Nielsen/IRI Intro Session

What are Nielsen & IRI?

Supplier of information to consumer
packaged goods industry
Information supplied:
Scanner data
Manufacturer coupons & features
Manufacturer displays

Information helps companies to make more

informed decisions

How is Data Collected?

Sample of stores (Grocery, Drug, Convenience,
Mass Merch., Warehouse stores)
Scanner data
UPC info, Price, Quantity all recorded

Features
Centrally collected and coded (daily)

Displays
Collected by store auditors (1X/week)

4 Data Dimensions
Market
Product
Time
Measure

Dimensions:Markets
Markets can be organized by class of trade, region, or both (also
custom markets created by firms)
COT
Food
Drug
Mass
Combined
Region (usually dependent on companys sales force organization,
I.e. Colgate= North, South, Pacific)
North
South
East
West

UAP CATEGORY- Size Trend - by COT

Large sizes are increasing, small decreasing

YTD 00

YAG % Chg

3-O
Small
Large

46%
54%

-5%
+10%

Food
Small
Large

54%
46%

-9%
+10%

Mass
Small
Large

37%
63%

-3%
+12%

Drug
Small
Large

53%
47%

-1%
+7%

Dimension: Product
The Brand?
Particular Flavor?
Particular Size?

You can select more than one SKU (including competitors).

Product
Category:
Manufacturer:
Type:
Trademark:
Flavor:
Diet Regular:
Caff. Free:
Size:

Carbonated Soft Drinks

Pepsi-Cola Company
Pepsi Colas
Pepsi Colas
Pepsi Colas-Wild Cherry
Pepsi Colas-Wild Cherry R
Pepsi Colas-Wild Cherry Regular C
Pepsi Colas-Wild Cherry Regular
Caff.12oz. 6 ct can

Time
Generally 2 years available in database
Broken into periods by Weeks

52 Weeks
26 Weeks
13 Weeks
Months 4 or 5 Weeks
Individual Weeks

Customizable periods
Back data available

Measures
Volume
Distribution
Sales
Price

Measure:Volume
Baseline
Normal expected volume for the product in absence of
any store level promotional activity
Estimated through modeling

Incremental
The proportion of total volume exceeding expected
(baseline) volume.

Incremental Volume = Actual - Baseline

Changes in Volume (Baseline)

Distribution Related
Velocity Related

Price
Support (coupon, TV)
Awareness/Image
Competition

Volume
Promoted
Sold on either
Display
Feature
Price Decrease (TPR)

Non-Promoted
Actual sales recorded for the weeks with no
promotional activity.

Comparison of Promoted and Incremental

Volume
120
100
80

40

50

60

50

Base & Incremental

Promoted & Non-Promoted

60
40
20
0
Base

Incremental

Promoted

Non-Promoted

10 cases of subsidized volume (volume that would have been expected without a
promotion)

Measure: Distribution

All Commodity Volume (ACV)

ACV Weighted Distribution
% Stores Selling
Average Weekly ACV Wtd

Measure: Distribution
Measure: All Commodity Volume (ACV)
Definition: The total annual dollar sales of all items sold. ACV
can be expressed for a particular geographic area,
retail outlet type (Food, Drug, Mass), key account or
RMA.

New York Total Market

$100MM ACV

New York
Pathmarks
$30 MM (30%)

New York
A&P
$15MM (15%)

Measure: Distribution
How Much Distribution Does My Brand Have?

Measure: ACV Weighted Distribution

Definition: The % of total ACV represented by stores where at
least one of a product was scanned.
ACV

Brand X

Brand Y

Store A

$30 MM

Store B

$40 MM

Store C

$15 MM

Store D

$15 MM

Total Mkt

$100 MM

70%

30%

Measure: Distribution
How Much Distribution Does My Brand Have
Over a 4 Week Time Period?
Store

%ACV

Wk 1

Store A

30%

Store B

40%

0%

Store C

15%

0%

Store D

15%

0%

Total Mkt

100%

Answer: 30%

30%

Wk 2
X

30%

Wk 3
X

30%

Wk 4
X

30%

4Wk Total
30%

30%

Measure: Distribution
How Much Distribution Does My Brand Have
Over a 4 Week Time Period?
Store

%ACV

Store A

30%

Store B

40%

Store C

15%

Store D

15%

Total Mkt

100%

Wk 1

Answer: 55%

Wk 2

Wk 3

Wk 4

4Wk Total
0%

40%
0%

40%

55%

15%

15%
0%

55%

Measure: Distribution
ACV Weighted Distribution vs. Stores Selling
Over a 4 Week Time Period?
Store

%ACV

Store A

30%

Store B

40%

Store C

15%

Store D

15%

Total Mkt

100%

Wk 1

Wk 2

Wk 3

Wk 4

4Wk Total
0%

40%
0%

40%

55%

15%

ACV Wtd Distribution=40% + 15%= 55%

% Stores Selling=2/4=50%

15%
0%

55%

Measure: Distribution
ACV Weighted Distribution vs. Avg Weekly ACV
Weighted Distribution Over a 4 Week Time Period?
Store

%ACV

Store A

30%

Store B

40%

Store C

15%

Store D

15%

Total Mkt

100%

Wk 1

Wk 2

Wk 3

Wk 4

4Wk Total
0%

40%
0%

40%

55%

15%

15%
0%

55%

ACV Wtd Distribution=40% + 15%= 55%

Avg Weekly ACV Wtd Distribution=(40+55+15+0)/4=27.5%

Measure: Sales
Development Index: Per capita sales of a
product/category/brand in a particular geography
indexed to per capita sales of the same
product/category/brand at Total U.S.
(Products Volume in
Market/Population in
Market)

(Products Volume in
Total U.S./Population
in Total U.S.)

X 100

Sales
CDI Category Development Index
Measures the Categorys volume development in a market
compared to the categorys development in the Total U.S.

BDI Brand Development Index

Measures the Brands volume development in a market
compared to the brands development in the Total U.S.

PDI Product Development Index

Measures the Products volume development in a market
compared to the products development in the Total U.S.

Sales
Example: Product Development Index
NY Mkt.
Total U.S.

Sales
150,000
4,550,000

Population Sales/Pop.
8,484,000
.01768
206,000,000 .0221

PDI = (.01768/.0221) x 100 = 80

Sales
Why use Development Indices?
Help you to understand development by market
Identify needs and opportunities
Guidelines for Reading Development Indices:
89 or below: Underdeveloped
90-110: Average Development
111 or above: Highly Developed

Sales
Basic Merchandising Conditions:
Any Merchandising
Includes all types of trade merchandising

Feature
Display
Feature and Display
Special Pack
Price Reduction (5% or greater)

Sales
Feature Only vs. Any Feature
Any Display

Any Feature

Display
Only

Feature
Only

Feature & Display

Sales
Merchandising Measures:
% of Volume
Percent of retail volume sold in conjunction
with trade merchandising activity

% of ACV
Measures support
Percent of geography ACV that participated in
the trade merchandising activity

Measure: Share
Share is a calculation based on unit, equivalized
unit, or dollar volume.
Share measures
Share = (product vol/ category vol) * 100
EQ share (EQ units = # of equivalent weighted units
scanned for a product class or item)
Share change vs. year ago (point change)
This years share last years share
Look at relationship between share changes and category
volume changes

COT Segmentation - EQ Share

Mass is the largest and fastest growing COT

1999 Category EQ Volume by Class of Trade

(% Change vs. YAG)
Drug
19.3%
(-0.7%)

Mass
46.3%
(+2.0%)

Food
34.4%
(-1.3%)

Category Dynamics -Consumer Hierarchy of Needs

Consumers choose an AP/Deo product based on a hierarchy of needs which
begins with form, first and foremost

1. Form

2. Gender

3. Brand

Sticks
Gels
Aerosols
Roll-On
Soft Solids

Male
Female
Unisex

Speed Stick
Right Guard
Lady Speed
Stick
Secret

Low
Transferab
le
Source: Nielsen Household Panel
Demand

4. Type

AP
Deo

5. Scent

Scented
Unscented

6. Size

Large
Small

High
Transferab
le
Demand

Measure: Price
Retail price facts are gathered from:
Retailers tapes
Retail displays (marketing reps)
Feature ads (feature coders)

Price data is gathered separately from store movement data

(if feature prices found are lower than tape prices, tape
price is over-ridden)

Price
Price Metrics
Price per unit
Package price for all scanned sales of a particular product

Price per Equivalent Unit

The package price for all sales of a particular product divided by the customdefined unit equivalency (i.e., price per pound)

Average price
Weighted average price for all scanned sales of a product (weighted average
price for a period is computed by dividing total dollars during the period by total
units sold [instead of dividing total price each week by the number of weeks])

Non promoted price

Actual product price in absence of a trade promotion (feature, display,
tpr)
Promoted price
Price in stores with a feature, display, or tpr

Okay, so how does this relate to

Brand Management and my job
this summer?

So, How Does This Apply to BM?

Hey Fuqua Intern, How can we sell the sales force on supporting Diet Mtn Dew?

Volume % Chg vs. YAG (G/D/M)

15%

13.7%

13.0%

Diet Dew

13.1%

10%
Diet Flavors
6.9%

5%

7.9%

5.8%
5.5%
5.3%

3.8%
2.6%

Diet CSDs
Diet Colas

3.1%
1.2%

0%

1998
Source: IRI G/D/M 7/00

1999

YTD

So, How Does This Apply to BM?

Hey Fuqua Intern, which SKUs do we really need to get out on shelf?
Channel ACV Weighted Distribution
Grocery
Diet Dew Diet Pepsi

Source: IRI 99

C&G
Diet Dew

Diet Pepsi

6 Pack

45%

76%

9%

43%

12 Pack

88%

99%

22%

79%

24 Pack

28%

67%

NA

12%

2 Liter

92%

98%

25%

85%

20 oz

48%

87%

91%

98%

TM

99%

100%

92%

100%

So, How Does This Apply to BM?

Hey Fuqua Intern, Which 15 markets should we sample Diet Mtn Dew in?

Marke t
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

Bottle r

PBG
PBG

PBG
PBG
PBG

PBG

PBG
PBG
PBG

Detroit, MI
Tulsa, OK
Peoria/Springfield
Baltimore/Washington
Nashville, TN
Richmond/Norfolk
Mississippi
Birmingham/Montgom

Source: IRI G/D/M 7/00

PBG
PBG
PBG
PBG
PBG

F'99 Die t F'99 Reg

F'99 Diet
CDI
Dew PDI
Dew PDI
168
360
581
162
378
563
158
234
336
153
401
427
140
202
165
140
257
308
138
150
199
134
207
250
130
177
236
127
154
160
127
215
217
126
90
38
124
251
193
123
110
97
120
232
394
119
166
136
118
99
79
116
106
90
115
107
99
115
163
200
114
160
163
111
202
366
108
134
104
105
144
129
102
155
116
101
54
47
100
125
130
100
105
113
99
106
125
99
160
262

F'99 Die t
CSD
F'99 Diet F'99 Diet
Volume
Coke
CSD Per
Sales
Share
Cap
3,466,558
9
5.7
4,108,059
9
5.5
13,342,060
11
5.3
4,598,626
11
5.2
7,845,883
10
4.8
10,477,238
8
4.7
5,102,365
11
4.7
8,362,537
11
4.5
4,135,501
11
4.4
6,602,234
13
4.3
11,582,494
13
4.3
11,927,926
12
4.2
8,379,668
8
4.2
11,628,930
11
4.2
10,056,763
9
4.1
2,568,449
12
4.0
9,828,287
12
4.0
2,829,239
6
3.9
9,109,999
11
3.9
16,170,348
10
3.9
10,812,777
10
3.9
7,157,525
8
3.7
17,392,666
10
3.7
3,089,248
8
3.6
6,674,394
10
3.5
23,253,498
12
3.4
4,455,948
9
3.4
8,475,255
10
3.4
7,650,893
12
3.3
11,909,382
9
3.3

Questions?