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What insights can Nielsen provide
             on F h P d
                Fresh Produce? ?


Infocado Summit 2010
By Yahya Kanj




             What insights can Nielsen provide on Fresh Produce?
Who is Nielsen and what do we do?
•    The Nielsen Company (formerly ACNielsen) is one of the worlds
     largest market research organisations

•    Owned by 6 p
             y private equity p
                        q y partners, H/O based in New York, CEO
                                    ,                      ,
     David Calhoun

•    Offices in 114 countries with 35,000 employees worldwide

•    Our core values are Simple Open & Integrated
                         Simple,

•    Put simply, our company measures 2 things:
            py          p y                 g
      1. What people Watch
      2. What people Buy                                                                                    2


                                    What insights can Nielsen provide on Fresh Produce?
                                                Copyright © 2010 The Nielsen Company. Confidential and proprietary.
A comprehensive understanding of Shoppers

                               Shopper
                            •Understanding
                               purchase
                              behaviour


                                                 Segmentation
       Innovation:                                & Targeting
     • New varieties                             -Demographics
     • New pack                                    -Behaviour
       size                                        -Attitudes &
                                                   motivations




                   ROI:                    Comms:
             • Promotion                • Effectiveness
             • Assortment               • Pre test
                                          Pre-test
             • Channel                    campaigns
               Strategy                 • Targeting
                                                                                                            3


                                    What insights can Nielsen provide on Fresh Produce?
                                                Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Nielsen’s Fresh Expertise
• We have been tracking fresh for over 10 years
• We capture a lot of information from shoppers everyday
  – 650,000+ Fresh purchase transactions a year
  – What’s selling in Fresh and Non Fresh?
    What s                      Non-Fresh?
  – Where it’s selling?
  – Who’s buying?
  – Why they’re buying?

• Australia & New Zealand Fresh tracking (and Global)
• We are working very closely with Growers, Wholesalers, Packers,
                 g    y     y              ,            ,       ,
  Distributors, Government, Retailers & Peak Industry Bodies
• Retailer currency for measuring sales & shopper trends
• Actively involved in Fresh Events
                                                                                                               4


                                       What insights can Nielsen provide on Fresh Produce?
                                                   Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Integrating various data sources

 “What”        “How”                                     “Why”

              Homescan                                Consumer
Retail Scan
               Shopper                                Research
Sales Data
                Data                                    Data




                                                                                          5


                  What insights can Nielsen provide on Fresh Produce?
                              Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Retail Scan
       Data



•   Web based access
    W bb       d
•   Updated weekly
•   Coles State & Store level
•   All products & items included
•   Suite of issue based reports & analysis
•   104 weeks historical data trends
•   Promotional week & calendar week
•   Sales, Price, Distribution & Wastage
                                                                                                                      6


                                              What insights can Nielsen provide on Fresh Produce?
                                                          Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Homescan          •   10,000 Household Shopper Panel
    pp
 Shopper          •   Continuous tracking over-time
                                        g
  Data            •   Scanning every grocery purchase




          How can I increase my sales?
     Shopper            Purchase                  Spend per
    Penetration         Frequency                 Occasion




                                                                                                      7


                              What insights can Nielsen provide on Fresh Produce?
                                          Copyright © 2010 The Nielsen Company. Confidential and proprietary.
ers
Shoppe
                     The Shopper & Retailer Dynamic


                                                                    All Households

                                    Shoppers at                                                     Non Shoppers at
                                      Coles
                                      C l                                                                Coles
                                                                                                         C l
    uct
Buyerrs
Produ




                       Bought                     Never Bought
                    the category                  the category                           Buy                                Do Not Buy
                      At Coles                      At Coles                         the Category                          the Category
   asions
Occa




            Occasions / Qty Occasions / Qty       Occasions / Qty                    Occasions / Qty
            Bought at Coles Outside Coles          Outside Coles                     Outside Coles

                                                                                                                                                   8


                                                                        What insights can Nielsen provide on Fresh Produce?
                                                                                       Copyright © 2010 The Nielsen Company. Confidential and proprietary.
How will this influence your strategies?

                High Reach,                            High Reach,
                Low Avg Purchase                       High Avg Purchase
                •Drive consumption/commitment          •Strong product position
                     •e.g 5 a day, multi-buys
                        g        y,        y           •Effective at driving shoppers to
                                                                           g    pp
                •Quality may be an issue                store and share of wallet
 enetration %




                •Drive alternative usages              •Leverage to drive other products

                Low reach,                             Low Reach,
                Low Avg Purchase                       High Avg Purchase
Pe




                •Vulnerable or may b new
                 V l     bl         be                 •Focus on building t i l
                                                        F         b ildi trial
                products                                 •e.g. Promote health/functional
                   •Need to decide to re-invest or       benefits, increasing awareness,
                   stop offering                         sampling/ tastings

                             Average Weight of Purchase (packs)                                                              9


                                                     What insights can Nielsen provide on Fresh Produce?
                                                                 Copyright © 2010 The Nielsen Company. Confidential and proprietary.
What are barriers/drivers to purchase? Price,
                             Quality, Range, Usage, Convenience etc…
                                   y,    g ,     g ,
    Consumer                 Do Shoppers always do what they say?
    Research
                             What is the relationship between what they
      Data                   claim and what they do?




•    Quantitative & Qualitative methods
•    Trigger Surveys to Homescan Panel
•    Virtual Stores & In-Store observations
                      In Store
•    Advertising effectiveness measurement



                                                                                                              10


                                        What insights can Nielsen provide on Fresh Produce?
                                                    Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Spectra Targeting
 Other      •   Where should we advertise? And How? TV,
                Radio, Magazine
Solutions   •   Which stores should we be sampling in?
            •   Which local areas / schools should we be
Available       targeting our campaigns?

                          Top
                          T WW stores to target heavy
                                                h
                              Mushroom buyers
                    WOOLWORTHS CHERRYBROOK VILLAGE                      60.5%    172
                    WOOLWORTHS METRO WEST PENNANT HILLS                 59.6%    169
                    WOOLWORTHS KELLYVILLE                               58.6%    166
                    WOOLWORTHS DURAL                                    58.0%    165
                    WOOLWORTHS ST IVES                                  57.7%    164
                    WOOLWORTHS GORDON                                   56.8%    161
                    WOOLWORTHS NORWEST                                  55.9%    159
                    WOOLWORTHS ALBANY CREEK                             55.8%    158
                    WOOLWORTHS GELNROSE BELROSE                         55.7%    158
                    WOOLWORTHS WARNER                                   55.3%    157
                    WOOLWORTHS ERINDALE WANNIASSA                       54.9%    156
                    WOOLWORTHS GLENWOOD                                 54.2%    154
                    WOOLWORTHS MENAI                                    54.0%    153
                    WOOLWORTHS THE PINES DONCASTER EAST                 53.9%    153
                    WOOLWORTHS CECIL HILLS                              53.6%    152
                    WOOLWORTHS ST HELENA 7000006087                     53.3%
                                                                        53 3%    151
                    WOOLWORTHS AVALON                                   53.0%    150
                    WOOLWORTHS KENMORE                                  52.6%    149
                    WOOLWORTHS ELTHAM                                   52.2%    148
                    WOOLWORTHS THORNLEIGH                               52.0%    147           11


                   What insights can Nielsen provide on Fresh Produce?
                                     Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Advanced Modelling Techniques
 Other                 •      How can I optimize my sales & marketing investment?
                       •      What is the optimal price?
Solutions              •      How deep should we promote to optimise sales
Available              •
                              uplifts?
                              What is the consumer decision process for my
                              product?
                  TV Optimization Example
        Cumulative Incremental Revenue ($MM) from TV
                         Advertising       Optimize
                                           O ti i
                                                       Optimize    Dayparts
                                         Optimize      :15s/:30s
                                         Flighting                   $12.3
                           Optimize                       $11.5
                            Copy
                                          $10.1
             Current
            Incr Rev
                            $8.9
                            $8 9
              $7.0




                               Brand A's TV Generated Revenue
                                                                                                                             12


                                                  What insights can Nielsen provide on Fresh Produce?
                                                                   Copyright © 2010 The Nielsen Company. Confidential and proprietary.
In summary….

• Plenty of information available

• If you’re unsure, just ask

• Tell us your business issue and we will try to help
                        issue,

 Coming up….How this information can be used to
 make a difference to your business!


• Michael Locke (Australia)
                (         )
  michael.locke@nielsen.com

• Nicola Fox (New Zealand)
             (           )
  nicola.fox@nielsen.com
                                                                                                            13


                                      What insights can Nielsen provide on Fresh Produce?
                                                  Copyright © 2010 The Nielsen Company. Confidential and proprietary.

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What insights can nielson provide on fresh produce

  • 1. What insights can Nielsen provide on F h P d Fresh Produce? ? Infocado Summit 2010 By Yahya Kanj What insights can Nielsen provide on Fresh Produce?
  • 2. Who is Nielsen and what do we do? • The Nielsen Company (formerly ACNielsen) is one of the worlds largest market research organisations • Owned by 6 p y private equity p q y partners, H/O based in New York, CEO , , David Calhoun • Offices in 114 countries with 35,000 employees worldwide • Our core values are Simple Open & Integrated Simple, • Put simply, our company measures 2 things: py p y g 1. What people Watch 2. What people Buy 2 What insights can Nielsen provide on Fresh Produce? Copyright © 2010 The Nielsen Company. Confidential and proprietary.
  • 3. A comprehensive understanding of Shoppers Shopper •Understanding purchase behaviour Segmentation Innovation: & Targeting • New varieties -Demographics • New pack -Behaviour size -Attitudes & motivations ROI: Comms: • Promotion • Effectiveness • Assortment • Pre test Pre-test • Channel campaigns Strategy • Targeting 3 What insights can Nielsen provide on Fresh Produce? Copyright © 2010 The Nielsen Company. Confidential and proprietary.
  • 4. Nielsen’s Fresh Expertise • We have been tracking fresh for over 10 years • We capture a lot of information from shoppers everyday – 650,000+ Fresh purchase transactions a year – What’s selling in Fresh and Non Fresh? What s Non-Fresh? – Where it’s selling? – Who’s buying? – Why they’re buying? • Australia & New Zealand Fresh tracking (and Global) • We are working very closely with Growers, Wholesalers, Packers, g y y , , , Distributors, Government, Retailers & Peak Industry Bodies • Retailer currency for measuring sales & shopper trends • Actively involved in Fresh Events 4 What insights can Nielsen provide on Fresh Produce? Copyright © 2010 The Nielsen Company. Confidential and proprietary.
  • 5. Integrating various data sources “What” “How” “Why” Homescan Consumer Retail Scan Shopper Research Sales Data Data Data 5 What insights can Nielsen provide on Fresh Produce? Copyright © 2010 The Nielsen Company. Confidential and proprietary.
  • 6. Retail Scan Data • Web based access W bb d • Updated weekly • Coles State & Store level • All products & items included • Suite of issue based reports & analysis • 104 weeks historical data trends • Promotional week & calendar week • Sales, Price, Distribution & Wastage 6 What insights can Nielsen provide on Fresh Produce? Copyright © 2010 The Nielsen Company. Confidential and proprietary.
  • 7. Homescan • 10,000 Household Shopper Panel pp Shopper • Continuous tracking over-time g Data • Scanning every grocery purchase How can I increase my sales? Shopper Purchase Spend per Penetration Frequency Occasion 7 What insights can Nielsen provide on Fresh Produce? Copyright © 2010 The Nielsen Company. Confidential and proprietary.
  • 8. ers Shoppe The Shopper & Retailer Dynamic All Households Shoppers at Non Shoppers at Coles C l Coles C l uct Buyerrs Produ Bought Never Bought the category the category Buy Do Not Buy At Coles At Coles the Category the Category asions Occa Occasions / Qty Occasions / Qty Occasions / Qty Occasions / Qty Bought at Coles Outside Coles Outside Coles Outside Coles 8 What insights can Nielsen provide on Fresh Produce? Copyright © 2010 The Nielsen Company. Confidential and proprietary.
  • 9. How will this influence your strategies? High Reach, High Reach, Low Avg Purchase High Avg Purchase •Drive consumption/commitment •Strong product position •e.g 5 a day, multi-buys g y, y •Effective at driving shoppers to g pp •Quality may be an issue store and share of wallet enetration % •Drive alternative usages •Leverage to drive other products Low reach, Low Reach, Low Avg Purchase High Avg Purchase Pe •Vulnerable or may b new V l bl be •Focus on building t i l F b ildi trial products •e.g. Promote health/functional •Need to decide to re-invest or benefits, increasing awareness, stop offering sampling/ tastings Average Weight of Purchase (packs) 9 What insights can Nielsen provide on Fresh Produce? Copyright © 2010 The Nielsen Company. Confidential and proprietary.
  • 10. What are barriers/drivers to purchase? Price, Quality, Range, Usage, Convenience etc… y, g , g , Consumer Do Shoppers always do what they say? Research What is the relationship between what they Data claim and what they do? • Quantitative & Qualitative methods • Trigger Surveys to Homescan Panel • Virtual Stores & In-Store observations In Store • Advertising effectiveness measurement 10 What insights can Nielsen provide on Fresh Produce? Copyright © 2010 The Nielsen Company. Confidential and proprietary.
  • 11. Spectra Targeting Other • Where should we advertise? And How? TV, Radio, Magazine Solutions • Which stores should we be sampling in? • Which local areas / schools should we be Available targeting our campaigns? Top T WW stores to target heavy h Mushroom buyers WOOLWORTHS CHERRYBROOK VILLAGE 60.5% 172 WOOLWORTHS METRO WEST PENNANT HILLS 59.6% 169 WOOLWORTHS KELLYVILLE 58.6% 166 WOOLWORTHS DURAL 58.0% 165 WOOLWORTHS ST IVES 57.7% 164 WOOLWORTHS GORDON 56.8% 161 WOOLWORTHS NORWEST 55.9% 159 WOOLWORTHS ALBANY CREEK 55.8% 158 WOOLWORTHS GELNROSE BELROSE 55.7% 158 WOOLWORTHS WARNER 55.3% 157 WOOLWORTHS ERINDALE WANNIASSA 54.9% 156 WOOLWORTHS GLENWOOD 54.2% 154 WOOLWORTHS MENAI 54.0% 153 WOOLWORTHS THE PINES DONCASTER EAST 53.9% 153 WOOLWORTHS CECIL HILLS 53.6% 152 WOOLWORTHS ST HELENA 7000006087 53.3% 53 3% 151 WOOLWORTHS AVALON 53.0% 150 WOOLWORTHS KENMORE 52.6% 149 WOOLWORTHS ELTHAM 52.2% 148 WOOLWORTHS THORNLEIGH 52.0% 147 11 What insights can Nielsen provide on Fresh Produce? Copyright © 2010 The Nielsen Company. Confidential and proprietary.
  • 12. Advanced Modelling Techniques Other • How can I optimize my sales & marketing investment? • What is the optimal price? Solutions • How deep should we promote to optimise sales Available • uplifts? What is the consumer decision process for my product? TV Optimization Example Cumulative Incremental Revenue ($MM) from TV Advertising Optimize O ti i Optimize Dayparts Optimize :15s/:30s Flighting $12.3 Optimize $11.5 Copy $10.1 Current Incr Rev $8.9 $8 9 $7.0 Brand A's TV Generated Revenue 12 What insights can Nielsen provide on Fresh Produce? Copyright © 2010 The Nielsen Company. Confidential and proprietary.
  • 13. In summary…. • Plenty of information available • If you’re unsure, just ask • Tell us your business issue and we will try to help issue, Coming up….How this information can be used to make a difference to your business! • Michael Locke (Australia) ( ) michael.locke@nielsen.com • Nicola Fox (New Zealand) ( ) nicola.fox@nielsen.com 13 What insights can Nielsen provide on Fresh Produce? Copyright © 2010 The Nielsen Company. Confidential and proprietary.