Winning with Innovation
An Introduction to BASES
Created for Nielsen Client Business Partners
April, 2009
Confidential & Proprietary Copyright © 2009 The Nielsen Company
Agenda
• Overview of BASES
• Our Services
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What is BASES?
• Our mission is to help our clients grow through successful
innovation on their brands.
• We use a pre-market sales forecasting system:
– Measures consumer interest in new initiatives and relaunches
– Combines consumer measures with marketing plan information to
forecast sales volume
– All prior to marketplace introduction
• The system
s stem is used
sed to evaluate,
e al ate diagnose
diagnose, and improve
impro e the
potential of new product initiatives and relaunches.
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Copyright © 2009 The Nielsen Company
Innovation Process
CLIENT DEVELOPMENT PROCESS
You want to separate the strong
initiatives from the weaker ones
You want to refine the initiative
You want to test the
concept/product mix
You want to optimize your
marketing plans for launch
You launch the product
In Market Success or Failure?
• BASES provides new product
advice and consultancy
– Measures consumer interest in new
initiatives
– Combines consumer measures with
marketing plan information to forecast
sales volume
– All prior to marketplace introduction
• Used to e
evaluate,
al ate diagnose
diagnose, and
improve the potential of new product
initiatives and relaunches
• BASES can lead the client
through the whole development
process
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BASES offers more than “Go/No Go” evaluations, with a flexible
system to help you grow your initiative all along your NPD S
A
process
process.
Evaluate
C
Competitive
titi
Landscape,
Identify
White Spaces
D fi
Define
Objectives
BASES Market
& Brand
Ad i
Advisor
(MBA)
Genera
t
te,
Select
Ideas
Select,
Refine
Refine
product in
Build
light of usage
Strong
experience
Concepts
and fit with
the concept
Optimize Marketing
Mix &
Marketing
Plan ROI
L
E
S
Launch
,
Track,
Optimi
ze
+
P
R
O
F
I
T
BASES SnapShot &
Pre-BASES
BASES I
BASES II
BASES Price Advisor
BASES Launch Review
(Validation)
BASES Chatterbox
BASES DecisionPoint
BASES Launch Advisor
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BASES Answers Business Questions
• Should we develop this new Product?
• How will a branding relaunch effect sales and quality perceptions of the
line?
• H
How should
h ld I prioritize
i iti my development
d
l
t efforts
ff t on the
th ideas
id
with
ith th
the
most promise?
• How can we justify a premium price strategy in category X?
• Will our product deliver?
• What are the optimal varieties/sizes in our line? What are the volume
implications of launching
g a subset of the varieties under consideration?
• How much advertising (if any) will be needed to reach our sales goals?
• Does our packaging break through the clutter at the shelf?
• How much volume should we expect in the first year?
• Is our main benefit credible and relevant to our target consumer?
• Will this launch cannibalize other offerings in the category?
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Helping our clients grow through successful innovation
• BASES’ main focus is on forecasting the sales of new products before they are
l
launched
h d iinto
t th
the market
k t
– We measure consumer interest in the idea (via a consumer survey), and then combine those
measures with the brand’s marketing plan to forecast sales
– We
W then
th help
h l our clients
li t iimprove th
the id
idea as th
they prepare ffor th
the llaunch
h
Sales
Forecast
Consumer
Response
Data
+
Marketing
Plan
Information
From survey
y data
Provided by our
clients
=
Based on model calibrations
to in-market data
Optimize
Proposition,
p
,
Marketing &
Execution
Through
g analytic
y
frameworks and
consultation
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6
This consumer response data is coupled with marketing plan
information in the BASES Model to yield the volumetric estimate.
Volume
Forecast
Impact of
Marketing
Support
What
consumers
actually do
Adjust for what
marketers do to
influence
consumers
Promotion/in-store activity
Di t ib ti
Distribution
Awareness
Measure
Consumer
Perception
Remove
consumer bias
f t
factors
Total
Addressable
Market
Volume Estimate
What
consumers say
they will do
Interested Universe
Adjust for Overstatement
Consumer Claims
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BASES interviews a sample of consumers representing the total
addressable market as well as key target segments.
The core “total market” sample allows for a direct comparison of initiatives and for calibration to inmarket data for forecasting. These interviews are augmented with samples representing client target
groups, samples of key buyer groups, and other groups as appropriate.
Illustrative Example
Brand
Loyalists
(
(over-sample)
)
Total
Addressable
dd essab e
Market
(base sample)
Key Buyer
Group
Target
Segment
(over sample)
(over-sample)
(over-sample)
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BASES’ systematic approach allows marketers to understand how their launch initiatives
perform relative to their category
S
A
L
E
S
Evaluate
Generate,
Competitive
Select
Landscape,
Ideas
Identify
White Spaces,
Define Objectives
BASES Market
Select, Refine
Build Strong
Concepts
Refine product in
light of usage
experience and fit
with the concept
Optimize Marketing Mix & Marketing
Plan ROI
Launch,
Track,
Optimize
+
P
R
O
F
I
T
…and answer a set of Key Measure questions asked in the
same manner on every survey
survey.
Eureka!/
Consumers are exposed to a concept
representing the launch proposition…
Purchase Intent
Liking
Price/Value
• Which statement best describes how you feel about buying this
product?
• How much do you think you would like or dislike this product?
• Considering the price of the product, how do you feel about the
value for money of this new product?
Believability
• How do you feel about the believability of the statements made
New & Different
• How do you rate this product in being new and different from other
Claimed Units
Claimed
Frequency
about the product?
products?
• How many units of the new product, if any, would you buy the first
time you purchased this new product?
• How often, if ever, would you buy this product if it was available
where you shop?
vs. the BASES Database of ~100 Pasta Sauce initiatives evaluated in the U.S. within the past 10 years
Overall
Purchase
Intent*
Liking
Value
C
C
C
Uniqueness
Claimed Units
per
Purchase**
Claimed Annual
Purchase
Frequency**
100%
80%
60%
C
40%
C
C
20%
The systematic
approach allows for
“apples-to-apples”
pp
pp
comparisons of
performance to a
category-wide
database for every
launch proposition
proposition.
0%
C= Chef Lou's Pasta Sauce
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Our unique advantages lie in our extensive innovation expertise
and rigorous approach to benchmarking and volume forecasting
• Databased Approach to Benchmarking
– Powerful tool to assess strength of new launches
• Volume-Based Analytics
– Enabled by our systematic and empirical approach to analysis and forecasting and the
resources of the entire Nielsen Company
• Extensive history of innovation consulting
– 90,000 new ideas tested
• Unique client service structure
– Dedicated forecaster/analyst consultants.
• Proprietary tools and techniques to optimize initiatives and launch success
– IntroSCAPE proprietary “consumer adoption” framework
– Marketing execution optimization
– Choice Tools linked to volume
– Price optimization
– Category opportunity identification
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Additional BASES Products and Services
•
BASES FindTime
–
•
Can consumers find my product on shelf? What package attributes
best help differentiate my product from the competition?
BASES IntroSCAPE
–
•
How can the initiative be optimized to best reach consumers?
BASES Marketing Plan Analyzer
–
•
How can I optimize my marketing support for a new product?
BASES Price Advisor
–
•
What is the optimal pricing strategy for my initiative? What impact
could price have on the volume potential of the initiative?
BASES DecisionPoint
–
How will the introduction of a new product or line impact my full
portfolio of brands in market?
11
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Thank you!
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Confidential & Proprietary • Copyright © 2007 The Nielsen Company