STANDARD RMS FACTS & THEIR USES

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

SALES

SALES VALUE
Sales of an item to the
SALES VOLUME
consumer expressed in the
Sales of an item to the SALES ITEMS
country currency. Sales
consumers expressed as a Sales Items to consumers
value is calculated by the
standard unit of measure reported in SKU count
production system by
(Kg, Lt etc.) specific to each
multiplying the volumes
category
sold in units with the
average price

VOLUME SHARE
VALUE SHARE
Sales Volume of a
Sales Value of a SALES ITEMS SHARE
Manufacturer/Brand/SKU
Manufacturer/Brand/SKU Sales items expressed as a
expressed as a percentage
expressed as a percentage percentage of the category
of total volume sales of the
of total value sales of sales.
category (or of a specific
product category (or of a
segment)
specific segment)

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INSIGHTS FOR SALES FACTS

SALES VOLUME & SALES VALUE

Always look at the share movement in relation to
absolute volume movement. A share
increase/decrease does NOT mean less/more
volumes sold.

SALES ITEMS
If the Total Category volumes increase and my Categories that comprise of different
brand volumes don’t increase at the same rate the pack types e.g. In JNSD, different pack
share will decrease even though the absolute types are plastic bottles, Tetra Pak, Glass
volumes of the brand have increased. bottles (Returnable / Non returnable),
sales items provide the volumes
expressed in pack types/ SKUs
Should a brand have a value share greater than its
volume share, it is more expensive than the
average brand in the market. Should the value
share be smaller than the volume share, it would
indicate a cheaper brand than market average

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SALES AND SHARE FAQS

What is the size of the category and how is it trending?
-Is there seasonality?

How important is each segment, manufacturer, brand?

What is their strength by trade channel and geographic region?

How is my brand performing over time?

What was the impact on sales and share due to:

-Change in price? -Change in distribution?
-New product introduction? -Change in competitive action?

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Standard RMS Facts and their Uses
Copyright ©2012 The Nielsen Company. Confidential and proprietary.

DISTRIBUTION

Numeric Handling / Distribution

The percentage of the stores in the
Nielsen universe that handle the
Insights
product
Numeric distribution tells the shop reach of a manufacturer/brand/SKU
that handle the brand or the category out of total shops in the universe.
Thus tells the ability of the manufacturer in establishing its presence in
the retail trade

Numeric distribution does not indicate the size of stores regarding

turnover i.e. a small grocery = a large supermarket

Weighted Handling / Distribution Weighted distribution therefore gives an indication of the importance of
The percentage of business accounted stores where the brand/SKU is distributed e.g. 1 Supermarket may equal
for by the numeric handlers of the 10 Small Groceries in terms of turnover for the category
specific brand/SKU

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DISTRIBUTION FAQS

What percentage of the outlets are handling our brands vs. our competitors?

Are we in the most important outlets? The most important stores within the
outlets?

What are the opportunities for increasing distribution and where are they?

Do my sales increase as I increase distribution?

Can I increase my sales by increasing the distribution of the best selling products and
decreasing the distribution of slower moving items?

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Standard RMS Facts and their Uses
Copyright ©2012 The Nielsen Company. Confidential and proprietary.

NUMERIC & WEIGHTED DISTRIBUTION

OUTLETS IN THE MARKET Numeric Distribution Weighted Distribution

1 2 3 4 5

Outlet Turnover 50 20 15 10 5

Brand X X X X 60% (3/5) 45% (45/100

Brand Y X X X 60% (3/5) 30% (30/100)
Brand Z X X 40% (2/5) 35% (35/100)

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AS BRAND X’S DISTRIBUTION DECLINES IN JUL-AUG’15, ITS

SALES VOLUME ALSO DECLINE. AS DISTRIBUTION (NUMERIC &
WEIGHTED) PICKS UP SEP’15 ONWARDS, SALES PICKS UP
National Pak + TER
Brand X
16 600

14
500
13 14 13
12 13 13 13 13
12 12 400
10 11 11
10
8 300

6
200
4
100
2 3 3 2
2 2 2 2 2 2
2 2 2
0 0
JAN 2015 FEB 2015 MAR 2015 APR 2015 MAY 2015 JUN 2015 JUL 2015 AUG 2015 SEP 2015 OCT 2015 NOV 2015 DEC 2015

Numeric Weighted Sales Volume 1 K-Ltrs

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OUT OF STOCK (OOS)

Out of Stock
An item is out of stock
when no stock is found at
the time of audit, but the
store is a known handler of
that product ( i.e. there is
currently no stock found
but there is evidence of
invoice).
Weighted OOS
Numeric OOS
Indicates the percentage of
the stores in the Nielsen
universe that handle the
item or brand which did
not have the item in stock
at the time of audit
Indicates the percentage of
the total category turnover
that is accounted for by the
stores that handle the item
but did not have the item
in stock at the time of the
audit

Insights
Indicates the supply chain problems for a brand/SKU that create hindrance for the brand/SKU in reaching
the retailer end

When a brand/SKU is faced with OOS situation, there is a high probability of sales shift towards competitor
brands/SKUs that may result in significant share loss.

When a particular outlet is found OOS for two consecutive months, it is declared as a non handler for that
particular brand/SKU. Hence, consistent OOS situations in the retail trade may result in reduced NH

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OUT OF STOCK (OOS) FAQS

What is our out-of-stock level?
-Has it changed over time?
-How does it compare to our level of distribution?
-How does it compare to our competition?

Do out-of-stocks appear to be hindering our performance?

What are out-of-stocks costing us in lost sales?

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Standard RMS Facts and their Uses
Copyright ©2012 The Nielsen Company. Confidential and proprietary.

NET NUMERIC DISTRIBUTION

Net Distribution
Indicates the proportion of business or stores a brand is reaching considering the out of stock situation. Therefore
the percentage of stores or business (WEIGHTED) that had the stocks at the time of audit.

Formula
Net Numeric Distribution
N.H –Numeric OOS

Net Weighted Distribution

W.H –Weighted OOS

Insights
This provides both the Numeric and Weighted Distribution of a brand/SKU based on its actual presence in the universe.

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NUMERIC NET DISTRIBUTION

Handling OOS Net Distribution

BRAND X OUTLETS IN THE MARKET
% % %

1 2 3 4 5 6 7 8 9 10

JAN/FEB X X X X X X 60% - 60%

MAR/APR X OOS X OOS X OOS X X 80% 30% 50%

MAY/JUN X OOS OOS X X OOS X OOS X 70% 20% 50%

After two consecutive

periods of OOS & no
purchases, an outlet
becomes a non-handler

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AS OOS INCREASES IN FEB’15, MAR’15 NUMERIC

DISTRIBUTION DECLINES
BAND A
FAISALABAD
16.0

14.0

12.0

10.0

8.0

6.0

4.0

2.0

0.0
JAN 2015 FEB 2015 MAR 2015 APR 2015 MAY 2015 JUN 2015 JUL 2015 AUG 2015 SEP 2015 OCT 2015 NOV 2015 DEC 2015

Numeric Distr. NUM OOS

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STOCKS
Stocks
Total Stock of an item in
store at the time of audit
(both forward and reserve
stock) and expressed in the
standard unit of
measurement specific to
total category stocks
Stocks Share
Stocks of a brand
expressed as a percentage
of the total category stocks
Forward Stock
The total volume of stocks
of an item found in the
forward area at the time of
audit and is expressed in
the standard unit of
measurement specific to
the category Insights
Stocks provide an insight into the
manufacturer's ability and trade
support to meet the consumer
demand for its brands in the retail
outlets
Forward Stock Share
Forward Stocks of a brand
expressed as a percentage
of the total category
forward stocks
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STOCK COVER DAYS

Insights
Stock cover days should ideally be as low as possible without running out-of-
Stock Cover Days
stock
The number of days that
the stocks at the retailer
Should stock cover days increase consistently over time, it could be an
end will last before being
indication of a problem with consumer pull for the brand/SKU
depleted at the current
rate of sale.
Seasonal brands and markets will always have very high stock cover days in
out-of-season, when the rate of sale gets lower

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SHARE IN SHOP HANDLING

• Indicates the potential share if maximum distribution is achieved.
• Is used to indicate brand strength where the brand is distributed.
=Volume Share/Weighted Handling*100

Brand X stands at 20% share, however, its SISH is 26%. Opportunity to

capture more share if more important doors are captured
BRAND X
KARACHI
90.0 35%

80.0 80.0
30%
32% 74.8
70.0
26% 25%
60.0

50.0 20%

40.0 15%
30.0
25.2 10%
20.0 19.5
5%
10.0

0.0 0%
JAN 2015 FEB 2015 MAR 2015 APR 2015 MAY 2015 JUN 2015 JUL 2015 AUG 2015 SEP 2015 OCT 2015 NOV 2015 DEC 2015
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SISH Volume Share Weighted Handling