RMS Academy-Facts Usage Interpretation Introduction (en)

Introduction

Welcome

 

Learning Objectives

This session will communicate the four data dimensions (Market, Product, Period, Facts). Following the session you will understand:

  • What are the four dimensions.
  • How data is combined within the dimensions.
  • How data may be utilized to gain business insights.

RMS Academy Overview

RMS Academy Modules Facts, Usage & Interpretation comprises five topics, starting with The Four Dimensions, covered in this learning program.  The remaining topics are in subsequent modules.

  1. The Four Dimensions of RMS
  2. Value, Volume, Growth & Share
  3. Distribution & Range
  4. Pricing
  5. Promotion

RMS Academy Case Study Introduction

What is the Product?

My corporation manufacturers many products; however, my focus is on our newest product… 
Modern Man, a Men’s Facial Moisturizer.

What is the Business Need?

I have to know how my new product is performing. What and where are opportunities to increase sales? 
It’s not just about having Nielsen’s RMS data. It’s about analyzing the data to make sound business decisions. 

The Four Dimensions of RMS

The Four Dimensions

The Market and Product Dimensions in your database will be specific to the coverage and category/categories created for the manufacturer and/or retailer.

Click each dimension 'i' to learn more.

Market Dimension


The Retail Index & ScanTrack databases can be compared to a Rubik's cube. The total is an aggregation of smaller blocks. The cube can be then sliced up into its components depending on the need. Options vary within each custom database, dependent on data purchased. 

Note: Markets can be aggregated depending on which account/region we want to assess.

Product Dimension


How are products classified?
Database structure reflects category segmentation (i.e. hierarchy of key characteristics that drive consumer purchase).


Product Database Hierarchy View

Hierarchies allow users to drill down through the data and view relationships, characteristics allow you to filter the information.

Period Dimension


Periods can be built in a variety of ways, depending on data collection method. Local availability will vary based on collection methodology and client preference in your country. 

Types of Periods are: 

Periods Examples

Year-To-Date: A cumulative period starting from the beginning of the year through the most recent period. 

The example shows Year to Date September 2013 and Last Year.

 

Note: Many Year to Date figures can be used including, Financial, Year to date, Calendar to date & Season to date.

 

Moving Annual Total: MATs are a cumulative rolling total of the latest 12 months, 13-4 weekly or 6 bi-monthly periods.

In the example, if the current month is June 2013, the MAT is the sum July 2012 to June 2013.

 

With MAT's, as the latest period is added, the oldest period drops, a new MAT is calculated.

  • For Retail Index, monthly periods are used.
  • In ScanTrack, the periods can be either monthly or 4 week periods.

Period Watch-outs

What period should you use to analyze?

Fact Dimension

 

These five facts are used to evaluate product performance.

  • Sales: Can include Volume, Unit or Value. Evaluates Question: How much have we sold?
  • Share: Can help determine: What is our products' contribution to total sales?
  • Growth: Addresses client question: Are our sales growing or declining?
  • Distribution: Used to evaluate: Where and how broadly are we selling?
  • Price: Evaluates competitive threats such as: What are consumers spending on our products and competitive items?

Exercise: Reviewing Sales

  • Sales increased in MAT to Q4 2013.
  • The brand is performing well.
  • The brand is on a growth trend.
What conclusions would you draw based on this chart?

Exercise: Reviewing Sales Continued

  • Yes
  • No

Do the conclusions differ when you also evaluate this chart?

Case Study

Modern Man Case Study Recap

Nielsen's Retail Measurement Service provides a wealth of information to address client's most critical business needs.

Nielsen can help Modern Man Brand Team address all of these questions.

  • How big is the market?
  • How has the market changed over time?
  • How are key manufacturers/brands performing?
  • In which segments are my brands strong/weak and why?
  • Which segments are growing/emerging? Should I consider expanding into any of those segments?
  • Has the change in price affected my performance?
  • Have my sales increased when I run a sales-driven promotion?
  • How am I performing within specific price segments?
  • Is the price gap to competition affecting my performance?
  • Am I over-promoting or under-promoting?
  • What have been my most successful promotions?

The Modern Man Case Study will continue through the remaining Facts, Usage & Interpretation modules.