Niq Global Intelligence Plc · NYSE:NIQ
Niq Global Intelligence — NIQ — A&M Webinar - International Markets (September 2023)
35 slides from Niq Global Intelligence's conference presentation, Sep 20, 2023
Slide 1: Category Vision Unleashed
Category Vision Unleashed Boost growth with assortment optimization and shelf excellence A&M Webinar - International Markets September 20, 2023 © 2023 Nielsen Consumer LLC. All Rights Reserved. © 2023 Nielsen Consumer LLC. All Rights Reserved.
Slide 2: Meet today's presenters and panelists
Meet today’s presenters and panelists Anna Tkacheva Vikram Dhunta Gokmen Ozturkoglu Higor Marquez Agnes Szucs-Villanyi Head of Category Advanced Assortment & Assortment & Head of Advanced leadership and Analytics Director, Merchandising Merchandising Analytics, Display team, Gulf Arabian Peninsula C
Slide 3: Our agenda for today
Our agenda for today Industry challenges impacting 1 assortment complexity Perfect Portfolio to 2 fuel your growth Perfect Shelf to simplify 3 range for retailers Picture of Success - 4 Panel discussion © 2023 Nielsen Consumer LLC. All Rights Reserved. 3
Slide 4: Industry challenges are impacting assortment complexity
Industry challenges are impacting assortment complexity © 2023 Nielsen Consumer LLC. All Rights Reserved. 4
Slide 5: Price inflation growth slowing but real prices are still climbing
Price inflation growth slowing but real prices are still climbing % FMCG Global Inflation evolution Deceleration “Eurozone inflation climbed to new Growth starts to overlap last year’s 16,0 Ukraine’s invasion record high of 10.7% in October” accelerated growth –Euro News 14,0 13,4 13,6 13,3 13,6 13,
Slide 6: Private Label growth has accelerated as shoppers remain squeezed
Private Label growth has accelerated as shoppers remain squeezed by inflationary pressures Private Label Value % growth vs YA 60% Europe 14,0% 52% 50% 47% West Europe 13,2% 43% 41% 40% 40% 38% 34% 33% 33% 33% East Europe 22,7% 31% 31% 30% 27% 27% 26% 26% 26% 25% 25% 25% 25% 24% 22% Global PL Share %
Slide 7: The long tail challenge
The long tail challenge Percentage of SKUs that contribute to less than 2% of overall category sales 42% Pet Care 42% Snacks, Biscuits, Confectionery 42% Baby Care 43% Home Care 81% Beverages RTD 72% Chocolate 38% Shampoo 36% Chocolate 51% Tobacco 48% Beverages - Alcoholic 37% Biscuits, Confectioner
Slide 8: Assortment Change % vs Sales Value change %
Assortment Change % vs Sales Value change% 100% 80% Assortment Change % 60% There is no correlation 40% between increasing 20% Assortment vs. -100% -80% -60% -40% -20% 0% 0% 20% 40% 60% 80% 100% increasing Sales -20% -40% -60% -80% -100% Sales Value Change % Portfolio fragmentation index = Share of
Slide 9: Decision fatigue: Shoppers react negatively to a complex shelf set
Shoppers react negatively to a complex shelf set Too many choices Decision fatigue: paradox of too Too many similar many choices products with similar claims Messy shelf is hard to navigate © 2023 Nielsen Consumer LLC. All Rights Reserved. 9
Slide 10: FMCG brands must win against the odds, delivering value and volume growth
Surviving these challenges, FMCG brands must be able to win against the odds, delivering value and volume growth. © 2023 Nielsen Consumer LLC. All Rights Reserved. © 2023 Nielsen Consumer LLC. All Rights Reserved.
Slide 11: Create the Perfect Portfolio to fuel your growth
Create the Perfect Portfolio to fuel your growth © 2023 Nielsen Consumer LLC. All Rights Reserved. 11
Slide 12: Current approach falls short of justifying reset costs
Current approach falls short of justifying reset costs Each category contains a long tail of ineffective SKU’s taking up space and attention Time and cost of production limit the ability to hit the target price points, thus 85% away from the important SKU's lowering margins of cost savings are achie
Slide 13: Incrementality is almost always the top KPI
Growth can be defined in a variety of ways, but incrementality is almost always the top KPI Top metrics used by our clients to assess launch performance Generated incremental brand growth 81% Mass Targeted Potential Potential Met volume objectives 74% Brought new users to the brand 49% Brand Increme
Slide 14: Analyze the macro view of category purchase decisions
Analyze the macro view – how shoppers make purchases decisions in the category Which are the segments contributing to true category growth? Toothpaste Adult Children/Kids Specialty Enamel Healthy Gum Multi Whitening Protection / Mouth Protection Check each segment’s relevance and importance to categ
Slide 15: Analyze the micro view of segment purchase decisions
Analyze the micro view – how shoppers make purchases decisions in the segment Which are the items contributing to true segment growth? Key Item category incremental growth Target Group Avg# of items change Sales value change potential within Enamel protect Whitening 2.1 1.4M Item Product Z Manufactu
Slide 16: Perfect portfolio success requires localized plans
Real example Perfect portfolio success requires localized plans Adapted to the shopper profiles and needs in each unique store cluster Retailer - Group A Retailer - Group B Current Avg. # of SKU Optimal # of SKU per store per store Current Avg. # of SKU Optimal # of SKU per store per store 16 19 15
Slide 17: Win-Win-Win category growth story
Win-Win-Win category growth story Shopper Perspective Brand Perspective Retailers/Trade Perspective Increased shopper satisfaction Build brand equity and relevance Free space to fulfill new customer needs and fuel more growth © 2023 Nielsen Consumer LLC. All Rights Reserved. 17
Slide 18: Create the Perfect Shelf to simplify range for retailers
Create the Perfect Shelf to simplify range for retailers © 2023 Nielsen Consumer LLC. All Rights Reserved. 18
Slide 19: Due to assortment changes and shopper preferences, the shelf is changing
Due to the assortment changes and the shopper preferences, the shelf is changing The right pricing, promotion, assortment and marketing strategy can’t have impact if a product is not on the shelf The purpose of the shelf and the Shelf space is under pressure Labor shortages are adding to the store i
Slide 20: Shelf supports more frequent shopping events and evolves to match digital age
Shelf supports more frequent shopping events and evolves to match digital age vs. 1x-2x/year Since assortment management no longer evolves seasonally across the store Online & Planned In-store Online for Curbside Pre-pandemic Post-pandemic Online for In-store Current state Personal Shoppers Feature
Slide 21: Combine Category Management strategies, decisions and rules
You really need to combine Category Management strategies, decisions and rules, to bring the plan to life Tracking & Strategy Evaluation Data Integration Execution Planning © 2023 Nielsen Consumer LLC. All Rights Reserved. 21
Slide 22: The need for a smart shelf becomes evident
The need for a smart shelf becomes evident, especially since we must work and adapt at a granular level Following the optimum portfolio per store type and cluster, the shelf follows every store's different shopper behavior. Traffic Flow © 2023 Nielsen Consumer LLC. All Rights Reserved.
Slide 23: Faster and more flexible shelf planning capabilities
Faster and more flexible shelf planning capabilities meet the demands of hyper- intensive planogramming, since trade offs are needed in merchandising The Shopper The Operations • Category layouts must be easy for the • Store and category layouts shoppers to find what they are looking for need to fit
Slide 24: Can you follow up all the changes in assortment?
Can you follow up all the changes in assortment? Do you have the time to implement everything in real time? A solution could be to send planogram content when it is “fresh”. The value lies with the frequent follow- up and changes What about publishing automatically? Communicate in Real time? The ben
Slide 25: The pitfalls of the must-stock list
Real example In National Large Supermarkets there were 395 different active SKUs sold throughout study period. The pitfalls of the must-stock list However, an average store had a shelf with 103 items listings. Products out of sight, (not all the products have 100% distribution) products out of mind
Slide 26: An integrated automated planogramming process leads to x50 productivity
Automation Take your planograms to the next level Help your retailer/partner to go for store-specific planograms. An integrated Time reduction when updating your layouts automated planogramming Change your store to convenience channel/sector without process leads to increasing your resources a x50*
Slide 27: Speed is king in planogram creation, roll out and implementation
Speed is king in planogram creation, roll out and implementation! The example of a retailer in Latin America with automation tools The challenges: • Assortment and merchandising strategies’ adaptation to every store 10-35% 40% • Sales Growth category sales increase in Category increase Increased num
Slide 28: Automation is also about cooperation
Automation is also about cooperation Assist the retailer, give suggestions Help the Focus on what Take into retailers setting up the rules > you want to achieve > consideration the shoppers' missions > Sales > Profit > Or both 100% 90% 80% 40,5% 36,0% 43,3% 43,8% 70% 60% 50% 29,0% 29,2% 33,3% 29,1%
Slide 29: Automation is also about cooperation
Automation is also about cooperation Assist the retailer, give suggestions Help the Focus on what Take into retailers setting up the rules > you want to achieve > consideration the shoppers' missions > Sales > Profit > Or both 100% 90% 80% 40,5% 36,0% 40,5% 43,3% 70% 60% 50% 29,0% 29,2% 33,3% 30,7%
Slide 30: Execution is 90%
‘‘ Strategy is 10% ‘‘ Execution is 90% of the success © 2023 Nielsen Consumer LLC. All Rights Reserved. 30
Slide 31: Execution and compliance: why they are so important
Execution and compliance Why they are so important? In-store execution Ensure planogram implementation and reduce any operational inefficiencies The actual cost of poor execution is lost sales! Track and sustain Monitor planogram maintenance and implementation quality; audit and fix in real time Imp
Slide 32: Make the difference and grow in Sales
Make the difference and grow in Sales, with… Quick and easy user interfaces that increase adoption and usage. Keeping your Focus on planogram implementation allowing at the same time customization shelf compliant can make a difference Integration with any existing in-store systems and devices. Commu
Slide 33: The last mile
Assortment simplification and But it is not enough optimization is everyday on its own Assortment Planograms can guarantee planning any assortment strategies and gets a frequent decisions. data driven activity Mobile solutions get mandatory The last mile in the chain has become the new Real time dat
Slide 34: Placement at retail is a pay to play sport
Placement at retail is a “pay to play” sport, therefore you need to… Know the retailer’s strategy and the shopper they aspire to have Know the shopper you are bringing in the door and their worth in profit and across the store Know the retailer’s processes cold Incrementality. Add variety with a dat
Slide 35: Thank You
Thank You Get in touch with our Advanced Analytics team About NIQ NIQ, the world’s leading consumer intelligence company, reveals new pathways to growth for retailers and consumer goods manufacturers. With operations in more than 100 countries, NIQ delivers the most complete and clear understanding
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