ACNielsen | Retail Index

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ACNielsen

 Part of the VNU Group

 World’s largest MR organisation
 Asia-Pacific’s largest MR organisation
 80+ Years in MR
 Presence in over 100 countries
 Proprietary Research Models

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 What is Retail Store Audit?

• Periodic (generally monthly) monitoring with a

panel of retail outlets.
• Collecting data on Purchases, Stocks, and/or
Sales for product categories of interest.
• And projecting it, using statistical techniques to
arrive at estimates.

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 Objectives of RSA

• To Monitor Trends

– Market

– Brands & Competition

• To Understand Distribution

– Width & Depth

– Shelf Competition

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 Retail Audit
Methodology

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 Census & Sample

• Regular long intervals (every three years)

– Shop Census

– Sample Determination

• Regular short intervals (monthly)

– The Shop Audit

– Estimation & Reporting

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Sampling Towns & Villages
All India

State/ State Groups

(16)

Urban & Rural Pop-Strata

Town & Village Sampling

(1st Stage)

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 Definition of Urban
As per 1991 Census of India

• All places with a municipality, corporation,

cantonment board, or notified town area, etc.
• All other places with
– a minimum population of 5,000,
– at least 75% of male working population
engaged in non-agricultural pursuits, and
– a density of population of at least 400
persons per square km

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 Strata
State/ State Groups
North Zone East Zone
Delhi Bihar/ Jharkhand
Pun/ HP/JK West Bengal
Haryana Orissa
Rajasthan Assam & N.E.
UP/ Uttaranchal
West Zone South Zone
Gujarat Andhra Pradesh
Maharashtra/ Goa Karnataka
MP/ Chhattisgarh Kerala
TN/ Pondicherry

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 Population Strata
Urban

Class Definition
Metro Over 1 million
Class I ½ - 1 million
Class IA 100 - 500 thousand
Class II 50 - 100 thousand
Class III 20 - 50 thousand
Class IV Below 20 thousand

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 Population Strata
Rural

Class Definition
Class IA Over 10,000
Class IB 5,000 to 10,000
Class IIA 3,000 to 5,000
Class IIB 1,000 t0 3,000
Class III Below 1,000

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Shop Census & Sample Determination
1

Shop Census
in 367 towns & 986 villages

Census Analysis
Classification of Outlets

Outlet Sampling
(2nd Stage)

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 Shop Census
Procedure
• Every street/ by-lane covered
• Outlets plotted on (zoom) Maps
• All outlets (dealing in products) of interest
contacted
• Instrument includes
– Contact sheet
– Main form
– Product form
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…..Contd
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Covered v/s uncovered channels
 Weekend mkts/ haats

 Large Format Stores

 Direct selling
 Grocer
 Highways
 Pan Plus
 Chemist  Beauty salons
 Food Store
 Wholesalers selling
 General Store to consumers
 Cosmetic Store
 Hotels
 Modern Format
 Dept. stores
 CSD
 Hospitals

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 Data Collection
How is it done? (contd.)

Consumer Offtake

Opening Closing
+ Purchases -
Stock Stock

The consumer offtake is then worked

out for each of the product pack and
any abnormalities, if noticed, are
checked with the dealer
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 Reporting and
Frequency

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 ACNielsen | Advisor i-sights
Experience the Power of Information

• Windows based software

• Not just software but a service
in itself

• The complete story, not just a

selection of reports
• Pre-formatted, Pre-analyzed,
Smart reports

• Two versions:
– Personal: For everyone
– Interactive: For Analysts

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Reporting

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 Frequency and Number of Reports
• A total of 17 reports are prepared in a calendar
year
• 12 Monthly reports
• 4 Quarterly reports -
January - March
April - June
July - September
October - December
• 1 Annual Report - January - December

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We do not provide month wise rural
estimates for States and Outlet Type
TIM E POINTS
M BD M onth Quarter Year
Country (Urb) Y Y Y
Country (Rur ) Y Y Y
Zone (Urb) Y Y Y
Zone (Rur) Y Y Y
State (Urb) Y Y Y
State (Rur) N Y Y
Individual M etros Y Y Y
Town Classes Y Y Y
Outlet ( Urb) Y Y Y
Outlet (Rur) N Y Y

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 Reporting: Products
Four Hierarchies for All Categories

Standard Standard
Company Company x SG
Brand Mother Brand

Category Category Category Category

SubCategory SubCategory Company Total Company Total

SSubCategory SSubCategory Brand Company

Company Company SKU Brand

Brand Mother Brand SKU

SKU Brand

SKU

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 Measures

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All measures are derivatives of our four
basic facts

Purchase

Stock

Sales/Off take

Dealers

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All Measures can be classified under three
groups

Volume Value Distribution

Purchase Units Purchase Value No. of Dealers
Stock Units Stock Value Repurchasing Dealers
Sales Units Sales Value OSD Dealers
Purchase Weight WD Value
Stock Weight WD FM CG
Sales Weight WD OSD
Selling Units

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Volume & Value Based Measures

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 The Purchase Equation – Mother to all
Vol/Val Measures
• Purchase
– Estimated purchase made by the dealers in the reported time
frame (by units volume and value)

• Stock
– The estimated volume of stock, lying with the dealers at the
end of the audit period, for the reported time frame (by units
volume and value)
– In quarters, Stock is provided for Quarter ending month

• Sales
– The quantity of sales made to consumer in the reported time
frame (by units volume and value )

Sales = Opening Stocks + Purchases - Closing Stocks

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Sales Unit and Sales Weight - a comparison

Sales Unit Sales Weight

• No. of packs sold • Volume generated
through no of packs sold

e.g. Good Knight 10 coils pack will be 1 Sales unit

but Sales Weight will be 10.

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Distribution Based Measures

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 Numeric Distribution

• Handling dealers are number of stores carrying

the product.
– sold/purchased the product during the audit
period and/or had the product in stock at the
moment of stock count
• Analyzed in comparison with Category handlers

Numeric % = Handlers/Dealers for the product X 100

Handlers/Dealers for the category

It’s transacting dealers

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 Out Of Stock Dealers

• Out of Stock Dealers(OSD%)

– Stores having sold the product in the audit
period but having no stock at the moment of
stock count
• Analyzed in comparison with handling dealers
OSD% = Out of stock dealers X 100
Total Dealers for the reported time frame

It’s stores with no stock during stock count

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 Weighted Distribution Value
• Weighted Distribution Value(WD%)
– Total contribution of the dealers who have reported
for that company / brand to the total value of the
category

WD% = Total category sales of handlers of the product X 100

Total Sales of the category

It’s category share of stores

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 FMCG Weighted Distribution Value

• FMCG Weighted Distribution Value

– The total contribution of the dealers who have
reported for that company / brand to the total value
of the FMCG

WD% = Total FMCG sales of handlers of the product X 100

Total FMCG market value
• Provided with one month lag

It’s FMCG share of stores

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 OSD Weighted Distribution Value

• OSD Weighted Distribution Value

– Total contribution of the dealers who were OSD for
that company / brand to the total value of the
category

OSDWD% = Total category sales of OSD of a product X 100

Total Category Sales Value

It signifies opportunity loss on account of out of stock

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Derivatives

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 Derivatives

• Market Shares
• STR ( Stock Turn Over Ratio)
• PDO/Average Sales Per Store
• Share Among Handlers
• Paid Sales Unit/Weight
• MRP Value

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 Market Share

• Market Share
– Ratio of total sales of a product to total
sales of the category (by volume and value)

MS % = (Sales of product / Total Sales) X 100

It’s about dominance in the market place

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 Stock Turnover Ratio

• STR
– This indicates the number of days the
present stock will last with the dealers,
assuming the current rate of sales of the
respective product

STR = Closing stock / Sales X 30 (days)

It’s about how long the stock will last

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 Per Dealer Offtake

• PDO
– Ratio of sales by volume to the total number
of dealers handling the product

PDO = Sales volume / Total no. of dealers

It’s about density in the market place

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 Share Among Handlers

• SAH
– For a company / brand the total contribution of the
dealers who have reported for that company / brand
to the total value of the category of those dealers.

SAH% = Total Sales Value of Company/Brand X 100

Total Category Sales Value of Company/Brand
handlers

It’s market share amongst handlers

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 Sales Per Point of Weighted
Distribution
• SPPWD
– Sales of a brand in Rs. Per weighted distribution
percentage. It helps understand the brand’s
consumer pull

SPPWD = Total Sales Value of Company/Brand

Weighted Distribution %

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Copyright © 2005
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