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Niq Global Intelligence — NielsenIQ — Fact Sheet (November 2022)
12 slides from Niq Global Intelligence's fact sheet, November 2022
Slide 1: Make category management pivotal to your strategic growth in a consumer recession
Make category management pivotal to your strategic 5 growth in a consumer recession , WANN Wanna 3'¢ November 2022 B -iuiy) jus NielsenIQ
Slide 2: Business and consumers are faced with unprecedented disruptive change
Business and consumers are faced with unprecedented disruptive change Supply chain delays Continued Rising raw & disruptions Worker Increased pandemic Ukraine crisis Soaring inflation material costs (China lockdown) shortages interest rates conditions \, g Qo ¥ P + tot ] | 2. «cll : © &£ $ Se Curren
Slide 3: How consumers are reacting
How consumers are reacting Increasing grocery prices are noticed by majority - +7% vs. Dec. 2021 say normal weekly shop costs more than it did six months ago Recessionary times are already here for majority Future wallets will continue to be reshuffled with more cut backs than anticipated at the sta
Slide 4: Changing shopper behavior creates challenges for business
Changing shopper behavior creates challenges for business € os . Lower sales Whether shoppers move for PL or choose to indulge less frequently — the sales are going down Obsolete assortment Some of the items becomeirrelevant to the shoppers in the current realities Inefficient production With lower
Slide 5: The four levers of category management
The four levers of category management Whilst first response is to review Price and Promotion, the lasting solution to the business challenges is assortment optimization
Slide 6: More SKUs do not necessarily bring more sales
More SKUs do not necessarily bring more sales Portfolio optimization can drive better results Chilled vegetables Assortment change (%) Value growth, % urce: NielsenIQ RMS Scantrack data Greece, 67 food categories
Slide 7: But this realization does not have to be post factum
But this realization does not have to be post factum — Portfolio optimization can drive better results Drinks: Category analysis, Spain, Feb 2022 AGUAS ‘CERVEZA @ BEBIDAS REFRESCANTES vinos. ESPUMOSOS BEBIDAS ALCOHOLICAS Store-Week ROS Incrementality © 2022 Nielsen Consumer LLC. All Rights Reserved,
Slide 8: But this realization does not have to be post factum
But this realization does not have to be post factum Portfolio optimization can drive better results Drinks: Category analysis, Spain, Feb 2022 a Evolution of # of SKUs LL] +4,0% Sales Alco drinks Beer Water Sparklings Soft drinks Juices Wines Sales (obsolute) (optimal)
Slide 9: Things to remember when optimizing assortment
Things to remember when optimizing assortment = Know the current situation: = Analyze shopper needs = Understand what products cover the same needs without bringing unique benefits =" Understand assortment potential: what happens to the sales if we add an SKU? = When optimizing: = Know who buys the
Slide 10: Innovation must be relevant to the consumer
Innovation must be relevant to the consumer Beyond saving... Attributes that today's consumer is looking for + ¢ & » Health & Hygiene = Sustainability Origin Practicality Fresh products +27 Sustainability +26 Local origin +21 Improve +10 manufacturers consumption at home Health and +16 Social +16 Pr
Slide 11: Expect the unexpected
Expect the unexpected 1. Inflationis considered as a total basket, the most inflationary categories will not be the only ones to see their volumes decline 2. Know the profile of consumers of your categories and your brands: the categories typified consumers, modest, family and weakened by the last 2
Slide 12: Thank you
THANKYOU nielsenig.com/global/en/landing-page/advanced-analytics/ Stay ahead by staying connected inj] ¥] fo About NielseniQ Arthur C. Nielsen, who founded Nielsen in 1923, is the original name in consumer intelligence. After decades of helping companies look tothe future, we are setting the foundat