With 60% of fast-moving consumer goods (FMCG) purchase decisions being made in store, it is imperative for brands to have distribution and sales strategies that maximize their on-shelf performance. To help our clients develop smart, dynamic and profitable promotion strategies, we recently launched two new Sales Effectiveness solutions in Malaysia: Golden Store and Everyday Analytics.
We’ve designed these solutions to help our clients win in store—even as the retail landscape is becoming increasingly diverse and fragmented, and at a time when brands are prudent with spending.
At a launch event to introduce the solutions to the Malaysian market, Vincent Cornu, Nielsen Sales Effectiveness Leader for Southeast Asia, pointed to four common themes that are changing the retail landscape in developing economies and emerging markets across the globe:
- Explosion of small format stores
- Growth in hard discounters and warehouse formats
- Fragmentation of specialty stores
- Emergence of mobile and e-commerce
“The path to optimal growth against this complicated backdrop is not always clear,” according to Cornu. “Brands need to make smart choices about where they will place their bets and find their pockets of growth. For this, they need to answer two questions: Where to grow? And how to grow?”
Our Golden Store and Everyday Analytics solutions aim to help our clients cut through the noise and focus their resources on their most profitable stores and opportunities.
“We know that six out of 10 promotions globally don’t break even,” said Jonathan Wong, Senior Manager, Sales Effectiveness, Nielsen Malaysia. “With Golden Store, we help our clients identify the 8% of stores that deliver 50% of their sales, as well as opportunity stores that have the potential for the greatest growth. This way, our clients can better optimize their trade spend to ensure they get more bang for their buck.”
With promotion frequency rising and efficiency dropping, the question clients are faced with is what level of discounts to give in order to maximize profit? Our Everyday Analytics tool provides our clients with a view of current market conditions, along with easy-to-use calculators that can test different scenarios and quantify the impact on sales in a way that is simple, highly visual and actionable.
This web-based solution is a simple, affordable and quick way for planners and executors to assess opportunities and test productivity ideas on a day-to-day basis, as well as enable fast and smart responses to threats.
“We believe that these insights and tools can address some of the pain points faced by our clients. Their enthusiasm for the solutions at our launch event further reinforces our confidence in these solutions,” said Raphael Pereda, Managing Director of Nielsen Malaysia. “We look forward to working closely with our clients to help them win in store through science-backed, data-driven decision making.”
Our Everyday Analytics tool is also available in key markets across North America, Latin America and Europe, as well as in Australia, China, Indonesia, Malaysia, New Zealand, Russia, Thailand and South Africa. Golden Store can also be found in Nielsen’s Latin American markets, namely Brazil, Chile, Colombia, Paraguay and Peru, as well as in Russia.
Pictured above: Nielsen Malaysia’s Sales Effectiveness team celebrate the successful launch.