100% found this document useful (3 votes)
6K views87 pages

NielsenIQ RMS Overview 2021

The document discusses Nielsen's Retail Index, which tracks over 100 consumer packaged goods categories across 459,481 retail outlets in Thailand. It measures sales from retailers to consumers to understand market trends. Nielsen collects scanned sales data from cooperating modern trade and convenience stores, while auditing physical sales at other traditional outlets. The Retail Index provides a framework to track food, beverage, household, personal care, and other product categories for off-premise consumption.

Uploaded by

goldenfish.ten
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
100% found this document useful (3 votes)
6K views87 pages

NielsenIQ RMS Overview 2021

The document discusses Nielsen's Retail Index, which tracks over 100 consumer packaged goods categories across 459,481 retail outlets in Thailand. It measures sales from retailers to consumers to understand market trends. Nielsen collects scanned sales data from cooperating modern trade and convenience stores, while auditing physical sales at other traditional outlets. The Retail Index provides a framework to track food, beverage, household, personal care, and other product categories for off-premise consumption.

Uploaded by

goldenfish.ten
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
  • Introduction
  • Retail Index Overview
  • Product Tracking
  • Census and Store Definition
  • Sampling and Data Acquisition
  • Data Processing and Analysis
  • Sales and Market Analysis
  • Distribution Types
  • Data Usage and Period Definitions

The NielsenIQ

(Thailand)

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Get to know
retail index
Global client delivery

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Scope of retail Index
 Research framework
 Research methodology

How should retail index be utilized?


 Retail index terminology

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Scope of
Retail index

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Objective of retail index

The essential base Tracking tool for understanding


sales trends and results of marketing activity from
Defined retail outlets

Information tells you What has happened with sales to


purchasers, When and Where

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Research methodology
We measures where retailers and shoppers Interact

Retail index measures here

459,481 20 MILLION
MANUFACTURERS
65 MILLION
SHOPPERS HOUSEHOLD
RETAIL OUTLETS

© 2021 Nielsen Consumer LLC. All Rights Reserved.


How we work with retail outlets
How we translate information into market must-have data

Retail Index measures


What happens Here

Scanned data

Process Data

Retail outlets

Physical audit

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Retail index data collection methodology

Convenience Stores

Scanned data as
majority from
cooperating stores

Scanned data Physical audit


S/H Other or
S/H Chain
Local supermarket + Traditional trades
MTSR
100% Point-of-
sales Scanned data Scanned data as
Physical Audit from
majority from
panel stores
cooperating stores

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Research framework
Retail Index covers outlets that are in Permanent premises, with Fixed location, involved in Retailing FMCG categories, for
consumption Off-Premise

Food & Beverages Household products


Beer Fruit juices Air care
Bird's nest Gum Coil/stick insecticide
Biscuits Ice cream Detergent
Bouillon cube & broth Instant coffee Dish washing
Breakfast cereals Instant noodle Fabric softener
Candy Liquid milk Fabric starch
Cooking oil Milk powder Household cleaners
Cup yogurt Etc. Etc.
Drinking water
Energy drinks
Essence of chicken

Personal care
Ant-acne Deodorant Moisturizer for body
Blades Disposable diapers Moisturizer for face
Cleanser Facial tissue Pore pack
Cologne Hair coloring Razors
Conditioner Hair styling Sanitary protection
Dental floss Lips care Shampoo
Etc.
© 2021 Nielsen Consumer LLC. All Rights Reserved.
What kind of products do we track?

We track over Personal care (32) Household (22)

100
Anti-Acne Moisturizer for Body Air Care Insecticide – Coil/Stick
Blades Moisturizer for Face Detergent Insecticide – Electric
Cleanser Mouthwash Dish Washing Insecticide – Liquid Refill
Cologne Paper Wipe Dried Cell Battery Insecticide – Mat
Conditioner Pore Pack Fabric Softener Insecticide – Rat Bait
Condom Razors Fabric Starch Laundry Bleach
Categories of consumer Facial Tissue Multi-purpose Fold
Dental Floss Refreshing Towel
package goods Deodorant Sanitary Protection
Household Cleaner Multi-purpose Roll
Insect Repellent Souring Tool
Disposable Diaper Shampoo Insecticide – Aerosol Shoe Care
Impulse (8) Facial Mask
Feminine Wash
Shaving & Preparation
Sun Care
Insecticide –Baits Toilet Tissue

Biscuits Seaweed Hair Coloring Talcum Powder


Candy Snacks Hair Styling Toilet Soap Other food (22)
Chocolate Hair Tonic Toner
Chewing Gum Bird Nest Instant Noodle
Lop Care Toothbrush
Ice Cream Liquid Soap Toothpaste Bouillon Meal Maker
Mouth Freshener Bread Spread Milk Powder
Seasoned
Beverage (13) Breakfast Cereal
Canned Fish
MSG
Non-dairy Creamer
Drinking Water Ready-to-Drink Tea Condensed Milk Pre-packed Rice
Alcoholic Beverage and Energy Drink Soft Drink Cooking Oil Rice Porridge & Soup
Cigarette (4) Fruit Juice Sport Drink Cup Yogurt Sauce
Beer Functional Drink Tea Defined Cheese Sugar Sweetener
Cigarette Instant Coffee Tonic Food Drink Dried Noodle & Pasta
Liquid Milk Egg
Spirits
Mixer Essence of Chicken
Whisky Ready-to-Drink Coffee Fish Sauce
© 2021 Nielsen Consumer LLC. All Rights Reserved.
Research methodology

Turning data into Defining universe


information undertaking census

Annual evaluation and


implementation

Data processing Sample design

Data acquisition Click on each subject to go to that topic


© 2021 Nielsen Consumer LLC. All Rights Reserved.
Nielsen retail index coverage

Within this framework,


Retail index measures…
• Market size
• Market Share
• Pricing
• Distribution
• Out Of Stock*
• Stocks*
• Retailer Purchase*

*only in Traditional Trade

© 2021 Nielsen Consumer LLC. All Rights Reserved.


1

1
Defining universe
undertaking census
(RES/RRES)

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Defining universe and undertaking census

Research framework
NORTH
• Nationwide
• Region:
o Greater Bangkok, Central, North, Northeast, and South
NORTHEAST • Sub-regions:
o Central East, Central West, North Upper, North Lower, Northeast
CENTRAL Upper, and Northeast Lower
• Defined retail outlets
o Super/Hypermarkets and Personal Care Stores
o Convenience/G-Stores
o Open Trade (Mom&Pop) and OT with size
o Licensed Pharmacy

GREATER BANGKOK
Bangkok, Samut Prakarn,
Nonthaburi, Pathumthani

SOUTH

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Defining universe and undertaking census

NORTHEAST
NORTH Amnat Charoen Nong Khai
Bueng Kal Roi Et
Chiang Mai Phitsanulok
Buri Rum Sakon Nakhon
Chiang Rai Phrae
Chaiyaphum Si Sa Ket
Kamphaeng Phet Sukothai
Kalasin Surin
Lamphang Tak
Khon Khen Ubon Ratchathani
Lamphun Uttaradit
Loei Udon Thani
Mae Hong Son
Maha Sarakham Yasothon
Nan
Mukdahan
Phayao
Nakhon Phanom
Phetchabun
Nakhon Ratchasima
Phichit
Nong Bua Lamphu

CENTRAL
SOUTH *Central excludes Greater Bangkok
Ang Thong Samut Sakhon
Chumphon Songkhla Chachoengsao Samut Songkhram
Krabi Surat Thani
Nakhon Si Thammarat Trang GREATER Chai Nat
Chanthaburi
Saraburi
Prajinburi
Narathiwat Yala
Pattani BANGKOK Chon Buri
Kanchanaburi Sing Buri
Phangnga Bangkok, Samut Prakarn, Lob Buri Ratchaburi
Phatthalung Nonthaburi, Pathumthani Nakhon Nayok Suphan Buri
Phuket Nakhon Pathom Ayudhaya
Ranong Nakhon Sawan Trat
Satun Phetchaburi
Prajuabkireekan
Rayong
Sra Kaew Uthai Thani
Source: https://www.dopa.go.th/main/web_index
© 2021 Nielsen Consumer LLC. All Rights Reserved.
Store definition

© 2021 Nielsen Consumer LLC. All Rights Reserved.


“Total Thailand + MTSR” breakdown by channel
In case of MTSR inclusion only

S/H Chain
(Include Personal
Care Stores)
Scanned Data S/H+MTSR
Modern Trade Local Supermarket
+ Modern Trade
+ MTSR Semi-Retailer
Convenience
Stores
Total Thailand +
MTSR
Audited Data Open Trade

Traditional Trade

License Pharmacy

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Super/hypermarket + MTSR
In case of MTSR inclusion only

Example:
Hypermarket Chain
• Tesco Lotus
Hyper, Extra, Non-Cooperating
Department Stores
S/H + MTSR Chain
• Big C
Hyper, Extra, Jumbo
• Villa
• Max Value
• Foodland
Supermarket Chain
Local
• Tesco Lotus Talad S/H Chain Supermarket
• Big C market + MTSR
• The Mall
Home Freshmart + Local Supermarket
Gourmet market • Tang Hua Seng
• Tops Cooperating • Big One
Market, Superkoom,
Cooperating
Personal S/H Other MTSR
Superstore,
S/H Chain
Care Stores • Ocean
Central Food Hall
• CJ Express

Cooperating Supermarket Hypermarket


Non-
Local
MTSR
Personal Care Stores Cooperating • Thanapiriya
Chain Chain Supermarket
Chain
• Watson • Yongsaguan
• Boots • Tang Ngee Soon
• Big C Pure
• Tsuruha
• CJ Nine

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Super/hypermarket + MTSR

Hypermarket Supermarket

• Self service style • Self service style


• Payment is always made at a checkout counter with cash register • Payment is always made at a checkout counter with cash register
• At least 10% of sales space is for each of the super-categories: • At least 10% of sales space is for each of the super-categories or
Food& Beverages, Personal Care, and Household Products. 60% FOR THE COMBINATION of Food & Beverages, Personal Care,
and Household Products
• At least 30% of sales space is for non-FMCG products;
Home/Electric appliance, Clothes/Garment • Sales space exceed 100 sq. meters
• Sales space exceed 2,500 sq. meters

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Super/hypermarket + MTSR

Personal care stores


• At least 60% of its sales area is for Medicine and Personal Care
product
• Handles at least 5 of the following Personal Care product categories:
Anti-acne Sanitary Protection
Deodorant Shampoo
Diapers Sun Care
Hair Coloring Talcum
Hair Conditioner Toilet Soap
Moisturizer Toothbrush
Liquid Soap Toothpaste
Razor
Razor Blade

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Super/hypermarket + MTSR

Modern trade semi retailer (MTSR)

• Stores that sell FMCG products often in the form of packages


shipped from the factory
• Most of the products are sold to other retailers
• At least 10-90% of their revenue comes from wholesale trading with
other retailers/ small retailers
• Have discounts if buy in bulk
• Payment is made at the counter using barcode-scanner
• Products are places on shelves in a systematic manner
• Offer modern features such as trolleys or basket, air-conditioned,
etc.

Exclusion :
• Traditional Semi-Retailer
• Stores that are specialized in specific categories such as cigarette,
beverage, alcohol, etc.
• Makro and Wholesalers

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Example of MTSR stores

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Convenience stores

Convenience stores

• Self service style


• Payment is always made at a CHECKOUT COUNTER with cash
register
• At least 60% of sales space is for the combined super-categories:
Food & Beverages, Personal Care, and Household Products
• Serves hot or cold beverages from ready to drink dispenser or ready
to eat hot food for consumption off-premises (not include vending
machine)
• Sales space is less than 500 sq. meters
• Opening hour is at least 16 hours

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Open trade (provision store)

Open trade (provision store)

• Not self service style


• At least 60% of sales space is for the combined super-categories:
Food & Beverages, Personal Care, and Household Products
• Carry FMCG products AT LEAST 15 CATEGORIES
• 6 from Food & Beverage
• 6 from Personal Care
• 3 from Household
• *Not a strict guideline for 6-6-3

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Examples of open trade

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Examples of stores that are not open trade

KIOSK FRESH MARKET BOOKSHOP

MISC.STORES IMPULSE STORES WEEKEND MARKET


© 2021 Nielsen Consumer LLC. All Rights Reserved.
Licensed pharmacy

Licensed pharmacy

• Not self service style


• Licensed by Government to dispense ETHICAL
PHARMACEUTICALS
• At least 40% of sales area is for MEDICINE
• Handle at least 5 categories of Personal Care product & Medicine

Anti-acne Sanitary Protection


Deodorant Shampoo
Diapers Sun Care
Hair Coloring Talcum
Hair Conditioner Toilet Soap
Moisturizer Toothbrush
Liquid Soap Toothpaste
Razor
Razor Blade

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Off Premise

S/H Chain

Scanned Data (Include Personal Care


Stores)
S/H+MTSR

Modern Trade Local Supermarket + Modern


+ MTSR Trade Semi-Retailer

Convenience Stores

Total Thailand +
MTSR
Audited Data
Open Trade

Total Thailand Traditional Trade Licensed Pharmacy


On+Off+MTSR
All Other Outlets

Other FMCG

On Premise

Food Shop

On Premise

Restaurant

© 2021 Nielsen Consumer LLC. All Rights Reserved. Only for Beverage Panel
All other outlets

All other outlets

All other outlets


= Licensed pharmacy + Other FMCG

Other FMCG
• Store that can not be classified as provision store but carrying At
Least 5 FMCG categories

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Food shop and restaurant

Food shop Restaurant

• Provides prepared food or food made to order • Provides menu for prepared food or food made to order only
• Provides seats and tables mainly for dine-in purposes • Provides seats and tables mainly for dine-in purposes
• At least 40% of sales area are devoted to consumption of food on • At least 40% of sales area are devoted to consumption of food on
premise premise
• Dedicated waiter or waitress in uniform to service table
• Payment by credit card is feasible
• Luxurious interior design
• Provides facilities and amenities – i.e. Napkins

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Example of food shop and restaurant

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Food shop and restaurant exclusion
Chain Fast Food Restaurant or Quick Serve Restaurant, Food Court and Canteen, Food Shop without tables & chairs, Food
Cart/Kiosk & Street Food, Pub & Restaurant, Night Entertainment
Food Shops in public & private organization (School, Government Office, Factory, Private Office)

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Undertaking the retail census
Why taking Retail Establishment Survey (RRES)?

To monitor CHANGES in TO BE AN INPUT FOR


• Number of stores in the market
• Trading patterns of existing stores
SAMPLE
• Importance/turnover of retail channels DESIGN
• Type of store formats present in the market

© 2021 Nielsen Consumer LLC. All Rights Reserved.


1

2 Sample design
Stratified disproportionate random systematic samples

© 2021 Nielsen Consumer LLC. All Rights Reserved.


© 2021 Nielsen Consumer LLC. All Rights Reserved.
What is Nielsen sampling methodology?

Stratified Disproportionate Random


Systematic Samples
Sample sizes and selections balance data accuracy with reporting costs...

Optimum Sample Allocation determines the number of sample points required to


represent a sample cell with an acceptable standard error range specified by
Nielsen’s global standards called “Watch Builder.”
• 4% National
• 10% Channel
• 15% Sub Region
Nielsen Retail Index Samples are:
© 2021 Nielsen Consumer LLC. All Rights Reserved.
What is Nielsen sampling methodology?
Nielsen Retail Index Samples are:

Stratified Disproportionate Random


Systematic Samples
Stratification groups together outlets that are similar / homogeneous

- Higher accuracy from lower standard error


- Lower cost from lower variance. So we need fewer outlets to
accurately represent the group or sample cell.

© 2021 Nielsen Consumer LLC. All Rights Reserved.


© 2021 Nielsen Consumer LLC. All Rights Reserved.
© 2021 Nielsen Consumer LLC. All Rights Reserved.
Stratification process

– Stores within a cell are as similar as possible


– Stores across cells are as different as possible.
Store size
XL L M S
Region South
North
Supermarkets
Central
Northeast
Convenience/ Mini markets
Bangkok

Drug stores

Open trade Storetypes


Other stores

Statistical Cell

© 2021 Nielsen Consumer LLC. All Rights Reserved.


What is Nielsen sampling methodology?
Nielsen Retail Index Samples are:

Stratified Disproportionate Random


Systematic Samples
Disproportionate means that sampling proportion is based on outlet Variability and Sales Importance,
not by number of stores.

Disproportionate Process
Statistical Cells with…
Higher Variance, Higher Sales Importance (ACV) ----> Higher Samples
Lower Variance, Lower Sales Importance (ACV) ----> Lower Samples
© 2021 Nielsen Consumer LLC. All Rights Reserved.
What is Nielsen sampling methodology?
Nielsen Retail Index Samples are:

Stratified Disproportionate Random


Systematic Samples
Random: Every store has an equal probability of being
selected - this eliminates bias in sample selection.

Systematic: We select at equal intervals along a universe list sorted by


size to ensure the sample is well spread over the universe
population.

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Systematic random sampling
If there are 10 stores in the sample cell, and it is decided that 5 sample stores should be selected within the cell select ever
second store from a random starting point...

Select one sample store randomly

Large Open Trade 1 2 3 4 5 6 7 8 9 10


in North

Systematically select the other sample stores down the list

Back to menu
© 2021 Nielsen Consumer LLC. All Rights Reserved.
1

3 Data acquisition
Scanned and physical audit

© 2021 Nielsen Consumer LLC. All Rights Reserved.


© 2021 Nielsen Consumer LLC. All Rights Reserved.
Data acquisition
…from 2 data sources:

Scanned data Physical Audit

Store Recruitment :
■ Head Office Negotiations for Chain Retailers ■ Local Field recruitment of Independent stores under the directive
of the Nielsen statistician.

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Scanned data: getting the data separated by week under the concept of…

4-4-5 OR 4-5-4

All Offline & Online Retailer except Tops Tops


Month SRGTimeCode Weekly Date Begin (Mon) Date End (Sun) Date Begin (Wed) Date End (Tue)
4202101 Mon 4/Jan/2021 Sun 10/Jan/2021 Wed 06/Jan/2021 Tue 12/Jan/2021
4202102 Mon 11/Jan/2021 Sun 17/Jan/2021 Wed 13/Jan/2021 Tue 19/Jan/2021
4202103 Mon 18/Jan/2021 Sun 24/Jan/2021 Wed 20/Jan/2021 Tue 26/Jan/2021
Jan'21 4202104 Mon 25/Jan/2021 Sun 31/Jan/2021 Wed 27/Jan/2021 Tue 2/Feb/2021
4202105 Mon 1/Feb/2021 Sun 07/Feb/2021 Wed 03/Feb/2021 Tue 09/Feb/2021
4202106 Mon 08/Feb/2021 Sun 14/Feb/2021 Wed 10/Feb/2021 Tue 16/Feb/2021
4202107 Mon 15/Feb/2021 Sun 21/Feb/2021 Wed 17/Feb/2021 Tue 23/Feb/2021
Feb'21 4202108 Mon 22/Feb/2021 Sun 28/Feb/2021 Wed 24/Feb/2021 Tue 2/Mar/2021
4202109 Mon 1/Mar/2021 Sun 7/Mar/2021 Wed 03/Mar/2021 Tue 09/Mar/2021
4202110 Mon 08/Mar/2021 Sun 14/Mar/2021 Wed 10/Mar/2021 Tue 16/Mar/2021
4202111 Mon 15/Mar/2021 Sun 21/Mar/2021 Wed 17/Mar/2021 Tue 23/Mar/2021
4202112 Mon 22/Mar/2021 Sun 28/Mar/2021 Wed 24/Mar/2021 Tue 30/Mar/2021
Mar'21 4202113 Mon 29/Mar/2021 Sun 4/Apr/2021 Wed 31/Mar/2021 Tue 6/Apr/2021

Remark: NielsenIQ needs to have 53 Weeks every around 15 years to adjust the weekly period to cover the actual year. The
last time as 53 weeks in year 2020.
© 2021 Nielsen Consumer LLC. All Rights Reserved.
Physical audit : off-take calculation

Example Calculation of Sales: Exercise Calculation of Sales:

Previous period closing inventory 200 units Previous period closing inventory 300 units
+ +
Purchase records (or sales-in) 500 units Purchase records (or sales-in) 200 units

Total possible sales in this outlet 700 units Total possible sales in this outlet 500 units
- -
Inventory from the current period 300 units Inventory from the current period 100 units

Total sales 400 units Total sales 400 units

Back to menu
© 2021 Nielsen Consumer LLC. All Rights Reserved.
1

4 Data processing

© 2021 Nielsen Consumer LLC. All Rights Reserved.


© 2021 Nielsen Consumer LLC. All Rights Reserved.
Data processing

Retail Analysis Processing System


(Fully Computerized)

1. Data Coding ( Scanned and Physical audit )

2. Data Production
- Expands by cell, checks for statistical outliers
and non-reporting stores
- Replaces errors or removes stores from sample
- Merges universe and cell sample information
- Final cross sectional and longitudinal checking

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Nielsen Code Data by using Barcode and Product description as priority
However, sometimes, the NPD details from manufacturers can be very helpful to code the product correctly. The details would be
Barcode, Product Description, and Product Photos.

© 2021 Nielsen Consumer LLC. All Rights Reserved.


1

5 Turn data into


information

© 2021 Nielsen Consumer LLC. All Rights Reserved.


© 2021 Nielsen Consumer LLC. All Rights Reserved.
Retail Index servicing types

Data delivery types Inquiry on NielsenIQ

Delivered by Database Excel CSO 2.0 Taking Care by


MINOC Team
Delivery Snapshot
Platform Client Response Team

Delivered by
Report Center Team

Interested in NielsenIQ Services

Delivered by Analysis
Customer Success Team Presentation
Taking Care by
BD Team Commercial Team

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Get to know Nielsen answers

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Database structure

Market Product Fact Period


Example

Remark: Remark:
Product Level is limited at 10 only These Database Facts can be Remark:
calculated for the hundreds Monthly period is maximum at
useful expressions 3 years with 1 on-going year

Back to menu
© 2021 Nielsen Consumer LLC. All Rights Reserved.
Retail index analysis term
‘Facts’

© 2021 Nielsen Consumer


2021 Nielsen ConsumerLLC.
LLC.AllAll
Rights Reserved.
Rights Reserved.
Sales vs share

Sales – Value or Volume : How much is sold to end consumers?


– Value: nominal consumption, measured in Baht (thousand, million)
– Volume: real consumption, measured in Gram, Litre, KG, Ton
% Share – Value or Volume : How are we doing compared to the rest?
– Percentage of total category sales of each MBD

Value (Volume) Sales | MBDi


Value (Volume) % Share
Total Category Value (Volume) Sales | MBDi

Value Sales Volume Sales Value % Share Volume % Share

Brand A 200 80 40% 40%

Brand B 160 50 32% 25%

Brand C 140 70 28% 35%

Category 500 200 100% 100%

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Sales vs share

>> Both sales and share should be looked


together not just to track performance of a
brand but also to benchmark with others
EXAMPLE
Sales are growing !!!

Is everything OK ?
YEAR 2014 2015 2016 2017 2018 2019

UNITS 100 110 121 133 146 161 10%


Average
Annual

Maybe not so........ Growth

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Why should we look at absolute sales together with share?

Example 1
Total Market Average + 20%
Thailand : Value Sales (MB)
+ 28%
337
Average
Annual
269 Growth
213
167
130
100

100 110 121 133 146 161


+10%
2014 2015 2016 2017 2018 2019

Brand A Share = 50% Brand B Brand A Share = 32%


Brand A
Interpretation:
Brand A consistently grows at 10% over the years yet growth of Brand A is only half the
market growth resulting in share loss. Hence speeding up growth is needed for Brand A
© 2021 Nielsen Consumer LLC. All Rights Reserved.
Why should we look at absolute sales together with share?

Example 2

Interpretation:
Value % Growth PP
+15.2% +/- Value % Share PP
We only grow share if we grow faster than total
category!!!
-3.0 Shares

In Dec’09, Brand A lost share even though they gain


sales. This is because they could not catch up with
+80% +3.9 Shares market growth.

On the other hand, Brand C gains both sales and


share as they grow faster than total category in
Dec’09.

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Value growth does not always mean volume growth

Why is volume growth not matching value growth?

Value Sales

VALUE VOLUME
2% -2%
Volume Sales Price
MAT sales growth

Interpretation:
Value sales is up mainly driven by price increase. Volume sales is down for a number of different factors (price,
promotional activity, and so on).

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Price definition

Price per pack / Price per unit 280 THB


• price of an unit

Price per volume (price per L or kg)


• compare across different pack sizes 1325 THB/L 1100 THB/L

Price Index
• calculated as an index 108 116
• >100 means more expensive than index
• To see our positioning compare to market

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Cheaper Price per pack of “Brand B” does not mean Brand B price is cheaper than Brand A at
comparable size or at SKU Level but is rather due to Brand B selling more Units of smaller pack
size than Brand A does

Sales Volume Sales Value Avg Price per Price per


Size Sales Unit (KG) (Baht) Volume (KG) Pack/Unit

Brand A 400 160 13,000 81 33

100gm 100 10 1,000 100 10

500gm 300 150 12,000 80 40

Brand B 400 80 7,000 88 18

100gm 300 30 3,000 100 10

500gm 100 50 4,000 80 40

Price per pack/unit treats every single unit equally. Not care big or small pack size
Then, Price per pack/unit should be used at SKUs level
© 2021 Nielsen Consumer LLC. All Rights Reserved.
% share of trade (trade contribution)

Brand Sales from Channel A


% Share of Trade
Total Brand Sales from Total Thailand
Significance of each MBD (Market Break-Down) to Total Brand Sales.
Brand A Category

Sales Share of Trade Sales Share of Trade

S/H GBKK 40 20% 125 25%

S/H UPC 30 15% 50 10%

CVS 40 20% 100 20%

O/T Urban 60 30% 125 25%

O/T Rural 30 15% 100 20%

THAILAND 200 100% 500 100%

© 2021 Nielsen Consumer LLC. All Rights Reserved.


SWOT analysis by using Value % Share of Trade and Value % Change

Better Value % Change than the market

Opportunity Strength

Lower Share of Trade Higher Share of Trade


than the market than the market

Weakness Threat

Worse Value % Change than the market


© 2021 Nielsen Consumer LLC. All Rights Reserved.
Distribution types

Value Sales of Stores WEIGHTED WEIGHTED


is Important SELLING TOTAL STOCK
Distribution Distribution

NUMERIC NUMERIC
Number of Stores
SELLING TOTAL STOCK
is Important Distribution Distribution

Check Availability Check Availability


when the products when the products
are sold are in the stores
*Only Available in
© 2021 Nielsen Consumer LLC. All Rights Reserved.
Traditional Trade
Distribution: Numeric distribution

NUMERIC TOTAL STOCK DISTRIBUTION


Percentage of stores that carries your brand / SKU.
How many outlets handle your brand and competitors’
brands? Where is the opportunity?

Number of Store Carrying Brand X


Numeric Total Distribution
Number of Store in the Market

Title of Presentation

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Distribution: numeric distribution
Numeric distribution (number of store)

Numeric Total Stock Number of Store that carried Brand X


Distribution Number of Store in the Market

Numeric Selling Number of Store that selling Brand X


Distribution Number of Store in the Market

Remark: Use Numeric Distribution to compare cross-category


© 2021 Nielsen Consumer LLC. All Rights Reserved.
Numeric total stock distribution & Numeric selling distribution

Category Sale 20 Baht 25 Baht 50 Baht 0 Baht


5 Baht
Value

Shop 1 Shop 2 Shop 3 Shop 4 Shop 5

Available Products X XYZ XY Z

Sold Products X YZ XY Z

Numeric Total Stock Distribution Numeric Selling Distribution


Category 4/5 Stores 80% 4/5 Stores 80%
Brand X 3/5 Stores 60% 2/5 Stores 40%
Brand Y 2/5 Stores 40% 2/5 Stores 40%
Brand Z 2/5 Stores 40% 2/5 Stores 40%

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Distribution: weighted distribution

WEIGHTED TOTAL STOCK DISTRIBUTION


Percentage of business turnover going through stores in which brand / SKU has
distribution.
Quality of distribution or importance of stores that carry
your products

Weighted
Sum of Category Sales from Stores Carrying Brand X
Total
Sum of Category Sales from ALL Category Carrying Stores
Distribution
Title of Presentation

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Distribution: Weighted distribution formula
Weighted distribution (store turnover or store importance)

Weighted Value Sales of The Category by Store that carried Brand X


Total Stock
Distribution Value Sales of The Category by ALL Stores that carried The Category

Weighted Value Sales of The Category by Store that sold Brand X


Selling Distribution Value Sales of The Category by ALL Stores that sold The Category

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Weighted total stock distribution & weighted selling distribution

Category Sale
5 Baht 20 Baht 25 Baht 50 Baht 0 Baht
Value

Shop 1 Shop 2 Shop 3 Shop 4 Shop 5

Available Products X XYZ XY Z

Sold Products X YZ XY Z

Weighted Total Stock Distribution Weighted Selling Distribution

Category 𝟓 + 𝟐𝟎 + 𝟐𝟓 + 𝟓𝟎 + 𝟎 100/100 Baht 100% 𝟓 + 𝟐𝟎 + 𝟐𝟓 + 𝟓𝟎 + 𝟎 100/100 Baht 100%


𝟓 + 𝟐𝟎 + 𝟐𝟓 + 𝟓𝟎 + 𝟎 𝟓 + 𝟐𝟎 + 𝟐𝟓 + 𝟓𝟎 + 𝟎

Brand X 𝟓 + 𝟐𝟎 + 𝟐𝟓 + 𝟎 + 𝟎 50/100 Baht 50% 𝟓 + 𝟎 + 𝟐𝟓 + 𝟎 + 𝟎 30/100 Baht 30%


𝟓 + 𝟐𝟎 + 𝟐𝟓 + 𝟓𝟎 + 𝟎 𝟓 + 𝟐𝟎 + 𝟐𝟓 + 𝟓𝟎 + 𝟎

Brand Y 𝟎 + 𝟐𝟎 + 𝟐𝟓 + 𝟎 + 𝟎 45/100 Baht 45% 𝟎 + 𝟐𝟎 + 𝟐𝟓 + 𝟎 + 𝟎 45/100 Baht 45%


𝟓 + 𝟐𝟎 + 𝟐𝟓 + 𝟓𝟎 + 𝟎 𝟓 + 𝟐𝟎 + 𝟐𝟓 + 𝟓𝟎 + 𝟎

Brand Z 𝟎 + 𝟐𝟎 + 𝟎 + 𝟓𝟎 + 𝟎 70/100 Baht 70% 𝟎 + 𝟐𝟎 + 𝟎 + 𝟓𝟎 + 𝟎 70/100 Baht 70%


𝟓 + 𝟐𝟎 + 𝟐𝟓 + 𝟓𝟎 + 𝟎 𝟓 + 𝟐𝟎 + 𝟐𝟓 + 𝟓𝟎 + 𝟎

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Comparing Weighted Distribution and Numeric Distribution
Caution: Weighted distribution is calculated based on Total Category sales in the stores.

Category Sale
5 Baht 20 Baht 25 Baht 50 Baht 0 Baht
Value

Shop 1 Shop 2 Shop 3 Shop 4 Shop 5

Sold Products X YZ XY Z

Weighted Selling Distribution Numeric Selling Distribution

Category 100/100 Baht 100% 4/5 Stores 80%

Brand X 30/100 Baht 30% 2/5 Stores 40%

Brand Y 45/100 Baht 45% 2/5 Stores 40%

Brand Z 70/100 Baht 70% 2/5 Stores 40%

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Distribution : In-stock & out stock

Total stock distribution


= In Stock Distribution + Out of Stock Distribution

2 Consecutive Periods of Out of Stock (OOS)


and No Purchase record
Losing Distribution

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Applicable in OT only
Out of Stock (OOS)

Numeric Out-of-Stock
Percentage of shops in the universe that have zero inventory on the day of the
current audit.

Weighted Out-of-Stock
Importance of shops that are out-of-stock to total category sales.

Note: Distribution loss occurs when an item / brand is not handled for 60 days following the out-of-stock.

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Numeric in-stock vs out-stock distribution

Brand X
Outlets in the market Numeric
1 2 3 4 5 6 7 8 9 10 Total Dist Out Stock In Stock

% % %
Jan X X X X X X 60 0 60

Feb X OOS X OOS X OOS X X 80 30 50

Mar X OOS OOS X X OOS X OOS X 70 20 50

After two consecutive periods of out of stock and What would the correct numbers be?
no purchases,
The outlet is no longer a handler
© 2021 Nielsen Consumer LLC. All Rights Reserved.
Rate-of-sale (ROS)
Sales per point of distribution (S.P.P.D)

Brand Sales
S.P.P.D
Total Brand Distribution

Sales Distribution ROS

Brand A 200 50 4

Brand B 160 40 4

Brand C 180 60 3

Note: S.P.P.D should be viewed when the distribution is at least >30%

Average sales generated from 1% point of distribution.


© 2021 Nielsen Consumer LLC. All Rights Reserved.
Example 1: SKU C has opportunity to boost distribution for a higher level

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Example 2: SKU E has distribution opportunity due to strong value sppd

© 2021 Nielsen Consumer LLC. All Rights Reserved.


No. of SKU Handling: Number of SKU per Store
Since NielsenIQ does not count the number of SKU on the shelve directly and the total number of store is unavailable in the NAD,
using numeric distribution is applied in the calculation.

Total Number of SKU


In reality 𝑵𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝑺𝑲𝑼 𝒑𝒆𝒓 𝑺𝒕𝒐𝒓𝒆 =
𝑵𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝑺𝒕𝒐𝒓𝒆𝒔

Sum of Numeric Distribution of All SKU


In Practice 𝑵𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝑺𝑲𝑼 𝒑𝒆𝒓 𝑺𝒕𝒐𝒓𝒆 =
𝑻𝒐𝒕𝒂𝒍 𝑵𝒖𝒎𝒆𝒓𝒊𝒄 𝑫𝒊𝒔𝒕𝒓𝒊𝒃𝒖𝒕𝒊𝒐𝒏

Numeris Distribution
Jan20 Feb20 Mar20 Apr20 May20 Jun20
SKU 1 80 85 85 85 85 85
SKU 2 100 100 100 99 98 95
SKU 3 60 60 60 65 60 65
SKU 4 30 30 32 35 30 35
SKU 5 15 15 15 14 13 15
SUM of All SKU Distribution 285 290 292 298 286 295
Brand A real distribution 100 100 100 100 99 99
Number of SKU Handling 2.9 2.9 2.9 3.0 2.9 3.0

© 2021 Nielsen Consumer LLC. All Rights Reserved.


QBOT: Quantify Business Opportunity

67,000 baht comes from The distribution gap is Current Value Sppd
7*9,590 40 - 47 = - 7% = 9,590 baht

Target to reach
distribution at SKU B which
is at 47%

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Stock (available in manual audit channels only)

Total Stock
Forward Stock + Reserved Stock

Forward Stock
Amount of retail inventory that is in front selling area or
displays.
Reserved Stock Ideal
Stock in the back room Situation

Stock Share = Purchase Share = Volume Share

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Data usage & limitation

•Price per Unit should be viewed at SKU level

•Stock/Purchase/Out of Stock – valid for Open Trade channel only

•Low distribution might cause data fluctuation due to higher standard error. (Low means < 15-20 numeric distribution)

•SPPD should be viewed when distribution is >30%

•Distribution is percentage – so never exceed 100

•Distribution is one point in time – so should not be averaged across periods and also cannot be combined across periods

•Distribution of Total Brand A does not equal to distribution of all items under Brand A combined

•So, LOOK AT TREND Do not jump to conclusions based on a single period’s reading. Usually one can talk of trends after 3 months

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Retail index analysis term
‘Periods’

© 2021 Nielsen Consumer


2021 Nielsen ConsumerLLC.
LLC.AllAll
Rights Reserved.
Rights Reserved.
Period
What are TY, LY, YA, PP / how different?

LY or YA PP
TY LAST YEAR or Year Ago,
PREVIOUS PERIOD,
THIS YEAR, represent represent same range
represent period in one
period in current year data. previous period according
year earlier data.
to selection.

© 2021 Nielsen Consumer LLC. All Rights Reserved.


© 2021 Nielsen Consumer LLC. All Rights Reserved.
% Change/growth (YA & PP)
Actual Change
Sales TY – Sales YA
% Change on YA Calculation
(Sales TY - Sales YA)/(Sales YA) x 100

Current Quarter = Q2 2012 % Change YA

*% Change YA or PP does not limit to Month, Quarter, % Change PP


Annual – it can be used for any time periods.
© 2021 Nielsen Consumer LLC. All Rights Reserved.
Period: MAT

Moving Annual Total - MAT


Annual sales figures updated on a Monthly (12 x Monthly periods) basis .
Gives a long term growth rate / strategic view of the market .
A constant figure that incorporates seasonality.

2019 2020 2021


J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D
MAT LY = MAT Sep’20 MAT TY = MAT Sep’21

% Growth MAT Sep’21 vs. YA


= % Sales Change of MAT Sep’21 versus MAT Sep’20

% Growth MAT TY MAT TY Sales – MAT LY Sales


MAT LY Sales

© 2021 Nielsen Consumer LLC. All Rights Reserved.


Period: YTD

Year to Date - YTD


Cumulative from January to the latest month.
As the year progresses YTD figures grow in size.
Often used when looking at internal performance vs. budgets.

2020 2021
J F M A M J J A S O N D J F M A M J J A S O N D
YTD LY = YTD Sep’20 YTD TY = YTD Sep’21

% Growth YTD Sep’21 vs. YA


= % Sales Change of YTD Sep’21 versus YTD Sep’20

% Growth YTD TY YTD TY Sales – YTD LY Sales


YTD LY Sales
© 2021 Nielsen Consumer LLC. All Rights Reserved.
About NielsenIQ
Arthur C. Nielsen, who founded Nielsen in 1923, is the original name in
consumer intelligence. After decades of helping companies look to the
future, we are setting the foundation for our future by becoming NielsenIQ.
We continue to be the undisputed industry leaders as evidenced by our
experience and unmatched integrity. As we move forward, we are focused
on providing the best retail and consumer data platform, enabling better
innovation, faster delivery, and bolder decision-making. We are unwavering
in our commitment to these ideals and passionate about helping clients
achieve success. For more information, visit: niq.com

© 2021 Nielsen Consumer


2021 Nielsen ConsumerLLC.
LLC.AllAll
Rights Reserved.
Rights Reserved.

You might also like