A.C. Nielsen Homescan

Continually providing information about their purchases POS (scan) data tells you what sells in a retailer’s stores -- Homescan consumer panel data tells you who buys what in the stores and what they buy elsewhere A group of households selected to be demographically and geographically representative Continually providing information about their purchases From all outlets using in-home scanners Understanding your customers’ preferences allows you to tailor merchandising and operations to better meet customer needs

Female/male head of household Homescan collects more than just demographic information allowing you to understand more about customer lifestyles Female/male head of household Age Employment Occupation Education Other household members Relationship to panel member Employed for pay Household income Race Hispanic descent Cable TV Type of residence Own/rent residence Length of residence Pet ownership (dog/cat and number owned) Vehicle ownership (car/truck and number owned) Appliance ownership

Homescan’s allows you to look at your business globally and locally 61,500 households Geographically dispersed Demographically balanced Projected to U.S. Census at the national, regional, and market level Estimates are updated monthly to reflect changes in the population The robust sample allows the creation of custom geographies 23 local markets Buffalo/Rochester Boston Charlotte Chicago Columbus Denver Houston Los Angeles Miami Minneapolis New York Phoenix Detroit Sacramento St. Louis Seattle Tampa Dallas Atlanta Baltimore/Wash. San Antonio Philadelphia San Francisco

9 U.S. Census Divisions New England Mountain West North Central East North Central Pacific Mid- Atlantic South Atlantic East South Central West South Central

Caveats of panel data Collection and reporting takes place in the home so items bought and immediately consumed may be missed Panelists do not scan purchases made for business use Hard-to-recruit households are a challenge for all marketing research companies requiring special recruitment and projection practices Extremely low / extremely high income households Young, single males Young female heads with young kids Certain ethnic households

Information captured for each shopping trip On each shopping trip (no matter who in the hhld is shopping): Date purchased Age and gender of primary and secondary shopper Retailer and channel shopped Frequent shopper card usage* For each UPC... Number of units purchased Price paid (non ScanTrack stores only) Deals used (mfr cpn, store cpn, store sale, other) Source of coupon* at home, at the register, elsewhere in the store Total amount of shopping trip ($) Method of payment* * collected from a subset of panelists

Why use Homescan data? Consumer behavior drives sales -- Homescan moves beyond demographics to measure behavior Tells what actually happens when your customers are inside your stores and your competition’s Shows customer’s shopping behavior in all outlets including channels like pet stores Serves as a benchmark for success -- a healthy, active client base generates long-term success for a retailer Consumer data is imperative to move from Category Management to Consumer Management Homescan allows you to understand your customers, fine tune your operations to better respond to them and capture a larger share of wallet!

Exam Data 1 Select a Nielsen Homescan category—be sure that it can provide the sales of the leading brands for metropolitan markets. Select four metropolitan markets, each from a different region. (i.e., Dallas, Minneapolis, Chicago, Miami) Estimate the share of the category’s sales for each of the retailers found in that market for 2000 and 2004. Create a single-page table permitting comparison of the competition in and across the four markets. The table should include overlapping retailers (single row), and (at least) the top retailers (8) in each market.

Channel Facts Retailer Purchase Components: Provides sales ($) by retailer for a category. Category Purchase Components: Provides total sales ($) in the category for the metro market. Create a spreadsheet (set of spreadsheets) by copying Nielsen spreadsheet into another file. Use sales ($) and % sales as your measures of competition/concentration.

Consumer Facts Buyer Behavior: Provides the sales by brands for the U.S., Regions, and Metropolitan Markets (level of detail drops significantly from U.S. to Region). Demographic Profile: Provides the household demographics by brands for U.S. (and Regions). Become familiar with the organization and level of detail within your selected product category before making your final decision on a product category. Category should include store brands, or private label (CTL BRAND) in a market.