Nielsen Bases Solution
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Copyright © 2017 The Nielsen Company. Confidential and proprietary.
MAXIMIZING YOUR INNOVATIONS July 2018
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
1
MOST NEW PRODUCTS ARE LAUNCHED WITH THE IDEA OF GROWING BRANDS To grow the brand
79% To meet retailer expectation for category news Copyright © 2017 The Nielsen Company. Confidential and proprietary.
4% To give our sales teams something new
6% To keep pace with competitors – not lose share
10% None of the above
0% • *Data from live polling of CPG executives at Consumer 360 North America, 2016.
2
HOWEVER, NOT ALL INNOVATIONS MEET EXPECTATIONS 100%
2% 50 - 75% Copyright © 2017 The Nielsen Company. Confidential and proprietary.
14% 25 - 50%
18% 1 - 25%
39% 0%
27%
66%
“What percent of innovations met your expectation for growth last year?”; data from live polling of CPG executives at Consumer 360 North America, 2016.
3
WHY DOES INNOVATION SO OFTEN DISAPPOINT?
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Lack of consistent performance across all three phases:
WEAK PROPOSITION Only 1 out of every 4 concepts tested address a real consumer need
WEAK PRODUCT 5 out of 10 concepts that succeed in testing fail when translated into products
WEAK ACTIVATION 1/3rd of launches don’t receive enough marketing support to meaningfully impact sales
4
THE FORMULA FOR SUCCESS: 3D INNOVATION DEVELOP
DISCOVER
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
a compelling proposition
a winning execution
… to DELIVER incremental growth and share
DEPLOY with excellent in-market activation 5
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
SPECIFICS FOR WINNING IN ALL 3DS
DISCOVER
DEVELOP
DEPLOY
A compelling proposition
A winning execution
With excellent inmarket activation
Identify jobs to be done Target the best growth ideas Explore and build propositions Measure and improve propositions
Develop the product Develop the pack Develop communication
Execute a launch plan Optimize the portfolio Track and optimize the launch
NIELSEN INNOVATION SOLUTIONS 6
12 FACTORS FOR SUCCESSTM Represents the 12 elements that every launch must have to succeed on the market.
▪
BASES Factors for Success™ allows you to predict your product’s probability for consumer adoption and areas of strength and weakness
▪
Based on the industry’s largest R&D effort to study the contributors to new product success
▪
Dramatically improves the probability of success for each innovation you launch
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
46%
PI & Volume Potential Action Standards
>75%
Success rate with BASES Factors for SuccessTM
7
Be Relevant Be relevant to consumer needs and/or wants.
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Communicate with focus Convey your key selling proposition in a singleminded way, without clutter. Land your message Convey your key selling message in a simple & translatable way for internalized understanding.
Get noticed! Stand out in executional ways, using the full marketing mix to break through clutter. Offer True Innovation Stand out versus the competition in a substantial way, providing benefitdriven differentiation.
Be Better Meet the consumer needs or wants in a way other products do not.
Give enough reason to believe Give consumers sufficient reason to believe you will deliver on your promises.
Limit the battles The product is free of detractors, like side effects, that prevent consumers using it. Be in the right places This entails finding you in the right outlet(s), in the right section of the store, and on shelf.
Win the value equation Price and other “costs” discovered at the shelf don’t outweigh interest
Deliver on product promises Product performance exceeds consumer’s ingoing expectations
Be strong in the long run The product has the strength to defend against competition over time. 8
WHAT DOES IT MEAN TO BE READY? Outstanding
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Ready
Provides a significant advantage over other successful products. Not a specific probability. Meets success criteria; just fine for overall initiative success. Twice as likely to succeed: ℙ(success)>.67
Approaching acceptable levels, but not ready
Failure
A significant barrier to overall initiative success Twice as likely to fail than succeed: ℙ(success)<.33
Rank versus Nielsen Database determines if the initiative is Ready, Risky, or a potential Failure
9
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Ability to pinpoint strengths & risks
Success is not about doing one thing really well, but doing everything you need to do sufficiently 10
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
EXTENDED AND GLOBAL EXPERIENCE
GREAT EXPERIENCE
GLOBAL CONSISTENCY
More than 216.000 tested concepts (120.000 in the past 5 years) and 20.000 evaluated products globally.
Presence in more than 100 countries, with specialists in more than 40, working as a single team to keep global consistency. 11
NIELSEN INNOVATION MODELING PARADIGM PROMOTION
FORECAST SAMPLING
▪ Trade Activities(e.g., End-of-Aisle Display, Brochures, Discounts, Multi-Buy) ▪ Consumer Promotion (sampling, consumer activation) DISTRIBUTION
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
PROMOTION MARKETING PLAN INFORMATION
DISTRIBUTION
▪ Contribution by Channels ▪ Distribution by Channel
AWARENESS
MEDIA PLAN
▪ TV GRPs ▪ Non-TV Advertising Spending
INTERESTED UNIVERSE CONSUMER RESPONSE DATA
OVERSTATEMENT ADJUSTMENT CONSUMER INTEREST
CONSUMER CLAIMS
▪ ▪ ▪ ▪ ▪
Purchase Intent Purchase Unit Purchase Frequency Value Perception Product Performance (if available) 12
ASSESS SIZE OPPORTUNITY AND ROI ON DIFFERENT ACTIVATION
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
FORECASTING MULTIPLE MARKETING PLAN SCENARIOS Decision making based on different investment options Understand different executional factors specific to the launch Facilitates executing with brilliance on an initiative specific basis Further ‘what if’ scenarios can illustrate upside potential of improving specific variables 13
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
KNOW BRAND`S INCREMENTALITY POTENTIAL
14
PIONEERING IN SALES FORECAST EXTERNAL RECOGNITION
Our volumetric projection model is the 1st and only forecasting model in the industry to receive the endorsement of the Marketing Accountability Standards Board (MASB) audit.
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
WHY FORECASTING IS ACCURATE? 2,000 forecast validations
GLOBAL VALIDATION ACCURACY 500,000 forecasts delivered
▪ ▪
Millions invested annually in R&D
▪
Average forecast is within 9% of actual sales 9 out of 10 cases are within 20% of actual sales We can conduct forecasts in 60 countries providing a consistent global way to evaluate all initiatives
“
By completing the MASB audit, Nielsen has demonstrated its leadership in transparency and helping marketing and financial executives come together and make confident investment decisions for their business. Margaret (Meg) Blair, CEO of MASB
”
15
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
PRODUCT LIFE CYCLE
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
16
NIELSEN CAN HELP YOU INNOVATE AT EACH STAGE
Opportunity
ACTIVATION CREATIVE
DEVELOPMENT IDEATION
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
OPPORTUNITY
Ideas
Concept Development
Product Development
Market Ready Offer
Activation
17
A NEW MINDSET TO THE INNOVATION PROCESS DISCOVER CLASSIFY INNOVATION
IDEAS SELECTION
REFINEMENT & FEASIBILITY
DEVELOP
DEPLOY
DEVELOPMENT
LAUNCH & LEARN
NIELSEN OPTIMIZER
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Expand potential through collaboration and create even a stronger proposition
SNAPSHOT
BIG BETS
IDEA SCREEN
Assess launch readiness for the initiatives and how to refine
Validate product and assess size of the prize
LINE & PRICE OPTIMIZER DESIGN NAVIGATOR Valide pack design
PLAN BASES
QUICK WIN
BASES II
Assess if worth investing
SNAPSHOT II
BASES I
Validate product and assess size of the prize
Validate Concept Viability and assess size of prize
Assess which initiatives will help to bring incrementality to the core and define portfolio and price architecture
NEW LAUNCH ASSESSOR FRAMEWORK Track launches confidently and diagnose performance for clear actionability
DESIGN DIAGNOST ICS Win consumers with the right POS
18
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Nielsen BASES Services and Factors for SuccessTM
19
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
SOLUTIONS
NIELSEN INNOVATION SOLUTIONS
20
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
DISCOVER
21
QUICK SCREEN Compare and rank ideas overnight
WHAT IS IT?
HOW
DOES IT WORKS?
WHAT QUESTION DO WE ANSWER?
Overnight screener for ideas or concepts based on metrics that
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
matter
WHEN SHOULD IT BE USED? Consumers see several sets of ideas, 4
▪ Which ideas should I prioritize?
To screen and evaluate new ideas to
alternatives at a time, and evaluate them on
▪ Which idea is the most unique?
know which ones to prioritize in a
2 critical dimensions validated to be the
▪ Which one is the most relevant?
fast and efficient way.
most predictive of in-market performance:
▪ How do the ideas rank relative to one another?
Need /Desire and Uniqueness.
*No Factors For SuccessTM are provided for this solution
22
QUICK SCREEN – DELIVERABLES EXAMPLE Relative Performance Chart
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Plotted on dimensions of Need/Desire and Uniqueness
Idea Ranking Table
How can I quickly know which ideas are worth prioritizing?
23
IDEA SCREEN Prioritize ideas to move forward
WHAT IS IT?
HOW
DOES IT WORKS?
WHAT QUESTION DO WE ANSWER?
An early screener designed to help you prioritize a large number of
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
ideas.
WHEN SHOULD IT BE USED? Consumers are exposed to 5-6 ideas
▪ Which ideas should I prioritize?
To screen and evaluate new ideas to
statements and are asked 4 Factors For
▪ Which idea is the most unique?
know which ones to prioritize and to
SuccessTM* questions. Results are then
▪ Which one is the most relevant?
understand their market-readiness.
compared to BASES database.
▪ What is the success potential of each idea?
*Distinct Proposition, Attention Catching, Need/Desire, Advantage
24
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
IDEA SCREEN – DELIVERABLES EXAMPLES
Idea Performance Matrix Which Ideas should I prioritize?
Performance Summary What drives my ideas’ performance?
25
NIELSEN OPTIMIZER Identify bigger, better propositions from a broad creative space.
WHAT IS IT?
HOW
DOES IT WORKS?
WHAT QUESTION DO WE ANSWER?
A modern and collaborative solution that enables teams to work together and
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
explore a thousands or millions of concepts’ possibilities to create a most successful concept.
WHEN SHOULD IT BE USED? Consumers are shown 2 concepts and they To optimize communication aiming to
select the one they most prefer. As they make
create a most successful concept when
choices, evolutionary algorithms learn what
you have a lot of possibilities.
they like and dislike to determine 3 Top Concepts. Then they are evaluated on
▪
What’s the best positioning of the many possible options we could consider?
▪
What are the chances of success of the optimized winning concept?
▪
What are the areas of strenghts and opportunity for our optimized proposition?
BASES Key Measures and 6 Factors for SuccessTM* to get its probability of success. *Distinct Proposition, Attention Catching, Need/Desire, Advantage, Credibility, Acceptable Costs
26
LEVERAGE COLLABORATION TO INCREASE CHANCES OF MAXIMIZING POTENTIAL
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
EXPLORATION with collaboration
OPTIMIZATION through Evolutionary Algorythms
MEASUREMENT of the probability of success
• 1 Starting Point Concept x 6 Dynamic Elements x 42 Variants = 80,640 Unique Concepts
27
VALIDATED IN-MARKET RESULTS
LAUNCH RATE
SUCCESS RATE
2 YEAR REVENUE
1.5X
3.4X
4.4X
64% 51%
$34.6
INDUSTRY AVG
19%
OPTIMIZED LAUNCHES
INDUSTRY AVG
35%
OPTIMIZED LAUNCHES
MILLION
INDUSTRY AVG
OPTIMIZED LAUNCHES
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Nielsen Optimizer is proven to dramatically improve in-market results
$7.9 MILLION
Nielsen compared success rates and revenue from product optimization initiatives for its clients against all other initiatives across the CPG industry. (Each initiative was compared to others in the same category.) Only products launched between 2003 – 2011 in the U.S. with at least 2 years of revenue data on record were included. For products with more than 2 years of revenue data on record, only the first 2 years were used.
28
QUICK SCORECARD An early screening tool to shortlist concepts quickly
WHAT IS IT?
HOW
DOES IT WORKS?
WHAT QUESTION DO WE ANSWER?
A concept screening system designed to quickly screen and prioritize a
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
number of new concepts.
WHEN SHOULD IT BE USED? Consumers are exposed to one concept To test consumer adoption of new
and are asked BASES Key Measures and
concepts propositions.
6 Factors For SuccessTM* questions.
▪ What is the success potential of the new initiative? ▪ Which communication route/option to be taken ahead
Results are then compared to BASES database.
*Distinct Proposition, Attention Catching, Need/Desire, Advantage, Credibility, Acceptable Costs
29
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
QUICK SCORECARD – DELIVERABLES EXAMPLE
What is my product’s overall performance?
What is the financial potential?
30
QUICK PREDICT / SNAPSHOT An early understanding of your initiative’s market-readiness
WHAT IS IT?
HOW
DOES IT WORKS?
WHAT QUESTION DO WE ANSWER?
A concept screening system designed to help you screen, optimize and
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
prioritize a number of new concepts.
WHEN SHOULD IT BE USED? Consumers are exposed to one or more To test consumer adoption and
concepts and are asked BASES Key
market-readiness of new concepts
Measures, a short list of attributes and
propositions.
custom questions and 6 Factors For SuccessTM* questions. Results are then compared to BASES database.
*Distinct Proposition, Attention Catching, Need/Desire, Advantage, Credibility, Acceptable Costs
▪ What is the success potential of the new initiative? ▪ What are the areas of strengths and opportunities for the new propositions? ▪ What is the financial potential of the new product? 31
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
QUICK PREDICT – DELIVERABLES EXAMPLE
What is my product’s overall performance?
What is the financial potential?
Are consumers recognizing my product’s attributes?
Results in 10 days* in a modern deliverable format (on Studio)
*From Lockdown date
Which initiatives am I competiting with?
32
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
SNAPSHOT – DELIVERABLES EXAMPLE
What is my product’s overall performance?
What is the financial potential?
What are my strenghts and watchouts?
Which initiatives am I competiting with?
Are consumers recognizing my product’s attributes?
33
BASES I Assess and Optimize your mix before Product Development with robust diagnostics
WHAT IS IT?
HOW
DOES IT WORKS?
WHAT QUESTION DO WE ANSWER?
A complete concept evaluation designed to help you qualify, improve
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
& size your refined concept in order to understand consumer adoption and volumetric potential.
WHEN SHOULD IT BE USED? Consumers are exposed to one concept and To test consumer adoption and
are asked BASES Key Measures, a list of
market-readiness of the new concepts
attributes and custom questions with deep
propositions.
diagnostic to support the decisions and 10
▪
What is the success potential of the new initiative?
▪
How do consumers perceive the new product? How do they will use it?
▪
What is the size of the opportunity of the new product?
▪
What is the volume opportunity in its first & second year in market?
Factors For SuccessTM* questions. Results are then compared to BASES database.
*Distinct Proposition, Attention Catching, Need/Desire, Advantage, Credibility, Acceptable Costs, Acceptable Downsides, Findability, Message Connection, Clear Concise Message
34
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
BASES I – DELIVERABLES EXAMPLE
Consumer Adoption
Message Connection
Strategic Intent
Category Drivers
Volume Potential
Financial Potential
35
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
DEVELOP
36
DESIGN NAVIGATOR Evaluate designs for prioritization and generate insights for refinement
WHAT IS IT?
HOW
DOES IT WORKS?
WHAT QUESTION DO WE ANSWER?
A design test designed to help you optimize and prioritize a number of
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
different design options, combining a creative exploration and marketdriven priorization for reliably better inmarket outcomes.
WHEN SHOULD IT BE USED? To evaluate and/or optimize designs for priorization based on consumer feedback and quantitative research.
*No Factors For SuccessTM are provided for this solution
Consumers evaluate design concepts amongst competition on stand out, preference and brand fit. They also provide
feedback for refinement.
▪
Which of my design concepts are most preferred?
▪
Do they pop against competitors and are they easy to find?
▪
Do they reinforce my brand and key messages?
▪
Which aspects of my design concepts do consumers most / or least like? Why? 37
LEVERAGE COLLABORATION TO INCREASE CHANCES OF MAXIMIZING POTENTIAL
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
EXPLORATION a lot of design possibilities
OPTIMIZATION through Evolutionary Algorythms
MEASUREMENT the perfomance of each design
38
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
DESIGN NAVIGATOR – DELIVERABLES EXAMPLE
Standout
Preference
Refine
Strategic Messaging
Personality Profile
Open Word Association
39
SNAPSHOT II A lighter read on concept & product performance
WHAT IS IT?
HOW
DOES IT WORKS?
WHAT QUESTION DO WE ANSWER?
A light concept and product evaluation designed to help you qualify and improve
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
your refined concept & product, understanding consumer adoption and financial potential.
WHEN SHOULD IT BE USED?
Consumers are contacted door-to-door and exposed to one concept and are asked BASES Key Measures,
To test concept adoption, product
a short list of attributes and custom questions and 8
performance and market-readiness of the
Factors For SuccessTM* questions. They receive the
new product.
product to test and are contacted a few days later to get their product perceptions. Results are then
▪
What is the success potential of the new initiative?
▪
How do consumers consumed this new product? What is its acceptance?
▪
Does your initiative has a concept-product fit?
▪
What is the financial potential of the new product?
compared to BASES database. *Distinct Proposition, Attention Catching, Need/Desire, Advantage, Credibility, Acceptable Costs, Product Delivery, Product Loyalty
40
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
SNAPSHOT II – DELIVERABLES EXAMPLE
Overview
Detailed Results
Viability
Product Loyalty
Product Delivery
Product Drivers
41
BASES II A deep read on concept & product performance
WHAT IS IT?
HOW
DOES IT WORKS?
WHAT QUESTION DO WE ANSWER?
A complete concept and product evaluation designed to help you qualify,
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
improve & size your refined concept in order to understand consumer adoption and volumetric potential.
WHEN
Consumers are contacted door-to-door and exposed
SHOULD IT BE USED?
to one concept and are asked BASES Key Measures,
▪
What is the success potential of the new initiative?
▪
How do consumers consumed this new product? What is its acceptance?
diagnostic and 12 Factors For SuccessTM* questions.
▪
What is its strengths and weakness?
They receive the product to test and are contacted a
▪
Does your initiative has a concept-product fit? Is there any opportunity for improvements?
▪
What is the financial and volumetric potential of the new product?
a list of attributes and custom questions with deep To test concept adoption, product performance and market-readiness of the new product. few days later to get their product perceptions. Results are then compared to BASES database.
*Distinct Proposition, Attention Catching, Need/Desire, Advantage, Credibility, Acceptable Costs, Acceptable Downsides, Findability, Message Connection, Clear Concise Message, Product Delivery, Product Loyalty
42
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
BASES II - DELIVERABLES EXAMPLE
Consumer Adoption
Communication Optimization
Strategic Intent
Category Drivers
Pre-to-Post Analysis
Product Improvement Analysis
Financial Potential
Incrementality Potential
43
PRODUCT ADVISOR To assess product performance when concept is ready or to re-test product after initial failure
WHAT IS IT?
HOW
DOES IT WORKS?
WHAT QUESTION DO WE ANSWER?
Evaluation of the product (often run after a Snapshot or a follow on from a reworked
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
product formulation)
WHEN SHOULD IT BE USED?
Consumers are contacted door-to-door and exposed to one concept and are asked BASES Key
To test product performance and adoption when already done a Snapshot or BASES I
study before.
▪
Does the product is now ready to be launched?
▪
How do consumers consumed this new product? What is its acceptance?
▪
Is there any opportunity for improvements?
▪
Does product meet expectations?
Measures and a list of attributes. They receive the product to test and are contacted a few days later to get their product perceptions, they are asked 2 Factors For SuccessTM* questions. Results are then compared to BASES database.
*Product Delivery, Product Loyalty
44
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
PRODUCT ADVISOR – DELIVERABLES EXAMPLE
Product Delivery
Product Loyalty
Product Improvement Analysis
Pre-to-Post Analysis
Strengths and Concerns
45
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
DEPLOY
46
PRICE ADVISOR Understand the price elasticity of your initiative
WHAT IS IT?
HOW
DOES IT WORKS?
WHAT QUESTION DO WE ANSWER?
A pricing tool that based on consumer’s
feedback on average/poor/great prices
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
can help you to build your understanding of the relationship between volume & revenue potential and price
WHEN SHOULD IT BE USED?
Consumers are exposed to a concept board without price and asked to say an
To understand how much consumers
average/good/great price. For each price,
are willing to pay for the new product
purchase intent, units and frequency are
to get its optimal price and to get price
asked which enables to build a price
elasticity curve.
elasticity curve.
*No Factors For SuccessTM are provided for this solution
▪
What are the consumers expectations about price?
▪
How can my initiative be priced in order to maximize profit?
▪
What is the impact in sales with a 100% price increase?
47
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
PRICE ADVISOR - DELIVERABLES EXAMPLE
ELASTICITY CURVE Relationship between price and volume
BUBBLE CHART Espontaneous price mentions from respondents
48
LINE & PRICE OPTMIZER Helps to maximize line, price and pack size strategies
WHAT IS IT?
HOW
DOES IT WORKS?
WHAT QUESTION DO WE ANSWER?
Study to maximizes incremental sales and profits by identifying the best varieties,
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
prices and pack sizes for your new and existing product line ups.
WHEN SHOULD IT BE USED?
Online, consumers choose between your new
▪
What is the most incremental innovations (flavors, sizes and packs) to the current porfolio?
▪
How does the new products cannibalizes each other and the current portfolio?
▪
What is the best price to maximize the volume, revenue and margin of the new initiatives and the whole line?
▪
How should I adjust the price of my new product if a new competitor enters in the market in the future?
offerings, current offerings and competitors’. To understand how to maximize your portfolio, identifying the best combination
of varieties, prices and pack sizes and the incrementality of your launches.
*No Factors For SuccessTM are provided for this solution
Choice estimation techniques measure consumer appeal, switching behavior and price / size elasticity. Simululation tool allows exploration of a wide range of line, price or pack mix scenarios.
49
Simulated Shopping Experience
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Using Nielsen’s interactive online interface, consumers choose between product concepts as if they were at a store. Shelf sets are optimally designed to recreate expected in-market interactions and consumer trade off decisions, leading to more accurate predictions.
Using graphic versus text-based concepts creates a more realistic experience for consumers and simulates realistic trade-off decisions
50
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
LINE & PRICE OPTIMIZER – DELIVERABLES EXAMPLE
Assortment
Pricing
Consumer switching behavior
Source of volume
Business scenarios
Simulator
51
NEW LAUNCH ASSESSOR FRAMEWORK (NLAF) Track launches confidently and diagnose performance for clear actionability
WHAT IS IT?
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Provides a holistic view of new launch performance with relevant benchmarks, and deep diagnostics to understand performance and aid actionability
WHEN SHOULD IT BE USED?
To track new launches anywhere between 3 months to 18 months
*No Factors For SuccessTM are provided for this solution
HOW
WHAT
DOES IT WORK?
QUESTIONS DO WE ANSWER?
Consumers are contacted door to door and asked standard questions to track the launch and up to 4 custom diagnostics *Depending on category penetration and age of brand, booster interviews may be required for accessing trialists or detailed diagnostics among those aware
▪ How is my new launch faring in –market, with respect to consumer KPIs’ and distribution norms? ▪ What is my new launch’s consumer pull, compared to other new launches?
▪ What are my new launch’s strengths and weaknesses, both from a mix as well as execution perspective? ▪ Are there any areas for improvement for my new launch? 52
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
NLAF – DELIVERABLES EXAMPLE Brand A displays strong saliency, in-market presence however trials are limited. Brand B struggles to gain traction
Moreover, brand perceptions remain strong for both new launches, but Brand B is able to land its core benefit more clearly, and drives stronger differentiation via its TV Ad.
*Quartiles based on Consumer Norms Panel database of ~40 FMCG new launches.
15
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Consumer and Distribution Norms
Diagnostics on Ad liking
(Columns UPPERCASE letters - (PROPORTIONS) tested at the 95% confidence level - A/B.)
18
Brand Attraction Ranking
Brand Imagery
53
PLAN BASES Provides an initial understanding of likely sales potential, without extensive consumer testing.
WHAT IS IT?
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
PlanBASES provides an understanding of likely sales potential WITHOUT EXTENSIVE testing with consumers or starting extensive initiative development.
WHEN SHOULD IT BE USED? Useful when entering new geographies
or categories, i.e. to get an early assessment of the likely sales in order to judge whether they will merit further initiative development or not. It can also be used for smaller
initiatives, where limited consumer testing is planned, but a ballpark sales forecast is required for the business case and supply chain planning.
HOW
WHAT
DOES IT WORK?
QUESTIONS DO WE ANSWER?
Initiative Potential - We know what a
Strong Concept & Product looks like in your Category -Nielsen can leverage its Innovation database as a proxy for a tested product
Any other consumer testing (qual/quant) also helps us in making informed decisions about the initiative’s likely performance, and feed into the assumptions
Marketing Support - Inputs can be
▪ What is my likely sales potential without having to test extensively with consumers?
provided by client or alternatively Nielsen can provide an Independent Plan. Recent comparisons show that when Nielsen provided an Independent plan it was on average closer to the executed reality than client’s best estimate. 54
DESIGN DIAGNOSTICS Evaluate and prioritize design options for static media (POS/OOH/shelf)
WHAT IS IT?
HOW
WHAT
DOES IT WORK?
QUESTIONS DO WE ANSWER?
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Maximize impact at the last mile with this holistic solution which evaluates design options for static media.
WHEN SHOULD IT BE USED?
Used to effectively and systematically explore and evaluate a wide range of designs and POS communication directly with consumers
*No Factors For SuccessTM are provided for this solution
Respondents are recruited online/offline based on target criteria/study requirements Consumers evaluate visual design concepts on preference and brand fit. They then provide feedback for refinement.
▪ Is your static media (POS/shelves/OOH) standing out and attracting shoppers? ▪ Does it communicate your brand effectively and drive sales?
▪ Which design option should be prioritized for the right strategic messaging? ▪ How should you further refine your designs? 55
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
DESIGN DIAGNOSTICS – DELIVERABLES EXAMPLE
Preference/Appeal of tested designs
Strategic Fit
Refinement
56
RESTAGE Understand if the Relaunch will be able to increase the appeal for the Current Proposition
WHAT
HOW
IS IT?
DOES IT WORKS?
WHAT QUESTION DO WE ANSWER?
If there is a consumer perceived
change in one or more components of
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
an established brand, it important to understand if this change give the right amount of incremental growth to the Current Proposition
Here we test both the Current and the Relaunch concepts. Consumers are contacted door-to-door and
WHEN SHOULD IT BE USED? To understand if the incremental appeal that the relaunch is giving is
Is the Relaunch able to increase the appeal vs the current significantly?
Measures, a list of attributes and custom questions with
▪
What is its strengths and weakness?
deep diagnostic. We understand the change in Appeal
▪
Does your relaunch has a conceptproduct fit? Is there any opportunity for improvements?
▪
How will the change in appeal impact in overall volumes
(indec vs the current) for the Relaunch. This is then compared to BASES Restage Database
good enough to go ahead with the same. Is the relaunch helping in driving the business objective
▪
exposed to one concept and are asked BASES Key
*No database comparison on Factors For SuccessTM are provided for this solution. Only the Index in PI is compared to the database
57
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
58
THANK YOU! Copyright © 2017 The Nielsen Company. Confidential and proprietary.
As next steps, let’s continue the discussion to ensure Nielsen’s approach meets your needs. Please do not hesitate to contact us with any comments or questions.
Himanshu Kadaskar Innovation Business Partner +91 09860369708 [email protected]
59
MAXIMIZING YOUR INNOVATIONS July 2018
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
1
MOST NEW PRODUCTS ARE LAUNCHED WITH THE IDEA OF GROWING BRANDS To grow the brand
79% To meet retailer expectation for category news Copyright © 2017 The Nielsen Company. Confidential and proprietary.
4% To give our sales teams something new
6% To keep pace with competitors – not lose share
10% None of the above
0% • *Data from live polling of CPG executives at Consumer 360 North America, 2016.
2
HOWEVER, NOT ALL INNOVATIONS MEET EXPECTATIONS 100%
2% 50 - 75% Copyright © 2017 The Nielsen Company. Confidential and proprietary.
14% 25 - 50%
18% 1 - 25%
39% 0%
27%
66%
“What percent of innovations met your expectation for growth last year?”; data from live polling of CPG executives at Consumer 360 North America, 2016.
3
WHY DOES INNOVATION SO OFTEN DISAPPOINT?
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Lack of consistent performance across all three phases:
WEAK PROPOSITION Only 1 out of every 4 concepts tested address a real consumer need
WEAK PRODUCT 5 out of 10 concepts that succeed in testing fail when translated into products
WEAK ACTIVATION 1/3rd of launches don’t receive enough marketing support to meaningfully impact sales
4
THE FORMULA FOR SUCCESS: 3D INNOVATION DEVELOP
DISCOVER
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
a compelling proposition
a winning execution
… to DELIVER incremental growth and share
DEPLOY with excellent in-market activation 5
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
SPECIFICS FOR WINNING IN ALL 3DS
DISCOVER
DEVELOP
DEPLOY
A compelling proposition
A winning execution
With excellent inmarket activation
Identify jobs to be done Target the best growth ideas Explore and build propositions Measure and improve propositions
Develop the product Develop the pack Develop communication
Execute a launch plan Optimize the portfolio Track and optimize the launch
NIELSEN INNOVATION SOLUTIONS 6
12 FACTORS FOR SUCCESSTM Represents the 12 elements that every launch must have to succeed on the market.
▪
BASES Factors for Success™ allows you to predict your product’s probability for consumer adoption and areas of strength and weakness
▪
Based on the industry’s largest R&D effort to study the contributors to new product success
▪
Dramatically improves the probability of success for each innovation you launch
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
46%
PI & Volume Potential Action Standards
>75%
Success rate with BASES Factors for SuccessTM
7
Be Relevant Be relevant to consumer needs and/or wants.
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Communicate with focus Convey your key selling proposition in a singleminded way, without clutter. Land your message Convey your key selling message in a simple & translatable way for internalized understanding.
Get noticed! Stand out in executional ways, using the full marketing mix to break through clutter. Offer True Innovation Stand out versus the competition in a substantial way, providing benefitdriven differentiation.
Be Better Meet the consumer needs or wants in a way other products do not.
Give enough reason to believe Give consumers sufficient reason to believe you will deliver on your promises.
Limit the battles The product is free of detractors, like side effects, that prevent consumers using it. Be in the right places This entails finding you in the right outlet(s), in the right section of the store, and on shelf.
Win the value equation Price and other “costs” discovered at the shelf don’t outweigh interest
Deliver on product promises Product performance exceeds consumer’s ingoing expectations
Be strong in the long run The product has the strength to defend against competition over time. 8
WHAT DOES IT MEAN TO BE READY? Outstanding
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Ready
Provides a significant advantage over other successful products. Not a specific probability. Meets success criteria; just fine for overall initiative success. Twice as likely to succeed: ℙ(success)>.67
Approaching acceptable levels, but not ready
Failure
A significant barrier to overall initiative success Twice as likely to fail than succeed: ℙ(success)<.33
Rank versus Nielsen Database determines if the initiative is Ready, Risky, or a potential Failure
9
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Ability to pinpoint strengths & risks
Success is not about doing one thing really well, but doing everything you need to do sufficiently 10
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
EXTENDED AND GLOBAL EXPERIENCE
GREAT EXPERIENCE
GLOBAL CONSISTENCY
More than 216.000 tested concepts (120.000 in the past 5 years) and 20.000 evaluated products globally.
Presence in more than 100 countries, with specialists in more than 40, working as a single team to keep global consistency. 11
NIELSEN INNOVATION MODELING PARADIGM PROMOTION
FORECAST SAMPLING
▪ Trade Activities(e.g., End-of-Aisle Display, Brochures, Discounts, Multi-Buy) ▪ Consumer Promotion (sampling, consumer activation) DISTRIBUTION
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
PROMOTION MARKETING PLAN INFORMATION
DISTRIBUTION
▪ Contribution by Channels ▪ Distribution by Channel
AWARENESS
MEDIA PLAN
▪ TV GRPs ▪ Non-TV Advertising Spending
INTERESTED UNIVERSE CONSUMER RESPONSE DATA
OVERSTATEMENT ADJUSTMENT CONSUMER INTEREST
CONSUMER CLAIMS
▪ ▪ ▪ ▪ ▪
Purchase Intent Purchase Unit Purchase Frequency Value Perception Product Performance (if available) 12
ASSESS SIZE OPPORTUNITY AND ROI ON DIFFERENT ACTIVATION
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
FORECASTING MULTIPLE MARKETING PLAN SCENARIOS Decision making based on different investment options Understand different executional factors specific to the launch Facilitates executing with brilliance on an initiative specific basis Further ‘what if’ scenarios can illustrate upside potential of improving specific variables 13
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
KNOW BRAND`S INCREMENTALITY POTENTIAL
14
PIONEERING IN SALES FORECAST EXTERNAL RECOGNITION
Our volumetric projection model is the 1st and only forecasting model in the industry to receive the endorsement of the Marketing Accountability Standards Board (MASB) audit.
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
WHY FORECASTING IS ACCURATE? 2,000 forecast validations
GLOBAL VALIDATION ACCURACY 500,000 forecasts delivered
▪ ▪
Millions invested annually in R&D
▪
Average forecast is within 9% of actual sales 9 out of 10 cases are within 20% of actual sales We can conduct forecasts in 60 countries providing a consistent global way to evaluate all initiatives
“
By completing the MASB audit, Nielsen has demonstrated its leadership in transparency and helping marketing and financial executives come together and make confident investment decisions for their business. Margaret (Meg) Blair, CEO of MASB
”
15
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
PRODUCT LIFE CYCLE
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
16
NIELSEN CAN HELP YOU INNOVATE AT EACH STAGE
Opportunity
ACTIVATION CREATIVE
DEVELOPMENT IDEATION
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
OPPORTUNITY
Ideas
Concept Development
Product Development
Market Ready Offer
Activation
17
A NEW MINDSET TO THE INNOVATION PROCESS DISCOVER CLASSIFY INNOVATION
IDEAS SELECTION
REFINEMENT & FEASIBILITY
DEVELOP
DEPLOY
DEVELOPMENT
LAUNCH & LEARN
NIELSEN OPTIMIZER
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Expand potential through collaboration and create even a stronger proposition
SNAPSHOT
BIG BETS
IDEA SCREEN
Assess launch readiness for the initiatives and how to refine
Validate product and assess size of the prize
LINE & PRICE OPTIMIZER DESIGN NAVIGATOR Valide pack design
PLAN BASES
QUICK WIN
BASES II
Assess if worth investing
SNAPSHOT II
BASES I
Validate product and assess size of the prize
Validate Concept Viability and assess size of prize
Assess which initiatives will help to bring incrementality to the core and define portfolio and price architecture
NEW LAUNCH ASSESSOR FRAMEWORK Track launches confidently and diagnose performance for clear actionability
DESIGN DIAGNOST ICS Win consumers with the right POS
18
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Nielsen BASES Services and Factors for SuccessTM
19
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
SOLUTIONS
NIELSEN INNOVATION SOLUTIONS
20
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
DISCOVER
21
QUICK SCREEN Compare and rank ideas overnight
WHAT IS IT?
HOW
DOES IT WORKS?
WHAT QUESTION DO WE ANSWER?
Overnight screener for ideas or concepts based on metrics that
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
matter
WHEN SHOULD IT BE USED? Consumers see several sets of ideas, 4
▪ Which ideas should I prioritize?
To screen and evaluate new ideas to
alternatives at a time, and evaluate them on
▪ Which idea is the most unique?
know which ones to prioritize in a
2 critical dimensions validated to be the
▪ Which one is the most relevant?
fast and efficient way.
most predictive of in-market performance:
▪ How do the ideas rank relative to one another?
Need /Desire and Uniqueness.
*No Factors For SuccessTM are provided for this solution
22
QUICK SCREEN – DELIVERABLES EXAMPLE Relative Performance Chart
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Plotted on dimensions of Need/Desire and Uniqueness
Idea Ranking Table
How can I quickly know which ideas are worth prioritizing?
23
IDEA SCREEN Prioritize ideas to move forward
WHAT IS IT?
HOW
DOES IT WORKS?
WHAT QUESTION DO WE ANSWER?
An early screener designed to help you prioritize a large number of
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
ideas.
WHEN SHOULD IT BE USED? Consumers are exposed to 5-6 ideas
▪ Which ideas should I prioritize?
To screen and evaluate new ideas to
statements and are asked 4 Factors For
▪ Which idea is the most unique?
know which ones to prioritize and to
SuccessTM* questions. Results are then
▪ Which one is the most relevant?
understand their market-readiness.
compared to BASES database.
▪ What is the success potential of each idea?
*Distinct Proposition, Attention Catching, Need/Desire, Advantage
24
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
IDEA SCREEN – DELIVERABLES EXAMPLES
Idea Performance Matrix Which Ideas should I prioritize?
Performance Summary What drives my ideas’ performance?
25
NIELSEN OPTIMIZER Identify bigger, better propositions from a broad creative space.
WHAT IS IT?
HOW
DOES IT WORKS?
WHAT QUESTION DO WE ANSWER?
A modern and collaborative solution that enables teams to work together and
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
explore a thousands or millions of concepts’ possibilities to create a most successful concept.
WHEN SHOULD IT BE USED? Consumers are shown 2 concepts and they To optimize communication aiming to
select the one they most prefer. As they make
create a most successful concept when
choices, evolutionary algorithms learn what
you have a lot of possibilities.
they like and dislike to determine 3 Top Concepts. Then they are evaluated on
▪
What’s the best positioning of the many possible options we could consider?
▪
What are the chances of success of the optimized winning concept?
▪
What are the areas of strenghts and opportunity for our optimized proposition?
BASES Key Measures and 6 Factors for SuccessTM* to get its probability of success. *Distinct Proposition, Attention Catching, Need/Desire, Advantage, Credibility, Acceptable Costs
26
LEVERAGE COLLABORATION TO INCREASE CHANCES OF MAXIMIZING POTENTIAL
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
EXPLORATION with collaboration
OPTIMIZATION through Evolutionary Algorythms
MEASUREMENT of the probability of success
• 1 Starting Point Concept x 6 Dynamic Elements x 42 Variants = 80,640 Unique Concepts
27
VALIDATED IN-MARKET RESULTS
LAUNCH RATE
SUCCESS RATE
2 YEAR REVENUE
1.5X
3.4X
4.4X
64% 51%
$34.6
INDUSTRY AVG
19%
OPTIMIZED LAUNCHES
INDUSTRY AVG
35%
OPTIMIZED LAUNCHES
MILLION
INDUSTRY AVG
OPTIMIZED LAUNCHES
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Nielsen Optimizer is proven to dramatically improve in-market results
$7.9 MILLION
Nielsen compared success rates and revenue from product optimization initiatives for its clients against all other initiatives across the CPG industry. (Each initiative was compared to others in the same category.) Only products launched between 2003 – 2011 in the U.S. with at least 2 years of revenue data on record were included. For products with more than 2 years of revenue data on record, only the first 2 years were used.
28
QUICK SCORECARD An early screening tool to shortlist concepts quickly
WHAT IS IT?
HOW
DOES IT WORKS?
WHAT QUESTION DO WE ANSWER?
A concept screening system designed to quickly screen and prioritize a
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
number of new concepts.
WHEN SHOULD IT BE USED? Consumers are exposed to one concept To test consumer adoption of new
and are asked BASES Key Measures and
concepts propositions.
6 Factors For SuccessTM* questions.
▪ What is the success potential of the new initiative? ▪ Which communication route/option to be taken ahead
Results are then compared to BASES database.
*Distinct Proposition, Attention Catching, Need/Desire, Advantage, Credibility, Acceptable Costs
29
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
QUICK SCORECARD – DELIVERABLES EXAMPLE
What is my product’s overall performance?
What is the financial potential?
30
QUICK PREDICT / SNAPSHOT An early understanding of your initiative’s market-readiness
WHAT IS IT?
HOW
DOES IT WORKS?
WHAT QUESTION DO WE ANSWER?
A concept screening system designed to help you screen, optimize and
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
prioritize a number of new concepts.
WHEN SHOULD IT BE USED? Consumers are exposed to one or more To test consumer adoption and
concepts and are asked BASES Key
market-readiness of new concepts
Measures, a short list of attributes and
propositions.
custom questions and 6 Factors For SuccessTM* questions. Results are then compared to BASES database.
*Distinct Proposition, Attention Catching, Need/Desire, Advantage, Credibility, Acceptable Costs
▪ What is the success potential of the new initiative? ▪ What are the areas of strengths and opportunities for the new propositions? ▪ What is the financial potential of the new product? 31
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
QUICK PREDICT – DELIVERABLES EXAMPLE
What is my product’s overall performance?
What is the financial potential?
Are consumers recognizing my product’s attributes?
Results in 10 days* in a modern deliverable format (on Studio)
*From Lockdown date
Which initiatives am I competiting with?
32
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
SNAPSHOT – DELIVERABLES EXAMPLE
What is my product’s overall performance?
What is the financial potential?
What are my strenghts and watchouts?
Which initiatives am I competiting with?
Are consumers recognizing my product’s attributes?
33
BASES I Assess and Optimize your mix before Product Development with robust diagnostics
WHAT IS IT?
HOW
DOES IT WORKS?
WHAT QUESTION DO WE ANSWER?
A complete concept evaluation designed to help you qualify, improve
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
& size your refined concept in order to understand consumer adoption and volumetric potential.
WHEN SHOULD IT BE USED? Consumers are exposed to one concept and To test consumer adoption and
are asked BASES Key Measures, a list of
market-readiness of the new concepts
attributes and custom questions with deep
propositions.
diagnostic to support the decisions and 10
▪
What is the success potential of the new initiative?
▪
How do consumers perceive the new product? How do they will use it?
▪
What is the size of the opportunity of the new product?
▪
What is the volume opportunity in its first & second year in market?
Factors For SuccessTM* questions. Results are then compared to BASES database.
*Distinct Proposition, Attention Catching, Need/Desire, Advantage, Credibility, Acceptable Costs, Acceptable Downsides, Findability, Message Connection, Clear Concise Message
34
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
BASES I – DELIVERABLES EXAMPLE
Consumer Adoption
Message Connection
Strategic Intent
Category Drivers
Volume Potential
Financial Potential
35
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
DEVELOP
36
DESIGN NAVIGATOR Evaluate designs for prioritization and generate insights for refinement
WHAT IS IT?
HOW
DOES IT WORKS?
WHAT QUESTION DO WE ANSWER?
A design test designed to help you optimize and prioritize a number of
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
different design options, combining a creative exploration and marketdriven priorization for reliably better inmarket outcomes.
WHEN SHOULD IT BE USED? To evaluate and/or optimize designs for priorization based on consumer feedback and quantitative research.
*No Factors For SuccessTM are provided for this solution
Consumers evaluate design concepts amongst competition on stand out, preference and brand fit. They also provide
feedback for refinement.
▪
Which of my design concepts are most preferred?
▪
Do they pop against competitors and are they easy to find?
▪
Do they reinforce my brand and key messages?
▪
Which aspects of my design concepts do consumers most / or least like? Why? 37
LEVERAGE COLLABORATION TO INCREASE CHANCES OF MAXIMIZING POTENTIAL
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
EXPLORATION a lot of design possibilities
OPTIMIZATION through Evolutionary Algorythms
MEASUREMENT the perfomance of each design
38
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
DESIGN NAVIGATOR – DELIVERABLES EXAMPLE
Standout
Preference
Refine
Strategic Messaging
Personality Profile
Open Word Association
39
SNAPSHOT II A lighter read on concept & product performance
WHAT IS IT?
HOW
DOES IT WORKS?
WHAT QUESTION DO WE ANSWER?
A light concept and product evaluation designed to help you qualify and improve
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
your refined concept & product, understanding consumer adoption and financial potential.
WHEN SHOULD IT BE USED?
Consumers are contacted door-to-door and exposed to one concept and are asked BASES Key Measures,
To test concept adoption, product
a short list of attributes and custom questions and 8
performance and market-readiness of the
Factors For SuccessTM* questions. They receive the
new product.
product to test and are contacted a few days later to get their product perceptions. Results are then
▪
What is the success potential of the new initiative?
▪
How do consumers consumed this new product? What is its acceptance?
▪
Does your initiative has a concept-product fit?
▪
What is the financial potential of the new product?
compared to BASES database. *Distinct Proposition, Attention Catching, Need/Desire, Advantage, Credibility, Acceptable Costs, Product Delivery, Product Loyalty
40
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
SNAPSHOT II – DELIVERABLES EXAMPLE
Overview
Detailed Results
Viability
Product Loyalty
Product Delivery
Product Drivers
41
BASES II A deep read on concept & product performance
WHAT IS IT?
HOW
DOES IT WORKS?
WHAT QUESTION DO WE ANSWER?
A complete concept and product evaluation designed to help you qualify,
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
improve & size your refined concept in order to understand consumer adoption and volumetric potential.
WHEN
Consumers are contacted door-to-door and exposed
SHOULD IT BE USED?
to one concept and are asked BASES Key Measures,
▪
What is the success potential of the new initiative?
▪
How do consumers consumed this new product? What is its acceptance?
diagnostic and 12 Factors For SuccessTM* questions.
▪
What is its strengths and weakness?
They receive the product to test and are contacted a
▪
Does your initiative has a concept-product fit? Is there any opportunity for improvements?
▪
What is the financial and volumetric potential of the new product?
a list of attributes and custom questions with deep To test concept adoption, product performance and market-readiness of the new product. few days later to get their product perceptions. Results are then compared to BASES database.
*Distinct Proposition, Attention Catching, Need/Desire, Advantage, Credibility, Acceptable Costs, Acceptable Downsides, Findability, Message Connection, Clear Concise Message, Product Delivery, Product Loyalty
42
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
BASES II - DELIVERABLES EXAMPLE
Consumer Adoption
Communication Optimization
Strategic Intent
Category Drivers
Pre-to-Post Analysis
Product Improvement Analysis
Financial Potential
Incrementality Potential
43
PRODUCT ADVISOR To assess product performance when concept is ready or to re-test product after initial failure
WHAT IS IT?
HOW
DOES IT WORKS?
WHAT QUESTION DO WE ANSWER?
Evaluation of the product (often run after a Snapshot or a follow on from a reworked
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
product formulation)
WHEN SHOULD IT BE USED?
Consumers are contacted door-to-door and exposed to one concept and are asked BASES Key
To test product performance and adoption when already done a Snapshot or BASES I
study before.
▪
Does the product is now ready to be launched?
▪
How do consumers consumed this new product? What is its acceptance?
▪
Is there any opportunity for improvements?
▪
Does product meet expectations?
Measures and a list of attributes. They receive the product to test and are contacted a few days later to get their product perceptions, they are asked 2 Factors For SuccessTM* questions. Results are then compared to BASES database.
*Product Delivery, Product Loyalty
44
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
PRODUCT ADVISOR – DELIVERABLES EXAMPLE
Product Delivery
Product Loyalty
Product Improvement Analysis
Pre-to-Post Analysis
Strengths and Concerns
45
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
DEPLOY
46
PRICE ADVISOR Understand the price elasticity of your initiative
WHAT IS IT?
HOW
DOES IT WORKS?
WHAT QUESTION DO WE ANSWER?
A pricing tool that based on consumer’s
feedback on average/poor/great prices
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
can help you to build your understanding of the relationship between volume & revenue potential and price
WHEN SHOULD IT BE USED?
Consumers are exposed to a concept board without price and asked to say an
To understand how much consumers
average/good/great price. For each price,
are willing to pay for the new product
purchase intent, units and frequency are
to get its optimal price and to get price
asked which enables to build a price
elasticity curve.
elasticity curve.
*No Factors For SuccessTM are provided for this solution
▪
What are the consumers expectations about price?
▪
How can my initiative be priced in order to maximize profit?
▪
What is the impact in sales with a 100% price increase?
47
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
PRICE ADVISOR - DELIVERABLES EXAMPLE
ELASTICITY CURVE Relationship between price and volume
BUBBLE CHART Espontaneous price mentions from respondents
48
LINE & PRICE OPTMIZER Helps to maximize line, price and pack size strategies
WHAT IS IT?
HOW
DOES IT WORKS?
WHAT QUESTION DO WE ANSWER?
Study to maximizes incremental sales and profits by identifying the best varieties,
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
prices and pack sizes for your new and existing product line ups.
WHEN SHOULD IT BE USED?
Online, consumers choose between your new
▪
What is the most incremental innovations (flavors, sizes and packs) to the current porfolio?
▪
How does the new products cannibalizes each other and the current portfolio?
▪
What is the best price to maximize the volume, revenue and margin of the new initiatives and the whole line?
▪
How should I adjust the price of my new product if a new competitor enters in the market in the future?
offerings, current offerings and competitors’. To understand how to maximize your portfolio, identifying the best combination
of varieties, prices and pack sizes and the incrementality of your launches.
*No Factors For SuccessTM are provided for this solution
Choice estimation techniques measure consumer appeal, switching behavior and price / size elasticity. Simululation tool allows exploration of a wide range of line, price or pack mix scenarios.
49
Simulated Shopping Experience
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Using Nielsen’s interactive online interface, consumers choose between product concepts as if they were at a store. Shelf sets are optimally designed to recreate expected in-market interactions and consumer trade off decisions, leading to more accurate predictions.
Using graphic versus text-based concepts creates a more realistic experience for consumers and simulates realistic trade-off decisions
50
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
LINE & PRICE OPTIMIZER – DELIVERABLES EXAMPLE
Assortment
Pricing
Consumer switching behavior
Source of volume
Business scenarios
Simulator
51
NEW LAUNCH ASSESSOR FRAMEWORK (NLAF) Track launches confidently and diagnose performance for clear actionability
WHAT IS IT?
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Provides a holistic view of new launch performance with relevant benchmarks, and deep diagnostics to understand performance and aid actionability
WHEN SHOULD IT BE USED?
To track new launches anywhere between 3 months to 18 months
*No Factors For SuccessTM are provided for this solution
HOW
WHAT
DOES IT WORK?
QUESTIONS DO WE ANSWER?
Consumers are contacted door to door and asked standard questions to track the launch and up to 4 custom diagnostics *Depending on category penetration and age of brand, booster interviews may be required for accessing trialists or detailed diagnostics among those aware
▪ How is my new launch faring in –market, with respect to consumer KPIs’ and distribution norms? ▪ What is my new launch’s consumer pull, compared to other new launches?
▪ What are my new launch’s strengths and weaknesses, both from a mix as well as execution perspective? ▪ Are there any areas for improvement for my new launch? 52
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
NLAF – DELIVERABLES EXAMPLE Brand A displays strong saliency, in-market presence however trials are limited. Brand B struggles to gain traction
Moreover, brand perceptions remain strong for both new launches, but Brand B is able to land its core benefit more clearly, and drives stronger differentiation via its TV Ad.
*Quartiles based on Consumer Norms Panel database of ~40 FMCG new launches.
15
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Consumer and Distribution Norms
Diagnostics on Ad liking
(Columns UPPERCASE letters - (PROPORTIONS) tested at the 95% confidence level - A/B.)
18
Brand Attraction Ranking
Brand Imagery
53
PLAN BASES Provides an initial understanding of likely sales potential, without extensive consumer testing.
WHAT IS IT?
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
PlanBASES provides an understanding of likely sales potential WITHOUT EXTENSIVE testing with consumers or starting extensive initiative development.
WHEN SHOULD IT BE USED? Useful when entering new geographies
or categories, i.e. to get an early assessment of the likely sales in order to judge whether they will merit further initiative development or not. It can also be used for smaller
initiatives, where limited consumer testing is planned, but a ballpark sales forecast is required for the business case and supply chain planning.
HOW
WHAT
DOES IT WORK?
QUESTIONS DO WE ANSWER?
Initiative Potential - We know what a
Strong Concept & Product looks like in your Category -Nielsen can leverage its Innovation database as a proxy for a tested product
Any other consumer testing (qual/quant) also helps us in making informed decisions about the initiative’s likely performance, and feed into the assumptions
Marketing Support - Inputs can be
▪ What is my likely sales potential without having to test extensively with consumers?
provided by client or alternatively Nielsen can provide an Independent Plan. Recent comparisons show that when Nielsen provided an Independent plan it was on average closer to the executed reality than client’s best estimate. 54
DESIGN DIAGNOSTICS Evaluate and prioritize design options for static media (POS/OOH/shelf)
WHAT IS IT?
HOW
WHAT
DOES IT WORK?
QUESTIONS DO WE ANSWER?
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Maximize impact at the last mile with this holistic solution which evaluates design options for static media.
WHEN SHOULD IT BE USED?
Used to effectively and systematically explore and evaluate a wide range of designs and POS communication directly with consumers
*No Factors For SuccessTM are provided for this solution
Respondents are recruited online/offline based on target criteria/study requirements Consumers evaluate visual design concepts on preference and brand fit. They then provide feedback for refinement.
▪ Is your static media (POS/shelves/OOH) standing out and attracting shoppers? ▪ Does it communicate your brand effectively and drive sales?
▪ Which design option should be prioritized for the right strategic messaging? ▪ How should you further refine your designs? 55
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
DESIGN DIAGNOSTICS – DELIVERABLES EXAMPLE
Preference/Appeal of tested designs
Strategic Fit
Refinement
56
RESTAGE Understand if the Relaunch will be able to increase the appeal for the Current Proposition
WHAT
HOW
IS IT?
DOES IT WORKS?
WHAT QUESTION DO WE ANSWER?
If there is a consumer perceived
change in one or more components of
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
an established brand, it important to understand if this change give the right amount of incremental growth to the Current Proposition
Here we test both the Current and the Relaunch concepts. Consumers are contacted door-to-door and
WHEN SHOULD IT BE USED? To understand if the incremental appeal that the relaunch is giving is
Is the Relaunch able to increase the appeal vs the current significantly?
Measures, a list of attributes and custom questions with
▪
What is its strengths and weakness?
deep diagnostic. We understand the change in Appeal
▪
Does your relaunch has a conceptproduct fit? Is there any opportunity for improvements?
▪
How will the change in appeal impact in overall volumes
(indec vs the current) for the Relaunch. This is then compared to BASES Restage Database
good enough to go ahead with the same. Is the relaunch helping in driving the business objective
▪
exposed to one concept and are asked BASES Key
*No database comparison on Factors For SuccessTM are provided for this solution. Only the Index in PI is compared to the database
57
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
58
THANK YOU! Copyright © 2017 The Nielsen Company. Confidential and proprietary.
As next steps, let’s continue the discussion to ensure Nielsen’s approach meets your needs. Please do not hesitate to contact us with any comments or questions.
Himanshu Kadaskar Innovation Business Partner +91 09860369708 [email protected]
59
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