Use ACNielsen’s baseline methodology for slow-moving,
low- distribution products
ACNielsen baselines measure the expected normal volume for a product
in the absence of any promotion (feature, display or temporary price
reduction) within a given store for a given week. ACNielsen’s
baseline measure is considered an industry standard in terms of
its wide range of applicability for manufacturers, and now retailers,
in measuring the effectiveness of their trade promotion spending.
Now, ACNielsen’s Distribution Sensitive Baseline helps
CPG marketers understand the sales dynamics of slow-moving, low-distribution
products. Generally, these products (typically found in HBC and
some non-food categories), inherently do not scan every week within
any given store. However, in the presence of a promotional stimulus,
these products scan across an increased number of stores within
the market, thereby contributing to incremental sales. This baseline
methodology eliminates any artificial volatility in data due to
contribution by increased number of stores toward incremental
sales in the presence of promotion stimulus.
Distribution Sensitive Baselines can assist you in making informed
marketing and planning decisions, even if your product is not
purchased at a high purchase frequency.
Distribution Sensitive Baselines can help you:
- Track the underlying health of a brand (base volume) and
compare it to its competition.
- Identify temporary growth driven by a promotion (incremental
volume).
- Determine specific source of volume/ share gains or losses.
- Forecast volume expected for each promotion.
- Optimize mix: feature, display, promoted price.
- Monitor competitive promotional practices.
- Compare lift across brands, categories, weeks, channels and
price points.
