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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.wmv8/13/2019 Pentru Studenti Nielsen Facts & Fundamentals ASE
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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
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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
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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
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3
4
5
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RETAIL MEASUREMENT SERVICES
Services and Deliverables
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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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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=13718216513745828/13/2019 Pentru Studenti Nielsen Facts & Fundamentals ASE
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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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RETAIL MEASUREMENT SERVICES
Services and Deliverables
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TheNielsenCompany.Confidentialandproprietary.
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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=13705063403056588/13/2019 Pentru Studenti Nielsen Facts & Fundamentals ASE
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RETAIL MEASUREMENT SERVICES
Services and Deliverables
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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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RETAIL MEASUREMENT SERVICES
Services and Deliverables
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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
Services and Deliverables
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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!