Copyright 2012 The Nielsen Company. Confidential and
proprietary. #Consumer360 CAN 1 % MAKE A DIFFERENCE? Significant
investments are made Trade Promotion is essential for shelf
placement, feature & display presence and pricing tactics COGS
Adv Dist R&D Trade Promo
Slide 3
Copyright 2012 The Nielsen Company. Confidential and
proprietary. #Consumer360 HUGE VARIANCE IN PERFORMANCE AND ROI
Promotional performance varies widely Average ROI 11.2% 1000% 800%
600% 400% 200% 0% -200% -150%-100%-50%0%50%100%150%200% 37% 56% 6%
1% PROMOTIONAL PERFORMANCE USING FULL ROI ANALYSIS NET INCREMENTAL
GSR UPLIFT % ROI %
Slide 4
Copyright 2012 The Nielsen Company. Confidential and
proprietary. #Consumer360 Key Challenges Unsophisticated &
Unsatisfied Significant Spend THERE IS A NEED FOR OPTIMIZATION 2 nd
largest expense in CPG 2.5x ad spend 40% of promotions ineffective
Out of stocks ~8% 70%+ clients unhappy Measuring Trade Efficiency
Retail Execution v Plan Technology Alignment Integrated Marketing
Effectiveness
Slide 5
Copyright 2012 The Nielsen Company. Confidential and
proprietary. #Consumer360 CURRENT PROCESS A NEED FOR IMPROVEMENT
Modeling Enhanced Strategy Planning Strategic Optimization and
Planning Pre Planning Promotional Evaluation Budget & Targets
Analytics Post Event SAP System TPO Baseline Planning Event Volume
Planning Promotional Planning Budget Setting TPM Fund Management,
Accruals Invoicing Terms Shipment Planning Event Claims ACTIVATE
Customized pricing comparison at local level
Slide 6
Copyright 2012 The Nielsen Company. Confidential and
proprietary. #Consumer360 DISCIPLINED PROCESS WINS THE DAY
Strategic Planning Tactical Planning Promotion Management Post
Event Analytics Retail Execution Integrated Retail sales data
leveraged throughout the process
Slide 7
Copyright 2012 The Nielsen Company. Confidential and
proprietary. #Consumer360 LETS DO THE SIMPLE MATH Trade spend $200B
INDUSTRYYOU $100M $500M $2B $1M $5M $20M
Slide 8
Copyright 2012 The Nielsen Company. Confidential and
proprietary. 8 #Consumer360 WINNING REQUIRES MULTIPLE COMPONENTS
Embed and propagate Descriptive and predictive Clear framework
& knowledge path Evolves with the market and teams Leadership
and domain knowledge Culture Content Scale Expertise Cadence
Slide 9
Copyright 2012 The Nielsen Company. Confidential and
proprietary. 9 #Consumer360 ONE CLIENTS STORY TO IMPROVE EXECUTION
Gaps between Strategies and Tactics Early wins build momentum Goal:
Improve Promotion ROI One big pain point
Slide 10
Copyright 2012 The Nielsen Company. Confidential and
proprietary. 10 #Consumer360 EXISTING TOOLS/SOLUTIONS LEFT GAPS
Multiple stakeholders Different needs Execution disconnects with
strategy TECHNOLOGY TOO COMPLICATED CANT ACTIVATE AT RETAIL
SIMPLE
Slide 11
Copyright 2012 The Nielsen Company. Confidential and
proprietary. 11 #Consumer360 FILLING IN THE DATA GAPS Improve
content and cadence all the time All Categories (In a given
category) All Competitors (In all geographies) All Customers
Slide 12
Copyright 2012 The Nielsen Company. Confidential and
proprietary. 12 #Consumer360 PROVIDED A SIMPLE TOOL Expand scale
across user groups Consistency and transparency ONE Flexibility to
multiple users Speed to insight
Slide 13
Copyright 2012 The Nielsen Company. Confidential and
proprietary. 13 #Consumer360 A POWERFUL COMBINATION OF TOOLS
Slide 14
Copyright 2012 The Nielsen Company. Confidential and
proprietary. 14 #Consumer360 LOCAL SALES TRAINING DRIVES ADOPTION
Users understand the data Simulations relevant to local marketplace
Field empowered to make decisions Increasing collaboration Right
tool to the right stakeholder expands expertise
Slide 15
Copyright 2012 The Nielsen Company. Confidential and
proprietary. #Consumer360 $12 MILLION 8x ROI Letting the data guide
the conversation has given us the credibility we need with our
retail partners ONE CATEGORY, ONE RETAILER, ONE BIG WIN
Manufacturer Retailer
Slide 16
Copyright 2012 The Nielsen Company. Confidential and
proprietary. 16 #Consumer360 CLIENT IS BUILDING UPON THIS MOMENTUM
Collaborative Plans Customer Influence NEW CONTENT AND TOOLS
Looking for additional ROI opportunities
Slide 17
Copyright 2012 The Nielsen Company. Confidential and
proprietary. 17 #Consumer360 DEFINE AND EVALUATE A STRATEGIC PLAN
INTEGRATED TOOLS DRIVE WIN/WIN OUTCOMES DEFINE AND EVALUATE A
STRATEGIC PLAN EXECUTE EFFICIENTLY MONITOR AND ADJUST IN REAL TIME
CASCADE TO TACTICAL PLANNING Retailer P7 Bogo
Slide 18
Copyright 2012 The Nielsen Company. Confidential and
proprietary. 18 #Consumer360 ITS IMPORTANT TO REALLY UNDERSTAND
INCREMENTAL Promotion Source of Volume Past ParadigmPurchase
Behaviors Store Switch Brand Switch Non Promoted Volume Subsidized
Volume Incremental Volume Non Promoted Volume Subsidized Volume
Time Switch Market Expansion New Paradigm
Slide 19
Copyright 2012 The Nielsen Company. Confidential and
proprietary. 19 #Consumer360 Manufacturer Benefit Retailer Benefit
HIGHLOW HIGH PROMOTIONAL SOURCE OF VOLUME ENABLES FOCUS ON MUTUALLY
BENEFICIAL PROMOTIONS 27% 32% 25% 17% PROMOTIONAL IMPACT FRAMEWORK
Retailer Growth Subsidization Manufacturer Growth Mutual Growth
Note: Source: Nielsen Promotional Source of Volume Models; 30
category average 2013
Slide 20
Copyright 2012 The Nielsen Company. Confidential and
proprietary. 20 #Consumer360 % Promotion Incrementality to
Manufacturer/Retailer Brand B +lift WRIGLEY UNCOVERED DIFFERENCES
ACROSS BRANDS & HOW THEY LADDERED TO PORTFOLIO & CATEGORY
VALUE
Slide 21
Copyright 2012 The Nielsen Company. Confidential and
proprietary. 21 #Consumer360 5% - 10% + improvement in trade
efficiency Reduced operational costs and time delays Rapid time to
value 5% - 10% + improvement on forecast accuracy LETS PARTNER TO
DRIVE BOTTOM LINE RESULTS 1% is a meaningful start toward greater
goals