Nielsen/IRI Intro Session

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Nielsen/IRI Intro Session
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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

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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)

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4 Data Dimensions

• Market
• Product
• Time
• Measure

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DimensionsMarkets

• 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

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UAP CATEGORY- Size Trend - by COT

• Large sizes are increasing, small decreasing

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Dimension Product

• The Brand?
• Particular Flavor?
• Particular Size?
• You can select more than one SKU (including
  competitors).

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Product

• Category Carbonated Soft Drinks
• Manufacturer Pepsi-Cola Company
• Type Pepsi Colas
• Trademark Pepsi Colas
• Flavor Pepsi Colas-Wild Cherry
• Diet Regular Pepsi Colas-Wild Cherry R
• Caff. Free Pepsi Colas-Wild Cherry Regular C
• Size Pepsi Colas-Wild Cherry Regular
  Caff.12oz. 6 ct can

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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

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Measures

• Volume
• Distribution
• Sales
• Price

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MeasureVolume

• 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

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Changes in Volume (Baseline)

• Distribution Related
• Velocity Related
• Price
• Support (coupon, TV)
• Awareness/Image
• Competition

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Volume

• Promoted
• Sold on either
• Display
• Feature
• Price Decrease (TPR)
• Non-Promoted
• Actual sales recorded for the weeks with no
  promotional activity.

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

• All Commodity Volume (ACV)
• ACV Weighted Distribution
• Stores Selling
• Average Weekly ACV Wtd

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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 AP 15MM (15)
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Measure Distribution
How Much Distribution Does My Brand
Have? Measure ACV Weighted Distribution Definit
ion The of total ACV represented by stores
where at least one of a product was scanned.
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Measure Distribution
How Much Distribution Does My Brand Have Over a
4 Week Time Period?
Answer 30
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Measure Distribution
How Much Distribution Does My Brand Have Over a
4 Week Time Period?
Answer 55
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Measure Distribution
ACV Weighted Distribution vs. Stores Selling Over
a 4 Week Time Period?
ACV Wtd Distribution40 15 55 Stores
Selling2/450
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Measure Distribution
ACV Weighted Distribution vs. Avg Weekly ACV
Weighted Distribution Over a 4 Week Time Period?
ACV Wtd Distribution40 15 55 Avg Weekly
ACV Wtd Distribution(4055150)/427.5
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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.

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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.

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Sales

• Example Product Development Index

PDI (.01768/.0221) x 100 80
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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

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Sales

• Basic Merchandising Conditions
• Any Merchandising
• Includes all types of trade merchandising
• Feature
• Display
• Feature and Display
• Special Pack
• Price Reduction (5 or greater)

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Sales

• Feature Only vs. Any Feature

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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

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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

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COT Segmentation - EQ Share

• Mass is the largest and fastest growing COT

1999 Category EQ Volume by Class of Trade (
Change vs. YAG)
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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
4. Type
5. Scent
6. Size

• Sticks
• Gels
• Aerosols
• Roll-On
• Soft Solids

• Speed Stick
• Right Guard
• Lady Speed Stick
• Secret

• Male
• Female
• Unisex

• AP
• Deo

• Scented
• Unscented

• Large
• Small

Low Transferable Demand
High Transferable Demand
Source Nielsen Household Panel
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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)

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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 custom-defined 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

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Okay, so how does this relate to Brand Management
and my job this summer?
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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)
Diet Dew
Diet Flavors
Diet CSDs
Diet Colas
Source IRI G/D/M 7/00
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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 CG Diet Dew Diet Pepsi 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
Source IRI 99
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So, How Does This Apply to BM?
Hey Fuqua Intern, Which 15 markets should we
sample Diet Mtn Dew in?
Source IRI G/D/M 7/00
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Questions?