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ACNielsen Data Basics

ACNielsen Data Basics. Beacon United. Agenda. Retail Sales Basics Data Collection Understanding the Data Dimension Review Fact Review Volume Sales ACV Velocity Merchandising Pricing. Retail Sales Basics. Bob’s Grocery. ACNielsen Data Sources. Consumer Information:

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ACNielsen Data Basics

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  1. ACNielsen Data Basics Beacon United

  2. Agenda • Retail Sales Basics • Data Collection • Understanding the Data • Dimension Review • Fact Review • Volume Sales • ACV • Velocity • Merchandising • Pricing

  3. Retail Sales Basics

  4. Bob’s Grocery ACNielsen Data Sources • Consumer Information: • Consumer behavior • Who’s buying, how are they buying, etc • Retail Sales Information: • Retail sales environment • What’s selling, how is it selling, etc

  5. ACNielsen Data Collection & Processing Scanner Data • Items scanned at Checkout via UPC code • Price, Quantity, UPC and Item Description Recorded • Scanner Tape and Price Tape Sent to ACNielsen or Data Sent via Modem Causal Data Displays - Collected by Store Auditors once a week Features - Centrally Collected and Coded Daily ACNielsen Data Processing Census and Sample based data are integrated for respective markets DATA DATA DATA DATA DATA

  6. ACNielsen Data Collection & Processing • Census Sample Integration (CSI) means enhanced consistency and accuracy

  7. ACNielsen Service Offerings ACNielsen collects data from the following channels: • Grocery – Food $2MM+ • Drug • Mass Merchandisers • Walmart • Warehouse Clubs including Sam’s Club • Dollar stores • Military outlets • Other Retail Measurement Services: • Convenience Stores • Liquor Stores • Ethnic Markets

  8. Data Collection

  9. Data Collection: Volume & Price • Data is collected by UPC • Units • Price • Characteristics allow UPC’s to be aggregated • Categories • Segments • SKU’s

  10. 2004 Four Data Dimensions • Market Where did the Purchases Occur? • Product What Level are You Interested In? (Category, Segment, Manufacturer, Brand, UPC) • Period When did the Sales Take Place? • Fact How will You Measure Performance?

  11. Beacon United Databases • PLN_Full_L2 • 47 Retailer Trading Areas with Remaining Markets • Meijers_Cat0009 • Walgreen_Cat0006 • Target_Cat7

  12. Retailer Markets

  13. Market Dimension • Retailer Offerings: Trading Area • Retailer defined geography • Census Based • For example, Total Stop & Shop • If Trading Area’s are available it is the preferred view • Remaining Markets are all of an accounts competitors in a specified geography

  14. Market Dimension What’s the difference between a Market and a TA? Stop & Shop Trading Area ACNielsen Boston 2MM+ Food Market

  15. Product Dimension

  16. Product Dimension Products are built from the lowest level possible - the individual UPC - which serves as the primary building block for all other product levels

  17. Period Dimension

  18. PLN_Full_L2, Meijers_Cat0009, Walgreen_Cat0006, Target_Cat7 Weekly Data Updated Monthly 2 Years Weekly/Monthly History Approximately 2 Weeks Delivery from Close of Period Data Delivery: Periods

  19. Fact Review • Actual Volume • Percent Change • Share • ACV • Velocity • Merchandising • Pricing

  20. SMITH’s ACNielsen Collects Two Scanned Facts... Units $.74 $1.99 $2.86 Price

  21. Fact Dimension • Units • Number of packages scanned for a product class or item during a specific time period projected to the respective universe • Equivalent Units • Same as above with the exception that each scanned package is exploded by a conversion rate • i.e. Pound Basis, Ounce Basis • Dollars • The measurement of the dollars spent by the customer on items during a specific time period • Calculated not collected Computation: Projected item sales X Item selling price in each store

  22. Volume Share • Share is a Calculation Based on Unit volume, Eq. Volume or Dollar Volume. • Think of Share as a “Subset” of Volume. • Share Enables You to Answer the Question:HOW IMPORTANT IS MY PRODUCT TO THE CATEGORY?

  23. Fact Dimension Percent Change vs. Point Change • Percent change is used when comparing VOLUME growth across periods/products/markets. • Point change is used when comparing SHARE growth across periods/products/markets. Product A Product B Product C Product B’s Dollar Volume increased 13.3% over YAG. Product B’s Dollar Share increased 1.4 points over YAG.

  24. ACV How Is Measured?

  25. Fact Dimension All Commodity Volume • A measure of the total DOLLAR volume of retail sales for a particular outlet or channel type. • It includes all items that are sold in that store type • %ACV serves as a good weighting factor when measuring distribution. It indicates how many consumers have the opportunity to purchase the product. • Higher ACV stores serve more consumers • All stores are NOT created equal.

  26. SMITH’s SMITH’s SMITH’s JONES’s JONES’s JONES’s JONES’s JONES’s Grocery Chain SMITH’s Grocery Chain * Has 4 stores in the market doing $168,000 per week for a total of 56% of the ACV * Has 3 stores in the market doing $132,000 per week for a total of 44% of the ACV Fact Dimension All Commodity Volume $ (ACV) Example The 7 Food Stores In This Market Sell $300,000 Per Week A) $60,000 (20%) B) $36,000 (12%) A) $36,000 (12%) B) $48,000 (16%) D) $36,000 (12%) C) $36,000 (12%) C) $48,000 (16%)

  27. SMITH’s JONES’s JONES’s Fact Dimension All Commodity Volume $ (ACV) Example If these 3 stores sold your product during the week, what percent of the total ACV sold your product? A) $60,000 (20%) B) $36,000 (12%) B) $48,000 (16%)

  28. SMITH’s JONES’s JONES’s Fact Dimension All Commodity Volume $ (ACV) Example If these 3 stores sold your product during the week, what percent of the total ACV sold your product?And the answer is… $48,000 (16%) ACV + B) $48,000 (16%) $60,000 (20%) ACV + A) $60,000 (20%) $36,000 (12%) ACV = B) $36,000 (12%) $144,000 or 48% ACV

  29. Fact Dimension Example Of % ACV (3 Stores) Item A Sales Week 1 X 40% Week 2 X X 60% Week 3 X X 60% Week 4 X 35% 4 Weeks X X X 100% Store A (40% ACV) Store B (35% ACV) Store C (25% ACV) % ACV Selling ACV is non-additive (unless averaging) - 40% + 60% + 60% + 35% = 195% Average ACV = 195/4 = 48.8% ACV cannot be greater than 100%

  30. A Review Of “% Of ACV Selling” • The Percent of the ACV That Sold at Least One Unit of an Item During a Weekly orMonthly Time Period as Predefined onYour Database. • It Does Not Account for Items That Are Stocked in the Store During the Period, But Did Not Scan (Sell) During The Period.

  31. How Do I Know Which %ACV Measure To Use? When Concerned With . . . Use . . . Out of Stocks Average Weekly %ACV Short-Term Events What is Highest Distribution Achieved in a Mkt or Acct? Max %ACV During a Given Period (New Items) Tracking Long-Term Distribution Trends Monthly %ACV

  32. Velocity Facts

  33. Another Way To Look At A Sales Rate Is With Sales Per Million Dollars Of ACV • Definition: The Sales Of A Product For Every • $1,000,000 Of All Commodity Volume • To Which That Product Is Exposed • At Retail. • Since “Sales Per Million” Is A Sales Rate Based On Activity Only In Stores Handling, There Are Several Useful Applications Of This ACNielsen Measure.

  34. Sales Per Million Dollars Of ACV Brand Y Annual Sales: $ 5,834,936 Annual Market ACV : $3,240,000,000 • To Compute Sales Per Million Dollars Of ACV... • $5,834,936 • _________ = $1,801 • $ 3,240 This Means That For Every $1,000,000 In Food Store Sales, A Typical Store Sells $1,801 Of Brand Y.

  35. ACV (MM$) 5 10 20 Volume 2000 3000 4000 Sales / $MM 400 300 200 My Brand Competitor A Competitor B Fact Dimension Sales per MM $ ACV/SS Example A competitive item may have more sales overall, but this may be a function of its ACV Exposure...Your item may actually sell faster than the competition in a head-to-head comparison of the size of stores selling the products.

  36. Sales Per Point of Distribution • Allow for a fair comparison of the sales performance of products with different levels of distribution. • Eliminates distribution as a factor to equalize sales levels • Can not use to compare across markets • Sales per Point of Distribution • $ Sales per Point • Unit Sales per Point • Eq Sales per Point Sales %ACV Selling

  37. Merchandising Facts

  38. Breaking Down Promoted Volume By Merchandising Condition Allows You To Explain Sales Peaks Feature Volume 70% Display Volume 30% No Promo Volume Promo Volume Feature & Display Volume Temporary Price Reduction

  39. Feature Collection • Features are defined as retailer printed advertisements or other special printed promotions. • Sources Include: • Newspapers • Flyers • In-store circulars • Mailers • Supplements • Because FSIs are manufacturer features, they are not included in feature measures

  40. Where does Display Information Come From? • Each week the Field Auditors gather display information on: • Location • Selling Price • Merchandising Information • ACNielsen Display Conditions: • Retailer must participate • It must be temporary • It must be situated in a secondary selling location • It must contain actual product available to consumers for self-service

  41. Pricing

  42. Some Facts on Pricing • Retail price facts are gathered from: • Retailer’s Price Files • Retail Displays • Feature Ads • Price data is NOT collected on the same tape as store volumetric data.

  43. Price Facts Average Price Weighted average price for all scanned sales of product Non-Promoted Price Estimated Product Price in the Absence of Promotion Promoted Prices Prices recorded by stores with: Feature Display Feature & Display Temporary Price Reduction.

  44. NOW... Let’s Discuss Some Other Important Promotional Facts, Events & Evaluations

  45. Different Ways To Look At Volume • Promoted vs. Non-Promoted • Baseline vs. Incremental

  46. Retail Sales Are Also Divided Into: TOTAL VOLUME = Incremental Volume Baseline Volume +

  47. Baseline Volume • The Baseline Volume Is The Normal Expected Everyday Sales In A Specific Store In The Absence Of Any Promotion. • It Is Used As An Indicator Of The Fundamental Vitality Of A Brand/Item. • The Difference Between Actual Volume Versus Baseline Volume Can Be Attributed To Promotional Activity.

  48. We First Measure The Actual Volume For A UPC In A Store Over Time Volume (000) Week: Feature Display TPR X X X XX X X X XX

  49. The Creation Of A Baseline Allows Us To Measure Incremental Volume Volume (000) Baseline Week: Feature Display TPR X X X X X XX X XX

  50. The Creation Of A Baseline Allows Us To Measure Incremental Volume Volume (000) Baseline Week: Feature Display TPR X X X X X XX X XX

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