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Created for Nielsen Client Business Partners April, 2009
Confidential & Proprietary Copyright © 2009 The Nielsen Company
Agenda • Overview of BASES • Our Services 1 Confidential & Proprietary Copyright © 2009 The Nielsen Company .
2 Confidential & Proprietary Copyright © 2009 The Nielsen Company . e al ate diagnose diagnose. and improve impro e the potential of new product initiatives and relaunches.What is BASES? • Our mission is to help our clients grow through successful innovation on their brands. • We use a pre-market sales forecasting system: – Measures consumer interest in new initiatives and relaunches – Combines consumer measures with marketing plan information to forecast sales volume – All prior to marketplace introduction • The system s stem is used sed to evaluate.
and improve the potential of new product initiatives and relaunches • BASES can lead the client through the whole development process 3 You launch the product In Market Success or Failure? Confidential & Proprietary Copyright © 2009 The Nielsen Company . al ate diagnose diagnose.Innovation Process CLIENT DEVELOPMENT PROCESS You want to separate the strong initiatives from the weaker ones • BASES provides new product advice and consultancy – Measures consumer interest in new initiatives – Combines consumer measures with marketing plan information to forecast sales volume – All prior to marketplace introduction You want to refine the initiative You want to test the concept/product mix You want to optimize your marketing plans for launch • Used to e evaluate.
BASES offers more than “Go/No Go” evaluations. Evaluate C Competitive titi Landscape. Optimi ze P R O F I T BASES SnapShot & Pre-BASES BASES I BASES II BASES Launch Review (Validation) BASES Price Advisor BASES Chatterbox BASES DecisionPoint Confidential & Proprietary Copyright © 2009 The Nielsen Company BASES Launch Advisor 4 . Refine Refine product in Build light of usage Strong experience Concepts and fit with the concept Optimize Marketing Mix & Marketing Plan ROI L E S + Launch . with a flexible system to help you grow your initiative all along your NPD S A process process. Track. Select Ideas Select. Identify White Spaces D fi Define Objectives BASES Market & Brand Ad i Advisor (MBA) Genera t te.
BASES Answers Business Questions • Should we develop this new Product? • How will a branding relaunch effect sales and quality perceptions of the line? • H How should h ld I prioritize i iti my development d l t efforts ff t on the th ideas id with ith th the most promise? • How can we justify a premium price strategy in category X? • Will our product deliver? • What are the optimal varieties/sizes in our line? What are the volume implications of launching g a subset of the varieties under consideration? • How much advertising (if any) will be needed to reach our sales goals? • Does our packaging break through the clutter at the shelf? • How much volume should we expect in the first year? • Is our main benefit credible and relevant to our target consumer? • Will this launch cannibalize other offerings in the category? 5 Confidential & Proprietary Copyright © 2009 The Nielsen Company .
Marketing & Execution Through g analytic y frameworks and consultation 6 Confidential & Proprietary Copyright © 2009 The Nielsen Company . and then combine those measures with the brand’s marketing plan to forecast sales – We W then th help h l our clients li t i improve th the id idea as th they prepare f for th the l launch h Sales Forecast Consumer Response Data From survey y data + Marketing Plan Information Provided by our clients = Based on model calibrations to in-market data Optimize Proposition.Helping our clients grow through successful innovation • BASES’ main focus is on forecasting the sales of new products before they are l launched h di into t th the market k t – We measure consumer interest in the idea (via a consumer survey). p .
This consumer response data is coupled with marketing plan information in the BASES Model to yield the volumetric estimate. What consumers actually do Adjust for what marketers do to influence consumers Volume Forecast Volume Estimate Promotion/in-store activity Di t ib ti Distribution Awareness Interested Universe Adjust for Overstatement Consumer Claims 7 Impact of Marketing Support Measure Consumer Perception Remove consumer bias f t factors Total Addressable Market What consumers say they will do Confidential & Proprietary Copyright © 2009 The Nielsen Company .
BASES interviews a sample of consumers representing the total addressable market as well as key target segments. and other groups as appropriate. The core “total market” sample allows for a direct comparison of initiatives and for calibration to inmarket data for forecasting. These interviews are augmented with samples representing client target groups. Illustrative Example Brand Loyalists ( (over-sample) ) Total Addressable dd essab e Market (base sample) Key Buyer Group (over-sample) Target Segment (over sample) (over-sample) 8 Confidential & Proprietary Copyright © 2009 The Nielsen Company . samples of key buyer groups.
would you buy this product if it was available where you shop? vs. within the past 10 years Overall Purchase Intent* Liking Value Uniqueness Claimed Units per Purchase** Claimed Annual Purchase Frequency** 100% 80% C C C 60% C 40% C C 20% The systematic approach allows for “apples-to-apples” pp pp comparisons of performance to a category-wide database for every launch proposition proposition. Competitive Select Landscape. if ever. if any. would you buy the first time you purchased this new product? • How often. Track. Purchase Intent Liking Price/Value Believability New & Different Claimed Units Claimed Frequency • Which statement best describes how you feel about buying this product? Consumers are exposed to a concept representing the launch proposition… • How much do you think you would like or dislike this product? • Considering the price of the product. Ideas Identify White Spaces.S. the BASES Database of ~100 Pasta Sauce initiatives evaluated in the U. how do you feel about the value for money of this new product? • How do you feel about the believability of the statements made about the product? • How do you rate this product in being new and different from other products? • How many units of the new product. Optimize Optimize Marketing Mix & Marketing Plan ROI P R O F I T …and answer a set of Key Measure questions asked in the same manner on every survey survey. 9 0% C= Chef Lou's Pasta Sauce Confidential & Proprietary Copyright © 2009 The Nielsen Company .BASES’ systematic approach allows marketers to understand how their launch initiatives perform relative to their category S A L E S + Evaluate Generate. Refine Build Strong Concepts Refine product in light of usage experience and fit with the concept Launch. Define Objectives BASES Market Eureka!/ Select.
• Proprietary tools and techniques to optimize initiatives and launch success – IntroSCAPE proprietary “consumer adoption” framework – Marketing execution optimization – Choice Tools linked to volume – Price optimization – Category opportunity identification 10 Confidential & Proprietary Copyright © 2009 The Nielsen Company .000 new ideas tested • Unique client service structure – Dedicated forecaster/analyst consultants.Our unique advantages lie in our extensive innovation expertise and rigorous approach to benchmarking and volume forecasting • Databased Approach to Benchmarking – Powerful tool to assess strength of new launches • Volume-Based Analytics – Enabled by our systematic and empirical approach to analysis and forecasting and the resources of the entire Nielsen Company • Extensive history of innovation consulting – 90.
Additional BASES Products and Services • – BASES FindTime Can consumers find my product on shelf? What package attributes best help differentiate my product from the competition? • – BASES IntroSCAPE How can the initiative be optimized to best reach consumers? • – BASES Marketing Plan Analyzer How can I optimize my marketing support for a new product? • – BASES Price Advisor What is the optimal pricing strategy for my initiative? What impact could price have on the volume potential of the initiative? • – BASES DecisionPoint How will the introduction of a new product or line impact my full portfolio of brands in market? 11 Confidential & Proprietary Copyright © 2009 The Nielsen Company .
Thank you! 12 Confidential & Proprietary Copyright © 2009 The Nielsen Company Confidential & Proprietary • Copyright © 2007 The Nielsen Company .