pentru studenti nielsen facts & fundamentals ase

8/13/2019 Pentru Studenti Nielsen Facts & Fundamentals ASE

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DISCOVERNIELSEN

November 25th , 2013


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Copyright2013TheNielsenCompany.Confidentialandproprietary.

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TODAY YOU WILL DISCOVER NIELSEN SERVICES

Discover Nielsen services: Buy and Watch

BUYin detail

Methodology

Facts and Fundamentals


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BUY VS. WATCH


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PLAY VIDEO
https://gil.nielsen.com/intranet/CommVids/Brand%20Library/What's%20Driving%20The%20Global%20Consumer%20-%20Short%20version.wmvhttps://gil.nielsen.com/intranet/CommVids/Brand%20Library/What's%20Driving%20The%20Global%20Consumer%20-%20Short%20version.wmv


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Copyright

2013TheNielsenCompany.Confidentialandproprietary.

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NIELSEN STRATEGY

Measure more waysthat consumers spend

time with media

Expand coverage ofconsumer purchasebehavior globally

Understand how mediaconsumption relates to

purchase behavior

BUY

WATCH

BUY + WATCH


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61Q13 Investor Presentation NYSE: NLSNCopyright

2013

NielsenHoldingsN.V.

NIELSENS BUSINESSES

WHAT CONSUMERS BUY WHAT CONSUMERS WATCH

Retail measurement of sales, market share

and analytics for consumer goods

Measurement and analytics for content,

advertising, and activity for TV, digital, social

Consumer packaged goods

manufacturers, retailers

Media companies, content distributors,

online publishers, tech players

> 80 markets worldwide

50+ year relationship

Multi-year contract

70+ year relationship

We

provide

We

help

Client

example

Our measurement and analytics are embedded in our clients operating disciplines


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2013TheNielsenCompany.Confidentialandpropr

ietary.

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NIELSEN PRACTICES

SEGMENTATION

INNOVATION

SHOPPER

AUDIENCE MEASUREMENT

SOCIAL

MARKETING EFFECTIVENESS


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DEFINING OUR REACH

TECHNOLOGY

MEDIA

CONSUMER PACKAGED GOODS (CPG) MANUFACTURERS

RETAILERSHEALTHCARE

TELECOMMUNICATIONS

BROADCASTINGNATIONAL AND LOCAL

FINANCIAL SERVICES

ONLINE PUBLISHERS

ADVERTISING AGENCIES

AUTOMOBILE MANUFACTURERS

CABLE AND SATELLITE PROVIDERS


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BUY SERVICES


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Nielsen Services in

Romania

Set up in 1993, Retail Audit

since 1994

Expansion of Consumer

Research projects starting2004

Advanced Analytical

Consultingregionally

managed, local focus

underway - 2011

RetailMeasurement

Services

ConsumerResearch

AdvancedAnalytical

Consulting

Merchandising

Services


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DEEP DIVE TO

NIELSEN RETAIL AUDIT

Methodology and Deliverables


12/42Copyright2012TheNielsenCompany.Confidentialandproprietary.

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WHAT IS RETAIL AUDIT?Retail Audit is a syndicated and standardized study which consists in:

continuous monitoring of sales for various categories

of products to final consumers

the study is conducted on a representative sample of

retail stores.

measures market behavior and details of sales made inretail units

provides (based on specific indicators) a

comprehensive picture of various markets for more

than 400 FMCG categories.

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Retail AuditManufacturer/Distributor

Wholesale

Consumers

Vans/Vendors

Not measured

Not measured

Measuring theflowof GOODS from the Manufacturer / Distributor to the Consumer

through the retail sector


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rietary.

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WHY TO USE RETAIL AUDIT?RA provides independent information about the market and its

development, as well as situation of competition, at national level

and both regional and sales channel level.

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Illustrates the general market for different productcategories

Compares companies brands performance vs. competitors Measures competitive activity

Helps companies to identify and evaluate the impact of newentrants, promotions and re-launches

Helps companies to identify growth opportunities

and more


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WHY TO USE RETAIL AUDIT?

EXAMPLE

Unit shipments are growing at 10% per annum!!!

Profits are growing!!!

IS EVERYTHING OK??

MAT * JJ07 JJ08 JJ09 JJ10 JJ11 JJ12

UNITS 100 110 121 133 146 161

* MAT: Moving Annual Total (last 12 months from the reported period)

10%AVERAGE

ANNUAL

GROWTH


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My sales are growing at 10% per annum !!

Profits are growing! I am doing very well, am I

not?

50%SHARE

AverageAnnualGrowth

28%

10%

32%SHARE

110 121 133 146 161

Maybe not so

100 130167 213

269 337

1000

100200300400

500600

1999 2000 2001 2002 2003 2004MYSELF OTHERS

WHY TO USE RETAIL AUDIT?


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WHO ARE THE DATA FOR?

Top management

- For strategic decision making, trend monitoring, control of reachingbusiness targets, annual review, product launch / segment entrance

decisions

Marketing- Tactical decision making and monitoring own and competitive marketing

performancemarket shares, segmentation of the market, prefered

flavours/packages; reaction of the market to price reductions/increase,

promotional activities, new launch evaluation, cannibalization

Sales & Trade Marketing- Tactical decision making and monitoring of retail trade dynamics channel

importance, frequency and amount of supply to the stores, control of

distribution, retail price monitoring, distribution gains, opportunity gaps, key

account planAND Fact Based Selling (I.e. NKA)


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Deep dive to Retail Audit service

What, Why, How

Methodology

Analysis

Establish the Universe: Define store types and gain information onshop numbers & turnover (retail census)

Design a representative sample: How many of each store

type do we need to represent the universe with a givenmargin of standard error?

Data collection: Establish best system of

data capture

Statistical expansion: of sample

to universe

Analysis & interpretation:Reports delivered to clients

12

3

4

5


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RETAIL MEASUREMENT SERVICES

Services and Deliverables

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TheNielsenCompany.Confidentialandprop

rietary.

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CATEGORIES - NIELSENS AREAS OF

EXPERTISE

Baby Food

Dairy & Cheese

Meat

Canned Food

Frozen Food

Confectionery

Snacks

Culinary

Dairy Coffee / Tea

Ice Cream

Pasta, Rice, Beans

Pastry

And others

Baby Care/Diapers

Hair Care

Face & Body Care

Oral Care

Hygiene

Home Care

Detergents

Tobacco

Toys

Pet Food

Soft Drinks

Water

Energy Drinks

Beer

Wine

Other Alcoholic Drinks

FOOD BEVERAGES DRUG


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Copyright2013

TheNielsenCompany.Confidentialandprop

rietary.

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NIELSEN CLIENTS IN ROMANIAOur clients are covering a large spectrum of business areas

From international

to local clients
http://www.google.ro/url?sa=i&source=images&cd=&cad=rja&docid=LwgYOmeLEQhAsM&tbnid=ol72s4II6ak-TM:&ved=0CAgQjRwwAA&url=http://customizedculinarysolutions.com/clients/testimonials/&ei=GyPDUfbIIYLfOPCpgagB&psig=AFQjCNG7XTOoHwsWNgsn7prDdrAJF-6mnw&ust=1371829403585035http://www.google.ro/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=OaIlDPHqCC_kaM&tbnid=MOdvhFbDd8V_ZM:&ved=0CAUQjRw&url=http://www.fdbusiness.com/2012/03/olympus-dairy-to-boost-production-in-romania/&ei=1gPDUZnRJMeMtAbUr4CwDg&psig=AFQjCNHovNITU0Wl0xsWZz66UmewO9ggYg&ust=1371821380244715http://www.google.ro/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=0ZDmx_3Q11gc3M&tbnid=psfiQXtF7q3QbM:&ved=0CAUQjRw&url=http://www.frieslandcampina.com/&ei=0-fBUbCfMoexPInBgfAG&bvm=bv.47883778,d.ZWU&psig=AFQjCNGorg02F5OYWkayuuVLsmZo9GsIug&ust=1371748689261473https://www.google.ro/imgres?imgurl&imgrefurl=http://learnership.info/danone-graduate-opportunities-2013/&h=0&w=0&sz=1&tbnid=vJwT93siiehcoM&tbnh=156&tbnw=322&zoom=1&docid=GcGiDmVlz1IQ-M&hl=en&ei=t-fBUY7UDsvmPPP2gdAI&ved=0CAEQsCUhttp://www.google.ro/url?sa=i&source=images&cd=&cad=rja&docid=_GcvYmTh9-dBAM&tbnid=cJc17lcFosuxtM:&ved=0CAgQjRwwAA&url=http://www.actionamresponsabil.ro/membru-retea/alexandrion-grup&ei=MkHDUdGfLsvotQb8xYDoCQ&psig=AFQjCNGO5Cid6kH5VmCZOLun93huT0pZuQ&ust=1371837106798059http://www.google.ro/url?sa=i&source=images&cd=&cad=rja&docid=GrkK-wLGpqi1LM&tbnid=Q0IIjJu5_uUvkM:&ved=0CAgQjRwwAA&url=http://www.targetexecutivesearch.com/de/content/caroli-foods&ei=CELDUaUKxM-0BvXVgegC&psig=AFQjCNGeBdPK1kdW6pRhB6lvkIDdoPQdBg&ust=1371837320076387http://www.kandia-dulce.ro/en/http://www.google.ro/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=mEDHdCX3B0p8iM&tbnid=ubFMsA4TsIpKmM:&ved=0CAUQjRw&url=http://www.magazinulprogresiv.ro/stire/1580/Actionarii_au_aprobat_de_principiu_fuziunea_societatii_Albalact_cu_societatea_Raraul.html&ei=-OfBUdGqLIjJPdeXgMAD&bvm=bv.47883778,d.ZWU&psig=AFQjCNH9d_-wQCr670Pb4Xd3jZyghN2k0A&ust=1371748725377139http://www.google.ro/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=aASUXlMsQanv3M&tbnid=nV2jTW_XPDZs8M:&ved=0CAUQjRw&url=http://www.thedrum.com/news/2013/05/30/pg-work-sticky-measure-and-ensure-its-digital-ad-campaigns-are-seen&ei=GAHDUZ_XBojysgafnYFo&bvm=bv.48175248,d.Yms&psig=AFQjCNEsnM9xVdzM851nUa3YU_hJxsdThQ&ust=1371820678444077http://www.google.ro/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=hJye6dFMLBbmLM&tbnid=itUd5P7Z--qTAM:&ved=0CAUQjRw&url=http://www.mideasttime.com/reckitt-benckiser-group-stock-rating-reaffirmed-by-credit-suisse-rb/24732/&ei=8gDDUe7YKonAswaL3YGACA&bvm=bv.48175248,d.Yms&psig=AFQjCNEuUwv5vY-Ahwnkaj9A4JRUHAxK4g&ust=1371820637818874http://www.google.ro/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=yLUBRRYF8REv5M&tbnid=44Dh55JX0hxDLM:&ved=0CAUQjRw&url=http://www.triplepundit.com/2011/09/nestles-anti-organic-stance-disappointing-expected/&ei=OOjBUamnKYHHPNn3gGg&bvm=bv.47883778,d.ZWU&psig=AFQjCNFh_zSUMIWvIQYPxLSLwFPzYC1WuA&ust=1371748780561040https://www.google.ro/imgres?imgurl&imgrefurl=http://getdesign.org/famous-companies-and-product-logos/unilever-logo-hd-png-sk&h=0&w=0&sz=1&tbnid=HF85ywEPhL-hJM&tbnh=220&tbnw=200&zoom=1&docid=bClbOuHOUmiFtM&hl=en&ei=AunBUcaVA8anO7_4gZAB&ved=0CAEQsCUhttp://www.google.ro/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=3Hj-4JSRHZiqkM&tbnid=2Sppt-PTIsdwiM:&ved=0CAUQjRw&url=http://inventors.about.com/od/advertisingmedia/ss/Coca_Cola_Comp_2.htm&ei=9wTDUau3GMndswaE_ICYCg&psig=AFQjCNF-JXdfUot-wmkS70Y17KVIfUDMzw&ust=1371821651374582


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CATEGORY HIERARCHY

Highland Spring

Evian

Single

Standard 1 extra free

6 pack

500ml

Single

Standard

4 pack

1 Litre 1.5 Litre

Plain Flavoured

Still

Volvic Danone Activ Badoit

Danone Waters Strathmore

Total Mineral WaterTotal Market

Database structure is defined using Characteristics/Attributes

Company

Brand

Carbonated vs. Still

Plain or Flavoured

Size

Base no. in Multipack

Special Offer

SKU level

e.g. SKU: EVIAN NAT. PLATA 1.5L P


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Copyright

2013

TheNielsenCompany.Confidentialandproprietary.

26

MARKETS - NIELSEN REPORTING

STRUCTURE

Channels Regions

Hypermarkets

Food Stores

FS 40 sqm

Monthly or bimonthly audit of FMCG categories

Coverage:both urban and rural

both modern and traditional trade

Full country geography

Petrol Stations

Pharmacies

Kiosks

HoReCa

k


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Copyright

2013

TheNielsenCompany.Confidentialandproprietary.

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HYPERMARKETS

SUPERMARKETS

CASH&CARRY

DISCOUNTERS

OTHER

FORMATS

STRONG PARTNERSHIP WITH key

accountsIntegration of chains scanning sell-out
http://www.google.ro/url?sa=i&source=images&cd=&cad=rja&docid=ibexVlFcGL1wAM&tbnid=Eu6-puQ7B-JOkM:&ved=0CAgQjRwwAA&url=http://www.hfg.edu/index.php/En:research:projects:dm_en&ei=flrDUeaFJ5HLsgaKh4GIBw&psig=AFQjCNFJgGprsTj1U_g0ge5KQpCid9rGrA&ust=1371843582698219http://localhost/var/www/apps/conversion/tmp/scratch_4//upload.wikimedia.org/wikipedia/en/3/3a/Penny_Market_XXL_logo.pnghttp://www.penny.ro/default.aspxhttp://www.google.ro/url?sa=i&source=images&cd=&cad=rja&docid=jXmlic1qPW3Z9M&tbnid=O34FZjo0WJJdvM:&ved=0CAgQjRwwAA&url=http://www.targetexecutivesearch.com/bg/content/metro&ei=sljDUbTXKs3YsgawnYFY&psig=AFQjCNHXo0VDiMVwuNnaQ345AI3Ifdo0ag&ust=1371843122749856http://www.google.ro/url?sa=i&source=images&cd=&cad=rja&docid=e-tu-98C8xA4AM&tbnid=6Sgc08nXLCwRAM:&ved=0CAgQjRwwAA&url=http://fr.wikipedia.org/wiki/Fichier:Logo_Carrefour_Market_Hors_France.png&ei=vlfDUa6jOIfmtQbciICICg&psig=AFQjCNFRSmGYjD8IfTo8mjxdpM2gb5gScQ&ust=1371842878980498http://www.google.ro/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=5sX7iLgJ5zNDdM&tbnid=TrdSoyQiyZLwpM:&ved=0CAUQjRw&url=http://www.retail-fmcg.ro/evenimente/mega-image-lanseaza-un-nou-concept-de-magazin-shop-go.html&ei=MPOuUe3JM8WbtAbBlIG4BA&bvm=bv.47380653,d.Yms&psig=AFQjCNHarg_IAoPsWlLJN5RlDCe_806BbQ&ust=1370506410254211http://www.google.ro/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=EQedZhXYC_GTSM&tbnid=a50gu6td0U4wNM:&ved=0CAUQjRw&url=http://www.carrefour.ro/express.html&ei=GfOuUerNIIOJtAainYHABQ&bvm=bv.47380653,d.Yms&psig=AFQjCNEF_CE1g5EG3HJ81aPq8oinFxx95w&ust=1370506340305658


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Weeklyelectronic data

Monthlymanual and electronic data

Bi-monthly drugmanual and electronic data (Jan/Feb audit cycle)

Bi-monthly foodmanual and electronic data (Dec/Jan audit cycle)

MAT (Moving Annual Total)

YTD (Year-to-date)

YA (Year Ago)

Basic terminology and time Calculations used in RA

REPORTED PERIODICITYCustom time periods have also been created for clients use built off of the

monthly & weekly periods


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Volumetric Pricing Distribution

BASIC RETAIL AUDIT FACTS

Sales facts

Volume, Value & Item

actual size of market / brands

Share facts

Volume, Value & Item

size of segments/brands

Share in Shops Selling

in-store performance

Average Sales per Shop Selling

Numeric Selling

Distribution

Number of outlets

selling a particular

brand;

Weighted SellingDistribution

distribution is

weighted to

Turnover of the

Product Category

Price per unit

Average consumer

price converted to

the standard unit of

measure (kg/ltrs)

Price per itemAverage consumer

price converted to

the pack of the item


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VOLUMETRIC FACTS


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Sales of an item to the consumers expressed as a standard unit of measure (kgs, ltrs)

specific to each product class.

Sales

Volume

VOLUME & SALES SHARE

Sales of an item to the consumers expressed in country currency.

It is calculated by multiplying the volumes sold in units with the average price.

Sales Volume of the Product

Sales Volume of Category or Segment

Sales Value of the Product

Sales Value of Category or Segment

Sales

Value

Volume

Share

Value

Share

What was the total retail sales of the product in the given period?

How does the product perform versus total category or segment?


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What is the size of the category?

How important is each segment, manufacturer, brand?

What is their strength by trade channel, by region?

How are my sales and share performing over time?

How did they react to:

Change in price?

Change in distribution?

New product introduction? Change in competitive action?

SALES & SALES QUESTIONS


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DISTRIBUTION FACTS


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What percent of outlets is selling the product?

Numeric Distribution

Weighted Distribution

How important are the outlets selling the product?

Numeric

Selling

Number of outlets selling a product x 100

Total number of outlets

Weighted

Selling

Sales Volume of outlets selling a product x 100

Total Sales Volume

DISTRIBUTION FACTS


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40% Numeric Selling Distribution

60% Weighted Selling Distribution

=10

=100

units

1 1 1 1 111 111

Outlets

25 15 10 10 15 5 5 5 5 5

SELLING DISTRIBUTIONNUMERIC & WEIGHTED

Step 1: How many stores: (a) Have you sold in? (b) Are there in total?

Step 2: # of Stores sold in / Total # of Stores = Numeric Distribution

Step 1: What is the turnover of: (a) The stores you sold in? (b) All Stores?Step 2: PC Turnover of stores you sold in / PC Turnover of all Stores = Weighted Distribution

Numeric

Distribution

WeightedDistribution

Results:


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What percentage of the stores are selling our brands vs. our

competitors?

Is my distribution efficient across all the channels?

What are the opportunities and where are they?

Can I increase my sales by increasing the distribution of the

best selling products and decreasing the distribution ofslower moving items?

DISTRIBUTION QUESTIONS


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PRICING FACTS


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AVERAGE PRICE

What is the real end-consumer price of the product?

Sales Value / Sales Volume in Pieces = Average Price per Piece

Sales Value / Sales Volume in Kg = Average Price per kg

Average

Price

Price is derived by dividing value into volume

There are 2 key types of Price:

ie. Price per _item_ and Price per _unit_

It tells us what consumers paid in a given week

Price per SKU is useful in comparing similar sizes

Price Per Unit should be used for brand comparisons

Be careful when you look at:

Price at a regional or national level

Price at a monthly level or at an annual level


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CLIENT SERVICE ROLE


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CLIENT SERVICING

Analyse data and provide insights into clients business to

contribute them in less risky decision-making.

The interface between Nielsen and the client organization and

responsible for communication in two directionNielsen

capabilities to the client and client requests to Nielsen.

Offer the best servicing mix to clients for win-win conditions,

helping in return on investment

The key elements of CSS role include:

Retail Audit service partnership


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The roles in client sales and service are linked to the core purpose

Add

Insight

Build

Win/Win

Relationships

Interdependent because:

You cant add insight without aRelationshipthat allows you to understand the

customers business!

and

Customers wont allow you to have a relationship unless youAdd Insightto

their business!

and

We can not Winif the customer does not Win!

CLIENT SERVICING ROLES


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Thank you!

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