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An overview
Retail Index
Periodic (generally monthly) monitoring with a panel of retail outlets.
Excludes institutional sales, but includes retail channels
Collecting data on Purchases, Stocks, and/or Sales for product categories of interest.
Measures and tracks sales units, volume, selling price, observed promotion and merchandising execution, encompassing an organization's own brands as well as competitive products
To Understand Distribution
Width & Depth Shelf Competition
Methodology
Retail Index data is based on measurement of consumer sales from a sample of outlets designed to reflect the channel being measured. The panel is spread across the country and represents all states across Pop Strata . The same fixed sample is audited on a monthly basis with field auditors physically counting retail stock holdings, then recording store purchases from any source (warehouse, wholesaler or direct). For the respective category that is to be audited each and every SKU stock is physically counted The ongoing measurement of these variables produces consumer sales as well as vital in-store information. (Opening Stock+ Purchases-Closing Stock = Sales) Due to the constantly changing retail environment, ACNielsen updates its defined universe and sample requirements on an annual basis. This is done to ensure the sample is representative of the channel being measured.
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Is the market growing? Impact of Ads/Promos? Potential regions? Can I introduce a new pack type/ size and gain? Is any special segment growing faster?
Is my distribution efficient?
Stumped? Retail Measurement Service is the reliable research tool used worldwide to continuously track the market.
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Identify gaps in product mix Identify emerging product, pack & price segments Assess competition activity Determine brand potential 7
Key Benefits
Managers can gauge product penetration, overall product performance, distribution, promotion effectiveness, and price sensitivity through measurement and integration of the following variables:
sales and shares weighted and numeric distribution stock data including out of stocks pricing in-store merchandising
Analysis of all data is available via ACNielsen Advisor. This flexible software allows easy yet powerful interrogation of the rich Retail Index databases.
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Example
Brand C is the third largest national brand in a given category. Nationally, it enjoys a Value Share of 14 percent. However, this brand is present in only 47 percent of dealers nationally; these dealers contribute 69 percent of category sales at an all India level. By studying the micro level retail data for Brand C, two large opportunity areas for expansion were detected :
The largest market for the given category is Tamil Nadu contributing 15 percent to the national sales. However, Tamil Nadu contributes only 8 percent to the all India Value Sales of Brand C. Brand C is nationally under leveraged in the largest channel for the Category : Grocers. It has a low penetration in this salient channel at an all India level. However, in Tamil Nadu, the overall penetration is only 23 percent and amongst the Grocers, it is 22 percent.
Brand C has low market share and penetration in Tamil Nadu. Therefore, it is imperative for Brand C to improve its focus on this market. The marketer of Brand C needs to put together an effective Micro Strategy by ascertaining
Channels that needs to be targeted Action that needs to be taken in the under leveraged channel. Devising a Channel wise strategy, evaluating implementation and monitoring performance on a regular basis for each State, is now possible using State X Channel type data from ACNielsen | Retail Micro Markets
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Example
Which Channels should be targeted for increasing sales for Brand C in Tamil Nadu? Grocers constitute the largest channel in Tamil Nadu followed by Chemists and Pan Plus for Category X. Though Grocers is the highest contributing channel for Brand C, the brand is not very well distributed in this channel in Tamil Nadu. Brand C reaches only 22 percent of Grocers; these 22 percent contribute to 58 percent of Category X Sales Brand C, is under leveraged in Chemists and Pan Plus with17 percent and 6 percent of Brand C sales coming from these channels respectively Therefore, Brand C can increase sales by focusing on key channels-Grocers, Chemists and Pan Plus.
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Example
Further analysis, to devise a micro strategy for improving sales in Grocers, one of the key channels in Tamil Nadu for Category X.
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Application
MID is used extensively by consumer goods marketers, distributors, advertising and media professionals to aid their marketing plans. Questions that can addressed by MID include Which categories should I consider entering? Which categories are showing above average growth? Which segments and manufacturers are driving this growth? Which manufacturer could be a take-over target? Who are the fastest growing manufacturers? What is the size of their business? Which manufacturers do I need to target as a local publisher / broadcaster? Are there strong local players? What are their brand sales? Who are their competitors?
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Features
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In-store observation
Conducts in-store observation studies across all channels and markets, Provides manufacturers and retailers with visually verified information about categories, brands, items, retail execution and the competition. Personnel perform on-site observations to assess factors impacting sales and promotion performance, including the following:
Distribution Existence of displays Display position and prominence Inventory levels Out-of-stock occurrences Shelf facings Product adjacency to competitors Linear measurement Lowest retail price
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Insights into
Are my product displays set up at the recommended time and location? How many facings are allocated to my brand, by trade channel? How does my competitive activity impact my product's performance? Are inventory levels adequate at the onset of my product's peak seasonal period?
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