Key definitions & calculation

A database is made of 4 dimensions MARKETTRACK DATA A database is made of 4 dimensions PRODUCTS MARKET PERIODS FACTS

Different Levels in your Product Tree Products are down to SKU level and hierarchy is flexible for customization Category Total Category Manufacturer Manu 1 Manu 2 Others Etc… Brand Brand A Brand B Brand C Subbrand Subbrand B1 Subbrand B2 NA Function Function 1 Function 2 Function 1 Function 2 Measurement 1’s 2’s 3’s 1’s Packtype 90ml 66ml 90ml 78ml …… -M -R (B/W- …..) -R Item

Product - Classification Displayable SKUs Regular Pack (R) Bonus Pack (B) Multi Pack (M) Banded Pack (B/W) Normal Single Pack With lucky draw coupon/free recipe without promotion indication More than one identical unit packaged together With additional volume written More than one (identical) unit of a product packed together Usually sold at reduced price Same/cross category Same/different brands/variant Audit item/non-audit item Knorr Chicken Powder 500gm - R Knorr Chicken Powder 500gm + 100gm - B Mead Johnson Enfapro A+ 400gm*3s Abbott Ensure NG Vanilla 900g-R B/W Rice

Banded Pack Audit Item Non-Audit Item Banded packs exist in a variety of combinations in different categories. They can be classified as the following types: Banded Pack with: Audit Items Cross Category (Different Brands) – e.g., Dove Body + Sunsilk Shampoo Cross Category (Same Brands) – e.g., Nivea Deodorant + Nivea Body Milk Same Category (Different Brands) – e.g., Dove Body Milk + Sunsilk Body Milk Same Category (Same Brand and Same Variant) – e.g., Nivea Body Milk Cheery 200ml + Nivea Body Milk Cheery 100ml Same Category (Same Brand and Different Variant) – e.g., Nivea Body Milk Cherry + Nivea Body Milk Coconut Non-Audit Items Audit Item “+” Indicates Banded Pack, e.g. 750 + 200 = 750ml banded with 200ml, without the word “free” on the packaging “>” Indicates FREE, e.g. 750 > 200 = 750 ml free 200ml Non-Audit Item

Price calculation for banded packs For Freebies: Assign full price to main item For Non-Freebies: Pro rata pricing Banded Pack Freebies Main Items at Full Price Freebies at HK$0.01 Non-Freebies Pro Rata Price Free Package Price = $10 Package Price = $10 Benchmark Market Price Nivea Body Lotion = $9 Nivea Deo = $3 Ratio 9:3 = 3:1 Nivea Body Lotion= $10 Nivea Deo = $0.01 - main item of the banded pack MUST be audit item - the tie-in can be audit / non-audit item Pro Rata Price Nivea Body Lotion = $10 x $9 ÷ ($9 + $3) = $7.5 Nivea Deo = $3 x $9 ÷ ($9 + $3) = $2.5

Wordings to be considered as “Freebies” 贈品 / Sample 試用裝 /Sampling Pack Not for resale

Database Key Facts Value / Volume / Price Numeric Distribution (Num Dist) Weighted Distribution (Wtd Dist) Sales Per Point of Distribution (S.P.P.D.)

Distribution – NUM & WTD Numeric Distribution Quantity - % of retailers handling your products E.g. 75% = 75 stores out of a 100 handle your products Weighted Distribution Quality - for those retailers handling your product, what is the % sales contribution to total category E.g. 94% = The 75 stores that handle your products representing 94% of the category value sales

Distribution – NUM & WTD Numeric Distribution vs Weighted Distribution ~ Quantity vs Quality Sales Value of Total Category = $100 Shop A Shop B Shop C Shop D Shop E X X Y Z X Y Z Sales $5 Sales $20 Sales $25 Sales $45 Numeric Handling Distribution Weighted Handling Distribution Brand X 3/5 Stores 60% $50 / $100 50% Brand Y 2/5 Stores 40% $45 / $100 45% Brand Z $65 / $100 65%

Productivity – S.P.P.D. Dollar Sales S.P.P.D = % Distribution Sales per point of distribution (S.P.P.D) Normally we use weighted distribution for the calculation of S.P.P.D since we would like to compare sales per equivalent base. This enables us to compare the productivity of different Brands across the shop floor. Dollar Sales % Distribution S.P.P.D =

Summary of Key definitions & Definitions Understanding of database structure and key data facts There are 4 dimensions: Market / Product / Period / Facts Each database will have its own market breakdown, product hierarchy, available periods based on client subscription and customization There are different types of SKUs coded with -R/-M/(B/W) Banded packs prices may be fully assigned to main item or by pro-rata Numeric and weighted distributions measures the quantity and quality of distribution SPPD measures the productivity of products / brands etc. MARKETS PRODUCTS PERIODS FACTS

Further questions & inquiries Please feel free to reach your Nielsen service representatives! Next, you may access the Nielsen database through our NAD software For software trainings, please ask your service rep about the upcoming schedule Also suggest to discuss with our team about your priorities and goals with Nielsen services so that we can move forward together What is MarketTrack? It is… “A continuous monitor of the sale of goods to purchasers through defined retail outlets”