Nielsen - BASES Overview

Winning with Innovation An Introduction to BASES

Created for Nielsen Client Business PartnersApril, 2009

Confidential & Proprietary Copyright © 2009 The Nielsen Company

Agenda• Overview of BASES

• Our Services

Confidential & ProprietaryCopyright © 2009 The Nielsen Company

1

What is BASES?

• Our mission is to help our clients grow through successful• Our mission is to help our clients grow through successful innovation on their brands.

• We use a pre-market sales forecasting system:• We use a pre-market sales forecasting system:– Measures consumer interest in new initiatives and relaunches– Combines consumer measures with marketing plan information to

forecast sales volume – All prior to marketplace introduction

The s stem is sed to e al ate diagnose and impro e the• The system is used to evaluate, diagnose, and improve the potential of new product initiatives and relaunches.


2

Innovation Process

CLIENT DEVELOPMENT PROCESS

You want to separate the strong initiatives from the weaker ones

• BASES provides new productadvice and consultancy

You want to refine the initiative

– Measures consumer interest in new initiatives

– Combines consumer measures with

You want to test the concept/product mix

marketing plan information to forecast sales volume

– All prior to marketplace introductionUsed to e al ate diagnose and

You want to optimize your marketing plans for launch

• Used to evaluate, diagnose, and improve the potential of new product initiatives and relaunches

You launch the productIn Market Success or Failure?

• BASES can lead the client through the whole development process


3

SA

BASES offers more than “Go/No Go” evaluations, with a flexible system to help you grow your initiative all along your NPD

process

Select, Select, RefineRefine

EvaluateEvaluateC titiC titi

GeneraGeneratt

LES

+

process.

LaunchLaunchRefine Refine product inproduct inRefineRefine

Build Build StrongStrong

ConceptsConceptsOptimize Marketing Mix &Optimize Marketing Mix &

Competitive Competitive Landscape, Landscape,

Identify Identify White SpacesWhite Spaces

D fiD fi

te,te,SelectSelectIdeasIdeas

PROF

,,Track, Track, OptimiOptimi

zeze

product in product in light of usage light of usage

experience experience and fit with and fit with the conceptthe concept

BASES Market & Brand

Ad i (MBA)

Optimize Marketing Mix & Optimize Marketing Mix & Marketing Marketing Plan ROIPlan ROI

Define Define ObjectivesObjectives

FIT

the conceptthe concept

Advisor (MBA)BASES SnapShot &

Pre-BASES

BASES I BASES II

BASES Launch Review(Validation)BASES Price Advisor

BASES Chatterbox


4BASES DecisionPoint BASES Launch Advisor

BASES Answers Business Questions

• Should we develop this new Product?• Should we develop this new Product?• How will a branding relaunch effect sales and quality perceptions of the

line?H h ld I i iti d l t ff t th id ith th• How should I prioritize my development efforts on the ideas with the most promise?

• How can we justify a premium price strategy in category X? • Will our product deliver?• What are the optimal varieties/sizes in our line? What are the volume

implications of launching a subset of the varieties under consideration?g• How much advertising (if any) will be needed to reach our sales goals?• Does our packaging break through the clutter at the shelf?• How much volume should we expect in the first year?• How much volume should we expect in the first year?• Is our main benefit credible and relevant to our target consumer?• Will this launch cannibalize other offerings in the category?


5

Helping our clients grow through successful innovation• BASES’ main focus is on forecasting the sales of new products before they are

l h d i t th k tlaunched into the market– We measure consumer interest in the idea (via a consumer survey), and then combine those

measures with the brand’s marketing plan to forecast sales

W th h l li t i th id th f th l h– We then help our clients improve the idea as they prepare for the launch

Sales Sales

Consumer ResponseConsumer Response

Marketing Plan

Marketing Plan

ForecastForecast

+ = Based on model calibrations Response Data

Response Data

Plan Information

Plan Information

+ =

From survey data Provided by our

Optimize Proposition,

Optimize Proposition,

to in-market data

y Provided by our clients

p ,Marketing & Execution

p ,Marketing & Execution

Through analytic


6

g yframeworks and

consultation

This consumer response data is coupled with marketing plan information in the BASES Model to yield the volumetric estimate.

What consumers actually do

Volume EstimateVolume

Forecast

Di t ib ti

Promotion/in-store activityAdjust for what marketers do to

influence Impact of Marketing Distribution

Awareness

consumers

Measure

Marketing Support

Remove consumer bias f t

Interested Universe

Measure Consumer Perception

factors Adjust for Overstatement

Consumer ClaimsWhat

consumers say they will do

Total Addressable

Market


7

BASES interviews a sample of consumers representing the total addressable market as well as key target segments.

The core “total market” sample allows for a direct comparison of initiatives and for calibration to in-market data for forecasting. These interviews are augmented with samples representing client target

groups, samples of key buyer groups, and other groups as appropriate.

Brand Loyalists

( )

Illustrative Example

Total Addressable

(over-sample)

dd essab eMarket

(base sample) Target Segment

(over sample)Key Buyer

(over-sample)Group(over-sample)


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BASES Market

Select, RefineSelect, RefineBuild StrongBuild Strong

ConceptsConcepts

Optimize Marketing Mix & Marketing Optimize Marketing Mix & Marketing Plan ROIPlan ROI

EvaluateEvaluateCompetitive Competitive Landscape, Landscape,

Identify Identify White Spaces,White Spaces,

Define ObjectivesDefine Objectives

Generate,Generate,SelectSelectIdeasIdeas

SALES

+

PROFIT

Launch,Launch,Track, Track,

OptimizeOptimize

Eureka!/

Refine product in Refine product in light of usage light of usage

experience and fit experience and fit with the conceptwith the concept

BASES’ systematic approach allows marketers to understand how their launch initiatives perform relative to their category

…and answer a set of Key Measure questions asked in the same manner on every survey

Consumers are exposed to a concept representing the launch proposition…

same manner on every survey.

Purchase IntentPurchase Intent

LikingLiking

• Which statement best describes how you feel about buying this product?

• How much do you think you would like or dislike this product?

Price/ValuePrice/Value • Considering the price of the product, how do you feel about the value for money of this new product?

• How do you rate this product in being new and different from other

BelievabilityBelievability • How do you feel about the believability of the statements made about the product?

New & DifferentNew & Different

Claimed UnitsClaimed Units

Claimed FrequencyClaimed Frequency

• How do you rate this product in being new and different from other products?

• How many units of the new product, if any, would you buy the first time you purchased this new product?

• How often, if ever, would you buy this product if it was available where you shop?

The systematic approach allows for “apples-to-apples”

FrequencyFrequency

Overall Purchase

Intent* Liking Value Uniqueness

Claimed Units per

Purchase**

Claimed Annual Purchase

Frequency** 100%

vs. the BASES Database of ~100 Pasta Sauce initiatives evaluated in the U.S. within the past 10 years

pp ppcomparisons of

performance to a category-wide

database for every launch proposition

80%

60%

40%

20%CC

C

CCC


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launch proposition.0%

C= Chef Lou's Pasta Sauce

Our unique advantages lie in our extensive innovation expertise and rigorous approach to benchmarking and volume forecasting

• Databased Approach to Benchmarking– Powerful tool to assess strength of new launches

• Volume-Based Analytics

– Enabled by our systematic and empirical approach to analysis and forecasting and the resources of the entire Nielsen Company

• Extensive history of innovation consulting– 90,000 new ideas tested

• Unique client service structure – Dedicated forecaster/analyst consultants.

• Proprietary tools and techniques to optimize initiatives and launch success– IntroSCAPE proprietary “consumer adoption” framework– Marketing execution optimization– Choice Tools linked to volume– Price optimization– Category opportunity identification


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Additional BASES Products and Services• BASES FindTime

– Can consumers find my product on shelf? What package attributes best help differentiate my product from the competition?

• BASES IntroSCAPE• BASES IntroSCAPE– How can the initiative be optimized to best reach consumers?

• BASES Marketing Plan Analyzer• BASES Marketing Plan Analyzer– How can I optimize my marketing support for a new product?

• BASES Price AdvisorBASES Price Advisor– What is the optimal pricing strategy for my initiative? What impact

could price have on the volume potential of the initiative?

• BASES DecisionPoint– How will the introduction of a new product or line impact my full

portfolio of brands in market?


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portfolio of brands in market?

Nielsen - BASES Overview

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