From interpretation to execution - for New Product & Business Opportunities
NPD Walmart Overview 2009
1. THE NPD GROUP
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AUTOMOTIVE
BEAUTY
COMMERCIAL TECHNOLOGY
Consumer Tracking Service for Walmart CONSUMER TECHNOLOGY
Consumer Tracking Service for Sam’s Club ENTERTAINMENT
FASHION
FOOD & BEVERAGE
Overview for Vendors Supporting FOODSERVICE
Walmart and Sam’s Club HOME
OFFICE SUPPLIES
SOFTWARE
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Copyright 2007. The NPD Group, Inc. All Rights Reserved. This presentation is Proprietary and Confidential and
may not be disclosed in any manner, in whole or in part, to any third party without the express written consent of NPD.
2. Walmart and Sam’s Club Tap the NPD Group…
In June 2007, NPD announced consumer data sharing agreement with
Walmart and Sam’s Club
– Direct access to NPD’s consumer panel data for the following industries:
• Apparel, Footwear, Accessories
• Consumer Technology
• Toys
• Wireless Handsets
“NPD will be the preferred provider
• Entertainment of consumer panel data that
• Automotive Aftermarket Walmart will use to manage its
• Food & Beverage businesses.”
• Foodservice
• Home
3. Walmart & NPD: A Developing Partnership
• In February, 2008, Walmart
named The NPD Group
Syndicated Supplier of the Year
• The award recognizes NPD for
data quality, partnership for
consumer insights, and business
planning.
4. Key Product Benefits
Acquire/access the same data used by Wal-Mart for category
management applications and line reviews
Eliminate the need to justify the credibility of your data and align it with Wal-
Mart’s because you will be using the same data and views, a “common currency”
of sorts.
Get a clearer picture of your category’s and brand’s share at Wal-Mart
and trend performance versus your key competitors
Identify potential areas of growth for your category/brand at Wal-Mart
Manage merchandising and marketing resources to capitalize on
opportunities and reduce costs for seasonal and region-specific events at
Wal-Mart
5. NPD’s Core Technology Tracking Services
We track and report on two different data sources
for a complete market view.
POS Consumer
Point-of-sale information Online panel
from 100+ retailers, covering information from over 3
over 250 categories million consumers
What was sold, by SKU, Who purchased,
by channel, including price reason for purchase,
competitive brand
Data projected to a defined share by retailer,
“universe” of stores purchase motivators,
Brand & item level detail customer satisfaction
including over 1000 Only source for
attributes retailer share
Panel available for
custom surveys
6. Creating a Second Data Set for the Walmart/Sam’s Club View
Syndicated Consumer Panal Data: Walmart/Sam’s Club Data
– Volumetric Measures – Modified Measures
• Unit Sales • Unit Share
• Dollar Sales • Dollar Share
• Average Selling Price • Price Indices
– Enhanced precision with the use of – Contains “de-coupled” consumer data (not
Point of Sale data calibrated to POS)
– Key data set for retailers outside of – The only NPD data that can be shared with
Walmart and Sam’s Club Walmart or Sam’s Club
– The only consumer data that reflects
Walmart department structure,
geographies, and data presented in the
Walmart consumer segments
7. Consumer Tracking Services for Walmart and Sam’s Club
Product Overview:
– A subscription based deliverable based on NPD Consumer data
– Contains “de-coupled” consumer data (not calibrated to POS)
– Contains modified measure set (e.g., share change in dollars/units and price indices)
– Available to manufacturers which currently sell at Walmart
– Key features of the product include:
• Expanded Consumer Data field selection
• WM/SC Custom regions
• WM Department structure (and eventually division structure)
• WM/SC proprietary customer segmentation
– This is the only NPD data set that customers may share with Walmart
– This data is already being heavily used at Walmart to drive key strategic business
decisions that affect your customers every day
8. Share Data Differences
Market share in Walmart/Sam’s Club information will
often be different on an absolute basis than the
Syndicated Consumer Panel data.
While the absolute number will be different we have
determined the relative share change is very consistent.
50
45
40
35
30
Projected Data
25
De-Coupled Data
20
15
10
5
0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
9. Use of Relative Share Change v. Absolute Share Numbers
Primary focus will be share change over time.
Applications for clients:
– How has my category performed relative to the market over
time?
– What is the relative share change of my brand compared to my
competition over time?
– What has been the relative share change in Walmart business
compared to key competitors?
10. SEGMENTATION: Walmart/Sam’s Club Customer Segments
NPD’s Consumer Panel has been scored with
Walmart and Sam’s Club Customer Segments
– Available to select vendors, as approved by Walmart.
Vendors get unprecedented views of the customer
groups that Walmart is targeting
– Understand importance of each segment to Walmart and
Sam’s Club
– Assess brand performance relative to customer segments,
and identify opportunities for growth among those that are
of highest strategic value to Walmart and Sam’s Club
11. Walmart Consumer Segmentation
With NPD’s Consumer Tracking Service for Walmart,
you can think, view, and speak to the same segments.
– Price-Sensitive Segments
• Price Value Shoppers
• Brand Aspirationals
• Price Sensitive Affluents
– Price Indifferent
• Social Shoppers
• Trendy Quality Seekers
• Convenience Seekers
• Conscientious Objectors
Walmart Plans to “Win” with Brand Aspirationals
and Retain Price Value and Price Affluent Shoppers
12. Walmart Segments
Percentage of United States Population by Segment
Conscientous
Objectors
Price Value
Price
14% Value
16%
16%
Convenience
Areas of
Seekers
focus for
11%
Walmart
Trendy Quality Brand
Brand
Seekers Aspirationals
Aspirationals
12% 29%
29%
Social Shoppers
7% Price Sensitive
Affluents
11%
14. Brand Aspirationals represent higher proportion of NB
purchasers; significant brand differences
Walmart Segment Differences by Brand
100%
Unit Share
80% 42%
44% 44% 45%
56%
60%
11% 12% 10% 9%
40% 14% 9%
16% 12% 13%
7%
20% 38%
29% 33% 34%
24%
0%
U.S. Population Notebooks Brand A Brand B Brand C
Brand Aspirationals Price Value Shoppers Price Sensitive Affluents All Other
Retail Calendar Quarters
Source: The NPD Group / Walmart Product
15. Walmart and Sam’s Club Deliverables
PowerView database and PowerViewER tables provided for
purchased categories
Customer Segmentation in PowerView and PowerViewER
tables
Monthly consumer data points, trend data back to Jan 2005
Expanded Consumer Data PowerView fields
Outlet specific Geographies
Outlet specific data structure (hierarchy) when available
Business Intelligence Reports (BIRs)
Deliverables are in the same format that Walmart/Sam’s Club
receives
16. New Consumer Fields available
Many consumer fields will be
available to customers for the first
time within the Walmart and Sam’s
Club products, including MONTHLY
consumer results.
17. Business Indicator Report (BIR)
A suite of reports that will regularly provide share and segmentation
information never before available to Walmart
Data is classified into a data structure that is consistent with Walmart’s
Strategic Business Unit (SBU) organizations, departmental structures within
SBU, and categories within each department.
Tailored to each key member of the organization from senior management
to the DMM level, it brings visibility and individual accountability by area of
responsibility. DMMS have presented these reports to their buyers, who will
also be using the information found in these reports.
Technology categories will generally fall into two of the four SBUs;
Entertainment and Hardlines. Also part of the full Business Indicator Report
are Home and Apparel SBUs.
The Business Indicator Report will be delivered to Walmart as .pdf files on
a quarterly basis.
Delivery of these reports allows our data to integrate fully with the way
Walmart does business
18. Walmart Sales in CE Up Almost 2X Total CE Revenue in June
Exec Cited Uses NPD BIR Reports
19. Sample BIR - Walmart Entertainment: Brands
• How important
is the brand to
Walmart overall?
• How important
is Walmart
overall to the
brand?
20. Sample BIR - Walmart Entertainment: Retailers & Segments
• How does Walmart
perform compared to
other retailers overall?
• How is Walmart
performing overall in
their target segments?
• How can your brand
help Walmart’s
performance in these
categories?
21. Sample BIR - Walmart Entertainment: Brands - Electronics
• How important
is the brand to
Walmart for the
category?
• How important
is the category
at Walmart the
brand?
22. Sample BIR - Walmart Entertainment: Retailers - Electronics
• How does
Walmart perform
compared to other
retailers in this
category?
• How is Walmart
performing in their
target segments for
this category?
• How can your brand help Walmart’s performance in these categories?
23. Key Product Benefits
Acquire/access the same data used by Walmart for category management
applications and line reviews
Eliminate the need to justify the credibility of your data and align it with
Walmart’s because you will be using the same data and views, a “common
currency” of sorts
Get a clearer picture of your category’s and brand’s share at Walmart and
trend performance versus your key competitors
Identify potential areas of growth for your category/brand at Walmart
Understand the key customer segments that Walmart considers most important
to their business
Manage merchandising and marketing resources to capitalize on opportunities
and reduce costs for seasonal and region-specific events at Walmart
24. Refresher on NPD Data Sharing Policy
The new Walmart consumer data products are a unique source of market
information that is being made available to Walmart and Sam’s Club.
The foundation for ongoing success of this new relationship with Walmart is
the continued reinforcement of our data sharing philosophy.
– Contractual agreements with our other retail partners preclude NPD from sharing
any POS data or calibrated consumer data with Walmart and Sam’s Club.
– These new Walmart products are the ONLY NPD information that manufacturers
can share with Walmart or Sam’s Club.
• Manufacturers (vendors) cannot share NPD’s calibrated Consumer Tracking Service
data for Consumer Technology with Walmart or Sam’s Club.
• Why? It is enhanced with POS data.
Similarly, neither NPD nor our manufacturer clients can share the new
Walmart products with ANY other retailer.
25. THE NPD GROUP
AUTOMOTIVE
Contact Info: BEAUTY
COMMERCIAL TECHNOLOGY
CONSUMER TECHNOLOGY
Bob Goodwin ENTERTAINMENT
VP, Business Development FASHION
robert_goodwin@npd.com FOOD & BEVERAGE
513-494-3300 FOODSERVICE
HOME
OFFICE SUPPLIES
SOFTWARE
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