June 1999

In s i g h t s t o d a y f o r t o m o r row’s d e c i s i o n s

Toppling the House of Cards
Defining the Role of Loyalty Marketing within the Category Management Process
Home Meal Replacement: A Home Run with Consumers Fresh Food Consumers: Redefining the Meaning of ‘Green Grocer’
Trend Watch: What’s New in Ethnic Foods

2 The understanding 3 The Information Revolution In the last 75 years there has been an evolution of information in the manufacturing and retail industries. Volume 1. and significantly outspend others—in terms of total channel sales as well as for fresh foods. many consumers have more than one frequent shopper card.com/ci Fresh Food Consumers: Redefining the Meaning of ‘Green Grocer’ All shoppers purchase fresh foods. but “super heavy” fresh food buyers make up more than half of total fresh sales. True loyalty marketing should build consumer loyalty to the outlet as well as the brand. CONSUMER INSIGHT: that leads to success. . These valuable customers make more trips per year. To many. How has this helped us in reaching the consumer? 4 Cover Story: Toppling the House of Cards Frequent Shopper programs have exploded as a promotional mechanism. “What’s for dinner?” For More Information 13 150 North Martingale Road Schaumburg. IL 60173 800.June 1999. But as their number has grown.988.4ACN World Wide Web site: http://acnielsen. 9 Home Meal Replacement: A Home Run with Consumers Home Meal Replacement (HMR) is one of the newest trends in food. HMR represents a new response to the age-old question. No. shop all formats more often.

marketers will have the insights and capability to execute programs targeted to individual consumers.C. With the advent of scanning in the 1970s. ACNielsen first provided national and regional data. All rights reserved. business growth and profitability. Printed in USA. This revolution—combined with the needs of many businesses to understand and address the global marketplace—has overwhelmed many executives.S.In every issue… 18 Trend Watch— Ethnic Foods Steve Schmidt ACNielsen President. our goal is to not only provide you with information and insights. Syndicated marketing information began with ACNielsen National Audit information in 1933. ne of the feature topics of this second issue of I predict that under the loyalty marketing banner. Kennedy Marketing/ Communications Slack Barshinger & Partners Copyright 1999 ACNielsen. More importantly. the ACNielsen logo. Inc. No. city. 2 Publisher ACNielsen Editors Mark Chesney Art Massa Contributing Writers Glenn Hausfater Managing Partner. Scantrack. product or service names are trademarks or registered trademarks of their respective companies. 3 ACNielsen Consumer Insight is loyalty marketing. chainspecific and store-level information and insights. Convenience Track. a “direct-toconsumer”strategy will provide managers the capability to drill down marketing analyses to the individual consumer level. Partners in Loyalty Marketing. In the last 75 years there has been an evolution of information in the manufacturing and retail industries. Consumer Insight The Information Revolution Business Tools 22 Consumer Behavior 23 Retail Tracking 24 Merchandising 25 Decision Support Services O In the last 75 years there has been an evolution of information in the manufacturing and retail industries. we need to select the right information at the right time to maximize your return on investment. we delivered area. The ability of smart marketers to leverage the power of information to take advantage of small competitive points of difference is the payoff. Direct-to-Consumer. Nielsen Company. Together. Homescan. There is a myth that technology will make our lives easier. At ACNielsen. Volume 1. Design & Layout Kathy Zonyk Editorial Board Gary Binkoski Don Drews Kathy Mancini Elaine Noone Mark Pucetti ACNielsen Global Creative Services Laurel A. The growth of loyalty marketing is just one more example of both the explosion in the amount of information that is now available and the ability of smart marketers to use key pieces of information to drive competitive advantage. ACNielsen. but also to help you gain a competitive advantage by providing the tools for you to work smarter. Other brand. and then as scanning became ubiquitous. U. . but more information is not a competitive advantage anymore. Priceman. ShopperVDirect and ACNielsen Workstation InformationVServer are trademarks or registered trademarks of A. In recent years that evolution has become a revolution as more and more information becomes available.

the cost of acquiring a new customer is five to 10 times greater than the cost of retaining a current . but those manufacturers and retailers who choose to build a direct-to-consumer strategy will reap great rewards in the loyalty marketing game. However. These retailers know the long-term value of their customers. Understanding not just who your consumers are. this credo has significance in the dollars-and-cents world of business. Many businesses are at parity in providing reward programs to consumers. Inc. ling the Driving consumer loyalty takes more than a standardized reward program. and they want it all to themselves. on average. the focus on rewarding consumer usage has created new issues. consumers’ spending patterns are changing across store types. Studies indicate that. Topp Four Key Truths Loyalty marketing is about extending the lifetime value of the customer. From airlines and hotels to restaurants and video rental shops. ACNielsen and Glenn Hausfater Managing Partner Partners in Loyalty Marketing. businesses of all kinds have taken on a keen.” Retaining current customers is much less expensive than attracting new ones. With the proliferation of shopping choices. Treating customers as individuals is not only a nice thing to do. driving consumer loyalty takes more than a standardized reward program. almost personal interest in their consumers. The move to one-to-one or loyalty marketing is all about making customers feel satisfied and special enough during their shopping experience to come back for more.Consumer Insight Cover Story Consumer Insight 4 H s u o f o e s d r a C Defining the Role of Loyalty Marketing within the Category Management Process By Robert Tomei Senior Vice President Marketing. but what stores they shop in. It’s really as simple as. “to have and to hold. how often and why is becoming valuable fodder in the information game. 5 “A True Friend Is a Forever Friend” Far from being a greeting-card cliché. Ask a business traveler: How many frequent-flier cards do you have? Ask a grocery shopper: How many frequent-shopper cards do you carry? Clearly.

2% 48. Chart 1 The benefits of operating a frequent shopper program lie in using the transactional level and consumer information from the program to understand their customers and to target promotions and product assortment.9% 100% (no program) . marketers can identify opportunities among consumer segments and target specific offers to drive loyalty. 2. Non-members? Today’s Frequent Shopper Programs and the Next Evolution How important are today’s frequent shopper programs and do they build loyalty among existing customers? When we ask customers. Retailers and manufacturers need to better understand the importance of their customers. We found that more than half (57%) of Retailer A’s members also participated in Retailer B’s program and a large portion of Retailer B’s members (66%) also participated in Retailer A’s program. 7 What Is the Spending Power of Frequent Shopper Members vs. The key to loyalty marketing is to think in terms of the lifetime value of the customer.8% 24.6% 100% Retailer C 32. Communicate to customers with relevant. pers and 87% of Retailer C’s shoppers participate. 66% of all households have a card. we find that yes. households think that it is important for the store they shop in to offer a frequent shopper program (offering frequent shopper programs is ranked third behind location and store deals as a top reason for shopping in a particular store).S. This linkage of analytical insights to a retailer’s customer data files will drive loyalty marketing at retail. Today. Retailers and their manufacturer partners have to date been unsuccessful in generating loyalty to a single card. Develop and operationalize a direct-to-consumer strategy. These members spend many more dollars per household than the non-members.”A minority of shoppers drive the business—70% of sales are driven by 30% of customers. more unique relationship with customers. Not All Shoppers Are Created Equal Grocery is no exception to the “Pareto Principle. Loyalty marketing allows marketers to identify their “Top Shopper” customers and provide them with recognition and benefits commensurate with their revenue contribution.9% 17. The depth and breadth of consumer panel information represent the building blocks of Category Management.3% 35. but most are not. they may not be as effective in building loyalty. Overall. The direct-to-consumer strategy is a continuous process that starts with segmenting consumer information. Market X % of Grocery Dollars Retailer A Retailer B Retailer C Retailer D Frequent Shopper Members Retailer A 51. Based on a survey fielded to the Homescan Consumer Panel in December 1998. offering account and channel reporting capabilities.3% 4. most consumers are holding two or three cards from different retailers. developing strategies and tactics to reach these consumers. and suppliers want to know “how it all fits together” and where they fit it. Purchases from all retail outlet types are captured. recording price. It is clear that while frequent shopper programs are important. Chart 2 Moving to Loyalty Marketing Loyalty marketing and the current Category Management process need to be aligned. In fact. By operationalizing a direct-to-consumer strategy. nearly two-thirds of all U. while frequent shopper programs are important. their value and the strategies aimed at retaining them. ACNielsen is now taking the next step by building a link between Category Management and Loyalty Marketing. In addition. they are important.0% 5. Retailers want to grow both categories and customer loyalty. Loyalty marketing is fast becoming an important element in the marketing mix because it has proven to be measurable and effective. Our research showed that Retailer A’s frequent shopper members are giving a huge portion of their business to other retailers [See chart 2]. It is also true that some “Top Shoppers” are very loyal. to develop activities designed to improve the performance of these customers.Consumer Insight Consumer Insight 6 Cover Story customer. Where Else Do Frequent Shopper Members Spend Their Money? The Direct-to-Consumer Strategy What does loyalty marketing look like? Developing and operationalizing a direct-to-consumer strategy within the context of the current Category Management process is the next progression.4% 18. Information and analytical insights are key to driving loyalty marketing programs. Better understand and identify key customer segments.0% 26. Building customer loyalty and retaining customers involves four key truths: 1. over 80% of each retailer’s dollar sales are accounted for by its frequent shopper members [See chart 1]. This is also true of Retailer B’s and C’s members. a significant opportunity exists to increase loyalty among consumers. The upside of growing loyalty is huge—and category specific. it is important to link with information and executional partners who make the insights actionable.8% 5. More importantly. while slightly more than 75% of Retailer B’s shopHowever. to provide opportunities to communicate with these customers with the right messages and promotional offers. promotions and quantity purchased as well as the age and the gender of the shopper. the number of households belonging to a program has increased 11 percentage points from 1997 and a dramatic 31 points versus 1996. 4. choosing target consumer segments. what consumers are doing outside a particular store is vital. and finally. 3. retailers and their manufacturer partners have to date been unsuccessful in generating the true benefits of a frequent shopper card. Create a different. While retailers have been successful in stimulating usage with their frequent shopper cards. Working together to build this link requires a new way of thinking about customers. targeted messages and promotional offers. We also looked at three retailers and found that 90% of Retailer A’s shoppers participate in a frequent shopper program. and its Homescan™ Consumer Panel has been in the business of tracking and analyzing their purchase behavior for over a decade. Panelists use a hand-held scanner to scan items at home from each shopping trip.9% 100% Retailer B 29. Understanding Better Understand and Target Customers ACNielsen understands the value of the customer.

7% Low 1. By partnering and sharing this information. the performance of key consumer segments must be maxi- . ACNielsen analyzed the purchase behavior of Homescan consumers who shopped in Drug Store A and who lived in the Middle Atlantic region from September 1997 to September 1998. you must know what customers to focus on and what categories are most valued. To answer these questions. Sometimes. “High-High” buyers continued on page 20 Focus on Your “Top Shoppers” In order to drive loyalty marketing within the context of the current Category Management process.2% 0.5% 0. paper goods. it took two hours to cook dinner.1% 4.2% 0.2% 0. retailer frequent shopper programs. ACNielsen categorized shoppers by defining levels of loyalty and combining it with their dollar volume. manufacturers and retailers can work more closely to impact household purchase behavior. These incentives will drive continuity rather than immediacy. less than 7. Ultimately. With a projected annual growth rate of 8%. How loyal are they? 2.8% A Bigger Pie for Grocery Fast. What’s the rest of their business worth? 3.5% 3. While today’s programs may offer some temporary price reduction (TPR) benefits. Getting back to the Pareto Principle. How do we win it? Direct-to-Consumer Strategy Feature Consumer Insight 8 Home Meal Replacement: A Home Run with Consumers Joseph Cassano Product Manager ACNielsen I t’s as American as apple pie. The findings show that the top one-third of Drug Store A shoppers account for a whopping 83% of the total dollars and for virtually all non-food sales such as cleaning products.5%. Conducting a direct-to-consumer strategy will change how we view and use existing frequent shopper programs. The process can be seen as a wheel that keeps revolving. kitchen appliances are relegated to the status of warming ovens or disposal units.2% 0..5% and 20% and Low HBC Loyalty.3% 0.6% 1. with web sites listing today’s specials at the local grocery. Information and insights which allow manufacturers and retailers to drive store and brand loyalty on a customer-by-customer basis already exist (e. According to the food consulting firm Technomics. Spicing up the appeal of HMR: gross margins ranging from 60–120% for prepared meals vs. preventing customer defection and reducing costs.1% 0. This linkage will redefine the relationship between manufacturers and retailers.3% Total 8.3% 7. HMR sales will hit a yeasty $67 billion by the year 2001. consumerbased information and applications). evaluating programs and then refining the offers. tomorrow’s loyalty marketing programs will become a mix of price and nonprice incentives. Loyalty marketing programs will result in major improvements on building a profitable and loyal consumer base. 83% High (Top 1/3) Medium (Middle 1/3) 13% 4% Low (Bottom 1/3) 100% Total However. For example. High HBC Loyalty should equal 20% or more of Drug Store A’s share of all channel HBC dollars.3% Medium 5.0% 0. Convenient. gaining new customers.g. soap. Drug Store A’s share of all channel department dollars show that these “Top Shoppers” only spend onesixth of their Health and Beauty Care (HBC) dollars in Drug Store A’s stores. Meal planning has more to do with the Rolodex than the recipe box.Consumer Insight 9 Cover Story mized. if 30% of the customers are driving 70% of the sales. Defining the Concept To operationalize the concept of loyalty. In 1967. Tasty. ingredients. In the end. executing one-to-one marketing. it is apple pie.6% 4. the effectiveness of frequent shopper programs is mixed.7% 1. bags/wraps and tobacco. The shopping cart has gone virtual. Home meal replacement represents a millennium era response to the age-old question. Keeping this wheel spinning involves linkage of manufacturers and retailers. Costeffective. the benefits of increased shopper loyalty will result in selling more to current customers.8% 0. offerings must be tailored to meet the needs of the most valued customers. the newest trend to make an entrée on the food scene. To do that. Three questions define “Top Shopper” opportunity: 1. Today’s consumers want food that can be served in as little as five minutes. Percent of Drug Store A Dollars by Department Drug Store A Shopper Group Total Health & Non-Food Dry Grocery Beauty Care 85% 95% 76% 8% 3% 18% 7% 1% 6% 100% 100% 100% It’s Home Meal Replacement (HMR). HMR represents an appetizing opportunity for supermarkets. “What’s for dinner?” On week nights. detergents. Medium HBC Loyalty should fall between 7. air fresheners.6% 1. Drug Store A Share Of All Channel Department Health & Beauty Care Nonfood Dry Grocery General Merchandise Total High 17.

While 44% feel that HMR is a reasonably priced alternative to home cooking. smelled good (2%) or packaging (1%). from planning to shopping through clean-up. “These include schedule pressures. At Big Y in Springfield. even if it involves a trip to the store or restaurant rather than the kitchen.” When Asselin joined the team charged with developing Big Y’s fresh food concept. for the first time ever. Foodservice and Catering Sales Manager Roland Asselin carefully carved out an HMR niche that he defines as “everyday wholesome food versus tablecloth dining. According to Supermarket News.. with an employed female head of household younger than 44 years old. convenience issues and other food options that consumers take into account when dinner time rolls around. category information manager at Kraft Foods. a whole new breed of dining options comes with a whole new set of operating issues. tasted a sample (3%). 24% disagree. The Daily Dinner Dilemma Dinner is far and away the most popular HMR occasion. The Gap at Grocery Seasoned veterans of the HMR cook-off have identified a gap at grocery. such as chickens that are 30% larger than retail or pizzas made from scratch. Cooking Up Menu Options While definitions proliferate. everybody’s doing it! According to a recent Roper Starch poll. Big Y stepped into the kitchen with vendors to create its own line of side dishes. extending its vision beyond just the product to include the process of getting dinner on the table. On the nutrition front. creamy mushroom risotto and tomato/chipotle sauced chicken. Grocery stores control a paltry 19% of the HMR juggernaut despite the fact that 10. New merchandising issues arise as grocers learn to compete within an enlarged competitive set that encompasses restaurants and home delivery as well as alternative formats.” Those meals can range from the common. Taking the HMR pulse of the households comprising ACNielsen’s Homescan consumer panel yielded some interesting insights into the dining phenomena. with a short shelf life demanding date codes to guide consumers. an equal number of consumers believe that HMR offerings are nutritious or have no opinion about nutritional content. we sell quality and service. accounting for more than 80% of meals purchased for at-home consumption. From a distribution perspective. 64% of shoppers never visit a supermarket just to buy prepared foods. to the exotic. not frozen.000 consumers pass through their doors weekly. These HMR loyalists generally have higher household incomes (over $50. vegetables and condiments. Mass. like lamb mulligan stew. such as eye-appeal (17%). One way Kraft Foods taps into the consumer mindset is through in-store and in-home .Consumer Insight 11 Consumer Insight 10 Feature As the Inventory Turns Naturally. Convenience (50%) and type of food (31%) are the two factors that most influence the decision to purchase More Than What’s on the Table Who’s Dining In? When it comes to home meal replacement. Consumers prefer meals that are ready to eat (77%) versus ready to heat (20%) or ready to assemble (3%). Weekly meal planning may have been standard operating procedure in Ozzie and Harriet days. chicken and Chinese food (the reigning Big 3 of HMR). Supermarkets looking to cash in on HMR’s potential would do well to “try to understand consumer concerns and drivers—not just what they think about in the store. both the fresh supply chain and the cold supply chain impose different supply chain requirements on the retailer.” Retailers looking for clues might be interested to learn that 35% of patrons purchasing HMR at grocery did so because it was convenient. Other important potential purchase influences remain underdeveloped. For starters. they adopted the motto “we don’t sell food. Almost 60% appear satisfied with the variety of HMR selections. but all the factors. if not more often. like pizza. ready to heat or ready to assemble hot or cold meals or entrees prepared or packaged outside the home which are brought or delivered to the home. In 1996.” counsels Eileen Thompson. 55% of responding households purchased a meal for at-home consumption several times a month. HMR products. requiring just-in-time manufacturing and delivery. 35% of patrons at grocery because it purchasing HMR did so was convenient.000 per year) and represent larger households.” At Big Y. but 63% of today’s time-deprived parents make their HMR decision just before mealtime. One-in-three households visits a quick serve restaurant to purchase HMR items. fully 50% of Americans carry-in a meal at last once a week. Roughly one-in-five households stops by a grocery store or pizza chain. and takes great pride in the fact that no one can finish its classic signature grinder which features seven ounces of meat. Kraft Foods opened the meal time aperture. the quality menu board features restaurantstyle meat. As we sit at the cusp of a new century. the female head of household still retains primary responsibility for meal time (56%). A Tasty Alternative (for a Price) Two-thirds of consumers agree that the budding category of HMR meals is tasty. restaurants sold more take-out meals than in-restaurant meals. And fully one-quarter of all households reportedly dine in on take-out once a week. HMR offerings are chilled. ACNielsen describes HMR as “ready to eat.

The package contains rice or stuffing. talk about their attitudes toward shopping. Restaurateurs have known this for decades.’ Meal Center and Kroger’s Easy Meals in Minutes. Hybrid formats such as EatZi’s and Foodinis employ 35 chefs and list as many as 70 fresh takeout items. “Money is no longer the only denominator of value. HMR uses a different rule book than classic consumer packaged goods marketing. now testing packaged meals near check-out. the continued on page 19 . Regional commissaries such as North Center are emerging. Hannaford Bros. C ompetitors will turn green with envy at the stream of greenbacks generated by savvy retailers who carefully groom critical perimeter departments to attract the fresh food consumer. joined forces to launch a salad and pasta meal under the WishBone label. This could explain why Wegman’s allocated 75. many prepared in front of customers. time and energy have entered into the equation as well. Lipton Co. features Classico Sauces and Novita pastas in made-to-order or ready-to-heat versions. “The consumer value equation has become increasingly complex. eye appeal and aroma all factor into the selection equation.” noted Julie Zaideman. the A&P Grab & Go. Fresh Food Consumers Redefine the Meaning of “Speed Scratch” Cooking Emerges From this foundation. director of marketing information for marketing services at Kraft Foods. Oscar Mayer® Taco Bell® Lunchable® lunch combinations blend two familiar brands. “To succeed at HMR. consumers pick up products. Using produce. seasoning. Kraft partners with retailers. Convenience. Kraft Foods chose to play in the easy-to-assemble segment of home meal replacement. meat. Shuffling the Competitive Deck In the HMR venue. Ukrop’s now assigns up to 60% of its store space to freshly prepared take-out foods.000 each week from Dallas supermarkets. There’s the Café IGA program. the competitive deck has been exponentially enlarged and reshuffled. Helping them along are savvy manufacturers serving up proprietary versions of the solution center concept. The Italian Corner. At the Kraft Food Solution Centers. Co-branding also has bubbled up as a significant HMR trend. ACNielsen recently completed an in-depth analysis based on its Homescan consumer panel. deli and bakery to differentiate a format lures these high spending customers to high turn departments.” continued Zaideman. Consumers discuss how they feel about life in general. And non-traditional players eating into supermarket sales include gas convenience operations like Phillips 66 and Home Depot.Consumer Insight 13 Consumer Insight 12 Feature shopper ethnographies. retailers are getting the message as well.” Consumers concerned with food freshness or nutritional value prefer to participate minimally in food preparation by adding key ingredients such as chicken or beef to a dish. coupons and leaflets with recipe tips. sometimes called “speed scratch. Borden’s version. Redi-Cut Foods and Thomas J. diverting more than $250. liquid sauce and a crumb topping to finish off the dinner.000 square feet of floor space in a new store to a giant food court with wood-fired brick ovens that bake fragrant breads around the clock. Gardner’s Quick Meal Corner.” Feature Serving It Up Presentation is everything. Restaurants like the Olive Garden offer special 10 minute parking spaces for carry-out customers. Green Grocer by Todd Hale Vice President National Sales & Service ACNielsen The Center Solution There are almost as many names as there are retailers offering meal solution centers in-store. The result: products like Stove Top® Oven Classics™ Dinners. and allow cameras to observe food preparation. Tyson Gourmet Selections share the plate with Ore-Ida Potatoes or Uncle Ben’s Rice. making their foodservice presence known. manufacturers will learn to marry the public’s desire for home-cooked taste with its need for convenience. offering cents-off on their fresh chicken to complete the meal. To learn more about the fresh food consumer.

they also spent twice as much in non-fresh departments. $9 for vegetables. Empty nesters recorded the strongest volumetric skew. Removing fresh food trips from the shopping frequency equation shows that light and super-heavy fresh shoppers reach parity at 43 and 42 59 79 57 45 56 50 52 42 29 Purchase Frequency Everybody Loves Fresh Food All households are fresh food consumers. and shopper loyalty across channels. and the numbers validate the drawing power of fresh food. Meat is the “complete package” for retailers. drug and warehouse clubs). illustrating the importance of super-heavy fresh food buyers to the store. Fresh food buyers cruise the aisles every 6. They outspend light buyers by a considerable margin when comparing category buying rates (a measure of buying frequency and dollars per occasion). meats and fish. $135 vs. They rang up $3. $77 Detergents . $90 Cereal . $4 for deli cold cuts and $105 vs. Empty nesters’ unusually high purchase frequency (79 trips) contributes to their high buying rate [See chart 4]. Reading between the lines. they comprise half of the customer population and close to 80% of dollar sales [See chart 2]. However.17 on each of its 57 shopping trips per year. $1. Super-heavy buyers not only spent 2. $27  Bakery Deli Cheese Meat Fruit Vegetables 14 184 9 135 4 98 3 78 4 105 4 129 39 Light Buyers Super Heavy Buyers Chart 3) Super Heavy buyers vs. Add fresh foods back in. Empty nesters walk out with $627 of fresh groceries each year. Super Heavy 25 51 Childless Young Couples Young Singles dedicated segment of fresh food consumers bought more ($10. frequency and cycle. The study explored household penetration.578 at grocery. $46 for meat. cereal. the pattern holds. and 12 warehouse club stops (vs. compare the superheavy buyer’s rate with the light buyer’s rate for different product categories: $503 vs. empty nesters spend 32% more on fresh food than might be expected from the segment size. with its frequent purchase cycle (10 days). Together with the heavy user segment.76 per trip) more often (88 times per year) than any of its counterparts.21 average per occasion expenditure. Moving from volume purchased to dollars spent per buying household. middle-aged couples without kids bag $541 in sales. cheese and other random weight items.904 at grocery check-out lines vs. On a volume basis. $46 Oral Hygiene . and outspent light buyers in all retail channels. Additionally. with super-heavy fresh food buyers squeezing the produce Super-heavy fresh food consumers spent twice as much as light buyers in non-fresh departments.97%. Indexing buyer spending patterns yields a rank order of importance at retail. Key fresh food categories—such as fruit. The most Heavy Buyers Are an Eclectic Crew Diversity rules among the super-heavy fresh food buyer set.97%. combining a high penetration rate with a much higher than average buying rate and short purchase cycle [See chart 1]. Medium Empty Nest. 23). Super-heavy fresh food buyers are heavyweights in the expenditure arena. vegetables and meat can be found in more than 97% of U.3 days. $968 at warehouse clubs and $323 at drug stores. 70 total trips for light fresh food shoppers. some shoppers love it to the max! These “super-heavy” fresh food buyers account for 25% of the shopper universe. To provide a sense of relative scale. With light fresh food shoppers forking over just $1. Fresh Food Packs Them In Proof is in the statistics. if a segment represents 60% of the buying population and 60% of dollars spent. that makes for a $2. weighing in with annual outlays of $950. For example. Light buyers $ buying rate 46 503 on almost 50 more trips per year than light shoppers. super-heavy fresh food buyers outspent light buyers in all channels. but spend 51% of total fresh food dollars. Full Fridge The heaviest fresh food buyers conform to no single pattern. established families $527 and new families $500. mass merchandiser. 31 at mass (vs.98%. leaving the competitive door open. there may be opportunities for alternative channels to give grocery a run for its money on the fresh food front. $4 for fish and shellfish [See chart 3].5 times more overall than light buyers. its index would be 100. $14 for fruit. $184 vs. That’s the same product penetration rate as major packaged goods categories such as milk.S. they include empty nesters (29%) maturing families (20%). Not Tightwads There is nothing small about the super-heavy fresh food buyer. the preferred shopping venue for super-heavy fresh food consumers. the super-heavy fresh meat buying rate of $503 is calculated by multiplying the super-heavy’s 45 trips per year by the $11. Chart 2) Not All Fresh Food Buyers Are the Same Light 25 7 % of Dollars 25 16 50% of buyers drove 77% of the sales. $79 on fruit. more than seven times as much as a light fresh food shopper ($132) and almost twice as much as heavy buyers ($496). 70 for light shoppers). middle-aged couples without kids (16%) and older singles (8%). Topping off the contributions of the super-heavy segment is this fact: they shop all formats more often than light buyers—119 grocery channel trips (vs. Super-heavy fresh food buyers account for 25% of the shopper universe. Titans. but spend 51% of total fresh food dollars. If a segment represents 60% of the population but 75% of Grocery: The Format of Choice Researching spending patterns across the four dominant food retail channels (grocery.037 at mass merchandisers. It’s worth noting that super-heavies logged higher purchase frequency at other formats as well. seven). $129 vs. For example. it’s clear that grocery represents . with the average household spending $8.326 spending gap between super-heavy and light fresh food grocery consumers. $57 on vegetables and $46 on deli cold cuts. detergents and oral hygiene products. spending as much as $230 per year on meat. Super Sized Shoppers While everybody loves fresh food. buying rates. bakery goods. Great news for grocery once again. respectively. spending more in total fresh food than any other segment due to purchase frequency. Staples including fruit.Consumer Insight 15 Consumer Insight 14 Feature Chart 1) Household Penetration & Buying Rates source that measures consumer purchase behavior for fresh categories such as produce.97%. households. vegetables (12 days) and meat (13 days)—fuel store traffic. purchase size. heaviest 25% drove half Heavy 25 26 of the sales % of Buyers Chart 4) Purchase Frequency by Demographic Group Older Singles Empty Nesters Mid-aged Couples without kids Mid-aged Singles Established Families Maturing Families New Families annual trips. Nuts & Seeds Deli Cheese Fish & Shellfish Bakery Deli Cold Cuts Vegetables Fruit Meat 33 13 74 28 54 38 90 38 73 46 98 57 98 79 97 230 Deli Cold Cuts Nuts & Seeds 1 Fish & Shellfish % Household penetration Dollars per buying household Milk . and the gap widens to 119 super-heavy total trips vs.

strategic plans) . regardless of their off-pattern shopping habits. Perfect Pairings Redefine Promotion Co-promotion opportunities abound in the fresh food aisles and cases. Hey Big Spender! Fresh foods attract and retain customers with high discretionary spending power. suggesting a strong regional. If a segment represents 60% of the population but 45% of dollars spent. For example. a significant opportunity exists to capture prepared food sales from specialty channels. deli cold cuts index higher than any other category at 195. its index would be 125. Chart 5) Heaviest Buyers Diverse in Terms of Demographic Composition? any time of the day. Review shopping basket composition data to determine the ideal product pairings for your core shopper base. tailor advertising copy. fine tune strategic plans. Core grocery shoppers appear to cross-shop fresh food more than traditional consumer packaged goods. Retailers. Large families index high for fresh meat and deli cold cuts. 4. the affluent at 133. all centered around fresh food items. While all households purchase fresh food at least once a week. strategic plans. The trick is strategic placement of complementary items. respectively. Unfettered by the constraints of a 9-to-5 job. the East Census Region at 150. empty nesters can show up in your aisles any day of the week. the veggie patrol at produce may have to go into overdrive. develop category management programs. will give customers more reasons to keep their business in your store. promotion partners. strategic plans) Growers: How big is my market? What is my share? How many households buy? (For category management. unit and dollar sales are concentrated among a small segment of households. Meanwhile. in the East Census Region. especially the prepared foods receiving so much coverage under the home meal replacement umbrella. Category Preferences Revealed Applying the indexing principle to category preferences. fact-based selling. a reflection of the salt and fat issues associated with highly processed foods. Key Learnings 1. placing these customers “at risk” to appeals from competitive channels. ethnic or other override factor. While carefully detailing produce on high volume weekends. stimulating purchase of targeted items. Expanding fresh food offerings. Hearthealthy options such as vegetables and fruit top the list at 173 and 164. and re-merchandise to leverage their preferences. middle-aged couples without kids at 129 and three. apple and carrot sticks with special pre-measured dip cups in the package. produce fact-based sales presentations and assess the value of critical acquisitions. Bananas and cereal. It is crystal clear that super-heavy empty nester buyers exhibit marked preferences for certain product categories. Cocktail sauce and shellfish. Hispanics at 140. both in terms of total channel spending and fresh food spending. 2. Super-heavy fresh food buyers make 50 more grocery trips per year than light fresh food buyers. manufacturers. The New Frontier: Prepared Foods Although grocery channel retailers dominate fresh food sales. select promotion partners. five+ member households at 147. dips and salad dressings. And they’ll want a full selection of great-looking fruits and vegetables to choose from. Some outliers exist.to four-member households at 128. marketers. with 51% of dollars sales generated by 25% of shopping households. 5. so they merit a closer look. growers. pay special attention to fruits and vegetables that pack well in lunches and qualify as “finger food” for tykes. Hispanics show a tendency toward heavier vegetable and fresh meat purchases. empty nesters care most about their health. many retailers let their vigilance wane during the week—a bad habit if you want to attract empty nesters. 3. closely followed by deli cheese and fish/shellfish. brokers and distributors can deploy analyses like this to generate new product ideas. Merchandise to the Local Market Merchandising to the unique tastes of different demographic segments will influence their buying rates. Affluent households patronize the fish/shellfish and produce departments more heavily. Cheese and crackers. among super-heavy fresh food buyers. deli cold cuts lag at 107. Produce. If a trade area is dominated by large families with young children. it becomes clear that. Heavier fresh food buyers outspend light buyers by a significant margin. Every Day’s the Best Shopping Day Given the preponderance and importance of empty nesters. its index would be 75 [See chart 5]. Busy Moms are opting for pre-cut celery.Consumer Insight 17 Consumer Insight 16 Feature dollars spent. Empty nesters exhibited surprising clout as a buying cluster across all categories examined (with the exception of deli cold cuts). advertising copy) Manufacturers: How much deli cheese are my packaged cheese buyers purchasing? Any particular flavors? (For category management. Condiments and meats. Here’s how super-heavy fresh food buyers index: empty nesters at 164. Who Can Use This Information? Retailers: Are my shoppers loyal to my store for their fresh food category needs? (For new product ideas.

From a café for in-store dining.Consumer Insight 18 Hot Trends Feature Consumer Insight 19 Trend Watch Ethnic Foods Combine this with the hectic schedule and relative wealth of today’s consumers and the result is more people eating in restaurants or bringing prepared food home. Similarly. pre-packaged foods in the refrigerated case and healthy convenience foods. Second. Why the love of exotic fare? It can be attributed to the changing demographic and economic patterns in this country. curry cloves and ginger. More packaged goods firms will diversify into the central kitchen and commissary businesses. fresh garlic and cilantro. Technological advances will lead to the subculture of the personal chef. many grocery stores. companies will form alliances that leverage the respective strengths of experienced foodservice operators. Because it’s often difficult to create from scratch the flavors of these ethnic foods.S. curry and sushi. the Pacific Rim and the Caribbean are making their way onto restaurant menus and grocery store shelves in record numbers. Hormel acquired House of Tsang in 1992. From sauces to sushi. one of Mexico’s largest producers of authentic Mexican food products. condiments to couscous. least refined ingredients such as organic basmati rice in bulk. To guarantee a well nourished bottom line. ethnic foods provide adventure and evoke memories of vacations to exotic locations. which creates both an increased supply of and demand for Asian foods. as well as goat and pork. Caribbean cuisine includes chilies. support that premise from two perspectives. dried soup and rice mixes. She cites the example of a highly successful natural food store chain that provides all levels of meal preparation for their consumers. that by 2005 many Americans will never have cooked a meal from scratch. the fact that virtually all foods sales growth by the year 2005 will come from food service. And specialty chains—such as Cost Plus World Market. Sophisticated palates will shift the menu upmarket. such as Treasure Island in continued from page 12 Chicago. joined forces with Patak Spices to form Patak’s Foods USA in 1995. where cooked-to-order meals placed by e-mail are waiting at the supermarket’s drive-through window at the designated hour. The Asian-American population continues to increase in size.” notes Kraft’s Thompson. are responding with an entire aisle dedicated to imported ethnic foods. Is HMR a flash in the pan or a new way of satisfying basic consumer needs? Sara Lee projections show HMR accounting for as much as 80% of food industry growth by 2005. prepared foods such as spices. noodles. F ood for thought: In 1997. And popular from the Pacific Rim are condiments. First. Creative Grains product line from Near East. to deli foods. All in all. Among the hot products from the Mediterranean Rim are pastas and pasta Sun-dried couscous from Marrekesh Express.S. the fiery foods are the hottest. and they’re introducing the mainstream population to their native cuisine. Quaker Oats and Hormel Foods now are offering ethnic food products.” Describing this winning format. As consumption of international foods has risen at home and in take-out. where they become exposed to new ethnic food options and develop a comfort level with them. . For these consumers. many manufacturers such as General Mills. ethnic foods accounted for nearly 16 percent of all U. “There are all levels of preparedness available in the store. and also formed a licensing agreement with ChiChi’s and a joint venture with Grupo Herdez. ConAgra. refrigerated distributors and CPG marketers.. featuring more diverse. “Understanding your consumer niche is key to HMR success. an appetizing outlook for those contemplating a long-term investment in the HMR phenomenon. today’s consumers can tour the world’s foods while wheeling their way through grocery store aisles. HMR’s Shelf Life A Taste of Thai products like Pad Thai Sauce can be found on most supermarket shelves. product launches. more natives of the Caribbean are living in the United States now than ever before. all the way down to the most natural. and frozen appetizers and entrees are among the strongest selling ethnic food products. exotic fare of unparalleled quality. Fantastic Foods hummus products are available in many mainstream grocery stores. “Call it meeting the needs of the customer. Findings by McKinsey & Co. offering everything from food to furniture from roughly 50 countries—rapidly are expanding across the country. Spicy foods from the Mediterranean Rim. Within this hot culinary category. sauces. sauces.” The concept: make the same food available at the desired level of preparedness depending on a consumer’s convenience need that night. In the U. Thompson continued.

Hair Care $ Outside of Drug Store A Actual Predicted Drug Store A Hair Care $ Share of All Channels Actual Predicted Household ID 8118116 8125097 8163270 2010375 9100250 2014016 9155982 Drug Store A Hair Care $ “High-Low” Loyalty Shoppers (Very Large Opportunities for Oral Hygiene and Skin Care) Drug Store A High $ & Low Loyal Shoppers Share of All Channel $ 12% 10% 8% 6% 4% 2% 0% AID S NE INS RE DIE RE HY GIE CA VIT AM ST ME CA A closer look at the dollar importance of shoppers and loyalty groups show that “High-High” shoppers account for nearly half of Drug Store A’s HBC dollars. For each household that is a frequent shopper of the target chain.99 $2. If the oral hygiene loyalty (7%) of these Chart 3 individual household level—underscoring category opportunities on a Direct-to-Consumer basis.00 $46. The keys to loyalty marketing’s success depend on applying existing Category Management processes. number of target chain category trips. “High-Low” shoppers have the highest all-channel HBC dollars per household ($512 per household) and “Medium-High” shoppers have the lowest all-channel HBC dollars per household ($103 per household).00 $47.00 $18. OR AL SK IN .00 – $42. determine visit frequency. Advanced data mining techniques are then used to estimate the relationship between remaining household-level category dollar sales and the household profile variables. target chain category dollars spent. From this analysis. By doing these things.00 $0. Drug Store A $ Tercile and Drug Store A HBA %HH Loyalty Tercile High High 13% High Medium 14% Medium Low 20% Medium Medium 11% High Low 6% Low Low 32% Medium High 2% Low Medium 1% Total 100% $132. “High-Medium” shoppers show underdeveloped loyalty in the oral hygiene category. “High-Medium” shoppers are overdeveloped in cough and cold remedies and first aid categories. category share of target chain dollars spent and target chain dollars spent per trip.00 $48. category spending and item detail. then total Drug Store A Middle Atlantic oral hygiene dollars would increase by 23%.00 – $54. Once the model is developed. accessing the right information to identify “Top Shoppers”. but have below average all-channel HBC dollars per household ($316 per household).”and instead build a solid foundation for future growth. Drug Store A’s “HighLow” loyalty shoppers provide big opportunities for oral hygiene and skin care categories [See chart 3]. it is equally important to identify key category growth opportunities for each. they are underdeveloped in hair care and oral hygiene categories—an opportunity.Consumer Insight 21 Consumer Insight 20 Cover Story continued from page 8 would be those Drug Store A shoppers who spend a great deal overall in Drug Store A and spend 20% of total HBC dollars in Drug Store A. and using available tactical tools to promote and enhance customer loyalty. that each frequent shopper spends outside a particular chain. it can be used to score predicted category dollars outside of the chain at the Uncovering Category Opportunities In addition to identifying who among your customer base is classified as loyal. FIR IR RE HA PA IN % Drug Store A HBC $ Drug Store A HBC $/HH Remaining HBC $/HH Total HBC $/HH Drug Store A HBC Loyalty shoppers could be raised to their HBC total loyalty (12%). and show large opportunities for oral hygiene and vitamins. While Drug Store A’s “High-High” shoppers are overdeveloped in first aid.00 74% 10% 16% 100% 5% 0% 0% 74% 13% 13% 100% 6% 0% 0% Potential of Both Sides There is significant opportunity to leverage consumerbased applications with major retailer frequent shopper programs to deliver value-added insights. dollar sales and number of trips by category is summarized for that chain and for all other remaining stores. In addition.00 $234. target chain total dollars spent. Retailers who better understand their customers will be able to make better assortment decisions that will drive their sales volume and retain loyal customers.00 $16. cough and cold remedies and pain remedy categories.59 $0.00 $161. Finally.00 $86. one can implement specific tactics to grow sales—category-by-category and household-by-household. we can topple the “house of cards. Household profile measures can then be calculated based upon measures such as number of target chain trips.00 $28.00 $108. when provided with access to consumer-based applications and the retailer’s customer and transactional data. By uncovering and sizing the opportunity. From this analysis. significant business opportunities also exist with manufacturers. one can predict how much one’s “Top Shoppers” spend with the competition. and based on how they shop.29 $25. by category. 47% 23% 9% 8% 6% 5% 2% 0% 100% 110 50 13 21 29 5 25 12 31 206 384 420 178 483 355 78 92 331 316 434 434 199 512 360 103 104 362 35% 12% 3% 11% 6% 1% 24% 11% 8% The Potential—Targeting by Household Linking consumer data to a retailer’s frequent shopper program data also provides the ability to forecast the dollar sales. basket size.00 $44.45 $4.

you can maximize sales and enhance your micromarketing efforts by better understanding the variables within the Hispanic market. Convenience Track gives you 30 of the top U. drug and mass merchant comparative-market views. Visit our web site for more information on the Homescan Hispanic Consumer Panel. By the same token. ACNielsen provides custom category definitions. Get Convenience Track Reports through the Net Much of a sales rep’s time is spent on the road. And the data is provided according to the National Association of Convenience Stores (NACS) industry category definitions for added flexibility. With Sourcerer. And. cigarettes. organizations can move from data to decisions. total U. benchmark.S. Because while most c-stores have very similar reliance on a few immediately consumed product categories (beverages. With Knowledge Vault. For more information. That’s why ACNielsen created Knowledge Vault. this service provides customers with critical diagnostic information on Hispanic consumer behavior. population. an in-depth study of the purchase behavior of mature households. and studies show they clearly take advantage of these alternatives. piloted in 1998. and product mix. or call our toll-free hotline. Inc. Today. Developed in partnership with Performance Wave. is key to developing a competitive edge. and across channels. ACNielsen has worked with Kroger. so you can get the most complete retail coverage available. Three such groups are the Senior. visit our web site. or call our toll-free hotline. and provide crucial insights into how local markets differ from the general total U. However. candy. Achieve competitive advantage by understanding the Hispanic consumer By the year 2000. With Convenience Track. you can’t judge local C-store performance based on a total U. But source-of-volume measures have been difficult to assess for new product introductions.4ACN . contact your ACNielsen representative. for Consumer Behavior Understand source of volume for new products Identifying the source of a product’s volume is an important tool—you need to know whether your new product is growing the category or cannibalizing your other brands. stopping and starting wherever they need.Consumer Insight 22 Business Tools ACNielsen continues Homescan™ expansion The introductions of Philadelphia (July 1) and San Francisco (December 1) mark the third time in seven years that ACNielsen has expanded our Homescan panel. Sourcerer combines the new product expertise of ACNielsen BASES with the unparalleled insight into consumer behavior provided by ACNielsen’s Homescan consumer panel services. is the only service to capture UPC purchases of both acculturated and unacculturated Hispanic households. then ACNielsen’s Webdelivered reports are a must. these marketers are turning toward segment marketing—to capitalize on the populations that are growing. ACNielsen Knowledge Vault was created for the busy sales professional.4ACN See us on the Web http://acnielsen. Consumer Insight 23 of categories and brands. highly accessible way for both retailers and manufacturers to deliver Excel-based reports to their PCs. Sourcerer provides major advantages over other brand shifting applications by more accurately interpreting the differences between new/infrequent buyers and increased/decreased consumption. Consumers have a large number of stores and formats to choose from. these markets align with other Scantrack® channel information. you can discover local nuances to better predict how various categories and brands will perform in different parts of the country. In addition to providing brand and category development indices and purchase dynamics across thousands Visit our web site to see the advantages Sourcerer can provide! Use computer-based training for improved fact-based selling Fact-based selling is a key component to help manufacturers drive their category See us on the Web http://acnielsen. The expansion brings Homescan to 21 markets and provides increased brand and category management capabilities to measure consumer activity in key retailers A&P and Safeway. These Web reports provide seven of the most asked-for syndicated reports. ACNielsen provides the first-ever baseline measures for the industry as well as capabilities for promotion planning and analysis of promotion effectiveness. C-stores aren’t always alike You probably know that you can’t benchmark C-store performance solely on Grocery data. which allows students to learn at their own pace. to effectively implement fact-based selling. Your tools for segment marketing During the 1990s. African-American and Hispanic segments. population growth has slowed—and consumer packaged goods marketers can no longer bank on sales growth simply because there are more mouths to feed. Understanding where consumers shop. Tapping into the mature market Seniors will soon represent one in three members of the U. And by capturing consumers’ actual purchase behavior over time.S.. for Retail Tracking management initiatives. with a growth rate far outpacing general market spending. SeniorVFacts segments seniors based on their attitudes and lifestyles. The Trading Areas were designed to help manufacturers create winning product strategies. local markets. Hispanic population will have become the nation’s largest ethnic minority. there are important differences that are often driven by preferences and behaviors of a local area. you can evaluate both military and “outside-the-gate” civilian channels in one single source. delivered to the desktop.S. there is a need to train and share learning across the organization. And as always. With weekly military data. They have unique needs and preferences that must be understood to be targeted appropriately.800.com/ci or call 1. And the purchasing power of Hispanic shoppers is estimated at $430 billion. ACNielsen can help you understand this diverse group through the first truly representative Homescan Hispanic Consumer Panel. The panel also can help assess and maximize the impact of targeted marketing and advertising dollars via a better understanding of the Hispanic market. For more information. pricing. across all outlets. This panel. Weekly Military Data Now Available! ACNielsen’s Scantrack Military Service provides tracking information of the military resale commissary system. The KMA Trading Areas include grocery. ACNielsen Knowledge Vault is a comprehensive computer-based training program that shows employees how to use available syndicated information to analyze promotion. you can now determine if your new product’s volume is coming from cannibalization. to develop multi-outlet Kroger KMA Trading Areas.). the U. number! That’s why ACNielsen developed Convenience Track™ . Share Share Pre-Period Post-Period 33% 40% A 29% 30% B 18% 20% C 9% 10% D 11% New 0% 100% 100% Shift (7)% (1)% (2)% (1)% 11% 0% Source of Index to Volume Fair Share 159 64% 30 9% 91 18% 91 9% NA NA 100% Business Tools The nation’s largest supermarket retailer lets you focus on competition across channels Today’s competitive environment now spans retail channels. you can now determine source of volume for newly introduced items. To learn more about Knowledge Vault. This Internet-based report package gives you the capability to electronically access and download your Convenience Track data.988. ACNielsen introduces Homescan SeniorVFacts.S.800. With ACNielsen. With ACNielsen BASES Sourcerer.S. etc. SeniorVFacts will be available in July on CD-ROM. If convenience stores are part of the territory. ACNielsen Convenience Track even lets you develop category and brand indices. allowing you to measure weekly performance in the military channel at national. the nation’s largest supermarket retailer.988.com/ci or call 1. DeCA region and store levels. on an on-going basis. visit our web site. The program is organized in a modular framework. category growth or category expansion. Convenience Track Web reports are an easy-to-use. perspective. and are available only from ACNielsen.S.S. With ACNielsen’s Homescan Hispanic panel. to compare a market’s development to a total U. Using the flexibility of the Web. as well as the product mix and merchandising that attracts them. aligned with DeCA’s geography definitions.

it’s best to have considered all the options…taken a few warm-up swings…worked out the kinks in practice.5892 or visit our web site at http://acnielsen. It is used by eight of the top 25 supermarket chains and four of the top 25 drug chains in the U. representing over $98 billion in annual sales. you can make pricing strategies repeatable. including market overview. allowing you to spend your time where you should—in analyzing your business and category information. • Unfavorable price profiles on highly competitive products. Florida T H E O N LY For more information call Judy Anderson at 847. You can use Priceman to develop pricing models that optimize your earnings and give you better control over your bottom line. With NITRO. and senior management. the benefits of the program helped boost the company’s profits for the remaining 320 days of the year as well. successful and consistent. you can simulate your pricing strategy to help your profits soar.4ACN See us on the Web http://acnielsen. It’s easier than you think. promotional. Priceman can help you avoid these potentially costly errors: • Inconsistencies across competitive price zones. which help to attain consistency and category profitability. rather than hours or days • Generate customized. • Intensive manual intervention for plan development. These clients use Priceman to attain market leadership and payback through targeted. multi-channel. industrystandard tool (Microsoft Office). This strategic pricing application gives you the power to develop category pricing to target your ideal profit margins— instantly. pricing at retail has been more art than science. rulebased pricing strategies. Consumer Insight 25 NITRO makes it easy to. you can eliminate the guesswork from the pricing experience. Ill. And this is not an isolated case. One client even developed a category pricing strategy during their initial training program that provided total payback and profitability within 45 days of purchase. Business Tools for Decision Support Services Working the way you do ACNielsen’s philosophy for decision support is to integrate with our clients’ processes to help them better solve their business issues. Announcing ACNielsen’s first Category Masters™ Educational Series seminar for DSS NITE Training & Education WHO: ACNielsen Manufacturer and Broker Clients WHAT: Intermediate. ™ for Merchandising Results for new Priceman users have been very successful. you can simulate unlimited pricing scenarios to determine the maximum profits for your category. 1999 WHERE: Schaumburg. Based on the success of ACNielsen’s NITE product.4ACN . And NITRO’s compatibility doesn’t stop there—future releases will enable the same capabilities from within Microsoft PowerPoint and Word.. professionalquality reports. and Syndicated NITE Applications training WHEN: June 15. using rule-driven methods to create repeatable successes. And all too often. the 32-bit decision support platform that is the foundation of ACNielsen’s information access. Needless to say. d) Syndicated Scantrack® Apps e) NITE Syndicated Homescan™Apps A proven application Priceman is the retail industry’s leading strategic pricing application.605.988.” This unique training and learning experience will offer: a) NITE classroom instruction b) One-on-one consulting c) Introduction to NITRO The session also includes a Learning Lab and Intermediate/Advanced tracks.Consumer Insight 24 Business Tools Use proactive pricing management to grow your profits Traditionally. “NITE Training & Education. COST: $295 per person (but worth much more!) Leveraging the incredible success of our annual Category Masters event. And in the high-risk arena of pricing. opportunity gap. Advanced. • Improve productivity and reduce training time by leveraging your current knowledge and technology investment in Microsoft Office. • Inconsistencies within product size and value families.com/ci or call 1. you have ease of use and productivity in accessing and analyzing ACNielsen and internal information using industry-accepted software. Call your ACNielsen representative or visit our web site for more information. ACNielsen’s Priceman for Windows represents a systematic approach to the business of pricing. we are proud to announce the inaugural Category Masters Educational Series event. With ACNielsen’s Priceman for Windows. before bringing them to the shelf. Class size is limited. Boca Raton.com How-To CONFERENCE See us on the Web http://acnielsen. A “flight simulator” for pricing professionals It is said that practice makes perfect. Putting Consumer Information to Work Make Plans to Attend the C A T E G O R Y Category Masters ™ How-To Conference MA S T E R S August 29–September 1. 1999 The Boca Raton Resort & Club. • Inability to attain profitability goals consistently. • Quickly produce fully formatted reports. With Priceman for Windows. With Priceman.S. sales force. And nowhere is this more apparent than with NITRO. With Priceman. NITRO also offers seamless compatibility with Microsoft Excel. ACNielsen’s Interface to Microsoft Office. corporate philosophy and “seat-ofthe-pants” experience. NITRO can help your business: • Save valuable time by trimming the business analysis processes down to minutes. so call today! Contact your ACNielsen representative or call Judy Anderson at 847-605-5892. or easily create custom ad hoc data retrievals formatted to an Excel spreadsheet. • Provide a universal analysis and reporting system for your brand managers.com/ci or call 1. you can perform sophisticated queries from diverse data structures without a programming degree! Take your own test flight Stop the price guessing game and learn how Priceman can give you profit margins that put you one step ahead of your competition. You can view your business through one of several pre-formatted templates.988. presentations and applications using a proven.. pricing and assortment • Customize reports for your specific business needs using ad hoc query capabilities queries that can be saved for re-use • Automatically refresh your reports each time the database is updated • Create custom applications and templates using built-in Microsoft Office capabilities NITRO is included with ACNielsen Workstation InformationVServer..800.800. pricing “strategy” is reactive rather than proactive. based on things such as competitive price levels. NITRO is integrated into your workflow. Either way.

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