About the Retail Panel

Bla Rebernik, The Nielsen Company

Copyright 2011 The Nielsen Company

The Nielsen Company

The Nielsen Company is worlds leading market research company and it provides clients with the understanding of what consumers watch and buy. The company was established in 1923, while its business in Slovenia was started in 1995. Today, the company is present in over 100 countries all over the world.
For more info you may visit www.nielsen.com

Page 2

Confidential & Proprietary Copyright 2011 The Nielsen Company

Integrating data and capabilities to bring new insights and intelligence to help our clients grow their businesses.

Produc ts

Suppliers

Shelf

Brands

Consumer
Pric e

Retailer
ot Prom ion

RMS Panel (bimonthly data)

RMS Panel (monthly data)

NKA (key account data)

Izdele k

Dobavitelj

Scan Polica Track (promotion analysis)

Issue based presentations

Blagovne znamke Potronik
Cen a

Integrated services. Customized solutions. YOUR GROWTH.

ACC analytical consulting Other (Discounters, Customized ije Research, Merchandising services)

oc Prom

RMS Panel (Retail Panel)

What is retail panel?

Retail panel is a permanent sample of retail outlets chosen to represent the pre-defined total retail trade Data collected from this panel on a regular basis gives us various information about products (brands/manufacturers/segments), such as sales volumes and values, shares, distributions, prices, etc.

Page 6

Confidential & Proprietary Copyright 2011 The Nielsen Company

NIELSEN SERVICES IN SLOVENIA

Why using retail panel?

Internal data only

Manufacturer X records 10% yearly growth of their sales But is really everything OK?

10 %

Year 2005 2006 2007 2008 2009 2010 Value 100

Maybe not.

yearly growth

110

121

133

146

161

Page 7

Confidential & Proprietary Copyright 2011 The Nielsen Company

Manufacturer X and competitors

Retail panel
600 500 400
337

Average growth of the category = 28%

300
233

269 167 100 130 161

Competition Manfacturer X

200 100
100

Manufacturer X average growth = 10%

121 133 146

110

2005
50% Market share

2006

2007

2008

2009

2010
32% Market share

Page 8

Confidential & Proprietary Copyright 2011 The Nielsen Company

What do Nielsens retail panel data cover?

MANUFACTURER

SEMI-WHOLESALERS

WHOLESALERS

OTHER CHANNELS

RETAIL NIELSEN UNIVERSE

CONSUMERS
Page 9
Confidential & Proprietary Copyright 2011 The Nielsen Company

Slovenia
HoReCa Hypermarkets Supermarkets Petrol stations Large groceries Medium groceries Small groceries Kiosks Drug stores Discount Stores* Open markets

Universe

Specialized stores Cash & Carry

Nielsen

*Nielsen started auditing discount stores in April 2010 (but are not part of Nielsen regular panel)
Page 10
Confidential & Proprietary Copyright 2011 The Nielsen Company

5 Basic Steps of Retail Audit

Analysis & interpretation Statistical expansion of sample to universe Data collection Establish best system of data capture Design a representative sample How many of each store type do we need to represent the universe with a given margin of standard error? Establish the Universe Define store types and gain information on shop numbers & turnover

Page 11

Confidential & Proprietary Copyright 2011 The Nielsen Company

Analysis 4 dimensions of Retail audit

Each value (number) from Nielsen report refers to 4 dimensions:
MARKET (i.e. hypermarket, supermarket, grocery, Central Slovenia, Dolenjska, etc.) PRODUCT (i.e. Butter category, Perutnina Ptuj, Argeta, Cockta 1,5l, orange flavoured juices, ...) FACT (i.e. sales volume, sales value, price, distribution, etc.) PERIOD (i.e. March 2010, year 2009, ...)

Accordingly, while analysing we have to take into consideration relationship between all 4 dimensions vs. analytical objective

Page 12

Confidential & Proprietary Copyright 2011 The Nielsen Company

Analysis helps us answer numerous questions connected with (1): ...spotting the trends and market opportunities
Growth/decline of category is it alligned with market? Why is brand X gaining/losing market share? In which categories do we need to improve our market share? Does a category has a fair share of space in the shop? What are the seasonality effects? Which segments are rising and which are losing its share? Which segments have the potential? Does the newly launched competitors item perform well?

...analysis of suppliers and tool for negotitations

Strength of the supplier
What is its share on the market? Is its sales alligned with the shelf space?

Growth of the supplier

How successful is the supplier on the market? Is it performing better/worse in my shops? Why?

Page 13

Confidential & Proprietary Copyright 2011 The Nielsen Company

Analysis helps us answer numerous questions connected with (2):

... analysis of assortment and prices
Brands
Which brands should be included into assortment? What is the optimal number of brands in a category? Which brands are gaining/losing market share?

Assortment
Which is the top item on the market? Do we have it in assortment? Which are newly launched items? Are they successful?

Prices
Comparison with the rest of the market? What is the trend in prices? How should I price my rebranded items?

... and many more

Page 14

Confidential & Proprietary Copyright 2011 The Nielsen Company

And what is the outcome of retail audit?

As such, it is an effective tool for: establishing quantitative data about the size and structure of the retail market monitoring the development of this structure and the relative positions of competitive brands identifying strengths and weaknesses, opportunities and threats in the competitive environment determining marketing objectives, and then measuring progress towards these objectives Retail Retail Audits Auditsprimary primarydesign design use useis isas as a abusiness business planning planning tool tool--not not as asa areport report card card for for sales salesteams teams
Page 15
Confidential & Proprietary Copyright 2011 The Nielsen Company

Examples of the reported data:

What is the trend in pricing on the market and at the retailer?

Page 16

Confidential & Proprietary Copyright 2011 The Nielsen Company

Examples of the reported data:

What is the assortment ranking on the market and what at the retailer?

Page 17

Confidential & Proprietary Copyright 2011 The Nielsen Company

Examples of the reported data:

What is the suppliers performance on the market and at the retailer?

Manufacturer 1

Manufacturer 2

Manufacturer 3

Manufacturer 4

Manufacturer 5

Page 18

Confidential & Proprietary Copyright 2011 The Nielsen Company

The Nielsen Company

Professional solutions to meet your needs

Retail Measurement Promotion analyses, Scantrack

Analytical Consulting Shopper Trends Special Panels: HORECA, Petrol Consumer Research

Key Account Data

Store Observation

Page 19

Confidential & Proprietary Copyright 2011 The Nielsen Company