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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
The Assortment Challenge:
Marrying Supply Cost with Consumer Demand
Private Label Grows Up What Makes a Good Category Management Partner?
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150 North Martingale Road CORRECTION: In our June 1999 issue, the article titled “Fresh Food Consumers Redefine the Meaning of Green Grocer” contained two charts on p. 14-15 that did not accurately reflect the information in the text. The corrected charts and text can be found on our website at http://acnielsen.com/ci. Schaumburg, IL 60173 800.988.4ACN World Wide Web site: http://acnielsen.com/ci
private label use ranks globally and compare shelf price sensitivity between private label and national brands. Volume 1. it is important to understand both cannibalization and incremental profitability. We would like to share with you the efforts our company has undertaken to prepare for the millennium. 3 3 A ‘New Year’ Like No Other Many clients have asked what ACNielsen has been doing to prepare for Y2K. 14 What Makes a Good Category Management Partner? For successful category management. . one needs to gain an understanding of the dynamics across retail channels and consumer demographics.September 1999. decisions should be focused through the bias of the consumer. 4 Cover Story The Assortment Challenge: Marrying Supply Cost with Consumer Demand It can be argued that the focus on growing market share by increasing variety has contributed to low consumer loyalty.S. To determine optimum product assortment on retailer shelves. It is also important to see how U. No. Here are ten critical areas that should be considered when developing category management partnerships. 8 Private Label Grows Up To understand the role private label products play in today’s marketplace.
the ACNielsen logo. Visual Basic. and the Visual Basic logo are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. No. ACNielsen. . SCANTRACK. Homescan. product or service names are trademarks or registered trademarks of their respective companies. Other brand. SPACEMAN Enterprise and TechVWatch are trademarks or registered trademarks of A.In every issue… 18 Trend Watch— Business-To-Business Web Sites Business Tools 20 Consumer Behavior 21 Analytics 22 Merchandising 23 Retail Tracking 24 Retailers Volume 1. Nielsen Company. All rights reserved.C. Printed in USA. ACNielsen TechVWatch. Kennedy Marketing/ Communications Slack Barshinger & Partners Copyright 1999 ACNielsen. Microsoft. SPACEMAN. 3 Publisher ACNielsen Editors Mark Chesney Art Massa Contributing Writers Ryan Mathews Futurist FirstMatter Milton Merl President and CEO Milton Merl & Associates Design & Layout Kathy Zonyk Editorial Board Gary Binkoski Don Drews Kathy Mancini Elaine Noone Mark Puccetti ACNielsen Global Creative Services Laurel A. Convenience Track. Priceman.
that the areas with the most potential risk are the ones that are most computer-dependent—our industry. This gives us a base for more efficient creation of applications in the future. I would like to share with you the efforts our company has undertaken. and public utilities ceasing to function. ACNielsen began preparing for the millennium in 1997 when we undertook a process to evaluate all the systems that could be affected by Y2K and upgrade or ‘retire’ those that were non-compliant. In June. applications. and collaboration across our business segments and countries. Some have taken the contrary view—that Y2K is overrated. It has required companies to evaluate and retire old program code—a systems housecleaning for the millennium. voice/data communications. And this progress has been completed with virtually no impact on the day-to-day production work of the company. 3 . Our final step is to evaluate the interaction between our systems to ensure there are no hidden effects of the date change. ACNielsen has improved our infrastructure. In all. By now we have all heard the dire predictions of airplanes dropping from the sky. however. for example. This has been the largest cross-functional project in the history of our company. ACNielsen has improved its infrastructure. computer applications. As the first commercial business to ever use a computer. we have removed more than 2. U. We’ve evaluated. o issue has gotten more attention this year than the Year 2000 bug.500 old program routines and retired more than eight million lines of code. will lie somewhere in between. ACNielsen has been in the electronic world for quite a while. We have also helped our clients prepare by providing assistance and upgrades of ACNielsen applications. Despite all the negative predictions from many doomsayers.S. banks ‘zeroing out’ everyone’s personal accounts. This will be completed in September of this year. applications. We have assessed our infrastructure—including our databases. You can imagine the inventory we needed to evaluate. a minor programming fix with nothing to worry about. as with most things. I am happy to say that we are on schedule. Many of our clients have asked what ACNielsen has been doing to prepare for Y2K. and collaboration across business segments and countries.Consumer Insight Steve Schmidt ACNielsen President. and storage space—for compliance and will complete any remaining upgrades by end of third quarter. It is clear. We have leveraged our Y2K learnings and processes across business segments and around the world to speed the transition everywhere in the company. And we have helped our clients by completing their Y2K compliance surveys and upgrading them to compliant ACNielsen applications. As a result of our Y2K work. I encourage you to ask us questions and give us feedback if you have any additional issues regarding the Year 2000. A ‘New Year’ like no other N As a result of Y2K. ACNielsen completed its upgrade of all programs and file structures to be Year-2000 compliant. upgraded and retired software applications. this immovable deadline has had some positive effects on the industry. The truth.
Analytics ACNielsen .Cover Story Consumer Insight 4 The Assortment Challenge: Marrying Supply Cost with Consumer Demand Milton Merl President and CEO Milton Merl & Associates Marshall White Vice President.
The two hurdles to achieving optimum assortment lie in understanding cannibalization and incremental profitability. So. largely through line extensions. ABC is a function of volume. Consumers use. We also learn how easily they will switch to similar. stores. return on investment is king. and consumer need does not. One way to get to the bottom of these issues is by incorporating the concept of ActivityBased Costing (ABC) into the assortment analysis. how does the addition and deletion of a SKU impact category volume and profit? By separating an item’s volume into the proportion that is incremental to the category and the volume transferable to other items. we must understand how shelf assortment can be used to maximize profitability. it is driven by retailers’ concern for disappointing their consumers and. warehouses. lower-priced or heavily promoted alternatives.Consumer Insight T he more we learn about how consumers shop— through panel data. ” ABC is pivotal to accounting for all the costs of getting and maintaining an item on shelf. All other things being equal. As loyalty card marketing programs advance the ability to target these investments. assortment and space decisions drive return on investment in all areas of business—manufacturing plants. we can effectively manage an item in the context of assortment. we can optimize volume to deliver the highest possible profit. It is the manufacturer’s attempt to leverage share away from competition that has driven up variety. we can begin to see a methodology for understanding the potential of item optimization. so good decisionmaking focuses on determining the combination of items that meet the demand at the highest profit point. therefore. equipment and building utilities. including the resources required to offer the product for sale—such as labor. First. would half the nation stop brushing its teeth? Second. drive shelf assortment. ABC can be seen as a tangible operational measure of ROI. It is critical to understand how volume from added or deleted SKUs affects the category. When determining product assortment on retailer shelves. Rather. so it is optimally designed for this business context. We have seen that excessive assortment and a wide range of pricing and promotion have fragmented market volume. and by using aggressive promotions. In other words. how items cannibalize existing volume and the resultant profitability of the total category. by first evaluating the change in volume as a function of variety and then applying ABC. there are many combinations of items that will meet consumer demand. Return to ROI In business. To do this we need to employ statistical models that ensure the items on the shelf do satisfy real consumer need and do offer the potential for the highest possible profit. ABC can be defined as: “determining an individual product’s profit after all costs. we need to determine how much of an item’s volume is incremental to a category. has contributed to this low loyalty dynamic by training consumers to reach for alternatives. it is important to understand the consumer in this market context. The concern over altering current product assortment can be addressed by demonstrating how to deliver the desired category volume at greater profit by optimizing the variety of selections on the shelf. at the moment. losing market share to the competition. the accuracy of consumer strategies and demand-generating tactics will increase in importance. In actuality. It can be argued that the industry’s historic focus on growing market share by increasing variety. Clearly. often with deep price cuts. 5 A Variety of Benefits One of the best ways to alleviate the worry over losing share is to demonstrate how assortment change can impact profitability. making it appear that all items meet consumer demand. personnel and inventory. . By integrating advanced assortment modeling techniques with measures of ABC. It is ill-advised to determine assortment needs based solely on market coverage. We’re all competing for smaller slices of the same pie. loyalty card data and advanced modeling routines—the more we realize how disloyal consumers are to a large majority of the items they purchase. an elimination of 30–50 percent of the market variety from most categories wouldn’t likely put a dent in overall market volume. many different items that meet the same need. taking advantage of every SKU on the shelf. and are apparently satisfied by. Increasingly. Think about it— if half the varieties of toothpaste and toothbrushes currently available disappeared from shelves tomorrow.
as product categories increased in variety and/or complexity.96/store/week. This is not an easy question to answer without knowing the following two things: 1. they have defined in-store market gains by shelf presentation. The decision-maker’s dilemma is when to invest in space to meet and satisfy demand. retailer sophistication increased as retailers improved their ability to market and sell their own items—all in the context of finite warehouse. At the same time.72 $0. then consumers cannot buy them. • Adding a Dessert SKU generated a net loss of $0. However. item volume and the cost of space is required to support this decision.43 $0. regardless of the brand. floor presence and media advertising. as consumers rotated among products. they often found the cheaper product met their need quite adequately.42) DOUGH CHEESE DESSERT BUTTER/MARG Average $CM/SKU/store/week Incremental ABC Profits/Added SKU Incremental ABC Profits/Deleted SKU .Consumer Insight 6 Cover Story To cap the manufacturer headache. The incremental category volume generated by introducing a new item to the space. brand and product extensions. the incremental profit generated by the item. In the grocery channel. production costs and inefficiency spiraled. assortment and space decisions drive return on investment in all areas of business. shelf and floor space. A Big Problem for Manufacturers Most manufacturers have a love/hate relationship with assortment optimization. retail real estate is not cheap. An understanding of the dynamics of cannibalization.52/store/week.02 • Deleting a Butter/Margarine SKU increases profits by $0. Historically.45 $7. The key to maximizing shelf ROI is to discover how to support the maximum product profitability with the minimum amount of space.52) $(0. However.96 $0. • Deleting a Dough SKU generates a loss of $0. Space for Variety Obviously.06) $0. it costs an average annually of $10 per facing in product inventory and labor to stock and manage the facing. And perhaps more problematic.42/store/week.72/store/week. $0.39 Analysis: • Adding a Dough SKU generates the highest incremental Activity Based Profit of $0.66 $0. they have determined their growth via line. $(0. Increasingly. Chart 1 Dairy Category Average and Incremental SKU ABC (Leading East Coast retailer equivalized to industry) CM$/STORE/WEEK $6. Brand loyalty eroded as consumers discovered that almost anything was available—somewhere—for less money. shelf space is a critical enabler to sales—if products are not available. consumers also became used to trying the different line extensions and brands available in the marketplace.07 $(0. and 2.09 $4. Even more important.
Using ABC against Frozen and Dairy categories demonstrates this idea. in reducing pack size to meet a believed consumer need. adding space to Dough returns the most ABC profit since new item volume is more incremental than in the other categories which are apparently maxed-out in variety [See Chart 1]. space and packaging decisions. However. manufacturing complexity. So. And retailers. 7 Right-Sizing Variety The effect of changes in space and variety on volume and profit are what is behind a general industry focus on optimizing secondary packaging size to demand needs. the more critical it is to pinpoint SKU profitability. through understanding how to maximize shelf space profitability. manufacturers and retailers may be over-investing. if variety is critical and space constrained. This is mostly because the majority of categories are so over-assorted already that the additional volume from an added item is so small that it rarely pays the rent on the space it occupies. . The more high-cost and space-constrained a department is. can deliver the items consumers want in a more efficient way. then it probably pays to invest in higher replenishment cost to meet demand. this is a double-edged sword because reduction in case sizes dramatically increases product and replenishment costs. we have found that it is rare for incremental space (and therefore. It is crucial for both manufacturers and retailers to understand the dynamics of assortment—both cannibalization and incremental profitability—when making variety. there is a solution to these continuing problems. retailers are seeking to minimize facings by reducing case pack in slow movers. Everybody Wins However. The key to maximizing shelf ROI is to discover how to support the maximum product profitability with the minimum amount of space. Here.Consumer Insight When using ABC to calculate profit. But. manufacturers can become the lowest price producers and respond to available consumer demand. while minimizing raw material costs. Through diligent management of item offerings. variety) to deliver a positive return. warehouse inventory and safety stock levels. In a desire to keep broad variety.
but this also provides support for the fact that private label products continue to make inroads. Each year. with two categories generating between 60–100% share. ACNielsen product category databases cross the majority of consumer packaged goods categories. one needs to gain an understanding of the dynamics across retail channels.S. . and Eggs). and Women’s Fragrances. to see how private label products are performing around the world. highquality ingredients. offerings in the grocery channel generated higher relative shares than offerings in the drug and mass channels. It is no surprise that smaller-share categories have greater percentage-growth potential. It is also important. Cheese. the majority of private label offerings held share positions of less than 10%.S. such as Bath Accessories. virtually every U. in grocery generated more than $500 million. In the grocery channel. mainstream packaging. We collect and classify most (but not all) of the categories selling at retail.Feature Consumer Insight 8 Private Label Grows Up By Gail Geisler N o longer content to be the drab ‘second-class’ product on retailers’ shelves. private label brands have begun to take on the air of national brands—colorful graphics. while drug and mass combined had only one product group at this level [See Charts 1 & 2]. Family Planning products.1 The message is clear: private label products are here to stay. given the move in the U. it is helpful to look at its behavior in different channel formats. strong dollar sales of private label are primarily in the food and beverage arena (particularly Milk. and the average private label buying household has almost 70 private label buying occasions throughout the year. not all private label sales will be reflected in the following series of tables and graphs. However. And consumers have taken note. Changing Channels To help better understand the dynamics of private label products. Bread and Baked Goods. some of the greatest private label dollar growth in grocery stores has come from non-food categories.com/ci. visit us at http://acnielsen. Finally. household purchases at least one private label product. with two groups—Milk and Eggs—taking shares of more than 50%. For more detailed analysis of private label products. we can look at the differences in shelf price sensitivity between private label and national brands. toward retail consolidation. However. the relative importance of private label sales within the grocery channel is even more pronounced—17 private label product groups 1. On a dollar basis. Most of the high-share categories in the grocery channel are also food products. To understand the role private label products play in today’s marketplace. On an aggregate basis. As such. as well as the different consumers who make up private label purchasers.
Ice Cream. Total U. there were no categories in the mass channel where private label held greater than 50% share. 2. Office/School Supplies. Total U. 52 w/e 10/31/98. Disposable Diapers. 45% 38% 113 product groups included. 31% 28% 28% 28% 25% 23% 23% 22% 19% 17% 16% 16% 16% Significant private label dollar increases occurred in Tobacco. Motor/Vehicle Care/Accessories. As with the drug channel. Women’s Fragrances. and Spices/Seasonings [See Chart 3]. 52 w/e 10/31/98. the mass channel definition includes Supercenters. including First Aid. The mass channel is also experiencing strong growth in staples such as cereal and pasta. year ago. but are not separated here for purposes of data confidentiality. and Bread and Baked Goods. four product groups in the mass channel (Bottled Water. Women’s Fragrances and Bath Accessories Show Strong Growth in Mass PL Dollar Growth % Tobacco & Accessories Fragrances–Women Buckets/Bin/Bath Accessories Desserts/Gels/Syrups Juices Drinks–Shelf Stbl Grooming Aids Seafood–Canned Household Supplies Cereal Baking Supplies Prepared Foods–Ready Serve Pasta Personal Soap/Bath Needs Fresheners/Deodorizers Cookies/Ice Cream Cones 393 280 210 105 97 78 78 68 65 62 57 56 56 44 41 52 w/e 10/31/98 vs. Frozen Seafood. as more drug stores build refrigerated and frozen items into their aisles. Pet Care and Pet Food. such as Bottled Water. Remedies. Cookies/Ice Cream Cones. A look in the mass merchandise channel2 revealed that top-in-sales private label categories are as varied as the product offerings themselves.S. Hair Care. In evaluating private label share. Sugar/Sugar Substitutes) held share positions of 33% or higher. Cookies. Dry Vegetables and Grains. Nuts. This suggests that consumers who purchased these categories within the drug channel may be less brand-sensitive—perhaps because it is an impulse rather than a destination purchase in this outlet. there were a few nontypical high-share categories in the channel. Share levels within Supercenters may be quite different than ‘regular’ mass formats.S. Chart 4 Tobacco. and Vitamins. Private label sales growth is coming in part from cold/frozen categories. Total U. Vitamins. Medications. Chart 2 Grocery PL Group Sales Outpace Drug and Mass Product Group $ Sales: $1b+ Grocery Drug Mass 5 $500mm–$1b 12 $300mm–$500mm 12 $100mm–$300mm 32 $50mm–$100mm 14 less than $50mm 38 0 0 2 5 6 100 0 1 1 9 9 93 113 product groups included. However. Oral Hygiene.S. Chart 3 Some Non-Typical Categories Have High Share in Drug PL $ Share of Category Ice Cream Wrapping Materials Bags Spices/Seasoning/Extract Nuts First Aid Vitamins Bottled Water Paper Products Pain Remedies Cough and Cold Remedies Disposable Diapers Battery/Flashlight/Charge Cookies/Ice Cream Cones Light Bulbs/Telephone Unprep Meat/Seafood-Frz 52 w/e 10/31/98.Consumer Insight 9 Chart 1 PL Shares Are Stronger in the Grocery Channel $ Market Share Grocery Drug Mass 60–100% 40–60% 30–40% 20–30% 10–20% less than 10% 2 1 4 18 23 65 0 1 2 7 14 89 0 2 4 9 17 81 In the drug channel.S. . as well as grooming aids and personal soap [See Chart 4]. Total U. Desserts/Gels/Syrups and Shelf Stable Juice Drinks. Top sellers included Bottled Water. For the purposes of this study. strong private label dollar sales were dominated by categories that are more typically oriented to this channel. Bath Accessories.
Based on the categories examined. A more in-depth analysis of category buying habits and attitudes toward private labels would be required to determine whether or not private label offerings are right for every product group or category. which is not surprising given 4.4 Three-fourths of the super-heavy buyers purchased private label products in 41 or more product groups. African-American) Note: The descriptors used for demographic segmentation above come from the ACNielsen Homescan consumer panel. Private label buying households were segmented into quartiles of light. had slight private label growth against flat total category growth. and Japan were also 50 points higher than their respective branded category growth [See Chart 8]. etc. More information on this study can be found on our website at http://acnielsen. Personal Care and Household product categories. product availability. half of buying households (the heavy and super-heavy buyers3) drove 77% of the sales. Growth in Argentina alone was 114 points higher than total category growth. Four countries (Netherlands. personal preference. These product groups can be further delineated into over 1. Private Label Conquers Foreign Lands For a global view of private label development. Private label sales growth far outpaced average retail sales growth in many countries around the world. However. although every household buys private label. In terms of volume share. the U. the heavier private label buying households also purchase in a wider array of product groups. household buys at least one private label product per year.S. Private Label—A Public Affair Consumers can tell us much about the dynamics of private label products. And super-heavy buyers spent more than twice as much per buying occasion than the light buyers spent [See Chart 6]. As mentioned earlier. Half of the sales were concentrated among just 25% of U. Private label holds stronger share positions in many European countries. including Food. the data suggest willingness on the part of even lighter buyers to purchase private labels across a fairly wide array of categories.).000 individual categories. virtually every U. the United States shows an average private label share of just over 15%.com/ci. households [See Chart 5]. sales). Switzerland. As one might hypothesize. ACNielsen classifies its products into about 120 product groups. Great Britain and Australia) showed slower private label volume growth compared to total category. household finances. They are: Heavier Buyers • Lower Income (poor/getting by) • More Rural (“C”/“D” county) • Larger Households (3–4 members/5+ members) • Lower level of formal education (high school graduate or less) • Children in HH (kids under 18) Light Buyers • Higher Income (affluent) • More Urban (“A” county) • Smaller Households (1 member) • Higher level of formal education (college graduate) • No Children in HH • Ethnic Minority Households (Asian. Through ACNielsen Homescan™ consumer panel data. However. Pretzels. ACNielsen examined its International Private Label Retailing Study across 57 categories in 30 countries from 1995–98. and attractive pricing. we have determined a few key demographic descriptors that tend to separate light and heavy private label buyers. When looking at private label buyers. one can see that heavier private label shoppers also dedicate a larger proportion of their basket to private label (based on dollar 3. Private label volume growth in Norway. Although not nearly as diverse as the heavier buyers. An example product group would be Salty Snacks (which is then categorized into product categories like Potato Chips.Consumer Insight 10 Feature Key Demographic Descriptors: Consumers may choose to be heavy or light private label shoppers because of a variety of factors—product quality. private label growth in the United States was in the middle compared to other countries in the study. By comparison. heavy and super-heavy buyer groups based on their private label expenditures across all product groups. even light buyers purchased private label in a sizable variety of product groups [See Chart 7].S. . Mexico. Drink.S. medium.
Chart 8 % Volume Growth by Country (’98 vs.0 Source: International Private Label Retailing–Indicators and Trends.5 +0. Of those countries that exhibited the greatest private label volume growth year-over-year. Total U. Eight countries showed average volume share of greater than 20%. is likely to continue. let’s assume a branded product has an annual sales volume of 500. ’97 +2. Chart 7 Private Label Category Penetration Is Quite Deep No. 1999 Edition. The model also controlled for seasonality and promotions. meaning for every one-percent change in price. Relative price to the competition. the product will affect sales volume by 1.S.0 -0. These studies indicate that sales of a private label product are a function of the following: 1. Medium Heavy Super Heavy Chart 6 Heavy Buyers Purchase More Frequently and Spend a Lot More than Light Buyers $751 $ buying rate purchase frequency % of $ basket $ per occasion $377 $229 76 $3. let’s examine the effect that the private label price has on its own sales. Using regression-based analysis that uses 104 weeks of non-promoted store-by-store data at the SKU level. of Product Groups Purchased 10 or less Light Medium Heavy Super Heavy 11–20 21–30 31–40 41–50 51–60 61+ Maximum Purchased 16% 41% 37% 6% * 0 0 45 1% 10% 39% 40% 10% * 0 54 * 3% 16% 40% 35% 6% * 63 * 1% 5% 19% 37% 31% 7% 77 116 product groups included.000 units and retail price of $3. Total U. ACNielsen makes use of price elasticity studies. Annual 1997.0 +0.5 +1. ’97 Private Label Volume Share ’98 Private Label Share % Point Change ’98 vs.15 (5% increase) the volume could be expected to decline to 462.5% (5% x 1.S.Consumer Insight 11 Chart 5 Not All Private Label Buyers Are the Same 25 % of buyers % of dollars 51 25 16 7 25 26 25 the tendency of many of these countries to be dominated by a few large retailers.’97) +124 +118 +80 +48 +42 +42 +40 +38 Total Category Private Label +10 +29 +24 +5 +11 -0 +3 +4 +2 +4 +11 +1 +14 +13 +13 +11 +9 +8 +7 +6 +4 +2 +2 +2 -1 +3 -0+0-1 -1 -2 +2-3 +0 +1 +2 +3 +5 +3 +4 +1 +2 +2 +2 -0 +0 share ’98 60 30 Sp Ge ain rm a Au ny s No tria rw Ca ay na Ne Fr da w an Ze ce ala nd I Sw taly Be ede lg n Po ium rtu Fin gal lan Gr d ee Ja ce De pan n Ar ma ge rk C nt Gr olo ina ea m t b So Br ia ut ita h in Af ric Br a az il Ne th US er A lan ds Au Chil str e ali Pu M a er ex to ico Ri co Sw Irel itz and er lan d 0 nt No ina rw Me ay xic o Jap Au an str ia Ch ile Fra n Gr ce ee Ire ce lan d Ge Italy So rm ut an h Af y ric S a Co pai Ne lo n w mb Ze ia ala n Ca d n Sw ada e Po den rtu Fin gal l De and Pu nm er ar to k Ri co Be USA Ne lg th ium Sw erla itz nds Gr erl ea an tB d Au ritai str n ali a Ar ge Source: International Private Label Retailing–Indicators and Trends. the growth of private label products outside the U. one could expect the volume to decline by 7. ACNielsen has found that the ‘normal’ price sensitivity of a branded pre-packaged consumer good is 1. If the price were upped to $3. As an example. First. Annual 1997. Light All outlets. All outlets. Overall country consolidations have been calculated by using simple averages of up to 57 product categories per country. 1999 Edition.93 102 13$4. Total U. .5. and 2.S. Annual 1997.0 +1.500 units (7.39 Medium Heavy Super Heavy Pricing: A Sensitive Matter To assess the relationship between private label price and sales compared to branded competition.5 -1.5). with private label in Switzerland commanding more than 50% of the market [See Chart 9].5 percent.98 $100 33 5 $3. Chart 9 Private Label Volume Share by Country share change ’98 vs.S. many—not surprisingly—had lower private label share development to begin with. ACNielsen evaluated the change in sales over time within a store by the change in price and/or price gap to competitors.05 Light 58 10 19 $7. Product price. All outlets.5% decline). As retailers continue their strong positions internationally and see the value of marketing their own brands to local consumers. If a retail price were increased by 5%.00. Overall country consolidations have been calculated by using simple averages of up to 57 product categories per country.
50 $3.04 to -1. Not surprisingly.S. So we must look at how private label sales are impacted by competitive pricing by analyzing the price gap. canned chicken noodle soup has an optimal price gap of just 15 cents from the branded alternative.15 -1. If the price were dropped to create a gap greater than $0. the model also demonstrates that pricing the private label orange juice any closer than $0. Therefore.89 to -0. the price gap is not as significant for items with lower shelf prices or that may be seen as more easily substitutable with private label.50 lower than the national brand.29 to -0. Shredded Cheese PL Canned Chicken Noodle Soup PL Facial Tissue 150–200 ct. The results showed that the optimal price gap for private label is about $0.50 $0.40 $0. it would not necessarily yield incremental sales for private label.25 $0.40 $0.21 1.S. Food Stores Chart 12 Private Label Price Sensitivity Relative to Price Gap Is High Optimal PL Price Gap $0. 300 200 100 -1.50 gap could result in a private label sales loss as great as 12%.19 to -1. as indicated by the flat line. For example.S. ACNielsen looked at the all commodity volume (ACV) for a branded orange juice product and its private label counterpart [See Chart 11]. . Pricing the private label offering with less than a $3.00 -0.50 1. Food Stores Chart 13 Private Label Price Sensitivity Varies by Channel Optimal PL Price Gap $0. Thus. that private label products sell in a vacuum.70 -0.44 to -0. Food Stores Price Sensitivity 1.32 Lost PL Sales if Below Gap –17% –16% –8% PL Facial Tissue upright—FOOD PL Facial Tissue upright—DRUG PL Facial Tissue upright—MASS Total U. Orange Juice PL Acetaminophen PL 8 oz.40 -0. Sales per Million Chart 10 Among Products Examined.85 -0. It is important to note that the optimal price gap (and the potential sales gain/loss for a private label product) varies category-by-category. Orange Juice PL Acetaminophen PL 8 oz.S.01 Chart 11 Price Gap vs.14 to -0. and sometimes even SKU-by-SKU type... it would appear that in some cases private label price is not so sensitive [See Chart 10]. Chart 12 shows how this can vary by product and category. It is rare.25 -0.01 1. Shredded Cheese PL Canned Chicken Noodle Soup Total U.59 to -0.08 1.60. however.74 to -0. the optimal price gap to maximize private label acetaminophen sales would have the private label price being $3.10 Lost PL Sales if Below Gap –55% –12% –20% –24% –19% –31% PL Chilled 32 oz. Branded Competition Optimal Price Gap 400 Pricing in this gap would result in a 55% loss in sales Private Label Leading Brand The Price is Right From the pricing regression model. a price any closer would risk a sales loss of up to 24%. On the other end.55 -0.Consumer Insight 12 Feature In examining four private label items from different product groups. however. we found their price sensitivity to be much lower than that of branded products. PL 2% Milk–Gallon Total U.10 0 Total U.15 $0. The private label acetaminophen has a wide price gap given the high sticker price of branded tablets and perhaps consumer reliance on a brand name when pain is involved..40-$0. Private Label Price Sensitivity Alone Is Relatively Low Branded norm PL Chilled 32 oz.20 $0.50 lower than the national brand.60 below the national brand may result in a large sales loss for the private label product as consumers may find it easier to “trade-up” to the national brand.
so there is room for both private label and branded offerings. This actually may be an opportunity. • Branded marketing does work—leading national brands appeal to some very attractive demographic segments. This means several things for retailers and manufacturers. This information can help marketers understand the pricing sensitivity points based on outlet type. Manufacturers should. first and foremost. For manufacturers: • Private label products are here to stay! If it aligns with your marketing strategy. and mass channels. if it aligns with your marketing strategy. The optimal gap must be found on an item-by-item basis. Implications of private label products For retailers: • Determine the composition of your shopper base to determine opportunities for private label expansion or contraction. Pricing is of extreme importance for retailers to drive private label profits. Retailers should focus on shopper base composition to determine whether private label products should be expanded or contracted. Manufacturers also must understand that pricing gaps for private label differ by channel. they must also be examined within the various channels—given each channel’s different pricing strategies and product assortments. too wide a price gap does not result in incremental sales. realize that private label products are here to stay. consider opportunities to supply your retail customers with private label offerings. • To maximize profitability. Being priced too close to the national brand can result in dramatic sales losses. Closing that gap can also result in different private label volume losses depending on the channel being examined [See Chart 13]. Not only do price gaps and potential losses differ by products. drug. Optimum product assortment is the key to success. are here to stay. The same private label tissue has a different price gap in grocery. . Everything is Relative It is clear that private label products in the U. to consider supplying your retail customers with private label offerings. consider price elasticity to discover optimal price points.Consumer Insight 13 Managing private label price to optimize sales must definitely include understanding the optimal price gap for every item and its potential volume loss if that price gap is narrowed. • Understand that there is room for both private label and branded offerings: optimum product assortment is the key to success. however. Branded marketing does work— and branded items appeal to some very attractive demographic segments.S. • Price elasticity studies can help determine price gap differences between channels.
automatically ceded to the largest manufacturer in a category.Consumer Insight 14 Feature What Makes a Good Category Management Partner? By Ryan Mathews Futurist FirstMatter C ategory management is a good deal like marriage. Nor should distributors assume theirs should be the last voice in a category management decision simply because they own the real estate. but early on it becomes clear that once the initial passion has subsided it takes good old fashioned work to sustain the relationship over time. The truth is that all category management decisions should be focused through the bias of the consumer rather than any one . It is generally entered into with the best of intentions. Category management is not an entitlement.
Superior partners can always make an inferior system work. Branded manufacturers. By the same token. for example. And in no case should category management decisions be made that run contrary to the interests or will of the consumer. a category consortium model might be more appropriate. We no longer have Communication Communication is more than the ability to agree on a feature. a distributor who separates buying and selling into two essentially unrelated profit centers risks the possibility of sacrificing net profits at the front end for the sake of ‘gross margin’ at the point of the buy. Early category management efforts migrated toward a category captain model. The supermarket is a retail artifact of a more genteel age. The perfect partnership will offer both sides a perfect score of ten out of ten. There is no shortage of interesting category management templates. changing careers often. all too often. We will concentrate on ten critical areas of category management partnering. This means being competent enough to admit when it’s time to augment existing skill sets or bring in another partner. effective communication between trading partners is a minimum requirement for building business together.Consumer Insight 15 trading partner or multiple trading partners. are essentially the same. promotion. must learn how to use private label to maximum advantage while retailers need to assign fully loaded cost to their controlled brands. It is not an outline of how to ‘do’ category management. shelf set or planogram. an age when it was possible and even desirable to know all of one’s neighbors and one’s customers. Obviously. it will mature in science. Competency Category management requires that both suppliers and distributors possess maximum competency in a given category. but in some cases. for both distributors and manufacturers. Which one works best is a matter best decided between trading partners. Only when there is vertical alignment inside a company can it effectively hope to communicate externally. People live serial lives—moving constantly through adulthood. Each of these elements is critical to the successful launch of an effective category management program and therefore each must be present in an effective category management partnership. It begins with a willingness to perform the requisite due diligence at the beginning of the partner relationship. Ten Elements of Success What follows is a blueprint for partner selection. Such practices. exactly what do you need to consider when looking for a category management partner? The requirements. what they mean. Volumes have been written on effective business communication and yet it remains the most neglected skill set in most companies. Anything less than a perfect score does not count. stabilize stock prices while at the same time they destabilize categories. Since each element is equally important. The time for objective analysis and hard decision making is before—never after—the fact. Data If this industry was birthed in art. they are listed in alphabetical order. As a society we lack the stable roots enjoyed by the generations that built American retailing. Effective communication begins internally with each level of an organization delivering and receiving a consistent message. The road to hell (and terrible category captaincy) is paved with good intentions. So. It does little good for a manufacturer’s sales agent or direct sales force to commit to effective category management principles if there is a vice president of sales in the home office prepared to dump product onto the diverter wire simply to make the quarterly numbers. but the most superior system in the world cannot save an inferior partnership. Pick the wrong partner and the best system in the world cannot help a category. This is particularly true when one is trying to move from traditional category definitions such as analgesics and vitamins/supplements to broader solutionbased approaches to categories such as ‘Wellness Centers’ or ‘Breakfast Food’ departments. But ours is a different age. The fact is the choice of trading partners is significantly more important than the choice of templates. It is the ability to listen to what partners say and genuinely hear .
Good data is the fuel that drives effective category management. Imagination is the basis of retail magic—and as Disney has proved. All too often many people believe the only valuable thinking is that which agrees with their own. inventory and systems— which actually constrain our ability to make a profit and operate efficiently. the ability to sell depends on the ability to ‘know’ a customer. analysis and communication of clean. Knowing what has sold is simply not a substitute for knowing what might sell. one based on intellectual property or ‘intellectual capital. or anything else. magic is a powerful business tool.’ Future success in category management. will be based less on the physical infrastructure one brings to a shared enterprise and more on the scope of intellectual assets offered by two or more trading partners. Error is a critical component to the trial and error equation. Combining intellectual assets geometrically improves the ability to do category management. Intellectual Assets When this industry was founded. warehouses. In such a climate. successful category management involves setting aside the vested interests—of the suppliers and the distributors—in favor of the consumer. and in business in general. The world of business is rapidly migrating to an alternative asset model. Trying to combine (and preserve) discrete physical infrastructures reduces potential profits.Consumer Insight 16 Feature the luxury of selling to our lifelong friends and neighbors. physical infrastructure was so valued that now there are redundant infrastructures—trucks. Given the customer count of the average Kroger or Wal-Mart. Selflessness Manufacturers who really want to execute effective category management skills must learn to place their partner’s—and often their direct and indirect competitor’s— interests ahead of their own. Open trading partners must entertain the possibility that another person’s well being and profitability may be more important than their own. if serving those interests serves the greater good of the category. If category partners are not honest with each other. Openness Openness is the ability to communicate willingly. The only way to truly ‘know’ the majority of customers—and gain insight into what they respond to in a category—is through the effective capture. then effective category management is impossible. And even more common in this industry is the feeling that no one else can bring quality thinking to bear on a problem. nothing is more critical than data. Partners must be alert to thinking from external sources. Sometimes there is the . and both trading partners must realize they do not have all the answers. It’s due to this reasoning the supermarket industry has translated a virtual monopoly on disposable income spent on food into a 48 percent share. there is still no substitute for imagination at retail. Not all category management plans work the first time out of the gate. Category management must be more than a formulaic presentation of related SKUs. Honesty Just a brief note here: self-service is a brilliant principle in retail but a lousy principle in partnership. accurate and timely data. Equally important is openness to bad news. Imagination As scientific as retailing has become. At its heart.
Mich. If category management does nothing more than advance the self-interest of one or more trading partners.Consumer Insight 17 proverbial. Manufacturers should not add line extensions in order to defend shelf space at the expense of offering consumers real alternatives and choices. So. generally impairing feeling as they heal. those old war wounds were healed and they were now prepared to join forces to support a common cause. Trust Trust lies at the heart of every true partnership. It is a willingness to do whatever is necessary to make the category the best it can be. it is just not possible to do it right. . If you are willing to do whatever it takes to achieve those two ends. but also with eyes to the future. consumers will quickly migrate toward a retailer who has their best interests at heart. Without that homework. So before the first planogram is calculated or the first shelf is reset. Category management has the potential of being the basis—not the result—of trust between trading partners. ensure these elements are in place. ‘win/win/win’ scenario in which everyone benefits equally. Without them. Items should not be on sale simply because a retailer received a great price on them. Westport. Only when you are willing to commit to the future of the category and your partnership are you ready to begin category management work. not just through the eyes of the consumer or the trading partner. Anyone can commit to the present. which is not good enough to keep you competitive anymore. One of the profound ironies in the early years of ECR was the insistence by people who had spent their entire business lives mistrusting each other that all of a sudden. nothing builds trust like shared success. and London. Above all it means seeing the store. It is possible to ‘do’ category management from a selfish point of view. you will be successful—provided of course. These ten qualities are basic and endemic—not just to category management. they scar over.. you have done the necessary partner selection homework. This willingness includes sharing costs as well as profits. Conn.” The message is profound for category managers on either side of the desk. but in reality those scenarios are few and far between. As rare as these qualities are. “What you weave is what you wear. We must remember the name of the game is to satisfy the consumer and to grow the category. Ryan Mathews is executive editor of Grocery Headquarters magazine and is a futurist with FirstMatter. In his song “Angel of Sin. what does this have to do with category management? Simply put. category management cannot deliver more than business as usual. Willingness The final attribute category management partners must possess is a willingness to make a plan succeed. Old wounds do not disappear. any partnership—including category management—is impossible.. they are also basic. but to all business activities.” Native American singer/songwriter John Trudell wrote. It means sharing ‘secrets’ and making a common cause. but few people are willing to take the leap of faith of a partnership through an unknown future. Unless both trading partners are open to the possibility of trusting each other. any plans they launch are doomed to fail. but it extends far beyond that. a ‘futuring’ consultancy with offices in Detroit.
Consumer Insight 18 Hot Trends Trend Watch Business-To-Business Web Sites W hen most people think of Internet web sites. Coca-Cola USA Fountain has established a businessto-business web site (www. and support the sales team.customer. eBay. category/rank. names of consumer sites like Amazon. The “Upcoming Promotions” . The Coca-Cola customer success stories are mini case studies highlighting how Coca-Cola account teams. The web site features success stories. much of the sales activity on the web is from business-to-business transactions. The “Brands” section of the site provides target consumer.3 trillion. Quality business-to-business Internet marketing is a major factor in increasing salesforce productivity.1 And by 2002. business-to-business sales are expected to account for two-thirds of all web business. provide ongoing service to loyal customers. provide customer service and raise company awareness about their company. up from $28 billion in 1998. In 1997. and marketing support information for individual Coca-Cola brands. brand information.2 Businesses are using the Internet to sell products. By the end of 2000. business-to-business activity accounted for one-third of all web-based sales. and E*TRADE often come to mind. have developed and executed successful marketing and sales programs. businessto-business e-commerce is forecasted to increase to $1.com.coke. generate new business leads. working with their customers. and promotion information.com) that supports the Coca-Cola salesforce by providing customers with a wide range of product and program information. a number of industry leaders are finding innovative ways to use the Internet to sell products. In the consumer packaged goods industry. However.
but the Internet can play a major role in enhancing customer service and increasing sales force effectiveness. Tropicana.” The site has a wide range of relevant information for retailers. Packaged goods companies can and should make Internet marketing a key element of their business-to-business marketing strategy. The Dean Foods Company has a dedicated retailer web site (http://retail.tropicana. and Tropicana news.com/biz). marketing programs. The Internet is a powerful business-to-business marketing tool. Visitors are required to register.com/Biz is Tropicana’s business-to-business web site (www.com/Biz visitors can even view television commercials on the site.deanfoods.Consumer Insight 19 section of the site provides customers with the latest information on Coca-Cola promotion opportunities. The Internet will never take the place of a salesperson or the one-to-one relationships between buyer and seller that are so important to business development.com) called “The Dean Advantage: On-line Resources For Our Valued Retail Customers. nutritional information. Source: Forrester Reports . This site provides retailers and distributors with information on Tropicana products. Dean Foods uses the web site to leverage the company’s marketing programs. category management tools. which allows Coca-Cola to capture valuable customer database information. international operations. Source: Jupiter Communications 2. 1. Every section of the web site has a strong call to action urging customers to contact their local Coca-Cola sales representative. Tropicana. and ECR programs with retailers.
TechVWatch combines critical information on the consumer market for PC hardware. ChannelVFacts and Account Shopper Profiler. brand-switching behavior and brand loyalty can now be measured to signify the winning brands among consumers. Used in conjunction with ACNielsen’s other syndicated reports.Consumer Insight 20 Business Tools Quantify Shopper Loyalty An important. Cross OutletVFacts gives marketers a competitive advantage by understanding where else retailers’ core and occasional shoppers are shopping. you can determine how consumers buy—by brand. and it’s available—now—from ACNielsen.4ACN . From evaluating the effectiveness of a sponsorship program to deciding whether you should market your product on the Internet. by price point and by channel. By revealing which product classes chain shoppers shop the competition for. With PC prices plummeting. With typical response rates of 85 percent. ConsumerVFacts. For more information. but also where your business is going. you can gain a complete sales story for key retailers in each market. What.com/ci or call 1. PanelVViews Surveys are an effective method of identifying consumer target groups and understanding how attitudes impact behavior..800. See us on the Web http://acnielsen. based on facts. Why? Scanning and Panel data provide critical insights into the Who. Human nature begs the question. By pinpointing the reasons behind differences in personal computer buying. staying ‘plugged in’ has become a daunting task for even the most savvy marketer. Spotting Personal Computer Trends As They Happen In today’s ever-changing world of personal computer technology. where they’re buying them and why. replacement or supplemental PC buyers. visit our web site or call our toll-free hotline. ACNielsen TechVWatch™ is a unique new service that provides an on-going monitor of who’s buying computers. element in the loyalty equation is knowing not only where your business is coming from. how they are spending and what they are buying. such as among first-time. ACNielsen Homescan PanelVViews Surveys help answer more of the Why behind the buy. Importantly. monitors and printers. Where and When. this information has never been more critical. ACNielsen Homescan Cross OutletVFacts is a syndicated report which provides a cross-outlet shopping analysis that quantifies shopper loyalty by showing retailers which competitors they lose business to. This subscription-based service allows computer product manufacturers and retailers to spot trends and changes in the marketplace in time to react. PanelVViews Surveys offer the unique ability to integrate actual purchase information with attitudes and user information collected from the Homescan Consumer Panel via barcoded surveys. PanelVViews Surveys provide real-life answers to factors that influence purchase decisions. Cross OutletVFacts is also an instrumental category development tool pinpointing which categories are potential opportunities and risks.988. for Consumer Behavior And the Survey Says. but often overlooked. and some of the Why behind the buy..
optimization logic. The combination of these powerful tools fills a major gap in the industry by clearly articulating the opportunities for using the most appropriate items to satisfy store volume at increased profitability. For more information.988. ACNielsen’s proprietary assortment model quantifies what percentage of an item’s sales are truly incremental by determining the extent to which each item’s sales are cannibalizing sales of other items in a category. provides ‘one stop shopping’ for maximizing your assortment profitability.com/ci or call 1.800. By uniting multiple data sources. or visit us on the web! SPACE PLANNING FILES ABC Now VISUAL EDITOR Data Cleansing Defaulting Updating ABC Now Lite Logistics Optimizer Logistics Lite Space Optimizer SYNDICATED DATA ACCOUNT SPECIFIC DATA DATA MART Assortment Optimizer Space Lite Assortment Lite LOYALTY CARD DATA REPORTING Charts Reports Exports Price Optimizer Price Lite Promotion Optimizer Promotion Lite PANEL DATA See us on the Web http://acnielsen. It measures changes in volume and profit at the item. activity-based costing and volume elasticities. Performance Optimizer provides a process that allows decision-makers to integrate volume. Performance Optimizer can be installed on laptop or desktop systems.Business Tools Efficient assortment today is a $6 billion opportunity. The recent alliance between ACNielsen and Milton Merl & Associates combines powerful Performance Optimizer application with ACNielsen’s industry-leading assortment modeling capabilities. to optimize category profit as it relates to volume elasticity and cannibalization. Performance Optimizer uses an ABC calculator. profit and consumer strategic objectives into the planning process. please contact your ACNielsen representative. for Analytics Consumer Insight 21 Performance Optimizer Now Available with ACNielsen Analytical Models Gain insight at every level of the assortment decisionmaking process.4ACN . and combined with ACNielsen’s advanced analytical models. ABC Now. segment and category level that occur as a result of changes in assortment. And understanding assortment and Activity Based Costing (ABC) is key to arriving at shelf profitability.
With SPACEMAN Professional Application Builder. • Create custom routines to interact with other data sources. Minimum System Requirements Personal computer with a 486/66Mhz or higher processor (266 MHz Pentium recommended). multi-page schematic layouts Call your ACNielsen representative to find out more about how SPACEMAN Professional Application Builder’s powerful automation capabilities can help you do your job more creatively and efficiently than ever before. SPACEMAN Professional Application Builder has the power to automate the production. market-level and consumer data through custom input/output routines. See us on the Web http://acnielsen. SPACEMAN Professional Application Builder has all of the merchandising and analytical capabilities of SPACEMAN® Professional. • Automate routine merchandising tasks to provide more time for concentrating on competitive merchandising strategies. fixels and products • Full drag-and-drop functionality • Ability to create custom. A mouse or compatible pointing device. Only SPACEMAN Professional Application Builder offers these capabilities through industry-standard technology and open architecture—the same technology found in Microsoft Office. Everyone has different needs. we’ve incorporated Microsoft® Visual Basic® for Applications technology to offer unparalleled flexibility and customizability.988. for Merchandising • Extend the use of point-of-sale. 98 or NT operating system. Windows 95. Today’s merchandising world is more diverse than ever. fact-based reports and graphics. custom solution.Consumer Insight 22 Business Tools SPACEMAN® Professional Application Builder Customizable solutions for any environment. In addition. Loaded with Easy-to-Use Features • Integrated ODBC data manager • Customizable toolbars • Integration with Microsoft Excel for in-depth analysis and reporting • Built-in batch printing capabilities • User-defined libraries for sections. 20 MB of available hard disk space required for installation. That’s why we created SPACEMAN® Professional Application Builder. • Uses latest Component Object Model (COM) technology from Microsoft to ensure compatibility with today’s Windows 95/98/NT operating systems and those of the future. differing skill levels. • Strengthen category management presentations with detailed. SPACEMAN Professional Application Builder can be customized to fit your specific needs and interact with your specific data sources. No other application offers this level of adaptability. you can customize the application to work the way you do. Base functionality can even be extended to provide the ultimate. There is no ‘one size fits all’ solution.800. Want to automatically update planograms from any data source with the click of a button? No problem. a different environment. 16 MB of RAM (48 MB recommended). maintenance and analysis of planograms necessary for welltargeted category plans.4ACN .com/ci or call 1. automatically. Leverage the Power of SPACEMAN Professional Application Builder • Extend base functionality to satisfy your specific business needs. Need to export planogram information for external analysis? Can do.
Grocery (all markets). to find that it didn’t lead to increased sales? Have item mix changes gone undetected because your brand’s distribution levels have not changed? Or have you ever wanted to know your brand’s share of category distribution? Historically. ACNielsen Convenience Track™ now gives you two levels of measurement. please contact your ACNielsen representative.988. Convenience Track market-level data allows a retailer to benchmark key elements such as sales. Cumulative Distribution Points helps you better deploy your marketing resources by providing you with a more specific means for evaluating volume and distribution drivers. pricing. Check with your ACNielsen representative or visit our website for the most recent announcements. Now. However. Cumulative Distribution Points is also available for in-store promotion conditions. Cumulative Distribution Points will be available for purchase in September and is integrated into your current service. Drug and Mass available in select markets. and we are very close to announcing additional major retailer offerings as we continue to build and leverage our retailer partnerships. With Convenience Track’s market-level data. ACNielsen offers Cumulative Distribution Points— a new analytic tool that incorporates both your brand’s breadth (% ACV) and its depth. measured by average number of items carried. manufacturers can help the retailer uncover new opportunities for the entire category. 1. This affords you the same analytic benefits for your merchandising assessments and gives way to other new insights such as understanding if your brand is getting its fair share of category promotions. one must understand depth of distribution.2 ACNielsen Convenience Track account-level data can be a powerful tool if local convenience market-level data is not available for your category. Account level information now available for most accounts. and assortment to a local convenience market.4ACN . in some cases will be available for sale shortly. Local market data includes the convenience channel as well as other key channels. You can receive this information for most top c-store retailers. and merchandising impact.com/ci or call 1. For more information. which combine for incredibly powerful information. which is critical to the NACS category management process. This helps identify top-selling items carried in the market but not carried by the retailer. measured by ‘% ACV’ or ‘% Stores Selling’. Consumer Insight 23 See us on the Web http://acnielsen.Business Tools Convenience Track Continues Trading Area Expansion ACNielsen is proud to announce retailer account-level data for all categories1. This can lead to a better understanding of any category’s sales. to answer questions related to item mix.800. And Cumulative Distribution Points is additive across ACNielsen’s data dimensions. distribution for a brand considers only the breadth of stores selling the brand. This new measure enables you to determine whether or not new items are adding incremental distribution to your brand and allows for comparisons such as share of distribution. for Retail Tracking A New Analytic Tool for Measuring Distribution and Merchandising! Have you ever increased your brand’s distribution. making it a truly flexible and effective measure. distribution. 2. regardless of whether you manufacture toothpaste or tobacco.
Cost. for Retailers Management of data is a critical component to category management success. ACNielsen systems and information provide solutions: from analysis to implementation. Combined with retailer data. From initial category analysis all the way to in-store implementation. ACNielsen can help you design a category management program that best meets your needs and organizational structure. Once objectives are defined.Consumer Insight 24 Business Tools Create Integrated Category Management Solutions— From Analysis to Implementation Choosing the right category management approach to meet your specific financial and marketing goals can be a daunting task. ACNielsen can provide the right tools to implement in-store execution. evaluate and implement category strategies that address individual needs. With products such as ACNielsen’s Retail Warehouse Solution (RWS) and Spaceman Professional. Space Inventory SPACEMAN Connectivity See us on the Web http://acnielsen. By leveraging a full-line of analysis tools. pricing. Measuring all retail channels from supercenters to convenience stores. ACNielsen organizes the data to offer ad-hoc reporting and access tools that help you easily mine and analyze the data. ACNielsen’s syndicated data coupled with consumer panel and retailer data provide consumer-focused results that yield real opportunities to improve sales and profits. Data Information Management Insight Development In-store Implementation PRICEMAN Trade Areas SuperSCANTRACK Homescan Product Reference Retail Warehouse Solution (RWS) Category Manager NITRO Internet Delivery SPACEMAN Professional and SPACEMAN Enterprise SPACEMAN Suite Store chars. From Analysis to Implementation. marketing and sales professionals can develop item assortment.800. ACNielsen’s Analysis to Implementation approach starts with access to high quality data that directs store decisions. meeting both retailer and manufacturer objectives. promotional and shelf space programs that optimize category performance. Product chars. That’s why ACNielsen created intuitive processes to help retailers and manufacturers sort through the full spectrum of integrated category management solutions in order to develop.4ACN . ACNielsen’s expertise at drawing strategic insights from the data is unmatched.com/ci or call 1. ACNielsen provides the pathway that leads you to successful category management solutions.988.
Sales and marketing success isn’t about data. Or call 1-800-988-4ACN. we deliver the highest quality and breadth of information. Combined with superior client service. Loyalty marketing. Price management. We offer capabilities in consumer management. information and analysis . It’s about understanding what motivates people. All so you can make better business decisions and get even closer to your customers. And much more. Promotions. Category management. Contact your ACNielsen representative. The global leader in market research. technology expertise and analytical solutions. What makes yours so special? ACNielsen gives the “why” behind the buy. That’s precisely the kind of insight and knowledge ACNielsen brings to your business.There are 6 billion consumers in the world. Assortment management.
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