March 2000

In s i g h t s t o d a y f o r t o m o r rows d e c i s i o n s

The Role of the Internet in CPG

The World of e-Tailing: Where Clicks and Bricks Converge Linking Consumer Attitudes and Actual Purchase Behavior Trend Watch: Big Changes in OTC

Linking Consumer

CONSUMER INSIGHT:

Attitudes and Behavior

For More Information

150 North Martingale Road Schaumburg, IL 60173 800.988.4ACN World Wide Web site: http://acnielsen.com/ci

March 2000, Volume 2, No. 1

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Delivering Consumer Knowledge for Action For ACNielsen, our focus is to create a World Class Service Company. The success of the business solutions we provide to you will be directly linked to our ability to deliver more effective and efficient direct-to-consumer marketing and retail execution.

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The Role of the Internet in CPG: A Conversation with Paula Sneed, President, e-Commerce, Kraft Foods Recently, the staff met with the head of e-commerce for Kraft Foods to discuss the near-term implications of the Internet and e-commerce on the consumer packaged goods industry.

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The World of e-Tailing: Where Clicks and Bricks Converge Think what the pundits were saying about the Internet just five years ago. Who knew we would come so far, so fast? Very soon, the CPG industry will represent one of the largest online commerce categories.

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Linking Consumer Attitudes and Actual Purchase Behavior A strategic alliance between Market Facts and ACNielsen is now providing a breakthrough approach that gives marketers the best-ever insight into the relationship between consumers attitudes and their resulting behavior in the marketplace.

In every issue
16 Trend Watch Big Changes in OTC

Business Tools
18 Retail Tracking 20 Retailers 21 Analytics 22 Merchandising 23 Consumer Behavior 24 Decision Support Services
Volume 2, No. 1 Publisher ACNielsen Editors Mark Chesney Art Massa Design & Layout Kathy Zonyk Editorial Board Gary Binkoski Don Drews Kathy Mancini Elaine Noone Mark Puccetti ACNielsen Global Creative Services Laurel A. Kennedy Marketing/ Communications Slack Barshinger & Partners

Copyright2000 ACNielsen. Printed in USA. All rights reserved. ACNielsen, the ACNielsen logo, ACNielsen Workstation InformationServer, Category Masters, Convenience Track, Homescan, ICE, INFACT, Net Dispatch, PRICEMAN, SCANTRACK, SPACEMAN and SPACEMAN Enterprise are trademarks or registered trademarks of A.C. Nielsen Company. SEGWAY is a trademark of A.C. Nielsen Company and Market Facts, Inc. Microsoft, Visual Basic, the Visual Basic logo and Windows are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. Other brand, product or service names are trademarks or registered trademarks of their respective companies.

Steve Schmidt ACNielsen President, U.S.

Delivering Consumer Knowledge for Action

The first quarter of the year 2000 is quickly coming to a close. We all survived Y2K. The dot.coms of the world dominated the Super Bowl advertising environment. The economy continues to grow. Presidential campaigning is in high gear. And thanks to you, the Marketing Research business is growing, driven by an intense focus on better understanding consumer behavior. For ACNielsen, our focus for this year and beyond is to create a World Class Service Company. What that means to you, our clients, is a personal commitment from me and the Senior Management of this company to direct the investments at our disposal against four core elements of our business: Enhance Data Quality Improve Delivery Options Increase Retail & Consumer Coverage Drive a Consumer Knowledge for Action Strategy From our recent client satisfaction survey, these were the four areas that you felt would most positively impact your business. The success of the business solutions we provide to you will be directly linked to our ability to deliver more effective and efficient direct-to-consumer marketing and retail execution. Whether its data from our core tracking services or insights from our consumer panel, ACNielsen will continue to set industry standards. Similarly, we are a player in the world of e-commerce and all its many facets. The cover story for this issue speaks volumes as to what lies ahead for the Consumer Packaged Goods industry and the Internet. Krafts Paula Sneed is to be congratulated for sharing her thoughts with all of us. I especially liked this insight: Now, through Internet tools, we can open a true dialogue with individual consumers and gain a better understanding about whats valuable to them, what they want and what they need. ACNielsens measurement and analysis of that consumer knowledge is exactly what will allow you to respond to your customers needs with the right product solutions and effective implementation at retail. Welcome to the new millennium!

Consumer Insight 3

Our focus is to create a World Class Service Company

Cover Story

Consumer Insight

The Role of The Internet in CPG

Recently, the editorial staff of Consumer Insight met with the recently appointed head of e-commerce for Kraft Foods to discuss the near-term implications of the Internet and e-commerce on the consumer packaged goods industry. The conversation touched on a number of trends and emerging challenges that will redefine the way all parties transact business and communicate with consumers. CI. How do you define uses for the Internet today both broadly as well as how it relates to CPG? Paula. Internet-enabled tools and capabilities touch all aspects of lifeit will be as ubiquitous and transformational as electricity. Today the Internet is providing an array of new tools and options, including new ways to communicate with our consumers, customers and suppliers; new ways to buy and sell products and services; and new ways to work. CPG companies have begun embracing the opportunities that the Internet provides, working to capture the benefits. They are moving from communication and limited commerce to using it across the value chain.

A Conversation with Paula Sneed, President, e-Commerce, Kraft Foods

CI. To summarize, for CPG firms the Internet has transcended its initial mission as communications vehicle and taken on the added role of transaction facilitator. Along with that change, many established, large firms recognize the need to compete in this space. Still other companies are using the Internet to build brands. Is that about right? Paula. I see it in a slightly different way. New Internet-based companies recognize that building brands on the Internet is essential for their survival. They recognize that, at the end of the day, the brands that deliver on their consumer promise are the ones that consumers will respond to and the ones that will survive. As Internet-based companies launch, they

Consumer Insight

quickly move to mimic what traditional companies have historically donebuild a reputation, build trust, build consumer loyalty by establishing a brand. For traditional companies, the challenge is to deliver the full impact of their brands through the Internet by magnifying and/or demonstrating their brand promise. Their opportunities are to build even greater brand equity and even more brand loyalty. The Internet is a great tool to build loyalty from existing users as well as to attract new users. CI. Thats a very important distinction, particularly the loyalty-building aspect. Paula. You are right. Now, through Internet tools, we can open a true dialogue with individual consumers and gain a better understanding about whats valuable to them, what they want and what they need. For example, we have tools that allow more personal connections with individual consumers on our website. With Make it Now! consumers can input three ingredients they have on hand, and we give them specific recipes using those ingredients. Our new Recipe Recommender lets consumers rate recipes by their appeal to the individual visitor. We then make suggestions based on their personal tastes. Make it personal, but also make it simplethese types of things build loyalty. CI. The sub-theme there seems to be interactivity. Paula. Think of it as customized interactivity, personalized interactivity. CI. What do you see as the distinction between the Internet and e-commerce? Paula. Think of the Internet as a tool that enables e-commerce. However, probably the best way to respond to that is to differentiate between e-commerce and e-business. Both terms are used interchangeably, but they are differentone is a subset of the other. When people talk about e-commerce, they mean transacting or selling on-line. However, e-business is much more

encompassing. It includes all aspects of the business value and activity chain that can be transformed by the Internet. For example, at one end of the value chain the Internet provides a way to communicate with consumers. At the other end of the value chain the Internet is changing the way we source products. At every phase on the activity and value chain, Internet-driven tools are changing the way business is done. CI. What are Intranets? Paula. An Intranet is a network of computers within a company versus the Internet, which is a network of computers connecting across the world. We use an Intranet to keep our employees informed about company activities and benefits. For example, many employees now have access to personalized benefit information 24/7. We use Extranets to communicate specialized information between internally and externally networked computers. For example, we use an Extranet to streamline our package design process. Weve eliminated sequenced approvals, tons of trafficking time and significantly reduced cost by conducting design business over an Extranet. CI. How does CPG stack up next to other industries regarding Internet use? Paula. Some other companies got there early because technology was their core business, so evolving to Internet-based business was a natural evolution. Most CPG companies first used the Internet to communicate with consumers. Now theyre expanding Internet usage to include suppliers and other members of the value and activity chain. CI. Can traditional companies make the transition to the Internet? Paula. Absolutely! You need t-business (traditional), and e-business (electronic) components to be

Cover Story
successful. Companies must learn to blend both to succeed in the 21st century. Were not going to walk away completely from what made us successful enterprises. At the same time, we have to recognize that without capturing new Internet capabilities we will not be able to compete successfully in the future. CI. What are some of the things that CPG companies need to take into account to become e-businesses? Paula. Traditional CPG businesses face two major challenges. The first challenge has to do with historical practices and behaviors. Much of what drove success in a mass marketing environment will not work if directly translated to the web. Companies have to be willing to abandon some business practices and to modify others. The second challenge has to do with organizational boundaries and structures. As the web modifies our work, we must evolve our structures to accommodate the new ways work is done. CI. Speaking of structures, you mentioned that the process of package design has changed at Kraft because of the Extranet. How did that affect structure and corporate culture? Paula. Package design, approval and printing has historically involved lots of steps, meetings, paper flying back and forth, and lots of re-work. The number of person-hours associated with the process was staggering. An internal champion emerged who challenged the status quo because he saw a great opportunity to speed up reviews while getting better results from color separators and printers, and delivering the package to the plant more quickly, all while saving money. For example, color copies alone used to be a major expense. Now, we are able to do away with them altogether. Everyone views and exchanges work electronically. CI. How do you change an entrenched process like that and make it electronic? Paula. It takes three things: a strong advocate or internal champion who will proselytize a team; partners willing to adapt to the technology; and finally, support from the organization based on early wins.

Consumer Insight

Technology enables us to personalize the message. Its also about communicating much more directly and personally.

Consumer Insight

CI. It sounds as though a major cultural shift is needed to become e-enabled. Paula. There has to be a cultural and behavioral shift. In the CPG world, success used to be based on the ability to find the best consumer insight and translate it into crisp mass media messages. Enter the Internet. Now, its all about communicating on a personal level. Before, we sold to demographic or psychographic groups of people. Now, its to John Jones or Mary Smith as individuals and self-segments or communities of very specific interests and needs. Technology enables us to personalize the message. Its also about communicating much more directly and personally. CI. What about the retail and broker side of the coin? Paula. The same holds true for retailers and brokers. We can communicate with them on a more personal level than ever before. There are benefits for CPGs, retailers and brokers to communicate more efficiently. And together, CPGs and retailers will enjoy better communication with the ultimate consumer. CI. What advice would you give manufacturers and retailers gearing up to become e-businesses? Paula. Thanks to the Internet, the competitive set is changing. Competitive tools are changing. The economics of doing business are changing. And consumer expectations are changing dramatically. With the Internet, any company has the ability to personalize and customize capabilities and services with all of its stakeholders and potential stakeholders. Therefore, I would suggest that well all have an opportunity to transform what we do and how we do it, across the entire value and activity chain. Act now. Begin to live in Internet time, shortening work/review cycles. Acting quickly, responsively. Using e-business tools gets us even closer to our customers, suppliers, consumers and other stakeholders.

CI. How do you see the Internet affecting the capture and exchange of information and insights? Paula. Hopefully, the information industry will transform itself. There is so much new information available we must find ways to get to it, analyze it and integrate it with other information sources. This will increase our ability to track and better serve our consumers. In the end, the Internet is a tool, a powerful tool but still just a tool. Tools only become useful when skilled people put them to work properly. CPG firms have proven to be excellent tool users in the past, and they will be in the future as well. ACNielsen is in a unique position your informational products and services have helped us grow our businesses over the past decade. Moving forward, new informational products and services will be required. By using e-capabilities and tools to gather information and insights from new data sources, Im sure ACNielsen will continue to be an industry leader.

Feature
The World of e-Tailing: Where Clicks and Bricks Converge
by Bob Tomei Senior Vice President, Marketing ACNielsen Leslie Warshaw Vice President, Media and Internet Services ACNielsen

Consumer Insight

he Internet is the fastest-growing consumer phenomenon the world has ever seen. In its short history as a marketing vehicle, its penetration has been a nearly vertical curve compared to the adoption of other 20th century media such as radio, television or cable.

Three major factors have contributed to this unprecedented growth: 1) a robust economy which resulted in available venture capital to jump-start new e-businesses; 2) the speed of change facilitated by almost perfect information available in virtually real time; and 3) the extraordinary marketing measures adopted by e-businesses which abandoned traditional business models and margin expectations. ACNielsen has been actively involved in many aspects of this medium. Recognizing the need for a single, industry-wide standard for e-commerce, ACNielsen formed a joint venture with NetRatings, Inc. to launch the first global service for tracking audiences, advertising and user activity on the Internet. In addition, the company has for some time been tracking the trends in e-business to better understand its potential for the CPG industry.

Consumer Insight

Excess or Success?
Think, for a moment, what the pundits were saying just five years ago. Some thought the Internet a fad, great for chat and sending messages to friends. Others saw a brave new world of marketing messages for consumers. But who would have guessed that consumers would give their credit card numbers online...or participate in an auction, where the only test of a sellers legitimacy is based on the self-policing ratings of other bidders? Look at the CPG industry. Who knew that consumers would purchase their over-the-counter medicine over-the-web? Or have their non-perishable groceries delivered via UPS? And who could have predicted that an Internet search engine would have a market value of over $90 billion before the year 2000? Or that an Internet service provider (the number two or three player at that time) would buy Time Warner? Super Bowl Sunday was the perfect example of how far we have come, how fast. Longstanding advertisers like beer and soft drink companies found themselves blocked from their usual time slots by aggressive e-commerce firms like Netpliance.com, WebMD.com, Kforce.com and Pets.com. The medium is the message now more than ever, and everyone is looking for the right model to cash in.

The CPG Equation: Just How Big Is Big?

Its hard to pin down the true size of e-enabled transactions. For 1999 alone, estimates ranged from $3.9 billion to $36 billion. Some even see online sales climbing to more than $100 billion in three years. The message is clear: Activity will occur. How much depends on many unknowns. Whether one accepts the high or low number for predicted online sales of consumer packaged goods, the CPG industry will very soon represent one of the largest online commerce categoriesripe for competition by small, nimble e-businesses. In the landscape of CPG channels, the number of dollars spent as a share of total CPG will initially be small, representing just 12% of total industry sales. This is tiny compared to todays traditional channels. But consider the other side of the coin for a moment which brand manager would be comfortable losing share points to a start-up? The number of consumers is not increasing, meaning that the Internet channel will have new players going after the same savvy and timestrapped customer. The smart marketers are getting there now, finding the right business model while the risks are still relatively small.

Now Entering the Game...

If it feels like you need a scorecard to identify the players in the CPG game, you are not alone. During 1999, many established grocery and drug operations began their foray into the wired world, taking the temperature of the water before initiating a sea change in the way they come to market. Concurrently, many online grocers started to tweak their offerings to better match the needs of individual consumer segments. Still others modified their distribution systems to achieve greater efficiencies via central warehouses. For example, Peapod, one of the first to use the Web for its home-delivery grocery services, used to employ an army of pickers who converged on local grocery stores armed with Internet-generated order forms. They literally acted as surrogate shoppers who found the best fruit and freshest baked goods for an elite group of connected consumers.

Expansion Mode Continues

Today, many analysts predict that Internet growth will continue unabated for a number of socioeconomic reasons. Barriers to Internet adoption have been broken, thanks to educational advertising, media coverage and exposure through net-related organizations. Savvy net marketers have also pressed for increasingly simple software and technology to create a user-friendly environment comfortable for new entries. And the emergence of relatively inexpensive personal computers has contributed to Internet user proliferation. Even the federal government is fostering Net acceptance, sponsoring programs to provide Web access to low income families.

Consumer Insight 10

Feature
Peapod reconsidered this costly van-based, personnelintensive model, and opted to build central warehouses in some markets as primary fulfillment centers. In addition, non-perishable products can be ordered via UPS as part of the new Peapod Packages service. engage the consumer easily and solve a need with the least cost and hassle.

The Cross-Over Phenomenon

When grocery and drug stores decided to enter the world of e-commerce, they invited a new roster of investors to the table. Amazon.com owns a 35% stake in HomeGrocer and a large chunk of Drugstore.com. The founder of Borders Books backed Webvan. E*Trade financed part of PlanetRx.com. CBS owns a 20% stake in Rx.com. The rapid infusion of capital, pronounced upstream potential and unrelenting media exposure attracted marquee players to the World Wide Web. George Shaheen left Andersen Consulting to join Webvan as CEO. HomeGrocer.com tapped Mary Alice Taylor of Federal Express and Citigroup as chairman and CEO. Streamline recruited Ed Albertian of Star Markets and Staples to head its executive team.

Functionality Defines Form

Looking across just the grocery e-commerce segment, the list of players is long and diverse. Participants range from pure Internet e-tailers who have no physical store locations, like NetGrocer and Webvan; to the click-and-mortar models like Albertsons and Whole Foods, where the web site has the ability to drive either traffic or product sales through the real estate. And within these categories, there are a a wide variety of sizes and flavors of business models at work. There are nationwide services and localized van delivery models. There are same-day services and two-day services. Some businesses charge for delivery, others offer it free. Some services deliver around the clock to in-home lockers; others require an authorized person on-premise to accept the order. What format works best? Its too soon to tell, but looking at the experiences of other industries may provide a clue. In the shopping center world, organizations like the International Council of Shopping Centers have gone on record stating that there is great synergy between the Internet and brick-and-mortar stores, a synergy that is greatly benefiting both retailers and consumers. However, as with all consumer-driven businesses, the ones that survive will be the ones that

An Established Advantage?
Some in the industry feel established grocery chains currently enjoy a competitive edge when adding the Internet to their operating equation. For starters, the brand equity and name recognition built over the years will translates into immediate top-of-mind awareness for the site and a positioning advantage with Internet surfers. CNET News (news.cnet.com) concurred. Reporter Troy Wolverton asserted that traditional grocery stores which already have warehouses and established names could enter the market. Veterans of cutthroat price competition, the traditional grocers have the potential to wage a price war that their red-ink-running online competitors couldnt sustain.

Survival of the Fastest

However, when business is transacted at light-speed, the need for quick service will be paramount. A recent article in the e-Commerce Times (ecommercetimes.com) noted that the e-tailers that survive will likely be those that streamline their sites for fast, easy navigation and that can ensure rapidor in some cases same-daydelivery.

Consumer Insight 11

The More Things Change...

Regardless of the primary distribution medium, brickand-mortar and e-businesses share many of the same fundamental operating issues: product assortment order fulfillment pricing out-of-stocks loyalty deliverytype, rates layout Think of an e-tailers website as the store. Questions such as What products should I promote?; What are my destination vs. impulse categories?; and How should I configure my product assortment? are many of the same issues traditional retailers face. marketing plan integration peak management coupon redemption customer service trade deals product descriptions

Happy e-Holidays
The online holiday shopping season proved to be a success for many e-commerce sites. According to information gathered by Nielsen//NetRatings, the service marketed internationally by ACNielsen eRatings.com, holiday shopping sites led the fastest growing properties during the last quarter of 1999, with eToys topping the list, followed by Sears, JCPenney and The Gap. UPS found its web site affected by increased holiday season gift orders. Among the top holiday commerce sites we find a number of popular brands from the offline world, said Allen Weiner, vice president of analytical services for NetRatings. Sears, CBS, JCPenney and The Gap are learning how to exploit the universal power of their brand names on the Web.

Lessons for 2000

As seen throughout the holiday season, brand rules on the Web. The top 10 domains for the season are a mix of the best known Web names (Amazon, eToys) and time-honored brick-and-mortar names (Toys R Us, Barnes & Noble). The holiday season also saw the emergence of the importance of commerce enablers (such as comparison sites and focused gift-giving services) as a driver to all sectors of e-commerce. Enablers provide Web consumers with important information to facilitate decisions, which lead to transactions. Several of these comparison shopping and gift sites experienced tremendous growth in traffic between the months of November and December, including Giftcertificates.com, 160.9%; mySimon.com, 146.2%; Christmas.com, 118.9%, Flooz.com, 113.3%; Ecost.com, 109.1%; and Redenvelope.com, 86.8%. Nielsen//NetRatings predicts that commerce enablers are bound to be one of the Webs hottest sectors in 2000. More information on Nielsen//NetRatings can be found via the ACNielsen eRatings.com link at http://acnielsen.com.

The Role of Consumer Information

Whether its a manufacturer deploying the Internet to conduct micromarketing, offer direct incentives, build brand or franchise equity...Whether its a retailer deploying the Internet to engender store loyalty, attract new customers, provide meal solutions or increase shopping frequency...there is complete agreement on one issue: consumer information plays the critical role. All parties are hungry for a reliable arbiter of Internet traffic and sales information, who can apply valid research techniques to establish industry benchmarks. As the worlds largest market research organization, ACNielsen is in a unique position to leverage its scan data model, consumer panel model, retailer and manufacturer relationships and international presence to create that barometer of Internet performance. In addition to our eRatings.com venture, ACNielsen is developing several other products to help manufacturers and retailers function more effectively in the Internet channel. Like any other Internet venture, the keys to success for information services remain: actionable business insights, efficient business processes, proactive strategies, collaborative activities, scalable and customizable products, and customer-friendly software applicationsthe hallmarks of ACNielsen.

Consumer Insight 12

Feature
e-commerce or e-business?
Many in the industry use these two terms interchangeably. And just as the industry, the meanings of these new words are changing rapidly. At ACNielsen, we define e-business as the conducting of any business using the Internet whether it is information delivery, e-mail requests, or actual exchanging of dollars for goods. We define e-commerce as a subset of e-business, focused specifically on transactions over the web.

The Caveman Returns

Recently, Good Morning America (abcnews.go.com) hosted an experiment called e-cave, where participants were moved into a completely empty, unfurnished apartment wearing nothing more than a robe. Without leaving their apartment, these participants were required to obtain food, clothing, and furnishingseven care for their pet. Although the Internet channel is small for CPG manufacturers and retailers, it has already changed the way many consumers purchase, and has opened up the gates to new competitors who could never compete on a brick-by-brick basis.

Whos Who Online Heres a look at some of the players in the online retail world:
Online Retailer
CVS/Soma Seattle,WA

Markets
50 United States

Products & Services

2,000 prescription drugs, 3,500 over-the-counter health and wellness, personal care products, vitamins, minerals, herbs, and private label products; e-mail of refill reminders; 24-hr. access to registered pharmacists; 9000+ insurance plans accepted,VIPPS certified 20,000+ items: prescription and non-prescription medications, nutrition and wellness products, cosmetics, HBC, around the clock pharmacy; automatic e-mail reminder service for prescriptions and preferred products; not VIPPS certified 16,000 health, beauty, wellness, personal care, pharmacy, and private label products; e-mail reminders to replenish regularly used products;VIPPS certified

Advantages
Attached to CVS drug stores so customers can order on-line and have items delivered or can pick up at store; delivery Has retail store brand recognition

DrugEmporium Columbus, OH

50 United States

Drugstore.com Bellevue,WA

50 United States

Attachment with both retail stores and mail order pharmacy

HomeGrocer Bellevue,WA

Seattle, Portland, Southern CA

13,000 items: dry grocery, meat, dairy, produce, specialty foods (ethnic and organic), flowers, batteries, film, videos, beer/wine, pet items

Delivery w/in 90 min. window; do everything in house (i.e., digital studio, programmers); multiple small warehouses service large areas Only dry grocery items w/23 day FedEx delivery; national service

Netgrocer North Brunswick, NJ

National (48 states)

9,700 items: dry grocery, toys, videos, pet items, HBC, books, small home electronics

Peapod Skokie, IL

Austin, Dallas/Ft.Worth, Houston, Boston, San Francisco/San Jose, Columbus, Chicago, Long Island-NY; National for Peapod Packages service 50 United States and U.S.Territories

12,000-20,000 items (7,000 non-perishables): dry grocery, frozen, dairy, meat, produce, pet, beer/wine, tobacco, HBC, nationwide care packages 13,000+ items for dogs, cats, fish, birds, ferrets, reptiles, and other small pets; advice from veterinarians/animal behaviorists, subscription service, wish lists 15,000 items: Dry grocery, meat, seafood, produce, gourmet deli, dairy, bakery, wine, prepared meals, HBC, housewares, office supplies

First and largest (on-line in 1995)

Pets.com San Francisco, CA

Has plans to expand into UK market (with equity investment in Petspark.com) 30 minute delivery window

Webvan Foster City, CA

San Francisco, Atlanta

Consumer Insight 13

Feature

Linking Consumer Attitudes and Actual Purchase Behavior

arket Facts and ACNielsen recently entered into a strategic alliance to develop and implement a cutting-edge approach that links consumer attitudes with purchase behavior in the marketplace, called SEGWAY . The following demonstrates how marketers can use this analysis to enhance precision marketing for their brands.

Which other brands do my users consider, as a likely risk to my volume? How do I quantify the value of retaining households at risk of switching? What messages, vehicles and tactics can be leveraged to retain them? How do I measure the impact(s) of my efforts, and integrate the findings into future programs to continuously lift my effectiveness? To acquire new buyers one must have similar information. Who are my brands best non-user prospects, and how do I segment and reach them? How much potential volume do they represent for my brand? Which competitive brands do they currently use, as likely opportunities to my brands volume? How do I quantify the value of acquiring such opportunity households? What messages, vehicles and tactics can be leveraged to attract them? How do I measure the impact(s) of my efforts, and integrate the findings into future programs to continuously lift my effectiveness?

A primary goal for marketers is to be able to measure effectiveness both quantitatively and qualitatively. The old adage that I know 50% of my advertising works, I just dont know which 50% holds true for most marketing executions. This new alliance between Market Facts and ACNielsen will enable marketers to do a better job than ever before at determining how to allocate marketing resources, develop the most meaningful messages for each consumer segment, and build overall long-term brand equity. Specifically, this is accomplished by providing the decision-maker with a foundation from which not only to determine resource allocations, but also to distinguish consumer segments along retention and acquisition parameters.

The Key Questions

To retain current consumers, especially those who are at risk of buying a specific competitors brand, one needs to know several things. Who are my brands users, and how do I segment and reach them? How much current volume do they represent for my brand and the category?

Consumer Insight 14

Feature
Improving efficiency in advertising and promotion is also high on the priority list for marketers, who are continually faced with doing more with less. To achieve this goal, one must know to whom, where and how to spend marketing dollars and how much to allocate to each initiative. To avoid waste, specific consumer segments must be defined at both macro and micro (targeted) levels to ensure long-term strategic objectives and near-term responsiveness. Marketers must also be able to determine the attitudinal availability of consumers, not only for their brands, but also for the competitive brands vying for share of mind within the desired category. Non-buyers are grouped into whether they are open, meaning they are receptive to the brand, or unavailable, making them poor prospects for acquisition [see Conversion Model chart].
The Conversion Model The Conversion Model assigns households to one of four classifications for each brand
Users
Secure: Commitmentdriven

Non-Users
Open: Receptive to our brand

Whats Been Missing

In the past it has been difficult to fully answer these questions. Marketers could draw implications from consumer attitude data about their brands, but could never link attitudinal segments with actual marketplace volume. Share of wallet and share of mind had no intersection.

Vulnerable: Market-driven

Unavailable: Not receptive to our brand

Making the Link

The two key elements of SEGWAY are the Conversion Model, a proprietary segmentation tool for which Market Facts is the exclusive licensee in North and South America, and the ACNielsen Homescan consumer panel. Linking the output from these two well-established consumer insight methods creates a powerful new instrument for marketers. The Conversion Model is a leading measure of psychological brand equity. The key Conversion Model concept is commitment, which is defined as the psychological bond between the consumer and the brand. Relative to users, the Conversion Model measures the strength of their commitment to the brands they currently use. For non-users, it gauges whether or not they are open to switch to brands they currently do not use. The Conversion Model assigns households to one of four commitment classifications for each brand. Buyers are grouped by whether they are secure to the brand, in which case they are highly likely to stay with the brand no matter what special incentives a competitor may offer. Or they could be vulnerable, meaning they would be receptive to other brand choices.

The key to this approach is the linkage of the Conversion Model-classified households with the ACNielsen Homescan consumer panel. This methodology enables each attitudinally classified household to now be viewed in terms of the dollar and unit volume each represents at the brand commitment level. Finally, a proprietary volume opportunity metric associates the likelihood of each households brand-volume migration in the context of their actual purchase behavior. For example, a marketer may assume that it would be too expensive to acquire all its brands non-users in the open marketplace. However, if receptive non-user populations (segments) can be classified as open to the target brand, and are geo-demographically identifiable and contained, then pursuing those segments becomes a more realistic consideration.

Calculating the Opportunity

After establishing this linkage between the attitudinal and behavioral data, the next steps involve quantifying the specific category and brand volumes for each household, then applying the opportunity metric against actual category and brand volumes observed within each commitment classified household. By beginning with an individual households commitment to a given brand, combined with the consumption of said brand, an actionable opportunity for gain volume or risk of loss volume can be uniquely associated for that household.

Consumer Insight 15

Precision Marketing
Once the opportunity (potential migration of volume in terms of upside/gain vs. risk/loss) is determined, the tactical planning becomes more straightforward. For example, after identifying your secure consumers, you might consider how best to target them with reward, loyalty, cross-sell or up-sell initiatives, given that you now can associate any potential upside volume with specific competitive brands at risk, all in a geo-demographic context. To defend your at risk volume among your vulnerable consumers, you could offer segment- or household-specific, geographically targeted loading incentives, bonus packs or retention rewards. To acquire open non-users of your brand, you could offer high-value trial and awareness building offers, incentives and samples. Assume a category with 50 MM purchasing households. There are three brands in the categoryBrands A, B and C. Below is a Conversion Model analysis of an actual household. The volume that is labeled in play shows the opportunity volume for Brand A and the corresponding at risk volume for its competitorsBrands B and C. [See Analysis 1].

The ability to effectively deliver meaningful messages and offers, differentiated by desirable segments of consumers, makes each marketing initiative strategically and financially more effective. In each case, consumers may be defined, qualified, and targeted through virtually any available vehiclefrom database marketing, the web and other direct-to-consumer vehicles to radio, cable/network/spot TV and print. Combining the strengths of the Market Facts Conversion Model with the ACNielsen Homescan panel, marketers now have a seamless approach to linking consumers attitudes with their behavior in the marketplace. This will provide an invaluable tool for more efficiently allocating marketing resources and building overall long-term brand equity. The Conversion Model analysis in this example showed that 20MM of the category households are unavailable to Brand Anot an effective target. Of the remaining 30 MM households, 10 MM are at risk and 20 MM are an opportunity for conversion to Brand A. [See Analysis 2]. Using information from the ACNielsen Homescan panel, one can measure the volume impact of each group. It might be tempting to go after the larger group, the opportunity households, but the analysis shows that the at risk households buy far more category units than the other group. Therefore, focusing marketing efforts on the at risk households is a much more efficient initial play. [See Analysis 3]. Analysis 3:
With this approach, Brand A can further help identify the biggest payoff for its marketing activities.
Households Volume

Analysis 1:
Sources of Opportunity and Risk for Brand A
Brand Brand A Brand B Brand C Classification Secure Vulnerable Vulnerable # of HH purchases 10 4 2 In Play

Total HH Volume: 16 Total Volume in play: 6

Category=50 MM HH

Analysis 2:
20 MM Households Are Unavailable to Brand A
Remaining 30 MM Households 10 MM at risk x 6 units Purchase = 60 MM at risk

Retain

At risk 10 MM

Acquire
Opportunity 20 MM

20 MM opportunity

2 units Purchase =

40 MM opportunity

Category=50 MM HH Category=50 MM HH

Consumer Insight 16

Trend Watch

Big Changes in OTC

here are big changes going on in the over-the-counter department. Believe it or not, nutritional supplements now account for nearly as much sales volume as the mainstay shampoo category, the number one Health & Beauty Care category. As recently as 1996, the dollar volume of shampoo was more than three times larger than that of nutritional supplements. Now the third largest OTC category, nutritional supplements enjoyed $1.7 billion in sales last year, a 19 percent jump from 1998.

Comparatively, shampoo accounted for nearly $1.8 billion in salesa six percent increase. And the growth in nutritional supplements is not just a fadaverage growth per year since 1996 is over 40 percent. Even with the overwhelming growth of the nutritional supplements category, opportunity for future growth looks good, given that household penetration for this category is still under 50 percent. Category penetration is skewed to middle-aged and older adults, including childless couples and empty nesters, segments that are growing rapidly.

Consumer Insight 17

The dynamic upswing of the nutritional supplements category is fueled by an increasing consumer emphasis on health, fitness and nutrition. In contrast to nutritional supplements excellent growth, appetite suppressant dieting aids experienced a 13 percent decline last year. Many consumers are moving to a whole health way of managing their dietspursuing weight loss through healthier foods. A recent trend toward conditionspecific products is also responsible for the momentum in the nutritional supplements category. Products such as gingko, which is claimed to improve memory, and St. Johns Wort, used to treat minor depression, are having a significant impact on the category. The whole health trend is also positively impacting another OTC category: protein supplements. In 1999, protein supplements grew 51 percent across all channels, with a staggering 146 percent increase in the mass channel alone. The profile of protein supplement consumers differs greatly from that of nutritional supplement users, with most protein supplement usage coming from young, single consumers, often to add a boost to their fitness regime. These trends in OTC products appear to be here to stay. Through new product introductions, promotions and education, the category shows signs of continued healthy growth. New nutritional supplements are being introduced at a rapid pace, consumers are becoming more dedicated than ever to a healthy way of living, and mainstream retailers are devoting more shelf space to such products than ever before.

Category Definitions
Nutritional Supplements Products taken for nutritional deficiencies or to supplement the diet. This could be because of illness or deficiencies in the diet. Some of the products may also include a vitamin ingredient to help absorption into the body. Examples include alfalfa, ginseng, garlic oil, and antioxidants. Brands include Centrum Herbals, One-A-Day, Ricola Herbal Health. Protein Supplements Products which are taken to supplement a protein deficiency or to add protein to the diet. These products are also used as dieting aids. Brands include Twinlab RX Fuel and Metabolic II.

Consumer Insight 18

Business Tools
Is your company having difficulty matching salesforce performance to regionally defined consumption data? ACNielsens Advanced Sales Areas can help. New from ACNielsen, Advanced Sales Areas are a highly customizable capability to create sales areas by definitions other than the standard state and county method, making your data reporting aligned with the responsibilities of your sales forces or brokers. For example, you can define Sales Areas by aggregating/ subtracting various retailer combinations; by retail customers buying responsibilities; or by broker responsibilities. The result is enhanced tracking, more actionable data, and better ability to influence business drivers. If your sales force needs to understand product movement by custom sales areas, ask your ACNielsen representative for more information.

for Retail Tracking

NowThe First Complete Account Level Service for Convenience
ACNielsen Convenience Track now offers the first convenience store service with a truly complete account level offering. Convenience Track combines retailer-specific scanner data with market-level benchmarking data so you can perform category management in the convenience channelan industry first. Since scanning data is combined with ACNielsens superior sampling and collection methodologies, you receive the most representative data in the industry, which is critical given the low scanning penetration in Convenience. And since Convenience Track account level data is 100% scan-based, you can now have access to datafor all categories*across key retailers. Whether you produce single-serve beverages or dry dog food, Convenience Track account level services will give you an understanding of the channel. Plus, Convenience Track markets are matched to other channels for cross-channel comparison by accountan ACNielsen exclusive!
*NOTE: local market benchmarking is only available for audited categoriesincluding beverage, tobacco, candy/gum, beer, frozen novelties and bulk ice cream.

Get Just-In-Time Account Level Information

For successful marketing and selling, manufacturers, brokers and retailers must manage the process in cooperation with one another. However, ongoing subscription access to account level information is not an option for all manufacturers and brokers. ACNielsens Snapshots Plus provides ad hoc, account level information in a database format. And since its just-in-time data rather than just-in-case, your analysis dollars are more effectively used. Snapshots Plus offers affordable access to retailer-preferred custom trading areas on a short-term basis. Snapshots Plus module-defined category definitions provides quick access to information when a customized, ongoing database is not needed.

Snapshots Plus helps you to:

Take advantage of new business opportunities with insights into non-entry categories. Strengthen retailer relationships by developing actionable business reviews. Use account level information without continual subscription fees. Determine the impact of complementary or adjacent categories. Maximize the impact of distribution, merchandising and promotional efforts at the local level.

See us on the Web

http://acnielsen.com/ci or call 1.800.988.4ACN

Consumer Insight 19

C AT E G O RY MA S T E R S

Make Plans To Attend Category Masters August 1316, 2000 Disneys Contemporary Resort Lake Buena Vista, Florida SAVE THE DATE!
Plan now to join hundreds of representatives from the industrys top retail and consumer packaged goods companies at ACNielsens Category Masters Conference. Category Masters is the premier industry event to learn and exchange ideas on consumer focused business issues, such as globalization, retail consolidation, e-commerce, loyalty marketing and assortment. Through workshops, presentations and networking, you will gain the tools to convert your conference experience into actionable solutions that will impact your organization. A Category Masters conference brochure and registration form will be mailed to you in May. Conference registration will also be available on the Internet as of June 5, 2000, at http://acnielsen.com. We hope to see you at Category Masters!

Consumer Insight 20

Business Tools
Create Integrated Category Management Solutions From Analysis to Implementation
Choosing the right category management approach to meet your specific financial and marketing goals can be a daunting task. Thats why ACNielsen created intuitive processes to help retailers and manufacturers sort through the full spectrum of integrated category management solutions in order to develop, evaluate and implement category strategies that address individual needs. From initial category analysis all the way to in-store implementation, ACNielsen can help you design a category management program that best meets your needs and organizational structure. ACNielsens Analysis to Implementation approach starts with access to high quality data that directs store decisions. Measuring all retail channels from supercenters to convenience stores, ACNielsens syndicated data coupled with consumer panel and retailer data provide consumer-focused results that yield real opportunities to improve sales and profits.

for Retailers

Management of data is a critical component to category management success. With products such as ACNielsens Retail Warehouse Solution (RWS), ICE, PRICEMAN , and the SPACEMAN Suite, ACNielsen organizes the data to offer ad-hoc reporting and access tools that help you easily mine and analyze the data. ACNielsens expertise at drawing strategic insights from the data is unmatched. By leveraging a full-line of analysis tools, marketing and sales professionals can develop item assortment, pricing, promotional and shelf space programs that optimize category performance, meeting both retailer and manufacturer objectives. Once objectives are defined, ACNielsen can provide the right tools to implement in-store execution. From Analysis to Implementation, ACNielsen provides the pathway that leads you to successful category management solutions.

Combined with retailer data, ACNielsen systems and information provide solutions: from analysis to implementation.

Data

Information Management

Insight Development

In-store Implementation
PRICEMAN

Trade Areas SuperSCANTRACK Homescan Product Reference

Retail Warehouse Solution (RWS)

Category Manager NITRO Internet Delivery SPACEMAN Professional and SPACEMAN Enterprise SPACEMAN Suite

Store chars. Product chars. Cost, Space Inventory

SPACEMAN Connectivity

See us on the Web

http://acnielsen.com/ci or call 1.800.988.4ACN

Business Tools
Efficient assortment today is a $6 billion opportunity. And understanding assortment and Activity Based Costing (ABC) is key to arriving at shelf profitability. The recent alliance between ACNielsen and Milton Merl & Associates combines powerful Performance Optimizer application with ACNielsens industry-leading assortment modeling capabilities. The combination of these powerful tools fills a major gap in the industry by clearly articulating the opportunities for using the most appropriate items to satisfy store volume at increased profitability. Performance Optimizer uses an ABC calculator, ABC Now, to optimize category profit as it relates to volume elasticity and cannibalization. It measures changes in volume and profit at the item, segment and category level that occur as a result of changes in assortment.

for Analytics

Consumer Insight 21

Performance Optimizer Now Available with ACNielsen Analytical Models

ACNielsens proprietary assortment model quantifies what percentage of an items sales are truly incremental by determining the extent to which each items sales are cannibalizing sales of other items in a category. Gain insight at every level of the assortment decisionmaking process. By uniting multiple data sources, optimization logic, activity-based costing and volume elasticities, Performance Optimizer provides a process that allows decision-makers to integrate volume, profit and consumer strategic objectives into the planning process. Performance Optimizer can be installed on laptop or desktop systems, and combined with ACNielsens advanced analytical models, provides one stop shopping for maximizing your assortment profitability.

SPACE PLANNING FILES

ABC Now VISUAL EDITOR

Data Cleansing Defaulting Updating

ABC Now Lite

Logistics Optimizer Logistics Lite Space Optimizer

SYNDICATED DATA

ACCOUNT SPECIFIC DATA

DATA MART Assortment Optimizer

Space Lite

Assortment Lite LOYALTY CARD DATA

REPORTING
Charts Reports Exports

Price Optimizer Price Lite Promotion Optimizer Promotion Lite

PANEL DATA

See us on the Web

http://acnielsen.com/ci or call 1.800.988.4ACN

Consumer Insight 22

Business Tools

for Merchandising

The SPACEMAN Suite Sets the Standard for Visual Merchandising

Effective visual merchandising plans are a sure way to maximize profits on a store-by-store basis. Todays sophisticated merchandiser must design planograms that deliver financial objectives for each category and each store and deliver them quickly and efficiently to the target audience. With The SPACEMAN Suite, these complex tasks are made easy. The SPACEMAN Suite is the only visual merchandising system designed to help you create and evaluate customerfocused planograms. You can replicate virtually any in-store environment through advanced replenishment modeling, financial analysis, data integration and automation capabilities. The SPACEMAN Suite lets you create, edit, evaluate, view and comment on merchandising plans while keeping an eye on category financial objectives. Contact your ACNielsen representative today for a free SPACEMAN demonstration CD or visit our web site at http://acnielsen.com/merchandising/ Evaluate multiple planogram scenarios and identify the plan that best meets your category financial objectives. Then instantly view your optimal planogram with the Restore key. Powerful highlighting functions quickly identify opportunities and products needing attention. Quadrant Analysis allows you to analyze two different performance indicators simultaneously.

A Product for Every Need

The SPACEMAN Suite consists of four separate products, each designed to meet a specific level of need: SPACEMAN Professional Application Builderthe ultimate solution for customized merchandising and integration. Combining SPACEMAN Professional with Microsoft Visual Basic for Applications offers unparalleled flexibility and customizabilityallowing you to work the way you want to. Only SPACEMAN Professional Application Builder offers these capabilities through the same industry-standard technology and open architecture found in Microsoft Office. SPACEMAN Professionalthe visual merchandising system that sets the standard for developing consumerfocused category merchandising plans, using advanced replenishment models, financial analysis, automation, and integration with other applications and data. SPACEMAN Merchandiseran affordable, entry-level visual merchandising system that provides in-house and field merchandisers with basic merchandising, barcode scanning and planogram reporting capabilities in an easy-to-use format. SPACEMAN Viewera visual merchandising viewing tool that affordably extends access to category merchandising plans and connects key personnel with corporate merchandising efforts. The SPACEMAN Suite gives you the power to become more productive and focus on developing effective category merchandising plans designed to improve your return on investment.

SPACEMAN products help you to:

Increase Productivity Automate routine merchandising tasks to provide more time for concentrating on competitive merchandising strategies. Use existing data sources to import current product and financial information quickly and easily. Implement an end-to-end structured merchandising process. Save time with intuitive graphical interface, which allows users to become productive planogrammers in a few hours. Reduce/Eliminate Costs Enhance profitability throughout the supply chain by creating and implementing consumer-focused category merchandising plans. Extend the use of point-of-sale, market-level and consumer data. Eliminate the need to invest in a data translation system by importing and exporting multiple planogram file formats. Provide a universal system for your global space management needs by supporting multiple languages. Make Better Business Decisions Implement a total category management solution. Strengthen category management presentations with detailed, fact-based reports and graphics. Highlight and identify financial opportunities on a variety of measures.

See us on the Web

http://acnielsen.com/ci or call 1.800.988.4ACN

Business Tools
Category Management Applications Now Available!
ACNielsens Syndicated Category Management Applications are now available for 2000. These three key Homescan applications are guaranteed to represent more consumer shopping trips than any other category management tool anywhere. You simply cannot find a more complete look at consumer shopping behavior across channels than with ACNielsen. With ACNielsen ConsumerFacts, ChannelFacts and Account Shopper Profiler, you have the common language between manufacturers and retailers. And with the included Microsoft Excel-based templates, you are able to quickly analyze and focus on key business opportunities. All applications feature: National, regional, local and account level measurement More than 300 retail accounts Demographic and behavioral profiles of core and occasional shoppers ACNielsens Homescan Syndicated Category Management Applications contain many added upgrades for 2000 including a mid-year update. Talk to your ACNielsen representative today for more information.

for Consumer Behavior

succeeds or fails. Use normative data to forecast new product sales. New ProductFacts is a must for both manufacturers and retailers needing insight into new product introductions.

Consumer Insight 23

Understand the Dynamics of Fresh Foods Purchases

ACNielsen Fresh Foods ConsumerFacts and Fresh Foods ChannelFacts provide insights into consumer product purchasing and channel/account behavior for Fresh Foods products. Fresh Foods ConsumerFacts provides marketers a better understanding of the underlying behavior and demographic composition of specific Fresh Food category and item buyers. Fresh Foods ChannelFacts allows Marketing and Sales teams to compare and contrast basic shopping measures across channel shoppers and category buyers within key retail channels and accounts. Both retailers and manufacturers can benefit from ACNielsens syndicated Fresh Foods informationretailers can compare their competition inside and outside their specific channel, while manufacturers can develop a category strategy to establish the most effective merchandising, promotion and pricing levels to drive increased category and brand volume.

Understand the Performance of New Product Introductions

New product success lies in its ability to attract shoppers and convert them into satisfied, loyal consumers. New ProductFacts helps organizations evaluate a brands introduction into the market. New ProductFacts combines ACNielsen Homescan , the industry leader in consumer insights, and ACNielsen BASES, the experts in new product concept testing and forecasting. With the industrys first-ever look into the introductory performance of more than 500 new brands and line extensions, New ProductFacts gives you trial and repeat statistics on more than 2,400 individual items. Learn how a new product introduction stacks up against benchmark products. Understand why a new product

Quantify Shopper Loyalty

An important, but often overlooked, element in the loyalty equation is knowing where your consumers shop outside your store. ACNielsen Homescan Cross OutletFacts is a syndicated report which provides a cross-outlet shopping analysis of shopper loyalty by showing retailers which competitors they lose business to. Cross OutletFacts is also an instrumental category development tool pinpointing which categories are potential opportunities and risks. Used in conjunction with ACNielsens other syndicated reports, ConsumerFacts, ChannelFacts and Account Shopper Profiler, you can gain a complete sales story for key retailers in each market.

See us on the Web

http://acnielsen.com/ci or call 1.800.988.4ACN

Consumer Insight 24

Business Tools
Workstation InformationServer 2.0 with NITROWorking the way you do
ACNielsen Workstation InformationServer was the industrys first 32-bit, object-oriented decision support tool. Version 2.0 represents ACNielsens continued integration with industry standard applicationsdesigned to work the way you do. Workstation InformationServer 2.0 lets you move even more quickly from analysis to presentation with our NITRO feature. Designed as the next generation of ACNielsens award-winning NITE product, NITRO can link your database information directly into Microsoft PowerPoint, Excel, and Word. And the ACNielsen information remains live, retaining its properties for consistent multidimensional viewing, manipulation and analysis within MS-Office.

Decision Support Services

Use the Web to Receive Your Marketplace Reports
ACNielsen NetDispatch is the industrys premier subscription service that lets you receive marketplace insights via the Internet. Leveraging the capabilities of the Web, NetDispatch maximizes productivity and business intelligence by empowering you to select the unique products, markets, facts and time periods critical to your decisionmaking. NetDispatch automatically places these selections in either syndicated and/or custom templates, allowing you to quickly download and identify opportunities in product assortment, pricing and promotion. NetDispatch lets you retrieve reports one-at-a-time or as defined setsallowing you to select exactly what you want, when you want to receive it. And since NetDispatch reports are delivered as familiar Microsoft Office files, you spend less time learning software and more time deriving insights. ACNielsen has also developed NetDispatch Retail and NetDispatch C-Storereports designed from the retail perspectivethe industrys first web deliverables to be shared by retailers, manufacturers and brokers.

Imagine the gains in productivity! And since Workstation InformationServer 2.0 leverages MS-Office, think of the reduction in application cost and training. Workstation InformationServer 2.0 with NITRO includes other productivity improvements: Enhanced navigation of data hierarchies and custom dimension items Enhanced cumulative methods and calculation order Enhanced functionality to support web based application development Even with the upgraded capabilities, Workstation InformationServer 2.0 retains its speed, power and extreme flexibility. Its scalability supports both small and enterprise environments, local or distributed. And Workstation InformationServer continues to provide a smooth transition from current 16-bit environment. Talk to your ACNielsen representative or visit our web site today to learn more about ACNielsen Workstation InformationServer 2.0.

Use NetDispatch to:

Access syndicated information using the Webwith dimensions customized to your requirements. Save time and increase efficiency by receiving information in Microsoft Office file formats. Create a repository of standard reports accessible by your user group. Quickly identify opportunities in assortment, pricing and promotion.

See us on the Web

http://acnielsen.com/ci or call 1.800.988.4ACN

Upcoming Industry Events

See ACNielsen at these upcoming industry events.

April 8-13 Western Association of Food Chains Annual Convention Marriott Desert Springs Resort Palm Desert, California 29-3 National Association of Chain Drug Stores Annual Conference The Breakers Palm Beach, Florida

June 9-12 Grocery Manufacturers Of America Executive Conference The Greenbrier White Sulphur Springs, West Virginia 25-28 National Association of Chain Drug Stores Marketplace Conference Booth # t/b/a New Orleans Convention Center New Orleans, Louisiana

7-9

May Food Marketing Institute Supermarket Industry Convention Booth # 5330 North Hall McCormick Place Chicago, Illinois

18-21 Consumer Healthcare Products Association Annual Executive Conference The Greenbrier White Sulphur Springs,West Virginia

There are 6 billion consumers in the world. What makes yours so special?

ACNielsen Delivers Knowledge for Action.

Sales and marketing success isnt about data. Its about understanding what motivates people. Thats precisely the kind of insight and knowledge ACNielsen brings to your business. Combined with superior client service, we deliver the highest quality and breadth of information, technology expertise and analytical solutions. We offer capabilities in consumer management. Price management. Promotions. Assortment management. Category management. Loyalty marketing. And much more. All so you can make better business decisions and get even closer to your customers. Contact your ACNielsen representative. Or call 1-800-988-4ACN.

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