RP+N Short Intro Russia

Driving growth in store
How to win in dynamic FMCG Environment in
Russia ?

Solutions for in-store execution control and
continuous improvement
September 2011

Background: store is a real battle-field around consumer

Half of purchasing
decisions are made by
Russian consumers in-
store*

*Source: Nielsen OmniShopper 2010, 2244 respondents
2
Copyright © 2010 The Nielsen Company. Confidential and proprietary.

Our Understanding of the client Business
Objectives
• Improving POS execution is a strategic goal
• Business tactical objectives are:
• Create an audit system with a clear measurable
impact on the quality of execution at POS level
• Gain better insight about quality of execution of
competition and set benchmarks
• Improve visibility and gain better equipment
utilization at stores that are not covered by you
directly
• Improve sales force efficiency

3

Differentiating factors of Nielsen Retailplus
• We provide a sales/TM tool that actively supports improvement
of in-store execution
• Flexible, entrepreneurial and responsive consultant
• Real time dynamic system – turnaround time data capture to WEB
reporting - one day
• Real-time alerts methodology to help improve execution
• Reports include pictures of specific points of interest at POC
• Sophisticated scoring system based on in-store KPI’s
• Automated quality control procedures to enhance data quality
• Auditors are long term trained employees –no temps

4

Vital KPIs to be monitored in store continuously
Availability, O Facings, Shelf Price
ut-of-stock Share of shelf and TPR
?

1 2 3 4 5

Promotion 2nd placements and Customized QNR
execution, POSM expositions (merchandising standards, etc)

5

What promo types can be registered?

Gifts and Multibuy Banded Pack Bonus Pack Promoter
Samples (2x1, 3x2, etc.
)

Price Loyalty Coupon Lottery Shelf
discount Card Talker/Wobblers

6

Retailplus Russia
 Main office in Moscow –
 Staff includes Operations Manager, Client Service, IT
people, supervisors
 Field auditors in all main cities in Russia
 Current clients in Russia include
 Unilever
 Wim-Bill-Dun
 Inbev
 Nestle
 J&J
 Mars
 Avon

7

Nielsen R+ has official access to most of KAs, it’s unique!

• Official access in Modern and Traditional trade
• Other retailers can be visited via flexible methodology
• Store level data from > 3 000 every month
• 35 main cities and nearby areas are covered
8

Audit process secure data consistency and quality
Auditors get daily plan Auditors move Shop banner picture Fulfill QNR predefined
of shops according to a route and GPS coordinates for each shop

Automatic QC in parallel

Audit available for client Manual QC in office Upload finished QNR to Picture of
via WEB if required server via GPRS predefined objects

3-24 h

Sales reps performance review
Alerts delivery to problem owner Score carding of shops/ sales reps
and improvement

9

Data Quality and Integrity

 Based on our system capabilities, methodology of data
capture and operational efficiency

 We guarantee data accuracy level of over 99.4% from the
4th month of the project.

10

Reporting
 “Real-time” reporting via web-tool to multi users users can
design save and PULL reports
 Daily or weekly actionable reports
 A set of pre-defined monthly reports with all KPI’s tracked,
scores and qualitative issues will be PUSHed by mail
 Reports can be added and changed within days
 Pictures of stores can be seen via web-tool according to the
specific issue in question

11

Why work with Nielsen Retailplus ?
 we understand your business needs, and help you improve POC
execution and achieve your business objectives
 provide fast and dynamic reactions in a dynamic market
 give a real-time sales support tool based on automatic generated
alerts and delivery on the next day via WEB
 send you only actionable reports, and not pure research data
that you can’t do much about it
 you can influence retailers combining in-store data with retail
audit (esp. KAI) and use results in negotiations – see example
 store observation data is a great source for ad-hoc analyses and
recommendations (promo efficiency, marketing mix, key
business drivers) – see example

12

Retailplus has 15 years experience providing in-store
insights, our clients are:

13

Thank you

14

Appendix

 Alerts system
 Insights

15

Alerts System – active tool for improving execution

• Situations like missing MHP, no 2nd display, no POSM, no
fridge exclusivity are pre defined
• When these situations are found in shops, alerts are sent by
email to the problem owner on client side
• On daily / weekly basis alerts are accumulated to report for
sales managers to help them track their people
performance
• As option - a sales rep gets alert but does not know which
shops are in the sample this month, so he takes care of all
the shops to improve his scorecard performance
• In some projects we make a follow up phone calls in which
we collect the reason for the situation we saw in shop
16

Some of the questions Nielsen Retailplus answers
•What promotions are performed by my competitors?
How does their promo strategy vary across?
•At what price are my products sold in different Key
Accounts?
•What other display types aside from shelf are
important for category / my assortment?
•Do I get sufficient space on the shelf? Does it
correspond to my market share?
How is my competition performing?
•Is out-of-stock (OOS) an issue for my portfolio? In
which Key Accounts do I have this issue?
•Do I have the right positions on the shelf in the store?
Are my products at the eye level or out of consumers’
view?

17

Inside the exhibition we provide deeper knowledge of
products’ visibility for consumers

High

Eye level

Middle
Low

18

What types of promo are most efficient for my / competitor’s
sales growth?

19

Do I get sufficient space on the shelf? Does it correspond to
my market share? Do I have arguments to expand my
presence inGround Coffee (%)chain/ outlet? SHARE PRIMARY DISPLAY (%)
Roasted & particular -
Retailer "A"
SHELF

100

13,2 13,7 15,4
90 OTHERS
2,4 8,4 36,7
7,3 7,5
80 3,5
3,1

70
9,7 9,8
Private Labels
PRIVATE LABELS
11,0

25,0
13,3
60
Manufacture X
NESTLE
25,3
50

40
Manufacture Y
SARA LEE

30
54,1 My main competitor
KRAFT FOODS

20 40,6

10
My products
TCHIBO

0
VALUE SHARE SHELF SHARE
Shelf Share = Share of Shelf Facings
(AS09)
in hypermarkets in chain A

20

At what price my products are sold in different Key Accounts?
Is our price dispersion in planned interval?
Pricing per Item, RUR
Price of TOP R&G Coffee SKUs
80
Retailers
TCH Exclusive 250g 72,9
Billa 72,90
70 66,9 Makro 65,29
Lidl 64,90
63,8 Albert SM 64,90 Min Price
60 23% Kaufland 64,90 46% 60,8
Penny Market 64,90
Albert HM 59,90
50 54,4 45,5 Tesco 55,90
Interspar 49,90 49,9
15% 43,2 Globus 49,90 Average
40 Price
39,5
29,6
30
29% 26,0
Max price
20 22,9

Price
10 dispersion

0
DE Grand Aroma 250g JAC Standard Aroma JIHL. Standard 150g TCH Exclusive 250g
SKU 1 250g
SKU 2 SKU 3 MY SKU
21

Reality in Stores: Agreed Assortment is hardly ever met
• Less than 5% of shops comply with agreements
(must sku list) Business
• 2/3 of shops fulfill less than 70 % 25,8 Case

19,1

14,1

11,2
9,7

5,3
4,2 4,6

2,0 2,2
1,6

0 - 9,9 % 10 - 19,9 % 20 - 29,9 % 30 - 39,9 % 40 - 49,9 % 50 - 59,9 % 60 - 69,9 % 70 - 79,9 % 80 - 89,9 % 90 - 99,9 % 100 %

Listing Fullfillment - All Shops/All Categories % of Shops

22

RP+N Short Intro Russia

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