Nielsen's Buy segment provides consumer packaged goods manufacturers and retailers with the most comprehensive view of the consumer through information and insights. We are the global leader in retail measurement services, helping our clients understand current performance and provide analytics that aid in managing and improving future performance. Clients look to Nielsen to help navigate through the key trends and marketplace dynamics impacting their business. With presence in 104 countries, we help our clients make smarter, quicker business decisions that drive results.
How do I evaluate new store expansion?
A leading regional grocer came to Nielsen to help evaluate an opportunity to expand into a new location. The client looked to Nielsen for insight on demographics, ideal store size and desired product lines.
Nielsen used its demographic findings and local-market information in a sophisticated statistical model that was able to evaluate and rate a potential location's attractiveness through predicted volumes and competitive impacts. Nielsen found that the proposed location had a high rating for the client's stores.
With available space to build a store as large as 10,000 square feet, Nielsen's model predicted volume in relation to store size and found the optimal balance.
The client also utilized Nielsen's research and prediction models to optimize their local assortment. Using key demographic considerations such as age, income, family size, occupation and location, the retailer was able to fine tune its in-store assortment and promotional efforts to meet local needs. Finally, high demand categories were used to drive the store layout and spacing.
|Grocery sales in the new location increased 80% in the one year following the store's opening.|
How do I optimize my product assortment?
Over the years, a global consumer packaged goods company had significantly expanded the number of packaging options in its canned seafood category. The proliferation of SKUs led to increased costs and shelf space consumption, without showing sufficient incremental benefit to the product line's overall sales. The company approached Nielsen to help maximize retailers' existing shelf space by strategically rearranging the brand's product mix.
Nielsen performed a comprehensive assortment analysis that helped the client look beyond traditional measures such as unit sales to determine the incremental value of each SKU in its portfolio.
Using its web-based simulation software, Nielsen Assortman optimizer, Nielsen provided a study identifying items likely to bring additional customers to the category and increase the brand's total sales.
For a number of retail channels, the analysis meant increasing the brand's canned offerings and delisting several of its other SKUs, some of which delivered little incremental benefit to the category.
|The brand's year-over-year case sales grew by 12.7% at large nationwide retailer in the four months following the assortment changes.||The brand's sales grew 26.0% at a mid-size grocery chain in the three-month period directly following the reset.||The brand's share of the category increased by 12.1%. Importantly, the ability to present retailers with data demonstrating the contribution of each item to overall aisle sales helped the company gain shelf space from a competitor at a number of key chains.|
How do I identify new product opportunities?
A global packaged foods company approached Nielsen to help develop an entry strategy into the U.S. frozen novelties market. Nielsen conducted an extensive study of the category and helped identify a launch strategy that aimed to transform the frozen novelty aisle with entirely new brand energy.
The Insights team was able to identify a compelling pool of unmet demand: consumers who seek style, indulgence, and decadence — qualities that were largely absent from the category. The team was convinced that the emotional and social elements of a true lifestyle brand were not just absent in the category, but were powerfully relevant to a rich pool of latent consumer demand. Extensive research and global experience supported their confidence, and the marketing campaign was built around these insights.
Importantly, the team aligned its strategy with retailers helping them to revitalize and expand the frozen novelties category.
|The new brand generated year-one sales of $95 million and year-two sales of $136 million, an increase of 43% year-over-year.|