RMS Fact-Types

Understanding
For newcomers (both A&I and CSC)

Prepared by NielsenIQ Vietnam

Updated to Apr’23

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Complete the below quizzes at the end of your self-learning

Quiz Link

Sales, share &

https://forms.office.com/r/eAYAMv0yz7
growth

Distribution, stock & https://forms.office.com/r/XNazQJCLxJ Happy learning!!!

purchase

Offtake, price https://forms.office.com/r/vU9UiZKjNq

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How can the business grow?
This is a measure of my absolute performance which is useful, but this is NOT why manufacturers subscribe to NielsenIQ
data. It is the relative performance that matters more. In other words, “How can I grow“ is essential and good to know;
however, “How can I grow faster” is critical to success.

Sales Volume (Units) Measure of Transaction

Measures Of Absolute Growth

Measures
Sales
Sales Volume (Volume – KG/L) Measure of Consumption

Measures Value Sales Measure of Expenditure

Total Stock (Units)

Stock

Measure of Shelf Competition

Total Stock (Volume – KG/L)
Measures
Purchase

Purchase (Units)

Measure of Replenishments

Purchase (Volume – KG/L)

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THE BOARDROOM “Making decisions amongst chaos”
Management Team influences the entire boardroom

CEO CEO

Common Issues in the room All the above concerns are outcomes to the

MARKETING

MARKETING
following 2 basic objectives / concerns
FINANCE

Product (R&D, Marketing)

FINANCE
• What should be the range/assortment?
• How do we position the existing products?
• What products to launch/rationalize?

Pricing (Marketing, Operations, Finance)

• How sensitive is consumer demand to price?
• Who is the target audience – value / premium?
• How competitive is my pricing?
• How can we use pricing to maintain profitability?
How can the business

OPERATIONS

OPERATIONS
Place (Sales, Operation) grow (sales)?
• How to maintain distribution efficiency?
HR

HR
• How do I ensure maximum return on my distribution
investments? Whether to go for expansion / higher
throughput?
• What works in which market? Hits & Misses by region.
• How can I optimize my shelf presence?

Promotion (Operations, Marketing)

• Go for trade promotions or consumer promotions?
• How much incremental does the promo provide to the brand? How can the business grow faster
SALES

SALES
R&D

• Whether to go for Value off or extra volume?

R&D
than competition (share)?
Other Issues (HR, Finance)
• Employee Salary / incentives / annual hike
• Profitability / shareholder’s interest

© 2023 Nielsen Consumer LLC. All Rights Reserved. 4

How can the business grow faster than competition?
KPIs Responsibility Matrix

Absolute Measure Distribution Measure

(Overal KPIs) (Trade Availability)

Stakeholders – The entire boardroom Stakeholders – Sales, Operations

Sales (Value or Volume) Numeric Distribution (ND)

Market Share (Value or Volume) Weighted Distribution (WD)
Distribution Quality

How can I Grow? How can I Grow faster ?

Consumer Measure Execution Measure

(Consumer Accepetability) (Trade Availability)

Stakeholders – Marketing, R&D Stakeholders – Sales, Operations

Stock/ Purchase
Sales per point of distribution (S.P.P.D) Out of Stock (OOS)
Share in handlers (SIH) Stock Cover Days
Average Price Index (API) Stock to Sales Ratio
Merchandising

How can I Grow faster ? How can I Grow faster ?

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Retail Measurement Service – 6 fact clusters
• Purchases volume
• Purchase share

Purchase
• Volume/ Value sales • Stock share
• Volume/ Value share • Forward/ Reserved stock
• Volume/ Value share of trade
Volume/ Stock • Stock to sales ratio
Value
• Stock cover day

• Price per pack/ unit • Average SPPD (Offtake)

• Price per Volume • Share in handlers
Price Consumer
Support

Distribution
• Numeric/ Weighted distribution
• Numeric/ Weighted out of stock

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Time Aggregation

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Data aggregation – Time
Note: For new clients, CS need to align the view of period before report set-up or presentations
Example Example (Data
Acronyms Meaning Acronyms Meaning
(Data ending Apr’22) ending Apr’22)

Fixed period view TY This year

Q1/2/3/4 Quarter Q1’22: Jan 22 – Mar 22 Last Year/

LY / YA
Year Ago
H1’22: Jan 22 – Jun 22
H1/ H2 1st half / 2nd half of the year L3M vs YA:
H2’22: Jul 22 – Dec 22 YA Year Ago
vs Feb 21 – Apr 21
FY Full year (Jan – Dec) FY’22: Jan 22 – Dec 22
Previous L3M vs PP:
PP
Relative period view Period vs Nov 21 – Jan 22
L3M Last 3 months L3M: Feb 22 – Apr 22
P3M Past 3 months (3 months prior to L3Ms) P3M: Nov 21 – Jan 22

Year to date (January to latest month) YTD TY: Jan 22 – Apr 22

YTD
→ Monitor performance vs. internal budget YTD LY: Jan 21 – Apr 21

Moving Annual Total (12 latest months)

MAT TY: May 21 – Apr 22
MAT → Long term-growth rate / market trend,
MAT LY: May 20 – Apr 21
excluding the seasonal impacts

2021 2022

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

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Understanding the performance drivers

This slide introduces the idea of value

decomposition. Based on that we can
derive the performance drivers:
Value Sales
> Price: impact on sales due to products
becoming cheaper or more expensive;
are consumers trading up or down?
> Unit Weight: impact on sales due to
consumers moving to bigger or smaller Price per Volume
Volume Sales
pack sizes (= Avrg Price)

> Distribution: impact on sales due to

the distribution variation; e.g. more shops
selling the product / higher product
availability
Unit Sales Unit Weight
> Unit ROS: impact on sales due to
stores selling more of the product

Distribution = TDP Unit ROS

(= WD Cum) (= Unit SPPD)

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Cluster 1:
Volume / Value

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Definition & implication
Note: For new clients, CS need to align the use of value or volume facts before presentations

Facts Definition Implication

Sales to consumers expressed in value/volume/ unit basis.

▪ Value Sales: The amount of product sold in the specified
currency
Measure total market size, manufacturers/
Sales absolute ▪ Volume Sales: The amount of product sold in a consistent unit
brand performance
measure (i.e., KG, LITRE)
▪ Unit Sales: The number of packages of the product sold in the
units in which they are bought by the shoppers

Sales % Change (vs (Current sales – Past sales) * 100% Measure the growing speed of a product
Note: Can explore the compound annual growth
YA/PP) Past sales rate (CAGR) concept

Sales of a specific product * 100% Measure performance of a manufacturer/

Sales % Share
Sales of total product/ segment brand in a context with competitors

Measure the share change of a product over

+/- Sales % Share (vs
Current share – Past Share reviewed period.
YA/PP)
Note: bps +/- share = +/- share x 100

Sales % Share of Trade Sales of a certain channel * 100% Measure the importance of specific sub-
(SOT) Sales of total market markets to total market

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 FAQ

What is the implication for different sales facts read?

The growth of carbonated Soft Drinks is driven by consumption growth

Comparing growth in different measurement units indicates shifts in consumer purchasing due to shifts in pricing, in premiumization or pack
size.

The relation between Volume & Units % Chg can indicate changes in the pack mix:
▪ Vol > Unit: consumers move to larger pack sizes/counts
▪ Vol < Unit: consumers move to smaller pack sizes/counts

The relation between Volume & Value % Chg can indicate changes in price. Price changes can be linked with consumers trading up, or with
price increases, or with change in the promotions (Will be discussed in the pricing part).

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 FAQ

Why are there different views of share base?

Note: CS needs to align the main share base before conducting analysis

Volume/ Value Share

Share based on CSD – MAT TY Share based on Cola segment – MAT TY

37.5

Brand A 72.1 Brand A

Others Others

Why would you base on CSD? Why would you base on Cola segment only?

When client considers all other players in the market/ category as When client wants considers players in a specific segment as their
competitors, which their brand can convert users from other competitors. When client views share with smaller base, client
segments. principally exclude the players in other segments out of their
competiton landscape.

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 FAQ

Combine & inteprete Sales vs. Share

Question: Is there possible if we grows, but still loses share in a defined period view?

Value/ Volume Sales

Scenarios - No Change +

We are declining at a lower rate While the total category is We are gaining sales
+
Value/ Volume Share %

than the total category declining, we maintain our sales faster than the total category

We are declining in line with the No improvement or decline in our We are gaining sales
No Change
total category sales position in line with the total category

We are losing sales at a faster rate We are stagnant while the We are gaining sales but not as
-
than total category category continues to grow fast as our competitors

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 FAQ

What is the purpose of Share Of Trade?

Note: Like share concept, CS needs to align the main market base before conducting analysis
% Share Of Trade

MAT TY – Value % Share Of Trade

5
14 4 • Understand which are the biggest markets for
7 13 the category, segment or brand
11
19 • Understand which regions are gaining more
14 importance over time and deserve more focus
4
8 • Understand if we are in the right markets for this
category – are there areas we have over- or
36
under-focused?
33

5
In the example on left, Brand A has over-focused in
5 Urban & North Rural. Are we missing some fast-
15 growing Rural markets?
8
CSD BRAND A
NORTH URB CENTRAL URB HCME
CT+MKD NORTH RURAL CENTRAL RURAL
S. EAST RURAL MKD RURAL

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Cluster 2:
Pricing

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 FAQ

What is SKU definition?

SKU = Stock-keeping unit.

Represents a single product item or barcode.
(Should be viewed at basesize or packsize level)

E.g: PEP manu. – Pepsi brand – Cola

segment – Can – 330ML

© 2023 Nielsen Consumer LLC. All Rights Reserved. 23

Average Price Per Pack
Question: Why the client’s product recommended price is different from NiQ’s reported data?

Facts Definition Implication

• Measure the actual price sold in the market vs recommended price

Average Price Average retail selling price to the
• Measure impact of price on Value/ Volume Sales
Per Pack consumer (Used for SKU level only)
Note: Can explore the price & sales corrleation concept to indicate price elasticity

Brand A has a SKU with listed price at 5k VND. Question: What is the Average Price Per Pack of Brand A 75gm?
Retail selling price of the product in Store A, B, C are
as below:

Store Price Per Pack (VND) Volume (5,000 x 10) + (6,000 x 5) + (7,000 x 2)
5,530
A 5,000 10
10 + 5 + 2
= VND
B 6,000 5

C 7,000 2 Note: The reported price per pack has higher value vs. the listed price is due to
some retailers sell the product with higher price or having some sales tactics in
stores; and vice versa.

© 2023 Nielsen Consumer LLC. All Rights Reserved. 24

Average Price per Volume
Facts Definition Implication

Average Price per Value sales (VND) ▪ Use when work on aggregate product (total category, segment, brand
Volume Volume sales (KG/L) etc.) to sse to compare products with different pack-mix

▪ Measure whether a product has average price higher or lower in

Average Price of the product x 100% comparison with total product
Price Index
Average price of Total Product ▪ Useful when dividing price tiers, NiQ standard: Economy/ Mass (API
< 80), Mainstream (API: 80-120), Premium (API> 120)

Brand A has 2 SKUs with their sales as below: Factor affecting Ave Price (At brand level)
Volume Average
Value Sales Unit Sales
Nationwide Sales Price Ave Price increases, when:
(VND) (SKU)
(Litre) (VND)
1. More sales of small packs vs big packs
Brand A –SKU 1L 42,000,000 4,000 4,000 10,500
2. Increase of price per pack of key SKUs
Brand A – SKU 1.5L 1,300,000 100 150 13,000
Total Brand A 43,300,000 4,100 4,150 ?
Ave Price decreases, when:
Question: What is the Average Price of Total Brand A? 1. More sales of big packs vs small packs
2. Decrease of price per pack of key SKUs
Answer: 43,300,000/4,150 = 10,434 VND / LITRE

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Cluster 3:
Distribution

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 Facts Descriptive Implication
Represent the % of stores within the universe handling the
Numeric Total Number of Handling Stores * 100% *
Number of Universe Stores (by panel) product during the audit period
Stock Distribution
 Measure penetration in terms of store numbers
Represent the % of category turnover (sales value) accounted for
Category Sales Value in Handling Stores * 100% by those stores handling the product during the audit period
Weighted Total Category Sales Value in Total Stores
 Measure penetration in terms of store importance (i.e., whether
Stock Distribution
WTD Dist = WTD In-Stock + WTD OOS the brand are entering big/ small stores of the category, not of the
brand itself)
Distribution WTD
NUM Indicates the quality & effectiveness of a product’s distribution
Quality

No. of Panel Stores

1 1 1 1 1 1 1 1 1 1 = 10

Brand a Brand a Brand a Brand a

Brand b Brand b Brand b Brand b Brand b

15 30 15 6 4 7 10 5 3 5 = 100
Category Turnover

If Brand A is stocked in 4 stores, it has: 40% NUM | 70% WTD

© 2023 Nielsen Consumer LLC. All Rights Reserved. 27
 FAQ

Combine & inteprete Weighted Vs. Numeric Distribution

Question: Is there possible if a brand has its NUM increases, but WTD declines?

NUM Distribution

Scenarios - No Change +

More retailers and

Fewer retailers, but remaining Current retailers gaining
+ more important
retailers gaining importance importance
stores
WTD Distribution

More retailers but

Current retailers gaining
No Change No change in distribution some are becoming
importance
less important

More retailers but

- Loss of important retailers Current retailers losing importance other stores in market are more
important

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Out of stock (OOS) distribution & distribution loss

Facts Description Implication

Numeric/Weighted Out Of the % of stores which have received a delivery of the product during the audit
Stock Distribution period but had no product available for sale on the day of audit
Measure OOS level
Numeric/Weighted In represents the % of stores which handle the product and have the product
Stock Distribution available for sale on the day of audit

Month
1 2 3 4
(Normal operation: (Higher consumers’ (Demand is still high, no (Retailer must switch to
Retailer purchases demand, but less supply stock of brand A left in another competitor’s
products from Brand A) from this brand) stores) supply)
Purchase * * *
Stock * *
Distribution Yes Yes Yes No
Stock out No No Yes -

Out of Stock Distribution: Loss of Distribution:

Sales or Purchase NO sales, NO purchase,
but NO Stock NO stock

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Cluster 4:
Off-take

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Consumer Support

Facts Descriptive Implication

Measure sales at one point of distribution to understand in-store

rate of sale, without the distorting factor of different distribution
Rate of Sales / levels & store importance
Off-take / Sales
WTD It is an indication of consumer pull effort of a brand. View a trend
Consumer Acceptability /
to see movement over time or compare with competitors to see if
S.P.P.D (Sales Per Point of Distribution)
need to improve
Offtake should be read when WTD is > 15%

Share in Handlers (SIH) / Share x 100% Indicate the market % share of the product in the stores where it is
Share Amongst Handlers (SAH) WTD present

S.P.P.D (NUM Dist) Sales Measure sales at one point of distribution to understand in-store
(Not commonly used) NUM rate of sale, without the distorting factor of different store levels

© 2023 Nielsen Consumer LLC. All Rights Reserved. 40

Combine & inteprete Offtake vs. Distribution
Offtake – SPPD

Scenarios - No Change +

1. New outlets not achieving same rate of sales

as old outlets OR 1. Ideal situation, just make sure to check
+
2. Focus on new outlets is leaving old outlets to competition
suffer
Distribution

No Change

Worst case scenario

1. Is distribution declining because retailers 1. Recommend expanding product to new
don’t want to carry a slow-selling product? outlets
-
2. Or is off-take declining because we are not 2. Off-take maintained in most stores, but stores
maintaining distribution in good selling with low sales dropped product
stores?

© 2023 Nielsen Consumer LLC. All Rights Reserved. 42

Cluster 5:
Stock

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Stock Absolute & Share

Facts Definition Implication

The combined reserve and forward stocks of a brand or SKU

Stock Volume on the day of audit expressed as units or a converted volume Measure of shelf/ stocking competition
basis (e.g., liters, kilograms, etc.)

(Current Stock – Past Stock) * 100%

Stock % Chg Past Stock Measure the % change of stocking volume of a product

Stock of a specific product * 100% Measure % shelf competition of a manufacturer/ brand vs its
Stock Share Stock of total product/ segment competitors

Forward Stock The selected product’s share of forward stocks for the It provides an estimate of its share of the selling area shelf
Share selected Total Product space/ in-store visibility

Indicate the proportion of the total stock available to shoppers

Merchandising Forward Stock * 100% in the forward selling area  If more of the stocks are available
Effectiveness Total Stock in the forward selling area, then there is more likelihood of
shoppers seeing the product.

© 2023 Nielsen Consumer LLC. All Rights Reserved. 45

 Advanced

Stocking
Facts Definition Implication

Indication of Brand/SKU commanding its fair share of stocks in its store or not and this ratio
Stock Share to Sales Stock % Share
Volume % Share should ideally be around 1 (around 0.9 to 1.1). Anser whether stock level is sufficient to
Share Ratio
meet current consumer demand.

Indicates whether retailers have enough stocks to meet the demand (Sales). Ideally the
ratio should be 1
Stock Volume
Stock to Sales Ratio Sales Volume  A higher S/S: Dumping of stock (Supply > Demand) leading to high Stock Cover Days
 A lower S/S: A supply side problem and therefore a possibility of high out of stock leading
to loss of sales

Measures # days of stock available for a product before store owners need to make a new
Monthly Stock Cover order or before being OOS
Stock to Sales Ratio * 30.5
Days (MSCD) /  A higher MSCD: slow movement of stock
(days)
Stock Turnover Ratio  A lower MSCD: (A) Fast movement of stock, or (B) Insufficient Stock (in which case we
need to check OSS WTD)​

▪ Sales Team will be interested to have the ranking of SKUs having too low monthly stock cover days to have a corrective action and
either increase the frequency of visit or the quantities purchased

▪ Marketing team will also be interested to have the ranking of SKUs having too high stock cover days to evaluate if they have to put in
place a specific promotion to destock this product

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Cluster 6:
Purchase

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Purchase Absolute & Share

Facts Definition Implication

Represent the amount of product volume purchased by the

Purchase
stores during the period, expressed as units or a converted Measure of Replenishments
Volume
volume basis (e.g., liters, kilograms, sticks, etc.)

(Current Purchase – Past Purchase) * 100%

Purchase % Chg Past Purchase Measure the % change of purchase volume of a product

Purchase % Purchase of a specific product * 100% Measure purchase level of a manufacturer/ brand in a
Share Purchase of total product/ segment context with competitors

(Similar to Stock to Sales Ratio)

Indicates whether retailers are purchasing enough stocks
to meet the demand (Sales). Ideally the ratio should be 1
Purchase to Purchase Volume
Sales Volume  A higher P/S: Dumping of stock (Supply > Demand)
Sales Ratio
leading to high Stock Cover Days
A lower P/S: A supply side problem and therefore a
possibility of high out of stock leading to loss of sales

© 2023 Nielsen Consumer LLC. All Rights Reserved. 49

Numeric / Weighted Purchase Distribution
Facts Descriptive Implication
Numeric Purchase Number of Purchasing Stores * 100% Represent the percentage of stores within the universe
Distribution Number of Universe Stores (by panel) purchasing the product during the audit period
Represent the percentage of category turnover (sales value)
Weighted Purchase Category Sales Value in Purchasing Stores * 100%
Category Sales Value in Total Stores accounted for by those stores purchase the product during
Distribution
the audit period

No. of Panel Stores

Purchase Purchase
1 1 1 1 1 1 1 1 1 1 = 10

Brand a Brand a Brand a Brand a

Brand b Brand b Brand b Brand b Brand b
15 30 15 6 4 7 10 5 3 5 = 100
Category Turnover

50% of the stores have ordered Brand A

If Brand A has been purchased in 2 stores, it has:
(Num Purchase Distribution / Num Total Stock Distribution)
• 20% numeric Purchase distribution
 Sales team can increase this ratio to 100% to increase the
• 40% weighted Purchase distribution
volume purchase
© 2023 Nielsen Consumer LLC. All Rights Reserved. 52
 FAQ

What are differences among distribution facts?

Num Total Stock Distibution Num Purchase Distribuiton Num Selling Distribution
% of stores within the universe handling the % of stores within the universe purchasing % of stores within the universe selling the
product during the audit period the product during the audit period product during the audit period
 Used for TT, mixed markets  It is relevant to the active outlet  Used for MT, M&B markets
definition of clients

Scenario for one new product launching in the TT market:

Month M1 M2 M3 M4 M5 L5Ms

Purchase, Stock
Store 1 Stock & Sales Sales (OOS)
& Sales
Purchase, Stock
Store 2 - Sales (OOS)
& Sales

Purchase & Sales

Store 3 - -
(OOS)

Store 4 - - - Purchase & Stock Stock & Sales

Purchase, Stock
Store 5 - - - -
& Sales
Total Stock Distribution 20% 40% 60% 20% 40% 36%

Purchase Distribution 20% 20% 20% 20% 20% 20%

Selling Distribution 20% 40% 60% 0% 40% 32%

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Other facts:
Assortment
& Macro facts

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 Case Study

Case in point
Company has 3 brands to their portfolio – X, Y & Z.
Brand X is not generating enough sales despite a
much higher distribution expansion compared to
Brand Y & Z.

1/ What is the problem ?

2/ What should we do to fix this ?

© 2023 Nielsen Consumer LLC. All Rights Reserved. 58

 Case Study

Quesion 1: Calculate NUM, WD, and Distribution Quality

Category Sales

Store A | $10 Store B | $40 Store C | $25 Store D | $ 50

X X Y Z X Y Y Z
$ 10 $ 10 $ 10 $ 15 $ 10 $ 10 $ 20 $ 20

Brand Sales

200 200

180

144 150

Implication for Sales teams

123
While Brand X has the highest absolute
160

100

140

80
penetration (75%), it has the least
50

92
120

75 75 72 distribution quality indicating absence

100 0

80

60
50 in the most important outlet (Shop D)
-50

60

-100

40

-150

Action – Make Brand X available in

20

0 -200

Brand X Brand Y Brand Z Shop D to maximize efficiency

ND WD Dist. Quality

© 2023 Nielsen Consumer LLC. All Rights Reserved. 59

 Case Study

Quesion 2: Calculate SIH, SPPD

Category Sales

Store A | $10 Store B | $40 Store C | $25 Store D | $ 50

X X Y Z X Y Y Z
$ 10 $ 10 $ 10 $ 15 $ 10 $ 10 $ 20 $ 20

Brand Sales

100 0.60 Implication for Marketing teams

90

0.50
While brand X has a poor distribution quality,
0.49
0.50

80

70
0.43 0.40
it has a decent share in the outlets where it
60

is present (SIH). However, average sales

50

40 39
0.30

per store is lower than Z, given that X is not

32 35
28
40

30 24 0.20

present in the largest outlet D.

18
20

13
0.10

10

10
0 0.00
Marketing teams may use this as a political
Brand X Brand Y Brand Z ploy to blame the Sales team for lack of
Value Share SIH Ave. Sales per Store SPPD
efficient distribution despite having a descent
consumer pull

© 2023 Nielsen Consumer LLC. All Rights Reserved. 60

 Case Study

Question 3: Reading Stocking facts

What are the execution implication for Sales/ Operations team?

2.0 50

Implication for execution team

1.8
(Operations / Sales)
14 17 18
The Stock Cover Days for Brand X is the
1.6 0

1.4
lowest compared to other brands
indicating a faster stock movement;
1.2

1.1 1.1 -50

however, the brand does not command a

1.0
1.0

0.9 0.9 fair share in the market and the Purchase

0.8 to Sales ratio is also <1 indicating lack of
execution.
0.8 -100

0.6

All this points to a possible out of stock

0.4 -150

situation for Brand X in the near future,

0.2
further worsening the performance of the
0.0 -200
brand
Brand X Brand Y Brand Z
Stock Share to Sales Share Ratio Purchase to Sales Ratio Stock Cover Days

© 2023 Nielsen Consumer LLC. All Rights Reserved. 61

 Case Study

A crisp summary: the SCQA approach

CHAMPION OF SIMPLICITY

Situation:
❖ Company has launched 3 new products – X, Y & Z, to increase their repertoire, give more choice to the consumer and hence improve
their share in the market

Complication:
❖ Brand X not generating enough sales despite a much higher distribution expansion and reach compared to Brand Y & Z

Questions:
❖ What is the source of the problem for Brand X?
❖ What should we do to fix this?
❖ Should we continue with the product?

Answer:
❖ The brand has a descent pull for Brand X compared to brand Y & Z, however:
o Low Distribution Efficiency: It has been placed in the smaller outlets (Shop D is important)
o Lack of Execution: Enjoys less than fair share on the shelf

Final Recommendation – Continue with the Brand X, however, fix Distribution & Execution problems

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