Retail Micro Markets

Be a master strategist. Use the ACNielsen | Retail Micro Markets to mould each uniqueness, beneficially !

In a country as diverse as India, the overwhelming complexity of the trade structure poses several challenges to marketers. The regional variations in the retail terrain, coupled with the heterogeneous nature of consumer preferences, necessitate marketing discernment. Discerning marketing strategies can, in turn help, achieve optimal regional product penetration. In fact, the distinct micro markets of India will soon belong to those Marketers who evolve a micro targeting strategy! It therefore becomes imperative for the Marketer to devise a regional micro strategy by integrating various micro market inputs

A continuous and an accurate assessment of the regional consumer's needs, throw light on the evolving brand potential-in each of these micro markets.

Hence, marketers need to have accurate, timely and relevant information, at a micro level, to formulate an optimum regional product placement strategy. 

To aid their micro level planning and decision-making, Marketers need a micro level database. ACNielsen introduces ACNielsen | Retail Micro Markets to address these needs 

ACNielsen | Retail Micro Markets service monitors and analyzes the Indian FMCG sector with greater granularity. It tracks trends within more minute geographies and channels.

Using the more actionable data, provided by ACNielsen | Retail Micro Markets, the Marketing and Distribution professional can plan, act and monitor brand performance in a more holistic manner. By combining data on category performance, competitive movement, depth of distribution, stock levels, price movements and new product introductions, Marketers can now focus on targeted areas more accurately.

Case Study

Brand C is the third largest national brand in a given category. Nationally, it enjoys a Value Share of 14 percent.  However, this brand is present in only 47 percent of dealers nationally; these dealers contribute 69 percent of category sales at an all India level.

By studying the micro level retail data for Brand C, two large opportunity areas for expansion were detected :

• lThe largest market for the given category is Tamil Nadu contributing                            15 percent to the national sales.  However, Tamil Nadu contributes only                       8 percent to the all India Value Sales of   Brand C.
• Brand C is nationally under leveraged in the largest channel for the Category : Grocers. It has a low penetration in this salient channel at an all India level. However, in Tamil Nadu, the overall penetration is only 23 percent and   amongst the Grocers, it is 22 percent.

Brand C has low market share and penetration in Tamil Nadu. Therefore, it is imperative for Brand C to improve its focus on this market. The marketer of Brand C needs to put together an effective Micro Strategy by ascertaining

• Channels that needs to be targeted
• Action that needs to be taken in the under leveraged channel.

Devising a Channel wise strategy, evaluating implementation and monitoring performance on a regular basis for each State, is now possible using State X Channel type data from ACNielsen | Retail Micro Markets.

Which Channels should be targeted for increasing sales for Brand C in Tamil Nadu?

Grocers constitute the largest channel in Tamil Nadu followed by Chemists and Pan Plus for Category X. Though Grocers is the highest contributing channel for Brand C, the brand is not very well distributed in this channel in Tamil Nadu.

• Brand C reaches only 22 percent of Grocers; these 22 percent contribute to 58 percent of Category X Sales

• Brand C, is under leveraged in Chemists and Pan Plus with17 percent and 6 percent of Brand C sales coming from these channels respectively

Therefore, Brand C can increase sales by focusing on key channels-Grocers, Chemists and Pan Plus.

Let us further analyze data from ACNielsen | Retail Micro Markets, to devise a micro strategy for improving sales in Grocers, one of the key channels in Tamil Nadu for Category X.

What action should Brand C take to increase sales amongst the Grocers in Tamil Nadu?

Although Brand C enjoys a lower distribution level compared to competition, its Market Share clearly reflects that product acceptance is the key issue with the brand.

Which pack size should Brand C select to drive distribution and sales among Grocers in Tamil Nadu?

The top two pack sizes for the category are 500gms and 200gms. Let us relative the performance of Brand C on key parameters.

• 200 gms of Brand C reaches only 4 percent dealers that account for 19 percent of Category X sales in Tamil Nadu-Grocer

Recommended Strategy:Brand C would benefit more by undertaking BTL initiatives for activating the Grocery Channel in Tamil Nadu followed by distribution expansion drive. It could focus on 200gms pack by targeting stores, stocking of 200gms of Brand D.

Scope of the Product :

sample Size :n order to ensure a robust estimation of the market at micro level, sample expansion has been initiated at two stages :

First Stage : Increased the number of sample towns/villages for more accurate estimation of the universe of outlets.

Second Stage : Increased the number of sample outlets for robust estimation of sales.

With sample expansion, Retail Store Audit Panel now covers 462 towns,1427 villages and 16246 stores