation: Projected item sales X Item selling price in each store

23. Volume Share
Share is a Calculation Based on Unit volume, Eq. Volume or Dollar Volume.
Think of Share as a “Subset” of Volume.
Share Enables You to Answer the Question: HOW IMPORTANT IS MY PRODUCT TO THE CATEGORY?

24. Percent Change vs. Point Change
Fact Dimension
Percent Change vs. Point Change
Product A
Product B
Product C
Product B’s Dollar Volume increased 13.3% over YAG. Product B’s Dollar Share increased 1.4 points over YAG.
Percent change is used when comparing VOLUME growth across periods/products/markets.
Point change is used when comparing SHARE growth across periods/products/markets.

25. ACV
How Is
Measured? 39

26. Fact Dimension All Commodity Volume
A measure of the total DOLLAR volume of retail sales for a particular outlet or channel type.
It includes all items that are sold in that store type
%ACV serves as a good weighting factor when measuring distribution. It indicates how many consumers have the opportunity to purchase the product.
Higher ACV stores serve more consumers
All stores are NOT created equal. 43

27. All Commodity Volume $ (ACV) Example
Fact Dimension
All Commodity Volume $ (ACV) Example
The 7 Food Stores In This Market Sell $300,000 Per Week
SMITH’s Grocery Chain
* Has 3 stores in the market
doing $132,000 per week
for a total of 44% of the ACV
JONES’s Grocery Chain
* Has 4 stores in the market
doing $168,000 per week
for a total of 56% of the ACV
JONES’s
JONES’s
SMITH’s
SMITH’s
A) $60,000 (20%)
B) $36,000 (12%)
A) $36,000 (12%)
JONES’s
JONES’s
SMITH’s
B) $48,000 (16%)
C) $36,000 (12%)
D) $36,000 (12%)
C) $48,000 (16%) 40

28. All Commodity Volume $ (ACV) Example
Fact Dimension
All Commodity Volume $ (ACV) Example
If these 3 stores sold your product during the week, what percent of the total ACV sold your product?
JONES’s
JONES’s
SMITH’s
A) $60,000 (20%)
B) $36,000 (12%)
B) $48,000 (16%) 40

29. All Commodity Volume $ (ACV) Example
Fact Dimension
All Commodity Volume $ (ACV) Example
If these 3 stores sold your product during the week, what percent of the total ACV sold your product? And the answer is…
SMITH’s
$48,000 (16%) ACV +
B) $48,000 (16%)
JONES’s
$60,000 (20%) ACV +
A) $60,000 (20%)
JONES’s
$36,000 (12%) ACV =
B) $36,000 (12%)
$144,000 or 48% ACV 40

30. Example Of % ACV (3 Stores)
Fact Dimension
Example Of % ACV (3 Stores)
Item A Sales
Week 1 X
40%
Week 2 X
60%
Week 3 X
60%
Week 4 X
35%
4 Weeks X
100%
Store A (40% ACV)
Store B (35% ACV)
Store C (25% ACV)
% ACV Selling
ACV is non-additive (unless averaging) - 40% + 60% + 60% + 35% = 195%
Average ACV = 195/4 = 48.8%
ACV cannot be greater than 100% 45

31. A Review Of “% Of ACV Selling”
The Percent of the ACV That Sold at Least One Unit of an Item During a Weekly or Monthly Time Period as Predefined on Your Database.
It Does Not Account for Items That Are Stocked in the Store During the Period, But Did Not Scan (Sell) During The Period.

32. How Do I Know Which %ACV Measure To Use?
When Concerned With . . .
Use . . .
Out of Stocks
Average Weekly %ACV
Short-Term Events
What is Highest Distribution
Achieved in a Mkt or Acct?
Max %ACV
During a Given Period (New Items)
Here are some examples of the appropriate use of % ACV.
Tracking Long-Term
Distribution Trends
Monthly %ACV

33. Velocity Facts

34. Another Way To Look At A Sales Rate Is With Sales Per Million Dollars Of ACV
Definition: The Sales Of A Product For Every
$1,000,000 Of All Commodity Volume
To Which That Product Is Exposed
At Retail.
Since “Sales Per Million” Is A Sales Rate Based On Activity Only In Stores Handling, There Are Several Useful Applications Of This ACNielsen Measure.

35. Sales Per Million Dollars Of ACV
Brand Y Annual Sales: $ 5,834,936
Annual Market ACV : $3,240,000,000
To Compute Sales Per Million Dollars Of ACV...
$5,834,936
_________ = $1,801
$ 3,240
This Means That For Every $1,000,000 In Food Store Sales,
A Typical Store Sells $1,801 Of Brand Y.

36. Fact Dimension Sales per MM $ ACV/SS Example
Volume
2000
3000
4000 5 10 20
Sales / $MM
400
300
200
My Brand
Competitor A
Competitor B
ACV
(MM$)
A competitive item may have more sales overall, but this may be a function of its ACV Exposure...Your item may actually sell faster than the competition in a head-to-head comparison of the size of stores selling the products. 49

37. Sales Per Point of Distribution
Allow for a fair comparison of the sales performance of products with different levels of distribution.
Eliminates distribution as a factor to equalize sales levels
Can not use to compare across markets
Sales per Point of Distribution
$ Sales per Point
Unit Sales per Point
Eq Sales per Point
Sales
%ACV Selling

38. Merchandising Facts

39. Feature & Display Volume Temporary Price Reduction
Breaking Down Promoted Volume By Merchandising Condition Allows You To Explain Sales Peaks
Feature Volume
70%
Display Volume
30% No
Promo
Volume
Promo
Volume
Feature & Display Volume
Temporary Price Reduction

40. Feature Collection
Features are defined as retailer printed advertisements or other special printed promotions.
Sources Include:
Newspapers
Flyers
In-store circulars
Mailers
Supplements
Because FSIs are manufacturer features, they are not included in feature measures
Central Processing done in Omaha, Nebraska
Features collected through subscriptions, field auditors, and special arrangements with retailers
Coders receive, review and code 3,000 separate pieces of advertising each week (one newspaper supplement = 1 piece)
Features coded on an ongoing basis, 7 days per week

41. Where does Display Information Come From?
Each week the Field Auditors gather display information on:
Location
Selling Price
Merchandising Information
ACNielsen Display Conditions:
Retailer must participate
It must be temporary
It must be situated in a secondary selling location
It must contain actual product available to consumers for self-service

42. Pricing

43. Some Facts on Pricing Retail price facts are gathered from:
Retailer’s Price Files
Retail Displays
Feature Ads
Price data is NOT collected on the same tape as store volumetric data.

44. Price Facts Average Price
Weighted average price for all scanned sales of product
Non-Promoted Price
Estimated Product Price in the Absence of Promotion
Promoted Prices
Prices recorded by stores with:
Feature
Display
Feature & Display
Temporary Price Reduction.

45. NOW... Let’s Discuss Some Other Important Promotional Facts,
Events & Evaluations

46. Different Ways To Look At Volume
Promoted vs. Non-Promoted
Baseline vs. Incremental 52

47. Retail Sales Are Also Divided Into:
TOTAL VOLUME =
Baseline
Volume
Incremental
Volume +

48. Baseline Volume
The Baseline Volume Is The Normal Expected Everyday Sales In A Specific Store In The Absence Of Any Promotion.
It Is Used As An Indicator Of The Fundamental Vitality Of A Brand/Item.
The Difference Between Actual Volume Versus Baseline Volume Can Be Attributed To Promotional Activity.

49. We First Measure The Actual Volume For A UPC In A Store Over Time
Week:
Feature
Display
TPR X X
X X
X X X

50. The Creation Of A Baseline Allows Us To Measure Incremental Volume
Week:
Feature
Display
TPR X X
X X
X X X

51. The Creation Of A Baseline Allows Us To Measure Incremental Volume
Week:
Feature
Display
TPR X X
X X
X X X

52. Baseline Volume Includes Marketplace Conditions That Affect Sales of a Product
Category
Brand
Long Term
Market Level
Trends
Trends
Seasonality
Effects

53. Incremental Volume
“Incremental” Means Volume Sold Above And Beyond What Normally Would Have Been Expected (Above Baseline).
Generally, Incremental Volume Is Generated By Trade Support.

54. Retail Sales Are Divided Into Two Basic Components:
TOTAL VOLUME =
Promoted
Volume
Non Promoted
Volume +

55. Promoted vs. Non Promoted Volume
Volume in those stores/weeks where NO promotion (feature, display, TPR) is present
Promoted
Volume in those stores/weeks where a promotion (feature, display, TPR) is present
These measures are projected from actual store data, unlike baseline volume, promoted/non promoted volume are not calculations

56. Keep in Mind... BUT Non-Promoted + Promoted = Total Volume
Baseline + Incremental = Total Volume
BUT
Promoted  Incremental Non-Promoted  Baseline
Promoted and Non-Promoted Volume are actual, measured results
Baseline and Incremental Volume are expected, modeled results

57. Total Brand A San Francisco - 52 Week Period
Subsidized Volume
Total Brand A San Francisco - 52 Week Period
95.8%
4.2%
88.3%
11.7%
7.4%
Base vs Inc
Promo vs Non
Subsidy
Incremental
Promoted
Non-Promoted
Baseline
7.4% of the pound volume sold on promotion, but would have sold even without the promotion...

58. Promotional Evaluation Measures

59. Promotion Effectiveness Index (PEI)
PEI measures total volume relative to what would have normally been sold in the absence of any store level promotional activity (Baseline)
(Total Volume / Baseline Volume) x 100 = PEI
Examples:
A PEI of 100 means that Total Volume was equal to Baseline Volume
A PEI of 350 means that Total Volume was 3.5 times greater than Baseline Volume 71

60. Definition of Lift Percent Lift = X 100
Lift is the interaction between Baseline and Incremental volume expressed as a percent.
Calculation:
Incremental Volume
Baseline Volume
Provides a relative gauge of promotion effectiveness when comparing events.
Lift is a relative measure. You should always look at your actual volume and compare it against other Lifts for your brand or competitors brands where conditions are comparable.
Percent Lift = X 100