Nielsen - BASES Overview

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
1
Confidential & Proprietary
Copyright 2009 The Nielsen Company
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.
2
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
3

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

4

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?
5
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 brands 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

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
7

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)
8
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
Uniqueness
Claimed Units
per
Purchase**
Claimed Annual
Purchase
Frequency**
100%
80%
60%
C
40%
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

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
10
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
Thank you!
12
Confidential & Proprietary Copyright 2007 The Nielsen Company

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What is BASES and what is its mission?

What is BASES and what is its mission?

What services does BASES offer to help with new product development?

What services does BASES offer to help with new product development?

Winning with Innovation

Created for Nielsen Client Business Partners

Confidential & Proprietary Copyright 2009 The Nielsen Company

You want to refine the initiative

You want to test the

You want to optimize your

You launch the product

BASES provides new product

Confidential & Proprietary

BASES offers more than Go/No Go evaluations, with a flexible

BASES SnapShot &

BASES Price Advisor

BASES Launch Review

BASES Launch Advisor

Confidential & Proprietary

BASES Answers Business Questions

Helping our clients grow through successful innovation

Based on model calibrations

Confidential & Proprietary

This consumer response data is coupled with marketing plan

Confidential & Proprietary

BASES interviews a sample of consumers representing the total

Optimize Marketing Mix & Marketing

and answer a set of Key Measure questions asked in the

Consumers are exposed to a concept

How do you feel about the believability of the statements made

New & Different

about the product?

Confidential & Proprietary

Our unique advantages lie in our extensive innovation expertise

Extensive history of innovation consulting

Additional BASES Products and Services

Can consumers find my product on shelf? What package attributes

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

How will the introduction of a new product or line impact my full

Confidential & Proprietary Copyright 2007 The Nielsen Company

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