THE NPD GROUP




                                                http://corpdevnew/image_library/




                   ...
Walmart and Sam’s Club Tap the NPD Group…

 In June 2007, NPD announced consumer data sharing agreement with
  Walmart an...
Walmart & NPD: A Developing Partnership




• In February, 2008, Walmart
named The NPD Group
Syndicated Supplier of the Ye...
Key Product Benefits


Acquire/access the same data used by Wal-Mart for category
management applications and line review...
NPD’s Core Technology Tracking Services


      We track and report on two different data sources
                for a co...
Creating a Second Data Set for the Walmart/Sam’s Club View



 Syndicated Consumer Panal Data:             Walmart/Sam’s...
Consumer Tracking Services for Walmart and Sam’s Club


 Product Overview:
    – A subscription based deliverable based o...
Share Data Differences


 Market share in Walmart/Sam’s Club information will
  often be different on an absolute basis t...
Use of Relative Share Change v. Absolute Share Numbers



 Primary focus will be share change over time.
 Applications f...
SEGMENTATION: Walmart/Sam’s Club Customer Segments




 NPD’s Consumer Panel has been scored with
  Walmart and Sam’s Clu...
Walmart Consumer Segmentation

 With NPD’s Consumer Tracking Service for Walmart,
  you can think, view, and speak to the...
Walmart Segments

Percentage of United States Population by Segment
                Conscientous
                 Objector...
Key Walmart Segments: 56% of the US Population
Brand Aspirationals represent higher proportion of NB
                                                    purchasers; sign...
Walmart and Sam’s Club Deliverables


 PowerView database and PowerViewER tables provided for
  purchased categories
 Cu...
New Consumer Fields available


Many consumer fields will be
available to customers for the first
time within the Walmart ...
Business Indicator Report (BIR)

 A suite of reports that will regularly provide share and segmentation
  information nev...
Walmart Sales in CE Up Almost 2X Total CE Revenue in June
                         Exec Cited Uses NPD BIR Reports
Sample BIR - Walmart Entertainment: Brands




                          • How important
                          is the ...
Sample BIR - Walmart Entertainment: Retailers & Segments




                                     • How does Walmart
     ...
Sample BIR - Walmart Entertainment: Brands - Electronics




                                         • How important
    ...
Sample BIR - Walmart Entertainment: Retailers - Electronics




                                                          ...
Key Product Benefits


Acquire/access the same data used by Walmart for category management
applications and line reviews...
Refresher on NPD Data Sharing Policy

 The new Walmart consumer data products are a unique source of market
  information...
THE NPD GROUP




                                            AUTOMOTIVE
                          Contact Info:     BEAUT...
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NPD Walmart Overview 2009

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NPD\'s consumer data developed especially for Walmart and their suppliers

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NPD Walmart Overview 2009

  1. 1. THE NPD GROUP http://corpdevnew/image_library/ AUTOMOTIVE BEAUTY COMMERCIAL TECHNOLOGY Consumer Tracking Service for Walmart CONSUMER TECHNOLOGY Consumer Tracking Service for Sam’s Club ENTERTAINMENT FASHION FOOD & BEVERAGE Overview for Vendors Supporting FOODSERVICE Walmart and Sam’s Club HOME OFFICE SUPPLIES SOFTWARE SPORTS TOYS WIRELESS Copyright 2007. The NPD Group, Inc. All Rights Reserved. This presentation is Proprietary and Confidential and may not be disclosed in any manner, in whole or in part, to any third party without the express written consent of NPD.
  2. 2. Walmart and Sam’s Club Tap the NPD Group…  In June 2007, NPD announced consumer data sharing agreement with Walmart and Sam’s Club – Direct access to NPD’s consumer panel data for the following industries: • Apparel, Footwear, Accessories • Consumer Technology • Toys • Wireless Handsets “NPD will be the preferred provider • Entertainment of consumer panel data that • Automotive Aftermarket Walmart will use to manage its • Food & Beverage businesses.” • Foodservice • Home
  3. 3. Walmart & NPD: A Developing Partnership • In February, 2008, Walmart named The NPD Group Syndicated Supplier of the Year • The award recognizes NPD for data quality, partnership for consumer insights, and business planning.
  4. 4. Key Product Benefits Acquire/access the same data used by Wal-Mart for category management applications and line reviews Eliminate the need to justify the credibility of your data and align it with Wal- Mart’s because you will be using the same data and views, a “common currency” of sorts. Get a clearer picture of your category’s and brand’s share at Wal-Mart and trend performance versus your key competitors Identify potential areas of growth for your category/brand at Wal-Mart Manage merchandising and marketing resources to capitalize on opportunities and reduce costs for seasonal and region-specific events at Wal-Mart
  5. 5. NPD’s Core Technology Tracking Services We track and report on two different data sources for a complete market view. POS Consumer  Point-of-sale information  Online panel from 100+ retailers, covering information from over 3 over 250 categories million consumers  What was sold, by SKU,  Who purchased, by channel, including price reason for purchase, competitive brand  Data projected to a defined share by retailer, “universe” of stores purchase motivators,  Brand & item level detail customer satisfaction including over 1000  Only source for attributes retailer share  Panel available for custom surveys
  6. 6. Creating a Second Data Set for the Walmart/Sam’s Club View  Syndicated Consumer Panal Data:  Walmart/Sam’s Club Data – Volumetric Measures – Modified Measures • Unit Sales • Unit Share • Dollar Sales • Dollar Share • Average Selling Price • Price Indices – Enhanced precision with the use of – Contains “de-coupled” consumer data (not Point of Sale data calibrated to POS) – Key data set for retailers outside of – The only NPD data that can be shared with Walmart and Sam’s Club Walmart or Sam’s Club – The only consumer data that reflects Walmart department structure, geographies, and data presented in the Walmart consumer segments
  7. 7. Consumer Tracking Services for Walmart and Sam’s Club  Product Overview: – A subscription based deliverable based on NPD Consumer data – Contains “de-coupled” consumer data (not calibrated to POS) – Contains modified measure set (e.g., share change in dollars/units and price indices) – Available to manufacturers which currently sell at Walmart – Key features of the product include: • Expanded Consumer Data field selection • WM/SC Custom regions • WM Department structure (and eventually division structure) • WM/SC proprietary customer segmentation – This is the only NPD data set that customers may share with Walmart – This data is already being heavily used at Walmart to drive key strategic business decisions that affect your customers every day
  8. 8. Share Data Differences  Market share in Walmart/Sam’s Club information will often be different on an absolute basis than the Syndicated Consumer Panel data.  While the absolute number will be different we have determined the relative share change is very consistent. 50 45 40 35 30 Projected Data 25 De-Coupled Data 20 15 10 5 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
  9. 9. Use of Relative Share Change v. Absolute Share Numbers  Primary focus will be share change over time.  Applications for clients: – How has my category performed relative to the market over time? – What is the relative share change of my brand compared to my competition over time? – What has been the relative share change in Walmart business compared to key competitors?
  10. 10. SEGMENTATION: Walmart/Sam’s Club Customer Segments  NPD’s Consumer Panel has been scored with Walmart and Sam’s Club Customer Segments – Available to select vendors, as approved by Walmart.  Vendors get unprecedented views of the customer groups that Walmart is targeting – Understand importance of each segment to Walmart and Sam’s Club – Assess brand performance relative to customer segments, and identify opportunities for growth among those that are of highest strategic value to Walmart and Sam’s Club
  11. 11. Walmart Consumer Segmentation  With NPD’s Consumer Tracking Service for Walmart, you can think, view, and speak to the same segments. – Price-Sensitive Segments • Price Value Shoppers • Brand Aspirationals • Price Sensitive Affluents – Price Indifferent • Social Shoppers • Trendy Quality Seekers • Convenience Seekers • Conscientious Objectors  Walmart Plans to “Win” with Brand Aspirationals and Retain Price Value and Price Affluent Shoppers
  12. 12. Walmart Segments Percentage of United States Population by Segment Conscientous Objectors Price Value Price 14% Value 16% 16% Convenience Areas of Seekers focus for 11% Walmart Trendy Quality Brand Brand Seekers Aspirationals Aspirationals 12% 29% 29% Social Shoppers 7% Price Sensitive Affluents 11%
  13. 13. Key Walmart Segments: 56% of the US Population
  14. 14. Brand Aspirationals represent higher proportion of NB purchasers; significant brand differences Walmart Segment Differences by Brand 100% Unit Share 80% 42% 44% 44% 45% 56% 60% 11% 12% 10% 9% 40% 14% 9% 16% 12% 13% 7% 20% 38% 29% 33% 34% 24% 0% U.S. Population Notebooks Brand A Brand B Brand C Brand Aspirationals Price Value Shoppers Price Sensitive Affluents All Other Retail Calendar Quarters Source: The NPD Group / Walmart Product
  15. 15. Walmart and Sam’s Club Deliverables  PowerView database and PowerViewER tables provided for purchased categories  Customer Segmentation in PowerView and PowerViewER tables  Monthly consumer data points, trend data back to Jan 2005  Expanded Consumer Data PowerView fields  Outlet specific Geographies  Outlet specific data structure (hierarchy) when available  Business Intelligence Reports (BIRs)  Deliverables are in the same format that Walmart/Sam’s Club receives
  16. 16. New Consumer Fields available Many consumer fields will be available to customers for the first time within the Walmart and Sam’s Club products, including MONTHLY consumer results.
  17. 17. Business Indicator Report (BIR)  A suite of reports that will regularly provide share and segmentation information never before available to Walmart  Data is classified into a data structure that is consistent with Walmart’s Strategic Business Unit (SBU) organizations, departmental structures within SBU, and categories within each department.  Tailored to each key member of the organization from senior management to the DMM level, it brings visibility and individual accountability by area of responsibility. DMMS have presented these reports to their buyers, who will also be using the information found in these reports.  Technology categories will generally fall into two of the four SBUs; Entertainment and Hardlines. Also part of the full Business Indicator Report are Home and Apparel SBUs.  The Business Indicator Report will be delivered to Walmart as .pdf files on a quarterly basis.  Delivery of these reports allows our data to integrate fully with the way Walmart does business
  18. 18. Walmart Sales in CE Up Almost 2X Total CE Revenue in June Exec Cited Uses NPD BIR Reports
  19. 19. Sample BIR - Walmart Entertainment: Brands • How important is the brand to Walmart overall? • How important is Walmart overall to the brand?
  20. 20. Sample BIR - Walmart Entertainment: Retailers & Segments • How does Walmart perform compared to other retailers overall? • How is Walmart performing overall in their target segments? • How can your brand help Walmart’s performance in these categories?
  21. 21. Sample BIR - Walmart Entertainment: Brands - Electronics • How important is the brand to Walmart for the category? • How important is the category at Walmart the brand?
  22. 22. Sample BIR - Walmart Entertainment: Retailers - Electronics • How does Walmart perform compared to other retailers in this category? • How is Walmart performing in their target segments for this category? • How can your brand help Walmart’s performance in these categories?
  23. 23. Key Product Benefits Acquire/access the same data used by Walmart for category management applications and line reviews Eliminate the need to justify the credibility of your data and align it with Walmart’s because you will be using the same data and views, a “common currency” of sorts  Get a clearer picture of your category’s and brand’s share at Walmart and trend performance versus your key competitors  Identify potential areas of growth for your category/brand at Walmart Understand the key customer segments that Walmart considers most important to their business Manage merchandising and marketing resources to capitalize on opportunities and reduce costs for seasonal and region-specific events at Walmart
  24. 24. Refresher on NPD Data Sharing Policy  The new Walmart consumer data products are a unique source of market information that is being made available to Walmart and Sam’s Club.  The foundation for ongoing success of this new relationship with Walmart is the continued reinforcement of our data sharing philosophy. – Contractual agreements with our other retail partners preclude NPD from sharing any POS data or calibrated consumer data with Walmart and Sam’s Club. – These new Walmart products are the ONLY NPD information that manufacturers can share with Walmart or Sam’s Club. • Manufacturers (vendors) cannot share NPD’s calibrated Consumer Tracking Service data for Consumer Technology with Walmart or Sam’s Club. • Why? It is enhanced with POS data.  Similarly, neither NPD nor our manufacturer clients can share the new Walmart products with ANY other retailer.
  25. 25. THE NPD GROUP AUTOMOTIVE Contact Info: BEAUTY COMMERCIAL TECHNOLOGY CONSUMER TECHNOLOGY Bob Goodwin ENTERTAINMENT VP, Business Development FASHION robert_goodwin@npd.com FOOD & BEVERAGE 513-494-3300 FOODSERVICE HOME OFFICE SUPPLIES SOFTWARE SPORTS TOYS WIRELESS

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