Micro-level data in the Modern Trade channel on sales related  parameters, on a month-to-month basis, that enables Marketers to employ tactics that are not only relevant but differentiated enough to be effective in a unique environment

Strategies for a Differentiated Market Channel

The rapid mushrooming of Modern Stores in Urban India earmarks the increasing retail vitality in India. Modern Stores are fast becoming the consumers’ preferred shopping destination as they offer an increased product choice – all under one roof, an enhanced shopping convenience, better value for money as well as an improved shopping ambience!  Little wonder then that the product demand is progressively being diverted from Traditional Channels to Modern Stores. The Indian FMCG companies are increasingly tapping this emergent sales potential by placing their products in the upcoming channel: the Modern Stores.

The extensive display of products, an increased level of merchandising, the changing nature of promotions and the continuous bevy of newly launched products, stimulate a continuous shift in the consumer’s product preferences – thus affecting unanticipated swings in the brands’ Market Shares.

Given the unique character of Modern Stores, Marketers need to employ a differentiated strategy herein – whether it is for determining the product mix, price mix, promotions or in-store activities!

Nielsen Modern Trade Service is a crucial determinant of a Marketer’s success as it measures and monitors key category trends for a brand, and the corresponding competitive set, at a city level – making information actionable.  Moreover, it gives a point-by-point comparison with the Traditional Channels enabling the formation of a differentiated strategy.

Nielsen Modern Trade Service helps the Marketer develop suitable micro-strategies for this channel by:

• Determining Growth Opportunities – identifying high growth category segments and markets
• Benchmarking Growth Potential – by measuring performance of own brands with the competitive set
• Understanding Consumer Preferences – by studying the winning Product Mix  (Price/ Packs/ Promotions)

Case Study – Determining Growth Opportunities

Given the distinctive profile of customers shopping in the Modern Trade channel, the sales of Premium products thrive herein.  Let us study an illustration of how a trailing Premium brand can use the Nielsen Modern Trade Service data to strengthen its position in the growing Modern Trade channel.

Brand A and Brand B are competitive Premium Toilet Soap brands, in the same price segment, with an All India presence.  They are sold through both Traditional and Modern channels.  However, at 7.5%, Brand B has a much higher Market Share in Modern Trade as compared to the 6.6% Market Share of Brand A. The difference in Share between Modern and Traditional Channel is also higher for Brand B - indicating that it is well leveraged in the Modern Trade Channel.

This data illustrates that the fast growing Modern Trade Channel holds immense potential for Brand A to increase its Market Share.  How does Brand A go about it?  By concentrating on key markets.

Nielsen Modern Trade Service is vital to understanding and expanding business opportunities in the Modern Trade channel.  It can assist businesses to plan, strengthen and optimize their capacities to compete in this constantly evolving marketplace. Nielsen Modern Trade Service is a one-stop solution that helps marketers create strategies for their sustainable business development!  

Nielsen Modern Trade Service offers mocro level data in the ModernTrade Channel,on sales related parameters on a month on month basis.