MarketTrack

11/25/2010 1

MarketTrack 101 Zack IsaacAnalyticIn.COM

Overview

Welcome to MarketTrack 101. This presentation will explore aspects of the Nielsen MarketTrack product including:

► Examples of how MarketTrack can help you in your roles at Key Account managers►An explanation of what is Nielsen MarketTrack► An overview of ways in which dimensions of the MarketTrack data can be applied►A review of key data facts

What happened?

Why did it happens?

What is currently happening?

What will happen?

How can MarketTrack data help you?

► As a key account manager, MarketTrack data can help you in many ways to understand past, present and future health of your brands

Examples: • Losing Vol share

in region• Low brand

growth compared to competitors

Examples: • Result of

competitor price changes?• Loss of distribution

• Competitor marketing activities?

Examples: • How is the

category growing?• How are brands

doing?• Is innovation

driving the category?

• What are our competitors price

strategy?

Examples: • Based on

previous history what will our

brand health be going forward?

So what is MarketTrack?

► MarketTrack is the industry standard for measuring and understanding the performance and dynamics of consumer packaged goods (CPG) sales

►It provides continuous tracking of product sales to consumers, combining retailer point-of-sale census and projected data with manufacturer shipment data, direct store delivery data and household panel data to provide clients with a complete representation of the retail universe

Where is the data sourced?

MarketTrack data is sourced from two main areas:

Data collected from retail stores through in-store point of sale (POS) scanning. This is supplemented by warehouse shipment data, store observations, and ad information. These data sources are reported through Nielsen's MarketTrack service.

Data collected from consumers through in-home scanning. This data is reported through Homescan and MarketTrack (e.g., for secondary channel coverage - General Merchandisers + Warehouse Clubs) services

4 main dimensions

► Nielsen MarketTrack offers a multi-dimensional set of views across the data it provides. ► Each view lets an individual focus on the data he or she needs to solve a specific business problem. ► These views, defined in four common dimensions, can be combined in a nearly infinite number of ways.

MarketTrack

Products Markets Periods Facts

Product dimension

► The product dimension is represented as a hierarchy. Each level in the hierarchy represents a certain level of detail about a product or set of products

Category

Brand

Segment

UPC

Market dimension

► The market dimension is also represented by a hierarchy and is a combination of regional locations and channels

Grocery150M +

Drug1M+

MMZellers/WM

GM + WC G&C Total

Sampling & Projection

►Nielsen data is collected within various markets, as defined by geography but not all data is available►As a result, data is collected from a subset, or sample, of the complete set of stores or households and is then projected to estimate the complete set►For certain channels where POS data is not available other data is used

GM •Homescan

WC •Homecan

Rem Grocery

(Non-

DSD)

•Warehouse Shipments

Rem Grocery

(DSD)

•Audits

Periods

►A period is a measurement of time that expresses when an event took place. Nielsen uses several standard reporting periods Individual weeks Groups of weeks (4wks, 12wks, 52wks) 4/4/4 periods – 13 groups of 14 wks per year

Facts

► All MarketTrack Facts can be broken down into two classes which are based on the type of information they measure:

Performance Measures

VolumesShare% Chg

Distribution

Avg A/C Dist

Dist Pts

Avg # Items Sold

SPPD

Pricing

Avg Retail Price

Avg Regular

Price

Avg TPR Price

Merchandizing

Weighted Co-op

- Weighted Display

1. Performance Measurement Facts – Measures volume and share performance

2. Casual Facts – Explain the reasons behind the performance as it relates to distribution, pricing or merchandising activity

Reason why analysis

Understanding distribution

► In MarketTrack, to understand how distribution is calculated, you first need to understand All Commodity Volume (ACV). ACV is a measure of the total dollar volume of retail sales for a channel in a given market► Lets look at an example …


ACV=$100 ACV=$250

ACV=$150 ACV=$500

Let’s assume our Universe is made

up for 4 stores

The total vol for all stores is $1000

However, our Almond Dream

brand is only sold in 1 store

Using the ACV information, we can

calculate our AC Distribution as being

10% (100/1000

Our brand is sold in stores that account for 10% of the All

Commodity

► In MarketTrack, to understand how distribution is calculated, you first need to understand All Commodity Volume (ACV). ACV is a measure of the total dollar volume of retail sales for a channel in a given market► Lets look at an example …

A/C Dis

50%

60%

75%

100%


► A/C Distribution is not based on store count, but on the importance of stores in which the product is sold. This is a more accurate measure of a product’s availability as not every store is equal. Store image, population density and store size can all impact the importance of a store

Some stores sell more than one item, but the brand receives

only one credit regardless of the number of items sold in that

store. In this way, distribution measures the breadth of

availability

Distribution Points (TDP)

► Distribution points are used to measure both a brand’s breadth and depth of availability. It is calculated by adding the A/C Distribution of all a brand’s items in a given market for a given period of time

Brand A/C Dist Distibution Points

Brand A 80 350

Brand B 80 220

Average Items Sold

► Average Items Sold provides an estimate of how many items within a brand’s portfolio are sold in the average store. It is calculated by dividing a brand’s distribution points with the brand’s A/C Distribution.

For example, a brand has 5 items with the following A/C Distribution: 1. Mint Toothpaste 502. Whitening Toothpaste 803. Cool Mint Toothpaste 304. Cherry Toothpaste 205. Nighttime Toothpaste 75

Total dist. Points = 255 and the brand’s A/C Distribution is 80%. So, it’s average items sold is 255 / 80 = 3.2.

Note: Marketing Comparisons over time allows us to understand if retailers are delisting or listing our items

SPPD (calculate sales/Avg AC Dist)

► Sales Per Point of Distribution measures velocity—how fast the product moves in locations where it’s available. ►It is typically used to support listing or delisting stories. For example, if one of my key items is not fully distributed, but sells at a faster rate versus one of my key competitors, this suggests there may be an opportunity to increase the distribution for our item at the expense of our competitor

$ Rank Vol Dist SPPD

1 10,000 80 125

8 9,000 30 300

Average Items Sold

►In MarketTrack there are two facts which help us to measure the level of trade support given to our brands. They include Weighted Coop and Weighted Display

Weighted Coop is calculated by multiplying coop distribution by coop frequency. In a four week period, the maximum Weighted

Coop would be 400—the product is on ad all four weeks and the ad

was available in all stores

On it’s own it doesn’t mean a lot—it needs to be

benchmarked to previous levels or to competitors in order to

understand its possible impact on sales. For example an

increase in Weighted Coop associated with an increase in

volume suggests the increase in flyer activity helped the brand

grow

Weighted Display is calculated similarly to a weighted coop

(Display Distribution x Display Frequency). In a four week

period, the maximum Weighted display would be 400—the product was displayed in all

stores in all four weeks. Similar to Weighted Coop, the number itself is irrelevant and needs to be benchmarked to previous

levels or to competitors in order to understand the possible

impact on sales.

For example, a decrease in Weighted Display associated

with a decline in volume suggests fewer displays hurt the

brand’s performance.Please note that a display is

considered a display for only 12 weeks; on the 13th week it would

be considered a permanent location

Questions

If you have any questions or would like some assistance in development of Nielsen Workstation templates please contact:

Zack [email protected]

mailto:[email protected]

Business

MarketTrack