DAMA Chicago April 15, 2015 Ken Rabolt
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1 DAMA Chicago April 15, 2015 Ken Rabolt
2 THE NIELSEN COMPANY 2015
3 OUR MISSION The most complete understanding of consumers worldwide. OUR PROMISE An uncommon sense of the consumer for faster, smarter, more confident decisions that improve performance
4 THE CONSUMER S WORLD Every action is a data point 4
5 FROM DATA TO INFORMATION Simplifying the complex 5
6 THE PATH TO PERFORMANCE Faster, smarter more confident decisions to improve performance CONSUMERIZATION: Organize around consumers; build proprietary understanding about your most profitable consumer then activate the entire organization. INNOVATION: Improve how companies innovate; integrated from white space to launch support MARKETING EFFECTIVENESS: Engage consumers through effective and efficient marketing SALES EFFECTIVENESS: Activate plans through superior sales execution 6
7 DEEP AND FAR-REACHING DATA IS THE FOUNDATION 6.7 BILLION STORE TRANSACTIONS EACH MONTH 250K BUYER PANEL HOUSEHOLDS 1.7 MILLION STORE VISITS EACH MONTH 34 MILLION RETAIL ITEMS TV ONLINE MOBILE U.S. TV VIEWERS 24X7 MONITORING OF 9,000 STATIONS AT 900 U.S. SITES 1.7 BILLION VIEWING RECORDS EACH MONTH MEANINGFUL PARTNERSHIPS 1.6 TRILLION IMPRESSIONS PER YR SURVEYS FROM 500,000+ MOBILE USERS 7 MILLION WEB EVENTS DAILY FROM MOBILE DEVICES US Only 7
8 THE PATH TO PERFORMANCE
9 CONSUMERIZATION CONSUMERIZATION Who are my best consumers & how do I meet their needs? Discover, segment and prioritize your most profitable consumers with Segmentation and Local Market Solutions Identify unsatisfied demand with Cambridge Group Determine how, where and when to reach them with Demand Activation 9
10 CONSUMERIZATION IDENTIFY YOUR MOST PROFITABLE CONSUMERS Segmentation and Local Market Solutions Full Wallet of Products Lifestyles and Demographics Neighborhood Composition Channels Media Usage Extensive segmentation analysis Identify most profitable segments Fewer, better products 10
11 CONSUMERIZATION UNCOVER UNSATISFIED DEMAND The Cambridge Group IDENTIFY Find and capitalize on demand. SEGMENT Understand your consumer. OPTIMIZE Hone in on what matters. SIMPLIFY Make it actionable. EXECUTE Make it work at retail. 11
12 CONSUMERIZATION KNOW HOW, WHEN, AND WHERE TO REACH THEM Demand Activation IDENTIFY AUDIENCE SEGMENTS ASSESS IMPACT ASSESS IMPACT DEVELOP TAILORED MESSAGING ENGAGE AUDIENCE EFFECTIVELY 12
13 INNOVATION INNOVATION How do I develop, price and promote products? Develop and prioritize innovation concepts aligned with consumer demand with Innovation Analytics Test new products and packaging by understanding consumers subconscious with Nielsen Neurofocus 13
14 INNOVATION DEVELOP AND PRIORITIZE INNOVATION Innovation Analytics Demand Driven Insight Lessons Learned and Applied Concept Optimization Activation Strategy Economic Forecasting 14
15 INNOVATION EXPERIENCED CONCEPT OPTIMIZATION A FRAMEWORK FOR SUCCESS BASED THE FOLLOWING PRODUCT ATTRIBUTES: Salience Communication Attraction Point of Purchase Endurance 15
16 INNOVATION FULLY UNDERSTAND YOUR CONSUMER THROUGHOUT THE BRANDING PROCESS Neurofocus v 1 INVESTIGATE 2 DEVELOP 3 CREATE Consumers underlying attitudes towards your brand Subconscious motivations to understand what appeals to consumers Innate reactions to marketing, pinpointing what is and isn t working BRAND ESSENCE CONCEPT TESTING PACKAGE TESTING TOTAL CONSUMER EXPERIENCE COPY TESTING AD COMPRESSION IN-STORE TESTING 16
17 MARKETING EFFECTIVENESS MARKETING EFFECTIVENESS Is my marketing effectively delivering results? Understand consumers viewing behavior across screens with Audience Measurement Determine if your campaign reached the right consumers, how the message resonated and the action they took with Advertising Effectiveness Improve dollar allocations across brands and geographies and optimize marketing ROI to drive margin or growth with Marketing Mix 17
18 MARKETING EFFECTIVENESS CONTINUOUSLY INNOVATING AS MEDIA EVOLVES 18
19 MARKETING EFFECTIVENESS GAIN A DEEPER UNDERSTANDING OF YOUR ADVERTISING INVESTMENTS Advertising Effectiveness REACH What audience did I reach? RESONANCE How did it change attitudes? REACTION How did it change behavior? 19
20 MARKETING EFFECTIVENESS CREATE EFFECTIVE MARKETING PLANS Marketing Mix Assess positive & negative contributors to sales and measure effectiveness and efficiency of spend. 20
21 SALES EFFECTIVENESS SALES EFFECTIVENESS Retailer How can I better collaborate with manufacturers to drive trips and baskets? Understand retail spending and shopper behavior with Retail Measurement Acquire shoppers and drive trips through advertising and attractive promotional offers with Shopper Marketing Increase loyalty by optimizing pricing, assortment and in-store experience with Revenue Management 21
22 SALES EFFECTIVENESS UNDERSTAND RETAIL SPENDING Retail Measurement NIELSEN CLASSIFIES & TRACKS THE RETAIL UNIVERSE IN 100+ COUNTRIES Visit 1 MILLION stores each month Audit 50 MILLION items in 300,000 stores per month Assign and maintain 30 attributes for 30 MILLION retail items Conduct 20 MILLION surveys per year Collect Loyalty card purchase data from 60+ MILLION shoppers Process 2 BILLION electronic records a week from >200,000 retail outlets 22
23 SALES EFFECTIVENESS UNDERSTAND SHOPPER BEHAVIOR Consumer Panels - a panel of households who continually provide information about their purchases using in-home scanners to record all purchases. 100,000+ U.S. HOUSEHOLDS NATIONAL, REGIONAL AND MARKET LEVEL KEY DEMOGRAPHIC REPRESENTATION Largest static sample in U.S. 51 local U.S. markets 170+ Retail Trading Areas Rural and urban sample Males Unacculturated Hispanics Retention of African Americans 23
24 SALES EFFECTIVENESS ACQUIRE SHOPPERS AND DRIVE TRIPS Shopper Marketing UNDERSTAND YOUR SHOPPERS DRIVE PURCHASE WHO? WHEN? WHERE? WHY? Simulate and optimize products to drive purchase with Shelf Optimization and Assortment 24
25 SALES EFFECTIVENESS INCREASE LOYALTY BY OPTIMIZING PRICING, ASSORTMENT AND IN-STORE EXPERIENCE Revenue Management Optimization 25
26
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