Trade promotion evaluation is a big selling point for Nielsen and IRI data. Both vendors provide a key piece of the promotion evaluation puzzle: estimates of Incremental Volume. Incremental Volume tells you how much extra volume you sold due to trade merchandising. Here are a few things you should know about this important but sometimes […]
Subsidized Sales: The Missing Link
Do you debate which Circana/Nielsen measures to include in your trade promotion analysis? To make the right choice, you need a clear understanding of both your business questions AND the measures themselves. In my last post, I discussed the important distinction between presence measures and impact measures. Now I’ll illustrate how these measures tie together […]
Presence vs. Impact: Why Non-Promoted Sales ≠ Base Sales
In my last post, I laid out how Nielsen/IRI define each promotion condition they measure. Today I’ll tackle the difference between promotion presence measures and promotion impact measures. Understanding this distinction will help you sort through the long list of promotion facts and avoid common errors. In brief, presence measures tell you how much and […]
The Beginner’s Guide to Trade Merchandising Measurement
Trade promotion evaluation is one of the primary reasons CPG companies buy IRI and Nielsen data. At 10-20% of gross sales, trade funds are a big investment for most manufacturers. And even companies that don’t have direct-to-consumer marketing will still often have retailer driven in-store merchandising. IRI and Nielsen databases can include literally hundreds of […]
How To Estimate Retailer ACV Using Nielsen or IRI Data
Sometimes you want to know total ACV for a retailer (in other words, not just how much they’re selling in your category, but how much they’re selling in the entire store). You need this number to assess trading area trends or to find out whether the retailer is getting their fair share of sales for […]
Fair Share Gap Analysis: How Much Is That Opportunity Worth?
In a recent post, I wrote about the importance of including competitive benchmarks in retailer category assessments. In this post, I’ll build on this concept by showing you how to construct an Opportunity Gap Analysis. This analysis examines whether the retailer is getting its fair share of category sales, compared to competitors. And, more importantly, […]