Winning with Innovation

An Introduction to BASES

Created for Nielsen Client Business Partners

April, 2009

Confidential & Proprietary Copyright 2009 The Nielsen Company

 Agenda
Overview of BASES
Our Services

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 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,
e al ate diagnose
diagnose, and improve
impro e the
potential of new product initiatives and relaunches.

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 Innovation Process

CLIENT DEVELOPMENT PROCESS

You want to separate the strong BASES provides new product

initiatives from the weaker ones
advice and consultancy
Measures consumer interest in new
You want to refine the initiative initiatives
Combines consumer measures with
marketing plan information to forecast
You want to test the sales volume
concept/product mix
All prior to marketplace introduction
Used to e evaluate, diagnose, and
al ate diagnose
You want to optimize your improve the potential of new product
marketing plans for launch
initiatives and relaunches
BASES can lead the client
You launch the product
through the whole development
In Market Success or Failure?
process

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BASES offers more than Go/No Go evaluations, with a flexible
system to help you grow your initiative all along your NPD S
process
process. A
L
E
S
Evaluate Select, Refine Launch
Genera
Refine product in , +
C
Competitive
titi t
te,
Landscape, Build light of usage Track,
Select P
Identify Strong experience Optimi R
Ideas
White Spaces Concepts and fit with ze O
the concept
Optimize Marketing Mix & F
D fi
Define
I
Objectives Marketing T
BASES Market Plan ROI
& Brand
Ad i
Advisor (MBA)
BASES SnapShot &
Pre-BASES
BASES I BASES II

BASES Launch Review

BASES Price Advisor
(Validation)

BASES Chatterbox

BASES DecisionPoint BASES Launch Advisor

4

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 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?

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 Helping our clients grow through successful innovation
BASES main focus is on forecasting the sales of new products before they are
l
launched
h d iinto
t th
the market
k t
We measure consumer interest in the idea (via a consumer survey), and then combine those
measures with the brands marketing plan to forecast sales
We
W then
th help
h l our clients
li t iimprove th
the id
idea as th
they prepare ffor th
the llaunch
h

Sales
Forecast

Consumer Marketing
Based on model calibrations
Response + Plan = to in-market data
Data Information
Optimize
From survey
y data Provided by our Proposition,
p ,
clients Marketing &
Execution
Through
g analytic
y
frameworks and
consultation 6

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Copyright 2009 The Nielsen Company
 This consumer response data is coupled with marketing plan
information in the BASES Model to yield the volumetric estimate.

What
consumers Volume Estimate
Volume
actually do
Forecast

Adjust for what

Promotion/in-store activity
marketers do to
Impact of
influence
Marketing Di t ib ti
Distribution
consumers
Support

Awareness
Measure
Consumer
Perception
Remove Interested Universe
consumer bias
f t
factors
Total Adjust for Overstatement
Addressable What
Market consumers say
they will do Consumer Claims

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BASES interviews a sample of consumers representing the total
addressable market as well as key target segments.
The core total market sample allows for a direct comparison of initiatives and for calibration to in-
market data for forecasting. These interviews are augmented with samples representing client target
groups, samples of key buyer groups, and other groups as appropriate.

Illustrative Example

Brand
Loyalists
(
(over-sample)
)

Total
Addressable
dd essab e
Market
(base sample) Target
Key Buyer Segment
(over sample)
(over-sample)
Group
(over-sample)

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BASES systematic approach allows marketers to understand how their launch initiatives
S

perform relative to their category

A
L
E
S

Evaluate Generate, Select, Refine Refine product in Launch, +

Competitive Select Build Strong light of usage Track,
Landscape, P
Ideas Concepts experience and fit Optimize R
Identify with the concept O
F

and answer a set of Key Measure questions asked in the

White Spaces,
Define Objectives Optimize Marketing Mix & Marketing I
Plan ROI T
BASES Market Eureka!/

same manner on every survey

survey.
Consumers are exposed to a concept
Which statement best describes how you feel about buying this
representing the launch proposition Purchase Intent product?

Liking How much do you think you would like or dislike this product?

Considering the price of the product, how do you feel about the
Price/Value value for money of this new product?

How do you feel about the believability of the statements made

Believability about the product?

How do you rate this product in being new and different from other
New & Different products?

How many units of the new product, if any, would you buy the first
Claimed Units time you purchased this new product?

Claimed How often, if ever, would you buy this product if it was available
Frequency where you shop?

vs. the BASES Database of ~100 Pasta Sauce initiatives evaluated in the U.S. within the past 10 years

The systematic
Overall
Purchase
Claimed Units
per
Claimed Annual
Purchase
approach allows for
Intent* Liking Value Uniqueness Purchase** Frequency** 100%
apples-to-apples
pp pp
80% comparisons of
C C C
60% performance to a
C
40%
category-wide
C C database for every
20%
launch proposition
proposition.
0%

C= Chef Lou's Pasta Sauce

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 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
90,000 new ideas tested
Unique client service structure
Dedicated forecaster/analyst consultants.
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

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 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?
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Thank you!

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