What insights can nielson provide on fresh produce

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

Infocado Summit 2010Infocado Summit 2010By 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 organisationslargest market research organisations

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

• Offices in 114 countries with 35,000 employees worldwide

• Our core values are Simple Open & Integrated• Our core values are Simple, Open & Integrated

• Put simply, our company measures 2 things:

2

p y p y g1. What people Watch2. What people Buy

Copyright © 2010 The Nielsen Company. Confidential and proprietary.


A comprehensive understanding of Shoppers

Shopper•Understanding

purchase behaviour

Segmentation & Targeting

-Demographics-Behaviour

Innovation:• New varieties• New pack

-Attitudes & motivations

New pack size

ROI: • Promotion• Assortment

Comms:• Effectiveness• Pre test

3

• Assortment• Channel

Strategy

• Pre-test campaigns

• Targeting



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 selling in Fresh and 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

4• Actively involved in Fresh Events



Integrating various data sources

“What” “How” “Why”

Retail ScanHomescanShopper

ConsumerResearch

Sales DataShopper

DataResearch

Data

5



Retail ScanDataData

W b b d• Web based access• Updated weekly• Coles State & Store level

All products & items included• All products & items included• Suite of issue based reports & analysis• 104 weeks historical data trends• Promotional week & calendar week

6

• Promotional week & calendar week• Sales, Price, Distribution & Wastage



• 10,000 Household Shopper Panel• Continuous tracking over-time

HomescanShopper g

• Scanning every grocery purchasepp

Data

How can I increase my sales?

ShopperPenetration

PurchaseFrequency

Spend perOccasion

How can I increase my sales?

Penetration Frequency Occasion

7



The Shopper & Retailer Dynamicer

sSh

oppe

All Households

Shoppers atC l

Non Shoppers atC lColes Coles

uct

rsPr

odu

Buy

er

Boughtthe category

At Coles

Never Boughtthe category

At ColesBuy

the CategoryDo Not Buy

the CategoryAt Coles At Coles

asio

ns

8

Occ

a

Occasions / QtyBought at Coles

Occasions / QtyOutside Coles





How will this influence your strategies?

High Reach, High Reach, High Avg Purchase•Strong product position•Effective at driving shoppers to

Low Avg Purchase•Drive consumption/commitment

•e.g 5 a day, multi-buys g ppstore and share of wallet

•Leverage to drive other products

g y, y•Quality may be an issue•Drive alternative usages

ion %

Low reach,Low Avg PurchaseV l bl b

Low Reach, High Avg PurchaseF b ildi t i len

etrat

•Vulnerable or may be new products

•Need to decide to re-invest or stop offering

•Focus on building trial•e.g. Promote health/functional benefits, increasing awareness, sampling/ tastings

Pe

9

stop offering sampling/ tastings

Average Weight of Purchase (packs)



What are barriers/drivers to purchase? Price, Quality, Range, Usage, Convenience etc…

ConsumerResearch

y, g , g ,

Do Shoppers always do what they say?

Data What is the relationship between what they claim and what they do?

• Quantitative & Qualitative methods• Trigger Surveys to Homescan Panel

Virtual Stores & In Store observations• Virtual Stores & In-Store observations• Advertising effectiveness measurement

10



Spectra TargetingOther

Solutions• Where should we advertise? And How? TV,

Radio, Magazine• Which stores should we be sampling in?

AvailableT WW h

• Which local areas / schools should we be targeting our campaigns?

WOOLWORTHS CHERRYBROOK VILLAGE 60.5% 172WOOLWORTHS METRO WEST PENNANT HILLS 59.6% 169WOOLWORTHS KELLYVILLE 58.6% 166

Top WW stores to target heavy Mushroom buyers

WOOLWORTHS DURAL 58.0% 165WOOLWORTHS ST IVES 57.7% 164WOOLWORTHS GORDON 56.8% 161WOOLWORTHS NORWEST 55.9% 159WOOLWORTHS ALBANY CREEK 55.8% 158WOOLWORTHS GELNROSE BELROSE 55.7% 158WOOLWORTHS WARNER 55.3% 157WOOLWORTHS ERINDALE WANNIASSA 54.9% 156WOOLWORTHS GLENWOOD 54.2% 154WOOLWORTHS MENAI 54.0% 153WOOLWORTHS THE PINES DONCASTER EAST 53.9% 153WOOLWORTHS CECIL HILLS 53.6% 152WOOLWORTHS ST HELENA 7000006087 53 3% 151

11

WOOLWORTHS ST HELENA 7000006087 53.3% 151WOOLWORTHS AVALON 53.0% 150WOOLWORTHS KENMORE 52.6% 149WOOLWORTHS ELTHAM 52.2% 148WOOLWORTHS THORNLEIGH 52.0% 147



Advanced Modelling TechniquesOther

Solutions• How can I optimize my sales & marketing investment?• What is the optimal price?• How deep should we promote to optimise sales

Available• How deep should we promote to optimise sales

uplifts?• What is the consumer decision process for my

product?product?

TV Optimization ExampleCumulative Incremental Revenue ($MM) from TV

Advertising O ti iAdvertising

$8 9$10.1

$11.5$12.3

Optimize Copy

Optimize Flighting

Optimize DaypartsOptimize

:15s/:30s

Current

$7.0

$8.9CurrentIncr Rev

12Brand A's TV Generated Revenue



In summary….

• Plenty of information available

• If you’re unsure, just ask

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

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

• Michael Locke (Australia) ( )[email protected]

• Nicola Fox (New Zealand)

13

( )[email protected]



Education

What insights can nielson provide on fresh produce