Media Mix Recommendations

Media Mix Recommendations Page 1
SUMMER INTERNSHIP PROJECT REPORT
ON
“Media Mix Recommendations – A Strategic Analysis”
AT
The Nielsen Company, Baroda
Prepared by:
Digesh Shah (Roll No. 23)
Faculty of Management Studies, M.S. University of Baroda (MBA 2009-11)
Interns Period: 17th May, 2010 to 14th July, 2010
Submitted to:
M.S. PATEL INSTITUTE OF MANAGEMENT STUDIES

Faculty of Management Studies, M.S. University of Baroda
Chapter 1

INTRODUCTION
1.1Market Research Industry
Market research is the process of systematically gathering, recording and analyzing data
and information about customers, competitors and the market. Its uses include helping
create a business plan, launch a new product or service, fine tune existing products and
services, and expand into new markets. Market research can be used to determine which
portion of the population will purchase a product/service, based on variables like age,
gender, location and income level.
Given the size of modern Marketing spending in today’s era, large organization and
managers are demanding increased accountability and effectiveness. The axiom of
pioneering retailer John Wanamaker is as true as today as it was when he said it nearly 10
years ago; “Half the money I spend on Advertising is wasted; though I don’t know which
half”.
Thus the need for Marketing Mix Modeling arise which helped marketers to look backward
to determine their Return on Investment for marketing tactics across Products or Brands.
Market research is a cost-effective way of finding out what people think, want, need or do.
Normally it is information unavailable elsewhere. Businesses use market research to help
them produce goods and services in line with their customer’s needs, and to evaluate the
success of marketing strategies. Most successful organizations recognize that inadequate
research significantly increases the risk of failure in the marketplace.
Social and government bodies also use market research to gauge public opinion, as an input
to policy generation or to measure the success of government communication campaigns.
Market research is effective because by talking to or measuring a relatively small number of

people you can find out about a much larger group. However, it only works if the people are
representative of the total group of interest, if the right questions are asked, and if the
answers are interpreted correctly. For this reason, research needs to be conducted by skilled
and experienced practitioners who can design, conduct and deliver information and insight
to their customers.
Consumer market research is a form of applied sociology that concentrates on

understanding the behaviors, whims and preferences, of consumers in a market-based
economy, and aims to understand the effects and comparative success of marketing

campaigns. The field of consumer marketing research as a statistical science was pioneered
by Arthur Nielsen with the founding of the ACNielsen Company in 1923.
A list of questions that can be answered through market research:
 What is happening in the market? What are the trends? Who are the competitors?
 How do consumers talk about the products in the market?
 Which needs are important? Are the needs being met by current products?
Thus the goal of marketing research is to identify and assess how changing elements of the
marketing mix impacts customer behavior.
Large corporate are now spending anywhere from $5 m to $100 m on market research and
analysis. Research agencies too have tried to complement the changing needs of clients
with professional management, consolidation and creation of value through both delivery
mechanisms and interpretation. The increasing use of technology has led to standardization
and consolidation in the research industry, thus preparing the ground for greater
outsourcing.
The Indian MRO space comprises over 110 vendors and most of these offer ‘non-market
research’ services also. It is estimated that Indian MRO revenues stand at $148 m in FY07,
and are expected to grow at a CAGR of 36% to touch $800 m by FY12.
Worldwide billings by market research firms last year exceeded USD20 billion, of which Asia
accounted for 14 percent. Australia has the largest market research sector in the region but
it is growing only 4 to 5 percent a year, while China is growing at more than 20 percent,
followed by India with 15 percent. Japan is slowest at only 1 to 2 percent.
One of the key drivers stimulating fast growth of this sector in Asia is many foreign
companies particularly those from Europe and America are establishing operations in Asia,
especially in China, and these companies demand market research to ensure success.
Generally, market research is less affected by economic fluctuations than the media and
advertising industry. This is partly due to the fact that clients still require continuous
research into consumer habits, retail figures and media reach even in times of slow
economic growth.

The largest national market research market is the USA, followed by the UK, Germany,
France and Japan. After the USA, China is the strongest-growing country of the ten largest
national market research markets
Among the top 10 market research countries, per-capita spending on market research, UK
and France are the market leaders, followed by Germany, the USA and Australia. Spending
on market research in comparison with spending on advertising mainly varies between 5%
and 10%.
Some of the marketing research firms functioning all over the world are:
Australia OzTAM, Roy Morgan Research Canada Print Measurement Bureau France Ipsos
India IMRB International Netherlands Segment Y Germany GfK United Kingdom Illuminas,
Ipsos MORI, Kantar Group, Millward Brown (part of the Kantar Group) Mintel, Research
International, Taylor Nelson Sofres United States Arbitron, Birch ratings, Decision Analyst,
Forrester Research, Frost and Sullivan, Gartner Group Hall & Partners Harris Interactive
1.2 Company Profile

ACNielsen was established in the United States in 1923 by Arthur C. Nielsen, Sr., one of the
founders of the modern marketing research industry.
Among many innovations in consumer-focused marketing and media research, Mr. Nielsen
was responsible for creating a unique retail-measurement technique that gave clients the
first reliable, objective information about competitive performance and the impact of their
marketing and sales programs on revenues and profits.
Nielsen information gave practical meaning to the concept of market share and made it one
of the critical measures of corporate performance. Mr. Nielsen also founded the business
known today as Nielsen Media Research, the global leader in television audience
measurement and other media research services.
Principal Subsidiaries: AC Nielsen EDI; AC Nielsen eRatings.com; AC Nielsen Bases;
AC Nielsen International Research.
Units: Nielsen Consumer, Nielsen Media Research, Nielsen Online, Nielsen Mobile, Nielsen

Business Media.
Services: Nielsen Homescan, Nielsen BookScan, Nielsen Broadcast Data Systems, Nielsen

SoundScan, Nielsen VideoScan

Magazines: Contract, DDI, Photo District News, Impressions, National Jeweler.
Principal Competitors: The Arbitron Company; Information Resources, Inc.; Taylor Nelson
Sofres plc; WPP Group plc.
1.3Location
ACNielsen is a global marketing research firm, with worldwide headquarters in New York
City. Regional headquarters for North America are located in Schaumburg, IL. As of 2008,
it’s the part of The Nielsen Company.
This company was founded in 1923 in Chicago, Illinois, by Arthur C. Nielsen, Sr., in order to
give marketers reliable and objective information on the impact of marketing and sales
programs. ACNielsen began expanding internationally in 1939, and now operates in more
than 100 countries.
Nielsen’s operations span more than 100 countries. Its regional business centers are
located in Schaumburg, Illinois; Wavre, Belgium, Hong Kong, Sydney, Australia, Buenos
Aires, Argentina, and Nicosia, Cyprus.
In 2001, ACNielsen became part of VNU, a world leader in marketing information, media
measurement and information and business media. In 2003, VNU announced a new
organizational structure for VNU Marketing Information (MI), its largest business group, to
address evolving client needs and to create an enhanced platform for accelerated growth.
In 2007, VNU changed its name to The Nielsen Company. This new identity emphasizes its
best known brand name and underscores its commitment to create an integrated,
streamlined global organization.
1.4Line of business
Nielsen tailors research solutions to individual client needs. For common research needs
Nielsen has a suite of internationally recognized proprietary research products and
methodologies providing powerful comparative and normative data.
Other research requirements are idiosyncratic and depend on a particular organization’s

prerogatives and strategic goals. In this case specific, ad hoc research may be necessary,
designed to address a particular market issue or set of issues. Often a combination of the
two is necessary.
All Nielsen research is conducted and delivered by a team of research and client service
professionals with specialized industry, business issue or methodological expertise. Aside

from providing market data, Nielsen endeavors to add value to client’s business by
translating the data into actionable market and business insights.
Nielsen offers an integrated suite of market information gathered from a wide range of
sources, advanced information management tools, sophisticated Analytical systems and
methodologies, and dedicated professional client service to help their clients find the best
paths to growth. Clients work with their services to:
 Measure their market performance
 Analyze market dynamics
 Diagnose and solve marketing and sales problems, and
 Identify and capture growth opportunities.
1.5 Nielsen Product Suites
Retail
Measurement Service
Market Modeling &

Decisions
Analytics
Customized
Servic
Research
es
Figure 1.1 VNU marketing information
1) Retail Measurement: Retail Measurement Services (RMS) provide continuous tracking

of product sales to consumers, based on information gathered at the retail point-of-
sale.
2) Consumer Panel Solutions: Consumer Panel research tracks the purchasing behavior
of consumers in over 260,000 households in 27 countries worldwide, primarily
through the use of in-home scanners. Panel information reveals consumers’
purchasing from all outlets they visit and provides insights into who is buying,

methods of payment, use of coupons and participation in frequent shopper
programs.
3) Assortment and In-Store Space: Here team of experts work with retailers and
manufacturers around the world to deliver business-driven, easy-to-implement
solutions that provide a measurable return on their investment in managing
assortment and in-store space.
4) Customized Research: The diverse and powerful suite of Customized Research

services help clients obtain qualitative and quantitative measures of consumers’
attitudes and purchasing behavior, customer satisfaction, brand awareness and
equity, advertising effectiveness and other marketing issues.
5) BASES: The objective at BASES is simple to help Nielsen clients grow through
successful innovation on their brands.
6) Retailer Services: The services for retailers are designed to help them understand
what attracts consumers to their stores.
7) Analytic Consulting: Advanced Analytic Consulting Services helps clients address

such key business issues as pricing, promotion, marketing mix, assortment and
product rationalization, category placement, category structure and in-store, in-
market auditing and testing.
8) Decision Support: Nielsen provides clients with a wide range of software tools and
delivery methods designed to put the right information on the desks of decision-
makers at the moment they need it.
9) Nielsen Loyalty: Nielsen Loyalty provides end-to-end solutions and consulting

support that helps retailers and their manufacturer partners maximize their
understanding and return on their loyalty investment.
10) Global Services: ACNielsen Global Services coordinates with local ACNielsen offices
throughout the world to deliver clear, consistent information across markets.
1.6 AC Nielsen Analytic consulting (AAC):

Analytic Consulting Services started in the early 1980s in the US under the moniker
Scan*Pro. With a focus on price elasticity and promotion response to integrate information
from multiple sources like retail measurement information, consumer purchasing
information, media measurement information and help clients address such key business
issues as pricing, promotion, marketing mix, assortment and product rationalization,

category placement, category structure and in-store, in-market auditing and testing.
Nielsen is committed to providing actionable recommendations that improve company’s
bottom line. AAC’s services fall into 6 main groups:
 Price & Promotion
 Marketing mix
 Assortment
 Market Structure & Preference Segmentation
 Media Analytics
 Custom
These services draw from a variety of data sources, including…
o retail sales data
o household purchase panel data (e.g., Homescan)
o media information (e.g., Monitor Plus)
o Spectra, TDLinx, MRI, Scarborough, Net Ratings etc.
1.7 The Nielsen Code

In 1931, Arthur C. Nielsen, Sr., wrote the Nielsen Code, defining the principles that would
guide Nielsen to global leadership in marketing research. The Code remains relevant today
and continues to guide our business.
Impartiality
Be influenced by nothing but your clients' interests. Tell them the truth.
Thoroughness
Accept business only at a price permitting thoroughness. Then do a thorough job,

regardless of cost to us.
Accuracy
Watch every detail that affects the accuracy of your work.
Integrity
Keep the problems of clients and prospects confidential. Divulge information only with their
consent.
Economy
Employ every economy consistent with thoroughness, accuracy and reliability.
Price

Quote prices that will yield a fair profit. Never change your price unless warranted by a
change in specifications.
Delivery
Give your clients the earliest delivery consistent with quality - whatever the inconvenience
to us.
Service
Leave no stone unturned to help your clients realize maximum profits from their investment
1.8 Conceptual Model for AAC’s Business
Human
Values
Personal
Consequences
Business
Benefits
Functional
Characteristics
Figure 1.2 Conceptual model for AAC’s Business
 Functional Characteristics” are the “what’s” of Nielsen AAC business, what they have,
what they provide to their clients
 These things, properly delivered, result in Business Benefits for its clients
 Those Business Benefits ideally will also have Personal Consequences for clients
 Those Personal Consequences tie to or appeal to basic Human Values.
AAC comprises of four modeling Hubs
 Vadodara Hub
 Buenos Aires Hub
 Shanghai Hub

 Europe Hub
Vadodara Hub
It is the largest of all the hubs as all together there many more number of analysts working
here in comparison to the other hubs where in modeling is done for projects of PnP i.e.
Price and Promotion and Marketing Mix .Various teams are working Vadodara hub some are
Client Specific like Kraft and other are according to regions like Europe, Asia pacific, India
etc. Vadodara Hub primary hub services are:
• Price and Promotion
• Marketing Mix Modeling (PMM)
• Marketing Mix Modeling (Kraft – HLM)
1.9 Core Values

 Put the client first.
 Attract, develop and retain people who are highly capable, ethical, and kind.
 Continuously invest in improving our services and capabilities.
Mission Statement: To help our clients grow through improved marketing ROI and portfolio
management.
1.10 Marketing Mix Modeling:

Marketing Mix Modeling is a term of art for the use of Statistical Analysis such as
Multivariate Regressions on Sales and Marketing time series data to estimate the impact of
various promotional tactics on sales and then forecast the impact of future sets of
promotional tactics. It is often used to optimize promotional tactics with respect to sales
revenue or profit. The techniques were developed by econometricians and were first applied
to consumer packaged goods, since manufacturers of those goods had access to good data
on sales and marketing support.
Marketing mix modeling is an analytical approach that uses historic information, such as
syndicated point-of-sale data and companies’ internal data, to quantify the sales impact of
various marketing activities. Mathematically, this is done by establishing a simultaneous
relation of various marketing activities with the sales, in the form of a linear or a non-linear
equation, through the statistical technique of regression. MMM defines the effectiveness of
each of the marketing elements in terms of its contribution to sales-volume, effectiveness

(volume generated by each unit of effort), efficiency (sales volume generated divided by
cost) and ROI
The output can be used to analyze the impact of the marketing elements on various
dimensions. This analysis tells the marketing manager the incremental gain in sales that can
be obtained by increasing the respective marketing element by one unit.
Figure 1.3 Marketing Mix Modeling Process
Source: Fractal Analytics
Main Elements that are modeled in HLM
• Volume
• Regular Price
• Distribution
• Trend
• Seasonality
• Trade
• Feature, Display, F&D
• Level of price discount
• Competitive activities
• Advertising

o TV
o Print
o Radio
o Internet
o Newspaper
• Consumer Promotions
• FSI
– Catalina
– Sampling/In-store Demo
– Direct Mail
– Shelf Talk/Floor Ad
MARKETING MIX MODELING RESULTS IN
 Estimation of volume contribution due to each marketing component
 Change in each component's effectiveness from year to year
 ROI for each element in the marketing plan
BUSINESS ISSUES ADDRESSED WITH MIX MODELING
Marketing Mix Modeling is an excellent tool for assessing the effectiveness of the following
marketing tactics:
 Advertising
 Consumer Promotion
 Trade Promotion
 Non-Traditional Marketing
 Event Analysis
Components of Marketing Mix Model:
Marketing-mix models decompose total sales into two components:
Base Sales: This is the natural demand for the product driven by economic factors like
pricing, long-term trends, seasonality, and also qualitative factors like brand awareness and
brand loyalty.
Incremental Sales: Incremental sales are the component of sales driven by marketing and
promotional activities. This component can be further decomposed into sales due to each
marketing component like Television advertising or Radio advertising, Print Advertising

(magazines, newspapers etc.), Coupons, Direct Mail, Internet, Feature or Display Promotions
and Temporary Price Reductions. Some of these activities have short-term returns
(Coupons, Promotions), while others have longer term returns (TV, Radio, Magazine/Print).
Marketing-Mix analyses at Nielsen for Kraft are carried out using Hierarchical Linear Mix
Model.
1.11 Hierarchical Linear mix modeling

Hierarchical, or nested, data structures are common throughout many areas of research. In
statistics, Hierarchical Linear Modeling (HLM), also known as Multi-Level Analysis, is a more
advanced form of Simple Linear Regression and multiple linear regression. Multilevel
analysis allows variance in outcome variables to be analyzed at multiple hierarchical levels,
whereas in simple linear and multiple linear regressions all effects are modeled to occur at a
single level. Thus, HLM is appropriate for use with nested data.
People (and other living creatures, for that matter) tend to exist within organizational
structures, such as families, schools, business organizations, churches, towns, states, and
countries. In education, students exist within a hierarchical social structure that can include
family, peer group, classroom, grade level, school, school district, state, and country.
Workers exist within production or skill units, businesses, and sectors of the economy, as
well as geographic regions. Health care workers and patients exist within households and
families, medical practices and facilities (a doctor's practice, or hospital, e.g.), counties,
states, and countries. Many other communities exhibit hierarchical data structures as well.
Hierarchical, or nested, data present several problems for analysis. First, people or creatures
that exist within hierarchies tend to be more similar to each other than people randomly
sampled from the entire population. For example, students in a particular third-grade
classroom are more similar to each other than to students randomly sampled from the
school district as a whole, or from the national population of third-graders. This is because
students are not randomly assigned to classrooms from the population, but rather are
assigned to schools based on geographic factors. Thus, students within a particular
classroom tend to come from a community or community segment that is more
homogeneous in terms of morals and values, family background, socio-economic status,
race or ethnicity, religion, and even educational preparation than the population as a whole.
Further, students within a particular classroom share the experience of being in the same
environment-- the same teacher, physical environment, and similar experiences, which may
lead to increased homogeneity over time.

In HLM the coefficients are weighted to reflect precision among the group units.
Statisticians invented a way to incorporate reliability coming from group units—in their
calculation of coefficients
For example, in educational research researcher is interested in understanding how

environmental variables (e.g., teaching style, teacher behaviors, class size, class
composition, district policies or funding, or even state or national variables, etc.) affect
individual outcomes (e.g., achievement, attitudes, retention, etc.). But given that outcomes
are gathered at the individual level, and other variables at classroom, school, district, state,
or nation level, the question arises as to what the unit of analysis should be, and how to
deal with the cross-level nature of the data.
The basic concept behind Hierarchical Modeling is similar to that of OLS regression. On the
base level (usually the individual level, referred to here as level 1), the analysis is similar to
that of OLS Regression: an outcome variable is predicted as a function of a linear
combination of one or more level 1 variables, plus an intercept, as so:
where b 0j represents the intercept of group j, b 1j represents the slope of variable X1 of

group j, and rij represents the residual for individual i within group j. On subsequent levels,
the level 1 slope(s) and intercept become dependent variables being predicted from level 2
variables:
and so forth, where and are intercepts, and and represent slopes
predicting and respectively from variable W 1. Through this process, we accurately

model the effects of level 1 variables on the outcome, and the effects of level 2 variables on
the outcome. In addition, as we are predicting slopes as well as intercepts (means), we can
model cross-level interactions, whereby we can attempt to understand what explains
differences in the relationship between level 1 variables and the outcome.
Ordinary Least Square (OLS) obtains single set of coefficients while HLM obtains multiple set
of coefficients; however, technically both aim to obtain one set of coefficients. HLM does
estimate each group’s coefficients, but after that based on reliability of such coefficients,
HLM takes in more information from the estimates that are more accurately measured than
others—to derive a set of coefficients representative of the sample.

1.12 Marketing Mix Projects work Flow at AAC:
Figure 1.4 Marketing Mix Projects Work Flow
Step 1: New project is coming
• Consultant contact Modeling Consultant , to inform about a new marketing study
• He clears specs and proposed timing required like
– Country, category, segment
– How many models (combination item)
– Any customization
– Tentative internal deadline to be provided, not just expected date for

presentation to client
• Modeling consultant will bounce back project if information are incomplete.
Step 2: Confirmation
• Modeling Consultant contact hub team leader, sharing new project specs and
requirements
• Hub team leader then allocates appropriate resource(s) according to current hub
workload and specific project needs

• Hub team leader then confirms that project can be handled and delivered according
to proposed schedule
Step 3: Data Extraction & Preparation:
• Data extraction happens locally, with support of MSci dept. and data preparation will
be handled by local analyst.
Step 4: Kick Off (or Briefing) Call
• Purpose of the call is to :
– Make sure information is correct and complete
– All specs and customize modeling (if any) understood
– Share particular information related to a specific product, marketplace, i.e.

store turnover, high seasonality, festive periods, (re)launches, emotional
price points etc
• At the end of the call analyst is ready to ignite the engine.
Step 5: Project Status Review
• A review normally has to happen via regular weekly emails, between consultant and
analyst
Step 6: Results Internal Review
• Once results are ready to be delivered, internal review is done before results are sent
to the consultant, to make sure quality standards are guaranteed.
Step 7: Deliverables
• Finally results are sent to consultant, this means they passed all Quality Controls and
statistical tests.

• Chapter 2
PROJECT FORMATTING
2.1 Objective:
- Collecting Media Recommendations from various Final decks.
- Analyzing recently planned media mix from various available data sources.
- Establishing a link between the recommendations and the media mix planning.
2.2 Project Methodology:
Figure 2.1 Project Methodology
2.3 Data Sources:

1) Data Repository
2) Mission control
3) Flowcharts
4) Final decks collected from iShare
5) nielsen answers > National Drivers 2 (ND2)
6) Internet / Nielsen internal wikipedia

1) Data Repository:
It was used to obtain the PRINT media data. There were two softwares used
to do the job (a) PuTTY & (b) CuteFTP.
(a) PuTTY: It is a free and open source terminal emulator application which can act as a
client for the SSH, Telnet, rlogin, and raw TCP computing protocols and as a serial
console client.
Figure 2.2 PuTTY
(b) CuteFTP: It is a series of FTP (file transfer) client applications. It is used to transfer
files between computers and File Transfer Protocol (FTP) servers.
Figure 2.3 CuteFTP

2) Mission Control:
It is used to obtain the TV media data.
Figure 2.4 Mission Control
3) Flowcharts:
It is planned by clients, which consists of data from various mediums,

markets, unit sizes and demographics.
Figure 2.5 Flowcharts

2.4 Introduction to Kraft Foods:
Kraft Foods Inc. is the largest confectionery, food, and beverage corporation headquartered
in the United States. It markets many brands in more than 155 countries. 11 of its brands
annually earn more than $1 Billion worldwide: Kraft, Cadbury, Oscar Mayer, Maxwell House,
Nabisco, Oreo, Philadelphia Creme Cheese, Jacobs, Milka, LU, and Trident. 40 of its brands
are at least 100 years old.
The company is headquartered in Northfield, Illinois, a Chicago suburb. Its European

headquarters are just outside Zürich, Switzerland.
Kraft is an independent public company; it is listed on the New York Stock Exchange and
became a component of the Dow Jones Industrial Average on September 22, 2008, replacing
the American International Group.
The company's core businesses are in beverage, cheese and dairy foods, snack foods,
confectionery, and convenience foods.
Beginnings for Kraft:
Canadian-born and of German origin, James L. Kraft started a wholesale door-to-door

cheese business in Chicago in 1903; its first year of operations was "dismal", losing
US$3,000 and a horse. However, the business took hold and Kraft was joined by his four
brothers to form J.L. Kraft and Bros. Company in 1909. As early as 1911, circulars and
advertisements were in use by the company.
In 1912, the company established its New York City, New York, headquarters to prepare for
its international expansion. By 1914, thirty-one varieties of cheeses were being sold around
the U.S. because of heavy product development, expansion by marketing, and opening a
wholly owned cheese factory in Illinois.
In 1915, the company had invented pasteurized processed cheese that did not need
refrigeration, thus giving a longer shelf life than conventional cheese. The process was
patented in 1916 and about six million pounds of the product were sold to the U.S. Army
for military rations during World War I.
In 1916, the company began national advertising and had made its first acquisition - a
Canadian cheese company.
In 1924, the company changed its name to Kraft Cheese Company and listed on the Chicago
Stock Exchange.
Later, in 1927, it established its London, United Kingdom, and Hamburg, Germany, sales
offices — its first forays outside North America. Sales for 1927 were $60.4m.

In 1928, it acquired Phenix Cheese Company, the maker of a cream cheese branded as
Philadelphia cream cheese, and the company changed its name to Kraft-Phenix Cheese
Company.
In 1929, the New York Times reported that Kraft Phenix, The Hershey Company and Colgate
were looking at merging. In the same year it was reported that National, Borden and
Standard Brands were all looking at acquiring the firm.
By 1930, it had captured forty percent of the cheese market in the U.S. and was the third
largest dairy company in the United States after National Dairy and Borden. In 1930, the
company also began operating in Australia following a merger with Fred Walker & Co
Purchase of Cadbury:
On September 7, 2009, Kraft made a £10.2 billion takeover offer for the long-established
British confectionery group Cadbury, makers of Dairy Milk and Bournville chocolate. On
November 9, 2009 Kraft's £9.8bn takeover bid was rejected by Cadbury. Cadbury stated
that the takeover bid was a "derisory" offer. Kraft renewed the offer under the same terms
on December 4, 2009. The offer generated significant political and public opposition in the
United Kingdom and abroad, even leading to calls for the government to invoke a policy of
economic protectionism in cases of takeovers of large companies. On January 19, 2010,
Cadbury finally approved a revised offer from Kraft, valuing the confectionery business at
$19.5 billion (£11.5 billion). The funding for the takeover is partially provided by the Royal
Bank of Scotland, the British state-owned bank.
Selling to Nestle:
On January 6, 2010, Kraft agreed to sell its North American frozen pizza business to Nestle
for $3.7 billion. The sale, which is subject to regulatory clearance, includes DiGiorno,
Tombstone and Jack's brands in the United States, the Delissio brand in Canada and the
California Pizza Kitchen trademark license. It also includes two Wisconsin manufacturing
facilities in Medford and Little Chute. The business generated 2009 net revenues of $1.6
billion, with 3,400 employees.
Sponsorships:
Kraft is an official partner and sponsor of Major League Soccer and sponsors the Kraft
Nabisco Championship, one of the four "majors" on the LPGA (Ladies Professional Golf
Association) tour.

Promotions:
Kraft HockeyVille is a Canadian reality television series developed by CBC Sports and
sponsored by Kraft Foods in which communities across Canada compete to demonstrate
their commitment to the sport of ice hockey.
Table 2.1 Kraft Foods Consumer Sector Data of year 2009:
Categories Pro Forma Net Revenues Percentage of
in Billions Pro Forma Net Revenues
Confectionery $13.7 29%
Snacks $10.4 22%
Beverages $8.3 17%
Cheese $6.8 14%
Convenient Meals $4.8 10%
Grocery $4.1 8%
2.5 Markets and Products:

The Company’s brands span five consumer sectors, as follows:
• Confectionary—primarily chocolate confectionery;
• Snacks—primarily cookies, crackers, salted snacks;
• Beverages—primarily coffee, aseptic juice drinks, flavored water and powdered beverages;
• Cheese & Dairy—primarily natural, process and cream cheeses;
• Convenient Meals—primarily frozen pizza, packaged dinners, lunch combinations and

processed meats and
• Grocery—primarily ready-to-eat cereals, enhancers and desserts.

The Company’s major brands within each reportable segment are as follows:
 Confectionary: Terry’s and Toblerone chocolate confectionery products, Cadbury,

Mirabell, Pyros Mogyoros, Karuna, Lacta, Pavlides, Sottilette, Osella.
 Snacks: Oreo, Chips Ahoy!, Newtons, Nilla, Nutter Butter, SnackWell’s and Peek Freans
cookies; Ritz, Premium, Triscuit, Wheat Thins, Cheese Nips, Honey Maid Grahams, and
Teddy Grahams crackers; South Beach Diet (under license) crackers, cookies and snack
bars; Planters nuts and salted snacks; Handi-Snacks two compartment snacks; and
Balance nutrition and energy snacks.
 Beverages: Maxwell House, General Foods International, Starbucks (under license),

Yuban, Sanka, Nabob, Gevalia, Tassimo, and Seattle’s Best (under license) coffees; Capri
Sun, Kool-Aid, and Crystal Light aseptic juice drinks; Kool-Aid, Tang, Crystal Light, and
Country Time powdered beverages; Veryfine juices; Tazo teas and Fruit2O water
 Cheese & Dairy: Kraft and Cracker Barrel natural cheeses; Philadelphia cream cheese;
Kraft, Velveeta, and Cheez Whiz process cheeses; Kraft grated cheeses; Polly-O cheese;
Deli Deluxe process cheese slices; and Knudsen and Breakstone’s cottage cheese and
sour cream.
 Convenient Meals: DiGiorno, Tombstone, Jack’s, Delissio and California Pizza Kitchen
(under license) frozen pizzas; Lunchables lunch combinations; Oscar Mayer and Louis
Rich cold cuts, hot dogs, and bacon; Boca soy-based meat alternatives; Kraft macaroni &
cheese dinners; South Beach Diet (under license) pizzas and meals; Taco Bell Home
Originals (under license) meal kits; and Stove Top stuffing mix.
 Grocery: Jell-O dry packaged desserts; Cool Whip frozen whipped topping; Jell-O
refrigerated gelatin and pudding snacks; Handi-Snacks shelf-stable pudding snacks;
Kraft and Miracle Whip spoonable dressings; Kraft and Good Seasons salad dressings;
A.1.steak sauce; Kraft and Bull’s-Eye barbecue sauces; Grey Poupon premium mustards;
Shake’ N Bake coatings; and Kraft peanut butter.
2.6 PROJECT SPECIFICATION:

a. Geography: Total US Over $2MM
b. Demo group: Women within age group 35-54 years
c. Modeled Marketing Mix:
÷ Television
÷ Print
d. Target Brands:

Kra f t B lue B o x M ac aro ni & De li Cre at io ns
C he e s e Lunc hab le s 6%
6% 6% Ore o
12 %
Kra f t B ra nd Po urab l e s
4%
M irac le Whip
2%
C hi p s Aho y
M a yo 6%
2%
Je llO
8% Whe a t Thins C ra c ke rs
6%
C o o l Whip
3%
M ax we ll Ho us e
7%
S ing le s
8%
Cry s t al Lig ht
6%
Na t ural s C ap ri S un
10 % 4%
KAP S D
3%
Figure 2.6 Spending wise distributions of different modeled brands of KRAFT Foods
17 Modeled Brands consists of 55.6% of total Kraft Foods Spending.

2.7 Target Categories & Brands:
Table 2.2
Categories Major Brands
Kraft Blue Box Macaroni & Cheese
Convenient Meal Lunchables
Deli Creations
Capri Sun
Crystal Light
Beverages & Tea
KAPSD
Maxwell House
Naturals
Cheese
Singles
Jell-O
Mayonnaise
Grocery Cool Whip
Kraft Brand Pourables
Miracle Whip
Chips Ahoy
Snacks Wheat Thins Crackers
Oreo

2.8 Data Formatting:
• For data formatting, raw data is taken from various sources and the date is corrected
to the Saturday of that week and than this corrected date is kept in pivot table.
• From Pivot table, we can find various variables viz. week-wise TRPs, Duration Mix,
DayPart Mix & Origin Mix.
Figure 2.7 Data Formatting
2.9 Constructing Output:

Formulated a simpler way to view the formatted data.
Figure 2.8 Simplifying Output

 By using this excel, one can easily browse through different brand’s TRPs, their
planned GRPs, Spending, Cost-per-Point, etc.
 Hence, one can easily find out, which current trend it’s following & also what are
their strategies regarding different mixes, viz. whether they are shifting their
spending from TV mix to Print mix.
2.10 Output of Various Brands:
Category: Meal
1) Kraft Blue Box Macaroni & Cheese 2) Lunchables
TV MEDIA TV MEDIA
Thousands
Thousands
2,000 $9 900 $7
1,800 1,762 1,796
$8 1,751 $8 800 $6
786 $6
1,600 $7 $7
$7 700
$7 $7 $5
1,400
$6 600
Spending in M$
Spending in M$
1,200 $5
1,200 528
1,111 $5 $5 500 $4
GRPs
GRPs
1,000
$4 400 421
839 388 $3
800
623646
$3 $3 300 282
600 $2
$2 198
400 $2 200
$1
200 $1 100 $0
$0
0 $0 0 0
$0 0$0 $0
$0
2007 2008 2009 2010 2007 2008 2009 2010
Actual_GRPs YearPlanned_GRPs Actual_GRPs Year

Planned_GRPs
Total Spending (M$) Cost per GRP Total Spending (M$) Cost per GRP
3) Deli Creations
TV MEDIA
Thousands
900 $25
800 823
750
700 $20 $20
600
Spending in M$
$15
500
GRPs
478
400
$10
$9 $9
330 $9
330
318
300
$8
200 163
$3 156 $5
100 $3 $3
0 $0
2007 2008 2009 2010
Actual_GRPs Year
Planned_GRPs
Total Spending (M$) Cost per GRP
Figure 2.9 Output of Meal Category

Category: Beverages & Tea
1) Capri Sun 2) Crystal Light

TV MEDIA TV MEDIA
Thous a nds
Thousands
3,000 $12 3,000 $18
$16
$16 $16
2,500 $10 $10 2,500 2,559 2,477
2,408 2,469
2,287 $14
2,152
S pending in M $
2,000 2,011 $8 2,114 $13
2,089
Spending in M$
$8 2,000 $12
$7 $12
1,794 1,849
G RP s
GRPs
1,574 $10
1,500 $6 1,500
$6
$8
1,099
955$4
1,000 $4 $3
$4 $4 $6 $6 $6
1,000 $6 $6
784 743
$4
500 $2
500
$2
0 $0
0 $0
2007 2008 2009 2010
2007 2008 2009 2010
Actual_GRPs Year
Planned_GRPs
Actual_GRPs Year
Planned_GRPs
3) KAPSD 4) Maxwell House
TV MEDIA TV MEDIA
Thousands
sa
2,500 $14 $13
T
h
o
u
n
d
s
4,000 $14
2,340 $13 $13
2,269
$12
$12 3,500 3,419 $12
2,064
2,000
1,745 $10 3,000
1,718 $10
Spending in M$
$10 $9
1,500 2,500 2,467
$8 2,316
di
in
GRPs
M
$8
S
p
n
g
e
$
2,107 2,169
G
R
P
s
$7 1,184 2,000
$6 1,729 1,728 $6
1,000 $5
941 $5 $5 $6
$5 1,500 $5
$4 641 $4 $4 1,083
$4 $4
500
1,000
$2
500 $2
0 $0
0 $0
2007 2008 2009 2010
2007 2008 2009 2010
Actual_GRPs Year
Planned_GRPs
Actual_GRPs Planned_GRPs
Year
Figure 2.10 Output of Beverages & Tea Category
Category: Cheese
1) Naturals 2) Singles
TV MEDIA TV MEDIA
Thous a nds
Thous a nds
2,500 $10 3,500 $30

$9
$9 3,000 2,992
$8 2,040 $25 $25
2,000 $8 $8
2,581
S pen d in g in M $
S p ending in M $
$7 2,500
2,394 $20
2,222
1,500 $6 $18
G RP s
G RP s
1,391 2,000 $15 $17

1,279 $5 1,809 1,737 $15
$4 1,097 1,602
1,061 1,500
1,000 $4 1,229
$10 $10
$3 1,000 $9
$8
500 514 $2 $6
445 $5
500
117 $1 $1
$0 $0
0 $0 0 $0
2007 2008 2009 2010 2007 2008 2009 2010
Year Actual_GRPs Planned_GRPs
Year
Figure 2.11 Output of Cheese Category

Category: Grocery
1) Jell-O 2) Mayonnaise
TV MEDIA TV MEDIA
Thousands
Thousands
3,500 $20 700 $7
$19 3,303 663
$18
3,000 600 $6 580 $6
2,869 $14 2,829 $17 $16
2,763
532
2,500 $14 $14 500 $5 $5
Spending in M$
Spending in M$
2,270
$12 437 421
2,000 400 396 $4
GRPs
GRPs
1,912
1,893 $3
383
$10 $4
1,500 $3
1,248 $8 300 $3
$7
$7 $6
1,000 $6 200 165 $2 $2
$5
$4
500 100 $1 $1
$2
$0
0 $0 0 $0
2007 2008 2009 2010 2007 2008 2009 2010
Year Actual_GRPs Planned_GRPs
Year
3) Cool Whip 4) Kraft Brand Pourables
TV MEDIA TV MEDIA
Thousands
Thousands
1,600 $9 3,500 $19 $20
$8
1,400 $8 $18
1,362 3,000
$7 2,879 $16
1,240 $7 $7
1,200 1,175
1,155 $6
1,123 1,096 2,500 $14
$6 2,287
Spending in M$
$6
Spending in M$
1,000 1,002 $12
$5 $6 $12
$5 $5 2,000
GRPs
GRPs
800 $10
$4 1,500 $8
$8 1,455
1,400 $8
600 1,317
$3 1,107 $7
1,000 $6 $6
400
$2 $4
200 128 500
$1 $2
0
0 $0 0 0$0 $0
$0
2007 2008 2009 2010 2007 2008 2009 2010
Actual_GRPs Planned_GRPs Actual_GRPs Planned_GRPs
Year Year
5) Miracle Whip
TV MEDIA
S pen din g in M $ Thous a nds
2,000 $12
1,800 1,834
$11
$10
1,600
1,400 $8 $8
1,315 1,317 $8
1,200 1,206
G RP s
1,107
$6
1,000 $6
$6
$5
800
640
$4
600
400
$2
200 $0
0 2
0
$0 $0
2007 2008 2009 2010
Year
Total Spending (M$) Cost per GRP ($)
Figure 2.12 Output of Grocery
Category: Snacks

1) Chips Ahoy 2) Wheat Thins Crackers
TV MEDIA TV MEDIA
Thousands
Thousands
3,000 $12 2,500 $20
2,365
2,768
$11 $10 $18
2,500 $10 2,134 $17
2,000 $16
$9 1,860 1,877
2,035 $14
2,000 $8 $8 1,679 1,640
Spending in M$
Spending in M$
1,885 1,538
1,500 $12 $12
$7
GRPs
GRPs
1,500 1,511 $6 $6 $8 $10
$5 $6
1,291 972
1,000 $8 $8
$7 $7
1,000 $4
$6
732 $4
624 500 $4 $4
500 $2
$2
0
0 $0 0 $0
2007 2008 2009 2010 2007 2008 2009 2010
Actual_GRPs Planned_GRPs Actual_GRPs Planned_GRPs
Year Year
Total Spending (M$) Cost per GRP ($) Total Spending (M$) Cost per GRP ($)
3) Oreo
TV MEDIA
Thousands
4,000 $30
$26
3,500 3,574
3,329 $26 $25
$24
3,000
$21 $20
Spending in M$
2,500
GRPs
2,125
2,037 2,130
2,085 1,988
2,000 $15
$13
1,500 $12
$11 $10
1,000 812
$7
$5
500
0 $0
2007 2008 2009 2010
Total Spending (M$) Year
Cost per GRP ($)
Figure 2.13 Outputs of Snacks Category

Chapter 3
PROJECT ANAYLSIS
3.1 Analyzing the Recommendations:
 Final decks were taken from iShare, and the list of all such recommendations which
are related with TV & PRINT media were taken into consideration.
 These recommendations were further analyzed using different media’s.
 Thereafter, for those recommendations who weren’t followed were taken to find out
the opportunity loss, if they were followed.
 For calculating the opportunity loss, the volume needed to be determined.
 The formulae for calculating volume is as under:
adstock = ln (1+TRP)
Volume = Base*(e (co-efficient*adstock) - 1)
 For calculating volume, the base of that brand & co-efficient of that mix is obtained
from CD (Client Deliverables).
Figure 3.1 Client Deliverables
 Here in Client Deliverables (CD), there were 2 or more coefficients for a single
variable and hence there came the need to combine these coefficients, in order to
achieve single volume.
 Thus a model was generated in order to generate single TV coefficient.

Figure 3.2 TV model to generate single coefficient
Steps to generate single TV coefficient:
 Enter all the coefficients and retention rate of single variable.
 Calculate half life where HF = ln(0.5)/ln(retention rate) and from that calculate
decay, where decay = 1-ehalf life
 Enter the values of week, season, base sales, TV TRPs.
 Calculate Total TV Lift by Week - beta1*Campaign1 + beta2*Campaign2 etc….
 Calculate Total Several TV Adstocks with different Half Lifes - Half Lifes used should
be between the highest and lowest HL among the TV Campaigns - You should
increment HL by at least 0.5

 Run a regression for each Total TV Adstock created against Total TV Lift.
 Summarize regression models and choose Estimate and Half-Life with highest R-
Square.
3.2 CATEGORICAL RECOMMENDATIONS:

Category: Meal
Total Recommendations followed: 11 (100%)
Total Recommendations not followed: 0 (0%)
Brand: Blue Box Mac & Cheese
Presentation Date: Apr-09
Analysis Period: 143 weeks ending 9/27/08.
Rec. 1: Focus TV Spending on Kids Equity Campaign
Rec. Followed: yes
2008 2009 2010
Kids
Spending $7,898 $7,009 $7,725
Mom's
Spending $6,674 $7,316 $2,775
Hence, as seen Kids Spending is more in year 2010 than Moms Spending.
Rec 2: Eliminate Sweepstakes Promotions.
Rec. followed: yes
Based on the website: http://www.sweepstakeslovers.com/trips/go-wild-with-the-

cheesiest-instant-win-game/, it’s seen that last sweepstake was done in apr-08 & there
afterwards no sweepstakes were there for Mac & cheese.
Rec 3: Consider means of reducing costs for Moms TV such as 15 second ads – typically
75% of the volume at 50% cost.
Rec followed: yes
In yr 2010, there is 37% decrease in CPP compared with that of yr 2008, and also 15s ads
contributed 85% of total duration mix in yr 2010.

Rec 4: Reallocate some of Moms TV spending towards Print
Rec. followed: yes
There is seen a decrease of 56% in yr 2010 from previous yr in moms TV spending, while
there is an increase of 16% in Print media in yr 2010.
Brand: Lunchables
Presentation Date: year 2007
Analysis Period: 151 Weeks Ending 11/24/07.
Rec 1:
 Mom should be the secondary focus for brand communication after Kids.
 Mom’s print should be introduced in key season’s viz. BTS & RTS.
 Mom’s media plan should lead with Basics & Fun Pack.
Rec followed: yes
For this all recommendations, check out the flowchart of year 2008
Brand: Deli Creations
Presentation Date: 18-Dec-08
Analysis Period: 91 Weeks Ending 9/27/2008.
Rec 1: Fully support Print media in year 2009 & further optimize it.
Rec. followed: yes
2009
Actual GRPs 992
Spending (M$) $5,572
CPP (M$) $ 5.617
Rec 2: Use TV to build awareness and trial to support Focaccia launch.
Rec followed: yes
In yr 2009, PRINT focaccia generated 294,721 EQU & TV focaccia generated 56,559 EQU

Category: Beverages & Tea
Brand: Capri Sun
Presentation Date: Apr-08
Analysis Period: 151 Weeks Ending 11/24/07
Rec 1: Increase in price would have significant impact on volume.
Rec followed: yes
The Equ fell in 2009 by 5%, from 14,350,202 in year 2008 to 13,658,109.
Rec 2: CS should differentiate itself through product innovation eg less sugar campaign
Rec followed: yes
Done for eg 100% Juice Print campaign of CS RW which was taken in Aug-Sep 2008 which
gave 100GRPs
Rec 3: As the campaign of 100% juice in RW worked very well, continue to put more
emphasis on that campaign.
Rec followed: no
One can determine the opportunity loss.
Co-efficient GRP Base Adstock Volume
yr 2008 yr 2008 yr 2008 Ln(1+GRP) =Base*(e(Co-efficient*adstock)-1)
0.010 100 1,791,462 4.615 84,347
Rec 4: Continue advertising to both kids and moms
Rec followed: yes
As shown in the table, there is fair distribution amongst kids & moms.

Yr 2008 Yr 2009
Kids Spending in M$ $6,549 $6,704
Mom's Spending in M$ $3,471 $1,500
Kids GRP 3694 4235
Mom's GRP 791 1574
Spending/GRP
Kids $1.8 $1.6
Mom $4.4 $1.0
Line Strategic Priorities Spending (M$) % Contribution Recommended

Share of Spend
Base Moms-Communicate New $6,320 34% 35%

25% Reduced Sugar
Kids- Generate Request $8,039 43% 35%
Roarin’ Moms-Generate Awareness $988 5% 5%

Water CS makes a great tasting
Water
Kids- Generate Requests $100 1% 10%
Others 15%
Total $ 18,600 100% 100%
Brand: Crystal Light
Presentation Date: June 3, 2009
Analysis Period: 152 Weeks ending Nov 29, 2008
Rec 1: Any increase in cost should come with increased TRPs
Rec followed: yes
Seeing overall result of year 2009 makes the implication false, but when we consider only
Q3 & Q4, the implications proves to be true.
Rec 2: Shift to 15s ads.
Rec followed: yes
In year 2010, they've made balanced mixture of 15s & 30s ads

Rec 3: Lower Origin Mix
Rec followed: yes
There is significant decrease in prime time cost per grp
Rec 4: Increase media spending to high volume between periods April to August.
Rec followed: yes
The period April to August consists of 60% contribution to total spending in the year.
Brand: Kool aid
Presentation Date: April 1st 2010
Analysis Period: 104 Weeks ending Oct. 24, 2009
Rec 1: Focus on TRP efficiencies i.e. increase contribution of 15 second ads
Rec followed: yes
In the Q3 & Q4, the contribution of 15s ads is 81% and 100% resp.
Rec2: Continue to leverage print, as paybacks are competitive with those of TV
Rec followed: no
Although the payback for print was 87% & 96% for the yr 2007 & 2008 resp as compared to
the payback for TV which was 74% & 77% in resp yrs, the print was not done in yr 2009
Volume Contribution Spending ($M) Payback

Marketing
Year Year Year Year Year Year Year Year Year
Element
2007 2008 2009 2007 2008 2009 2007 2008 2009
TV 5.90% 4.60% 6.60% $9,718 $7,408 $11,376 74% 77% 74%
PRINT 0.80% 1.90% $700 $1,965 87% 96%
Calculating Opportunity loss:
YEAR
PRINT MEDIA YEAR 2009 2008(wk24-52) YEAR 2009
Sub-brands Co-efficient TRPs Base(Equ) Adstock Volume

(Equ)
RKA 0.0167 253 7,339,467 5.54 708,949
SF_Canister 0.0130 230 213,896 5.44 15,734
OPPORTUNITY LOSS 724,683
Hence, there is opportunity loss of 724,683 Equ’s
Rec 3: Re-invest Q4 spend to in-season
Rec followed: yes
See flowcharts
Rec 4: Avoid Q4 TV advertising due to low consumption potential and high media cost
Rec followed: yes
See flowcharts
Rec 5: Focus on one message on-air at a time which could help drive volume response
Rec followed: yes
Brand: Maxwell House
Presentation Date: September 22nd, 2009
Rec 1: Move away from 2 page spreads, and target books to increase impressions
Rec followed: yes
In yr 2009, a part of print has shifted to Reader's Digest Program.
Rec 2: Manage costs by moving to greater 15 sec mix and less expensive day parts.
Rec followed: yes
15s ads contributed 80% of the duration mix in yr 2010
Rec 3: Be sure to maintain a focus on delivering a reasonable cost per point, as it is the
main driver of variation in efficiency/payback.
Rec followed: yes
CPP has decreased in 2010 by 10% w.r.t. previous yr & decreased upto 32% w.r.t. yr 2008.

Category: Cheese
Brand: Naturals
Presentation Date: July, 2009
Analysis Period: CY 2006 – 9/2008
Rec 1: Improve efficiency by cost effective media planning, 15 seconds ad should dominate
Rec followed: no
Contribution of 30 seconds dominates massively over 15 second’s ad. See flowchart of year
2010 for further information
 In year 2010, 30s ads holds 88 %( planned)/84 %( actual) of the duration mix.
 But they have maintained their spending by shifting towards non-prime (62%) & Spot
TV (84%).
 Moreover they are shifting their spending more towards PRINT media.
 For this reasons, they faced a decline of 200,386 Equ’s.
Rec 2: Leverage cable networks
Rec followed: yes
In yr 2009, majority focus was on Cable networks with contribution of 65%.
Rec 3: Supplement TV with recipe-focused Print in Q4.
Rec followed: yes
In Q4 2009, print is more emphasized.
Brand: Singles
Presentation Date: July, 2009
Analysis Period: CY 2006 – 9/2008

Rec 1: It featured 80% of 30s which was adding much to the cost, so shift towards 15s ads
Rec followed: yes
Balanced Contribution of 15s and 30s ads was implemented in the yr 2009 & 2010.
Rec 2: Increase GRPs/week in 2009 and also try consider optimizing length of flights in
order to minimize dark periods
Rec followed: yes
TV_Flights per GRPs

300 year 2008 year 2009
250
200
150
100
50
0
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52
Figure 3.3 TV_Flights per GRPs
Hence, from above chart, one can clearly see that the flights per GRP have been made much
more uniform, as well as hiatus as been reduced.
Rec 3: Consider shifting Select print spend to KRS print to maximize incremental growth and
maintain strong KRS print in the IMC plan
Rec followed: yes
Implemented in the month of may-09
Category: Grocery
Brand: Cool Whip
Presentation Date: May-09
Analysis Period: 143 weeks ending 09/27/08

Rec 1: Re-invest in Cool Whip tub.
Rec followed: yes
Rec 2: Focus on Print Media
Rec followed: yes
Rec 3: Limit 30s ads in Q4
Rec followed: yes
Rec 4: Print & TV should consume large portion of spending.
Rec followed: yes
Brand: Jell-O
Presentation Date: 1-Sep-09
Analysis Period: 117 weeks ending 12/27/2008
Rec 1: Leverage seasonality as much as possible with all spending.
Rec followed: yes
In Q1,Q2 & Q3 of year 2010, key seasons such as new-year and swim suit was focused.
Rec 2: Manage advertising costs and improve effectiveness of TV.
Rec followed: yes
CPP has gone down by 18% in yr 2010 w.r.t. previous yr
Rec 3: Use 15 second ads and Cable to manage costs
Rec followed: yes
15s ads & Cable contribution is major.
Rec 4: Utilize Print more effectively through-
 Piggyback seasonality of Q1.
 Highlight new product benefits rather than a longer TV ad.
Rec followed: yes

 Adj to Mousse creative was continued in Q2
 New product like RTE pudding was focused with 15s ads contributing more to the
duration mix.
Rec 5: On-season executions will outperform off-season and leverage lower TV costs than
in Q4. Balance that with other Q1 media.
Rec followed: yes
Rec 6: Focus Print in Q1 where it is the most effective
Rec followed: yes
CPP in Q1 was higher (which was $11) compared to other Quarters
Brand: Kraft Brand Pourables
Presentation Date: 22-Sep-08
Rec 1: Use “new news” and new flavors, if possible, to help stem distribution declines.
Rec followed: yes
In Q1 2009, Golden Globe campaign was held to build up base
Rec 2:
 Maintain weekly GRP levels, but consider more pulsed GRP delivery to enhance the
Pure campaign.
 Consider slightly increasing 30-second copy in the duration mix to maintain

effectiveness
Rec followed: no

Figure 3.4 Flights per GRP comparison between year 2008-‘09
Based on these, they faced a massive decrease in TV media of 1,178,411 Equ’s.
Category: Snacks
Brand: Chips Ahoy!
Presentation Date: 1-May-08
Rec 1: Should marketing mix investment be reduced, a significant portion of Chips Ahoy!’s
sales would be in jeopardy, at least in the short- term
Rec followed: yes
As there is significant decrease in spending in yr 2009, the EQU has fallen down by 1,441.2
units
Rec 2: Continue the use of successful creative such as Brand New Day.
Rec followed: no

In 2007, Brand New Day supported 817 GRPs with $5.22 CPP for 4 months in between Aug-
Nov'07
Brand: Oreo
Presentation Date: Oct-08
Rec 1: Marketing mix investment is key to Oreo’s sales. Theoretically, should spending be
reduced or eliminated altogether, more than half of all lb. sales could be at stake, at least in
the short term.
Rec followed: no
Rec 2: Maintain a variety of elements in the mix.
Rec followed: yes
Rec 3: Maintain aggressive mix spending
Rec followed: yes
Rec 4: Keep TV as a key element of the mix.
Rec followed: yes
Rec 5: Explore ways to reduce CPP (Cost per Point)
Rec followed: yes
Rec 6: Consider increasing spending behind Spending
Rec followed: no
• In 2009, Oreo didn’t undertake Print campaign for which they suffered an
opportunity loss of 2,550,451 Equ’s.
Co-efficient
2008 Base 2009 TRPs 2008 adstock volume
0.003 120,046,633 750 6.621 2,550,451

Chapter 4
Learning Experiences
4.1 Organizational Learning
The experience at Nielsen Company was very overwhelming. I had apprehensions
about my performance before joining as I was going into highly process oriented
Multinational Company without any prior work experience. Initially I was exposed to the
Knowledge Repository of the organization named ‘I Share’ and ‘AAC Wiki’ to understand the
Organization Structure, Process, various departments, Teams and their functions.
As Nielsen is world’s leader in Market Research in FMCG products I could directly co-
relate various concepts of Marketing Research, Marketing & Organization Behavior read in
my curriculum. The internship period exposed me to various formalities and protocols in an
organization. The organization had set processes and standards for various activities as it is
a true follower of Six Sigma with Champions & Black belts.
The Business Analyst Profile required me to do two activities at one time i.e. to get
the work done and to do work. This involved persuading the Project Analyst for giving me
time to discuss the projects and their process. I had to convince the Project Analysts that
the task which I am performing is of vital importance to them and organization and will help
them in answering their consultants better. There were some occasions where I had to
receive a lot of tough situations from Project Analysts as some of them are receptacle to
changes. This helped me closely study the behavioral aspects of employees. The experience
at Nielsen was indeed enthralling and enterprising.
4.2 Technology Learning
The internship project at Nielsen offered me a profile which was apt for the
specialization being pursued. The IT understanding helped me in understanding the
technological part of the Modeling process. The project at Nielsen helped me learn the
nuances of Modeling Process as all the models are runs on 1 server named Zeus based in
Schaumburg U.S and as the result of overloading it with model runs from all over the world I
have to face difficulty at times.
I was fortunate to learn about the various advanced technologies in operation like
Cute FTP as a part of my study. I also understood the technological premise on the basis of
which results are contemplated.
I worked for Kraft HLM Marketing Mix team which also helped me to understand the
technological basis of Analysis. I also understood the tools and technologies involved in any
Analysis process. The study of Marketing Mix Modeling gave an idea of the flow of
processes. The tasks of analyzing various sectors of Kraft help me in becoming more

conversant with various shortcuts of using Microsoft Excel and cleared various Marketing
aspects behind Price and Promotions of FMCG products.
Hence, the internship at Nielsen was a great period of value-addition for me. It
helped me understand the importance of technology behind any business endeavor.
4.3 Business Learning
The internship at Nielsen helped me to understand various business concepts. The

projects helped me to understand the Consumer Behavior in relation to various marketing
Mix Activities done by Kraft Foods. It also helped me to apprehend the impact of each and
every activity done by Kraft on consumer purchase behavior. I understood the Importance of
Market Research involved in Business.
The tasks at Nielsen helped me to learn about process of Price and Promotion
Modeling done for various countries across the world. It gave a clear picture of how
customer needs are traced , quantified and analyzed through statistical software using huge
amount of data and then are transformed into a particular service offering. I thus
understood the customer and business perspective for different marketing Mix activities. I
was able to comprehend through price and promotion elasticity, trends for various sectors
of Kraft Foods and correlate it with various business activities. I was also fortunate to learn
about different problem situations also. The Marketing Mix projects helped me to
understand various strategies followed by Kraft to Increase the Sales of its product and
create brand awareness.
The internship helped me understand the working of outsourcing model in India.

The business model for Nielsen in India Is like KPO where raw data comes from various
countries analyzed in India and then sold to consultants across various countries. The
importance of India as a favorite destination can be attributed to the capability of Indian
skill sets in offering state of art solutions at a lower cost. The tenacity of Indians to work
beyond their capabilities and eagerness to learn new technologies has earned us accolades
across the globe.
4.4 Correlation with Various Subjects
The internship at Nielsen helped me in a practical understanding of the Marketing Mix

activities Product, Price, Place, and Promotion on Sales of company. The project helped in
understanding the actual application of different marketing and marketing research
theories. The project gave me an opportunity to apply various concepts studied in different
subjects.
• The thought process involved in understanding and interpreting the results was
leveraged by the understanding of Principles of Marketing. The various comparative

analyses of Brand activities performed could be attributed to the firm understanding of
Marketing Concepts.
• The understanding and drafting of organization structure for Nielsen website was
easy by virtue of great learning sessions of the subject Organizational Behavior. Nielsen is a
Multinational Organization. Hence, the culture at the workplace was quite different. The
activities follow a standard set of processes and values globally.
• The understanding of Business Process Analysis helped me in identifying various
roles and functions pertaining to Modeling process and systems. The knowledge about the
process models like Swim-lanes, role activity diagrams helped in understanding some
Process management solutions.
• Feasibility study for calculating Regular Price Elasticity and Promotional Price
Elasticity for sub items using Hierarchical Linear Modeling process was attributed to
knowledge of Statistics where theoretical concepts are put to application.
• Knowledge of Marketing Research was of utmost importance which helped me to
understand whole process of Analysis at Nielsen and to understand and interpret the
results.
• Another subject that has helped me while communicating with employees and
managers through emails, meetings conference is Business English which taught me to how
to communicate formally and in an effective way.

Conclusion
Suggestions and recommendations:
 It is found that Snacks follows the least percentage of the recommendations

compared with other categories, and Snacks also contribute majorly in Kraft’s
revenue, which is 28% of total revenue, so Snacks is the point of major
concern.
 At least, one brand in each category is more likeable towards 30s.
Furthermore, although advertisers might be incorporating branding elements
in 15s advertisements at the expense of developing a story/theme; this
sacrifice is not resulting in extreme reductions in advertisement liking.
 In the ever changing tastes of the consumers; they may try to involve more
TV and Online advertising into their marketing mix.
Limitations:
The following are the limitation of study:
1. Consumer behavior of U.S is not known and data about other Brands is not available
which makes it difficult to analyze reasons for high/ low elasticity across all sectors.
2. The sample size used for feasibility study is small which makes it difficult to
generalize it across all sectors.
3. Certain results which obtained could not be shown in the report as it is a crucial data
for the company.

REFERENCES
Bibliography
1) Ken Black, “Business Statistics-For Contemporary Decision Making”, 4 th Edition, John
Wiley & Sons, New Delhi.
2) Kothari, C.R., “Research Methodology”, 2nd Edition, New Age International Publishers,
New Delhi.
3) George E. Belch and Michael A. Belch, “Advertising and Promotion”, 4 th Edition,
Irwin/McGraw Hill Publication, USA.
4) Kotler Philip, “Marketing Management”, 11th Edition, Pearson Education, Inc.
Web Reference
1) https://ishare.nielsen.com
2) https://www.missioncontrolglobal.com/portal/server.pt
3) http://www.nielsenpedia.com/mediawikiorientation/mediawiki/index.php/
4) https://answers.nielsen.com/
5) http://en.wikipedia.org/wiki/Marketing_mix_modeling
6) http://en.wikipedia.org/wiki/Kraft_Foods
7) http://grad.nielsen.com/aacwiki/kftaudit/method
8) http://www.amic.com/guru/guru_link.asp?words="effective+reach"+|
+"effective+frequency"&ID=2505
9) http://www.marketresearchworld.net/index.php?
10) http://www.marketinganalytics.com/Solutions/MarketingMixModeling.aspx

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Media Mix Recommendations Page 1

SUMMER INTERNSHIP PROJECT REPORT

“Media Mix Recommendations – A Strategic Analysis”

The Nielsen Company, Baroda

M.S. PATEL INSTITUTE OF MANAGEMENT STUDIES

Media Mix Recommendations Page 2

1.1Market Research Industry

Market research is effective because by talking to or measuring a relatively small number of

Consumer market research is a form of applied sociology that concentrates on

Media Mix Recommendations Page 3

A list of questions that can be answered through market research:

 How do consumers talk about the products in the market?

Media Mix Recommendations Page 4

1.2 Company Profile

Principal Subsidiaries: AC Nielsen EDI; AC Nielsen eRatings.com; AC Nielsen Bases;

AC Nielsen International Research.

Units: Nielsen Consumer, Nielsen Media Research, Nielsen Online, Nielsen Mobile, Nielsen

Services: Nielsen Homescan, Nielsen BookScan, Nielsen Broadcast Data Systems, Nielsen

Media Mix Recommendations Page 5

Other research requirements are idiosyncratic and depend on a particular organization’s

Media Mix Recommendations Page 6

 Measure their market performance

 Analyze market dynamics

 Diagnose and solve marketing and sales problems, and

 Identify and capture growth opportunities.

1.5 Nielsen Product Suites

Market Modeling &

Figure 1.1 VNU marketing information

1) Retail Measurement: Retail Measurement Services (RMS) provide continuous tracking

Media Mix Recommendations Page 7

4) Customized Research: The diverse and powerful suite of Customized Research

7) Analytic Consulting: Advanced Analytic Consulting Services helps clients address

9) Nielsen Loyalty: Nielsen Loyalty provides end-to-end solutions and consulting

1.6 AC Nielsen Analytic consulting (AAC):

Media Mix Recommendations Page 8

 Price & Promotion

 Market Structure & Preference Segmentation

These services draw from a variety of data sources, including…

o retail sales data

o household purchase panel data (e.g., Homescan)

o media information (e.g., Monitor Plus)

o Spectra, TDLinx, MRI, Scarborough, Net Ratings etc.

1.7 The Nielsen Code

Accept business only at a price permitting thoroughness. Then do a thorough job,

Watch every detail that affects the accuracy of your work.

Employ every economy consistent with thoroughness, accuracy and reliability.

Media Mix Recommendations Page 9

1.8 Conceptual Model for AAC’s Business

Figure 1.2 Conceptual model for AAC’s Business

 Those Personal Consequences tie to or appeal to basic Human Values.

AAC comprises of four modeling Hubs

 Buenos Aires Hub

Media Mix Recommendations Page 10

• Price and Promotion

• Marketing Mix Modeling (PMM)

• Marketing Mix Modeling (Kraft – HLM)

1.9 Core Values

 Continuously invest in improving our services and capabilities.

1.10 Marketing Mix Modeling:

Media Mix Recommendations Page 11

Figure 1.3 Marketing Mix Modeling Process

Source: Fractal Analytics