Case Pantene

IMB 419

SEEMA GUPTA

NIELSEN: MARKET RESEARCH FOR PANTENE Garnier was launched in the United States in 2003 and within a year it gained 5.1% market share. During the same period, the share of Pantene, the market leader declined from 22.5% to 20% (Exhibit 1). This was a steep fall which worried Procter & Gamble (P&G), the owner of Pantene brand. P&G wondered what caused the decline  lack lack of distribution intensity or heavy promotions by competitors or unfavorable consumer perception. P&G hired Nielsen to conduct market research to identify the cause of decline and suggest a marketing strategy.

NIELSEN Nielsen, headquartered in the United States and Diemen, the Netherlands was the market leader lead er of the $31 billion global market research (MR) industry in 2010. Nielsen provided solutions to clients marketing problems with its single-minded focus on consumers. While certain research needs were common across businesses, others were idiosyncratic depending upon the strategic goals of the business. For common research needs, Nielsen offered a suite of internationally recognized proprietary products providing powerful normative data. Termed as Syndicated Research, it was Nielsen who decided the population, questions to be asked, and intervals between studies. The research results were often purchased by multiple clients, who then shared results and costs. For specific needs, Nielsen tailored research solutions. solu tions. Termed as customized custo mized research, only that client had access to the results of the research. Often a combination of both syndicated and customized research was necessary. Nielsen was founded in 1923 by Arthur Charles Nielsen for conducting quality tests and offering consulting for industrial products. In 1933, it commenced measurement of consumer sales in retail stores. It went beyond conventional consumer questionnaires and instructed auditors to actually survey store shelves and accounting books to determine sales patterns. It thus pioneered the concept of   The 1940s witnessed the growth of radio and in 1942 Nielsen began measurement of radio listenership across the United States. In the 1950s, television became widespread and Nielsen started rating the programs by measuring viewership with the help of installed     In 1977, meters. The media rating services were managed under a separate division   Nielsen introduced scanning of universal product codes at retail stores, thus collecting accurate and instantaneous data on consumer purchases as they occurred. The scanning service named   also served as a foundation on which diagnostic and analytical applications could be performed. Nielsen emerged as the market leader, which drew the attention of The Dun & Bradstreet Corporation which acquired Nielsen in 1984. Nielsen entered into an alliance with The NPD Group (National Purchase Diary) to establish household panel services, which measured the marketing stimuli received by member households (such as advertisements and promotions), and their response to them in the form of purchases; thus providing single source        rmation Resources Inc. (IRI) in 1987 gave it ownership of              , Dun & Bradstreet acquired    whose flagship product  helped retailers profitably manage shelf space and display. These acquisitions enabled Nielsen to offer a bouquet of services and increase its revenues from new product development instead of engaging in competitive battles. Over the years, competition intensified in the market research industry. In 1997, A. C. Nielsen merged with Entertainment Data Inc. to provide box office returns to the motion picture industry. In 1998 it acquired    a leading provider of simulated test marketing services for new product launch. To measure the ever-increasing audiences on the internet, in 1999, the company entered into an alliance with NetRatings to form Nieslen eRatings. The continued growth of A. C. Nielsen sparked the interest of Dutch company VNU, which acquired it in 2000. In 2006, VNU was acquired by a group of six private equity firms. The company was renamed

Seema Gupta, Assistant Professor of Marketing prepared this case for class discussion. This case is not intended to serve as an endorsement, source of primary data, or to show effective or inefficient handling of decision or business processes. Copyright © 2013 by the Indian Institute of Management Bangalore. No part of the publication may be reproduced or transmitted in any form or by any means  electronic, electronic, mechanical, photocopying, recording, or otherwise (including internet)  without without the permission of Indian Institute of Management Bangalore.

This document is authorized for educator r eview use only by Fahim Syed Muhammad, HE OTHER until February 2016. Copying or posting is an infringement of copyright. [email protected] [email protected] or 617.783.7860

Nielsen: Market Research for Pantene

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as The Nielsen Company. In 2011, Nielsen went public and was listed on the New York Stock Exchange under the name of Nielsen Holdings.

MARKET RESEARCH INDUSTRY The top five companies accounted for 49% of the global market research industry in 2010. Nielsen was the market leader with 16% market share, followed by Kantar (12%), IMS Health (7%), GfK (6%) and Ipsos (5%) (see 1 Exhibit 2 for key financials of top companies). As clients expanded their businesses across the globe, market research companies followed them. The need for a global footprint led to rampant mergers and acquisitions leading to the consolidation of the industry. The top five markets  the United States, the United Kingdom, Germany, France, and Japan accounted for two-thirds of the total market turnover (see Exhibit 3 for country-wise MR spends). However, emerging markets were growing faster than developed markets. Although, quantitative research accounted for 76% of the global research spend, qualitative research accounted for 17%. Online and telephone methods accounted for the largest spends by research method. Worldwide, research was moving away from face to face to other methods such as telephone and online. The major industries for market research were FMCG, Health care, Financial services, Automotive, and Durables. The industry attempted to reduce its costs by outsourcing the non-core functions. Clients increasingly demanded actionable insights and were not content with data. They expected research companies to provide modeling and prediction, which were earlier considered the domain of consulting companies. Piyush Mathur, President, Nielsen India Region said: The dominant business model is low-cost high-volume. We are disciplined in the cost of our operations, but we need to move up in the value chain. We can do this only when we stop looking at research from the rear view mirror and instead predict future trends for our clients. MR companies increasingly hired senior leaders from client side or consulting companies or technology domain. The industry saw the emergence of new players in fields such as analytics and data mining. Many IT companies were expanding their research divisions for providing inputs to their strategic group. Consulting firms such as Price Waterhouse Coopers, KPMG, and Ernst &Young had started providing end-to-end solutions to their clients. Although traditional MR firms enjoyed strong relationship with clients, particularly in FMCG and consumer durables, these new genre of companies co mpanies were giving them competition. Indian MR Industry was Rs. 8.9 billion in 2009 (1 $ = Rs. 55.6, in May 2013). Similar to the global trends, quantitative research accounted for the bulk of research spends. Manufacturing sector accounted for the majority of the research revenues followed by services sector. The emergence of new sectors such as telecom, digital media, and insurance gave fillip to the MR industry. Attracting and retaining talent was a business challenge and many companies set up their own training centers to upgrade the skills of employees. Nielsen dominated the Indian market as a s well. It started its operations in India in 1995. Other major players were Hansa Research, Indian Market Research Bureau (IMRB), iMrs, and Ipos. Multinational companies acquired Indian research companies leading to globalization of the Indian MR industry. For instance, Nielsen acquired ORGMARG, Kantar acquired IMRB and TNS acquired MODE. 2 ORG was founded in 1961 and was the pioneer of retail audit and readership surveys in India. Upon acquisition, ORG-MARG was renamed as AC Nielsen ORG-MARG and subsequently Nielsen.

NIELSEN SOLUTIONS Worldwide, Nielsen specialized in consumer products and services. Its key offers included    (RMS),    (MMS),   , and   Retail and media measurement were two of its core businesses. It was the global leader in both of them. RMS solution  provided clients detailed information on sales, market shares, distribution, pricing, 1

Source: Global Market Research 2010, ESOMAR Industry Report Note: Based on KPMG analysis                      PP group. Marketing Operations Design and Enquiry Service (MODE) had been a major research agency in India when it was acquired by Taylor Nelson Sofres (TNS), (TNS), one of t he one of t he top five MR groups worldwide. Its key offerings were brand equity research and advertising evaluation. 2

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merchandising, and promotions for various product categories across all retail formats  supermarkets, hypermarkets, mass merchandisers, convenience stores, small independent stores, drug stores, and liquor stores. Nielsen was the sole provider of RMS in India. A team of its dedicated auditors visited 16,000 stores every month with hand-held scanners to collect information about price and promotion across 78 product categories. Sales volume was derived by deducting closing stock from the opening stock of each retailer. Auditors also observed compliance by retailers of agreement with manufacturers regarding brand display, inventory, etc. Nielsen sold annual subscriptions of the entire category for $4,000  $20,000 depending on the category. To attain greater accuracy in extrapolation, Nielsen planned to increase the sample size to 48,000 stores by 2013. Justin Sargent, Managing Director  Consumer, Nielsen India Region said: From RMS, we get data on sales, distribution, promotions, market share, etc. Analytics sits on top of it. It builds models to answer questions about managing the marketing mix  should the client spend money on advertising or expand distribution or alter pricing?

            selected representative sample households. In real time, Nielsen captured electronically which channels, programs, and commercials were being watched and by whom and when. Nielsen was the only company worldwide which could research both what consumers  as well as what they  In India, MMS were provided by    (TAM), which was a joint venture with IMRB (Exhibit 4).

Consumer panel research  tracked the purchasing behavior of over 125,000 statistically representative households in 24 countries through the use of in-home scanners. It revealed consumer purchases from all outlets they visited. The purchase information was linked with demographic characteristics, media consumption, and purchasing history of the household. It gave insights regarding penetration, buying rates, loyalty, purchase frequency, demographics, inter-purchase intervals, repeat buying, and brand switching for the product categories. Sargent said: In India, we do not have consumer panel research as competition has it. In syndicated services like these, there is no room for multiple services to coexist. Clients will not buy two reports. There can only be one currency! Customized research offered some of the most creative and cutting-edge products which integrated well with             consumer attitudes, customer satisfaction, and brand equity. Rajiv Bagayatkar, Director  Customized Research, Nielsen India explained the research process: After the client servicing team gets the project it designs the research including the questionnaire which is then handed over to the data collection team. The filled questionnaires then go to data processing team for analysis. It then comes back to the client servicing team that converts analysis into insights for the client. Sapna Shetty, Executive Director  Global Business Services said: Credibility is the key in our business. We have enough processes and systems in place to do the back check of the data that is collected. We also standardize research across markets so that clients get the same look and feel. Another key driver of business was cycle time. In 2008 Nielsen introduced Business Process Improvement (BPI) to reduce cycle time. Rajshree Dave, Director  BPI said: It is an ongoing exercise to identify areas of improvement in our business processes. For instance, we removed the need for manual entry of data by launching Computer-Aided Personal Interview (CAPI) that recorded interviews directly on computer thus reducing cycle time.

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To reduce multiple touch points for the clients, Nielsen introduced    Vijay Udasi, Executive Director, Client Business Partner said: For our key clients, we have appointed senior people as    who work with clients, identify their business problems and offer integrated solutions. This is a departure from selling singular products to solving problems holistically.

CUSTOMIZED RESEARCH FOR PANTENE The fall in market share of Pantene required a holistic approach. Nielsen decided to apply one of its comprehensive solutions   which analyzed the brand from multiple perspectives  category issues; brand challenges  equity, loyalty, personality; marketing mix  price, promotion, distribution; and consumer behavior (Figure 1). Further, Nielsen combined   with its syndicated research    and   to recommend integrated marketing strategy for stemming the decline in market share.

Figure 1 Winning Brands

Source: Nielsen

Nielsen started off by analyzing the shampoo category. The category had market penetration of 98% and was growing at the rate of 2.8% annually. Nielsen analyzed the category on two dimensions  involvement and experimentation (Figure 2). It found that consumers were highly involved with shampoos and purchased multiple brands experimentally.

Figure 2 Category Typology Traction t n e m e v l o v n I

Super Slippery Shampoo

Super Traction

Slippery

Experimentation Source: Winning Brands



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Nielsen then measured equity of different shampoo brands using its proprietary Brand Equity (BE) model (Figure 3). The BE model formed the core of   and was developed by Nielsen in 1997 with Professor Kevin Keller of Tuck School of Business. According to the model,   , and  were the drivers of brand equity, which determined the extent to which consumers  , and pay   for the brand. The BE score ranged from 0  10, wherein 0 indicated that the brand was a commodity and 10 implied that the brand could charge any price premium and still retain customers.

Figure 3 Brand Equity Model

Source: Winning Brands

Nielsen identified the relative importance of drivers of equity in the shampoo category and compared them with its normative data base for FMCG (Figures 4 & 5). It found that  was the most important driver followed by 

Figure 4 Drivers of equity in the Shampoo category compared with FMCG




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 in shampoos could be divided into four categories  health/shiny, premium quality, emotive and family. Out of these, health/shiny was the most important followed by premium quality and emotive appeal.

Figure 5 Associations as drivers of equity in the Shampoo category


Brand-wise analysis of associations revealed that Pantene was rated very high on    and  whereas Garnier was rated high on     and Palmolive as     (Figure 6).

Figure 6 Brand-wise brand associations Imp

Pantene

VO5

Sunsilk

Clairol

Garnier

Palmolive

Wella

H&S

Healthy/Shiny/Fragrance

Soft/Silky/

0.48

13

 2

0

2

7

 5

 1

 4

0.48

12

 4

 2

3

6

 4

 1

 3

0.45

14

 3

0

1

6

 6

 1

 3

Makes hair shiny

0.41

12

 3

0

1

6

 6

 1

 5

Range of hair

0.41

12

 3

1

2

10

 8

4

 9

0.41

4

 1

 1

2

6

 2

 1

 1

Fragrance Makes hair soft and smooth Gives hair body and vitality

care products Cleans gently Cares for colored hair



Page 7 of 21

Figure 6 (Contd.) Leaves hair

0.37

8

 1

1

4

7

 7

2

 8

0.31

2

 5

 1

4

21

 4

 3

 6

smelling lovely Has attractive packaging Premium Quality

Technologically

0.35

10

 5

 6

 3

6

 7

 2

10

0.30

6

 3

 4

5

6

 6

5

 5

0.26

7

 5

 7

0

3

 10

0

16

advanced Is a salon quality brand Specialist hair care brand Emotive (Attractive)

Makes you feel

0.35

8

 2

 3

2

8

 4

 2

 3

0.35

6

 2

 3

2

10

 4

 1

 3

0.20

-2

 3

 3

7

8

1

0

 2

 5

22

1

 7

pampered Makes you feel attractive Uses natural ingredients For family

Is for the whole

0.15

 5

 5

7

 4

family Source: Winning Brands

 was the importance of the parameter for brand equity. It was the correlation of the parameter with Brand Equity Index. Higher correlation meant higher importance of the parameter. Consumers were asked about each brand, the extent to which they agreed on the parameter on a scale of 5. Positive score indicated differentiation opportunities for the brand. Negative scores were not used for interpretation.

Nielsen then calculated equity of different brands and found that Pantene had the highest equity (3.5) followed by Sunsilk (1.9) and Garnier (1.4). Its FMCG normative database showed that Pantene was among the top 15% shampoo brands and had  equity, Sunsilk and Garnier were among the 16  49% brands and had  equity and the rest had  equity (Figure 7).



Page 8 of 21

Figure 7 Brand equity 4 3.5

3.5

Brand Equity Index

3 2.5 1.9

2

1.4

1.5 1

1

1

0.9

0.8

0.8

Wella

VO5

Palmolive

Clairol

Head & Shoulders

0.5 0 Pantene

Sunsilk

Garnier


Nielsen also calculated brand equity according to age and rate of adoption and found that Pantene had higher equity among higher age groups and mainstream people (Tables 1 & 2).

Table 1 Brand equity by age Target Group by Age Brand

18-20

21-30

31-40

40 +

Pantene

2.7

3.4

3.7

3.5

Garnier

2.1

1.8

1.3

1.2

Sunsilk

2.3

2.0

1.9

1.8

Clairol

0.5

0.9

0.8

0.8

Wella

0.5

0.6

0.9

1.2

Head & Shoulders

1.3

1.0

0.6

0.6

VO5

1.0

0.9

1.2

0.8

Palmolive

0.9

0.7

1.0

1.1




Page 9 of 21

Table 2 Brand equity by rate of adoption Brand

Trend Setters

Mainstream

Stragglers

Pantene

3.40

3.60

3.15

Garnier

1.80

1.70

0.80

Sunsilk

1.95

2.00

1.85

Clairol

0.95

0.85

0.65

Wella

1.00

1.00

0.90

Head and Shoulders

1.00

0.80

0.85

VO5

1.00

0.95

0.90

Palmolive

0.90

0.85

1.30


The normative database of Nielsen showed linear relationship between brand equity and market share. Nielsen             Figure 8).

Figure 8 Relationship between brand equity and market share

y t i u q E d n a r B

Market Share Source: Scan track & Winning Brands Nielsen believed that not only behavioral loyalty but emotional lo yalty was also important. Consumers may be using the brand but the usage may be transient triggered by promotion, etc. Emotional affinity on the other hand was more enduring and was manifested when consumer recommended the brand. Nielsen found that Pantene had strong emotive loyalty (Figure 9).



Page 10 of 21

Figure 9 Brand relationship hierarchy

Each stage was calculated as percent of total respondents. Nielsen does not calculate trialists from only among considerers or considerers from only among those aware of the brand. Source: Winning Brands

Nielsen wanted to identify the brands that Pantene was likely to face threat from. It identified brands having strong affinity to each other in the consumers mind. It found that consumers who rated Pantene highly also rated Garnier and Dove high (Table 3).

Table 3 Cross brand affinity Pantene Pantene

Sunsilk

Garnier

VO5

Palmolive

98

113

100

87

142

104

143

154

0

Sunsilk

94ª

Garnier

127

73

V05

52

168

37

Palmolive

26

117

45

99

Clairol

74

106

261

72

118

Dove

184

106

81

45

147

Wella

53

121

47

51

168

167

a Is an index number  base is 100. To be read by column. To be read as among those who have high equity for Pantene what was the relative endorsement for other brands. Indices of 120 and above generally indicate above-average skews and 80 and below indicate below-average skews. Source: Winning Brands

Nielsen then identified how consumers perceived brands on various personality dimensions b y drawing a perceptual map (Figure 10; see Appendix A for details on perceptual map).



Page 11 of 21

Figure 10 Brand personality Family-oriented Palmolive

Garnier

Friendly

Traditional

Fun

Sunsilk Down to earth GenuineCaring

Mature

Pantene

Young Feminine Fashionable ModernTrend setter Attractive

Confident Elegant

Shy Wella V05

Knowledgeable

Professional

Clairol Head & Shoulders


It also drew a perceptual map for packaging of different brands (see Figure 11 for packaging and Figure 12 for perceptual map).

Figure 11 Packaging of various brands




Page 12 of 21

Figure 12 Perceptual map of packaging Pantene

Opaque bottle Pack can stand on its lid Modern pack Attractive shape Garnier

Lid does not break off Durable pack Head & Shoulders Easy to hold/use in shower Pastel colors on pack label Easy to open Bright colors on pack label

Sunsilk

V05

Old fashioned pack

Wella

Palmolive

27.5%

Clear bottle 49.5%

Clairol


Nielsen believed that consumers were faced with choice overload and did not spend much time on making everyday product decisions. Instead, they used simple rules of thumb that Nielsen called   to make choices. Once the rules were formed, they switched over to habitual auto-pilot shopping mode. Occasionally, the auto-pilot mode got disrupted and consumers reevaluated their rules. They were called   By understanding how they occurred in a category, a brand could activate change by triggering Delta Moments.3 These delta moments could be in-store or pre-store. Nielsen found that switching over in the shampoo category was largely triggered by browsing through several packs, promotion, and new brand variants and advertising (Table 4).

Table 4 Switch triggers Omegas (A)

Deltas (B)

Switch Triggers (B  A)

IN-STORE

Promotion

10ª

30

20

20

34

14

Choose from special display

3

10

7

Browsed through several packs

6

32

26

Read several packs

4

22

18

Attractive packaging

1

5

4

New brand/Variant

0

20

20

Out of stock. Bought another

1

3

2

Checked prices

3

For instance, to open a bank account, the Omega rule could be that the bank should be close to home or it should be a salary account. Delta moment could be a competing b ank offering higher interest rates on savings.



Page 13 of 21

Table 4 (Contd.) Bought one at random

1

2

1

100

0

Advertising

1

15

14

External regulator  friend

1

4

3

External regulator  family

15

15

0

1

5

4

PRE-STORE

Auto pilot  same one

External regulator  daughter

a To be read as 10% of auto-pilot consumers checked promotion, whereas 30% of experimenters checked promotion. Consumers could tick multiple triggers. Source: Winning Brands

Nielsen then researched if the    and    had any correlation with the tendency to experiment and found that greater percent of Delta consumers had colored, frizzy, and thick hair. Similarly, greater percent of Delta consumers had mediocre and poor condition hair (Figures 13 & 14).

Figure 13 Shopping modality  hair type

Frizzy

13

Fine

20 39

33

Colored

46

Thick

34

Wavy Lifeless/flat

36 6

Curly Coarse Permed/Straightened Thinning Straight

39 39

9 16 14 13 11

Dry

60

Deltas

Omegas

6 4 3 2 5 6 40 42

a To be read as 13% of the Omegas had frizzy hair, and 33% had fine hair. Hair types were not mutually exclusive. Source: Winning Brands



Page 14 of 21

Figure 14 Shopping modality  hair condition

56

Healthy/Good Condition

66 39

Mediocre condition

31 5

Poor Condition

3 0

10

20

Deltas

30

40

50

60

70

Omegas

To be read as 66% of the Omegas had hair in healthy condition, 31% in mediocre condition, and 3% in poor condition. Source: Winning Brands

Nielsen then (Table 5).

investigated

the

Omega

and

Delta

profile

of

customers

of

different

brands

Table 5 Brand-wise shopping modality Pantene

Sunsilk

Garnier

V05

Palmolive

Omegas

121

98

92

80

99

Deltas

90

101

104

110

101

Source: Winning Brands. It is an indexed score which is the average for shampoo categories across all brands. Nielsen then looked at the triggers that activated the purchase of Pantene (Table 6).



Page 15 of 21

Table 6 Purchase triggers for brands Pantene

Sunsilk

Garnier

VO5

Palmolive

IN-STORE Promotion

14ª

17

16

33

26

Checked Prices

21

30

31

44

44

7

4

4

2

5

Browsed through several

21

24

25

17

21

Read several packs

15

13

20

12

15

Attractive packaging

0

1

11

1

7

New brand/variant

5

7

14

6

11

Out of stock, bought another

2

4

1

0

3

Bought one at random

1

1

2

0

1

64

47

32

38

37

Advertising

5

7

18

0

4

External regulator-- friend

2

1

4

0

0

12

18

11

27

21

7

0

8

2

1

Choose from special display

PRE-STORE Auto pilot -same one

External regulator - --family External regulator - -daughter

a To be read as 14% of those who bought Pantene were triggered by promotion. Q: Here are some things that people do when choosing shampoos (17 statements were given): I bought a brand on a special promotion; I read the labels; I was in rush so I grabbed one at random; I decide to try one that had attractive packaging. The last time you bought Pantene, which of these things do you recall happening? Pick as many or as few as you recall. Source: Winning Brands

Nielsen then studied the appropriateness of the pricing strategy of Pantene. It mapped the actual retail price against the consumer willingness to pay (Figure 15).



Page 16 of 21

Figure 15 Price appropriateness

              from winning brand questionnaire. Q: Please indicate which of these statements best describe how much you would be willing to pay for Pantene (asked for brands the respondent would buy regularly or would consider)? 1 - Whatever it costs; 2 - Even if it costs more than any other brand; 3 - I would buy even if it costs much more than the cheapest brand; 4 - Even if it costs a little more than the cheapest brand; 5 - Only if it costs the same as the cheapest brand; 6 - I would not buy it at all; 7 -   Source: Scan Track & Winning Brands

It then looked at the impact of promotional activity of Pantene. Pantene and Garnier were not promotion-driven, whereas Palmolive and VO5 were (Figure 16).

Figure 16 Impact of promotional activity s r e g g i r t e s a h c r u p d e l n o i t o m o r P

Source: Scan Track and Winning Brands.

The relationship is linear. So, brands lying below the line indicate that they are not promotion-driven. -   is the percent of consumers re ortin that the urchase is tri ered b romotion.



Page 17 of 21

Nielsen also analyzed advertising (see video ads http://hrm.iimb.ernet.in/iimb/advertisement/ of Pantene and Garnier) and new variant activity of brands (Table 7).

Table 7 Activation Pantene

Sunsilk

Garnier

VO5

Palmolive

Advertising activation index

167

115

143

35

51

Ad recall

37

18

15

4

6

Brand Recall

22

16

11

12

12

0

46

16

45

36

Brand Cardio (% of new SKUs)

Advertising Activation Index was obtained by dividing ad recall share by brand recall. Brand cardio was the percent of new stock keeping units (SKUs) introduced in the last 2 years. Source: Scan track & Winning Brands & NMR

WHAT SHOULD PANTENE DO? Based on the market research findings, Nielsen wondered what marketing strategy should be recommended to Pantene. What changes should be made in the marketing mix to reverse the decline in the market share of Pantene? More so, the client had set an aggressive long-term growth target of five share points. How could Pantene achieve its targets?



Page 18 of 21

Exhibit 1 Market shares of brands 25

22.5 20

20 15

11 10.4

8.9

10

9

7.6

7.5 7.1

6.4

5.9

5

3.9

5.8

5.3

4.2

0.8

0

2004

2005

Source: Scan track

Exhibit 2 Key financials of select companies  2009 Nielsen

($

millions)

2009

Health

Inc. ($ million)

USA

Parent Country

IMS

Arbitron Inc. ($

Ipsos

million)

million)

USA

2010

2009

USA 2010

2009

(Euro

2009

(Euro

million)

FRANCE 2010

GfK

GERMANY

2010

2009

2010

Revenues

4808

5126

2190

2212

385

395

944

1141

1165

1294

Cost of revenues

2023

2129

1257

-

196

215

354

418

813

872

SGA

1523

1648

662

-

82

75

501

603

250

268

Other expenses

1146

619

-

-

52

52

2

3

36

37

Operating Profit

116

730

271

-

55

66

87

117

89

137

Interest expenses

644

660

-

-

1

1

-

-

23

28

 427

154

-

-

-

-

-

-

-

-

Net Income/loss

 488

132

260

-

43

45

58

73

61

84

Equity/Liability

0.2

0.3

0.0

-

0.2

0.5

0.9

0.9

0.6

0.7

of

 10.1

2.6

11.9

-

11.2

11.4

6.1

6.4

5.2

6.5

time

34,000

34,000

7250

-

971

951

8,761

9,498

10,058

10,377

4,353

3,882

35,862

-

44,284

47,319

6,620

7,686

6,065

8,095

Loss

from

continuing

operations

Net

income

as

%

Revenues No.

of

full

employees Net income/Employee

Source: Global Market Research 2010 and 2011, ESOMAR Industry Report



Page 19 of 21

Exhibit 3 Country-wise market research spends Country

Turnover ($ million)

MR spend per capita

Ad spend per capita

2009

2009

2009

2010

2010

2010

USA

9,462

9,915

27.84

31.98

515.8

447.64

UK

3,248

3,185

52.55

51.19

433.71

354.80

Germany

2,897

2,889

35.32

35.40

348.30

291.00

France

2500

2533

42.94

40.24

272.55

253.91

Japan

1,769

1916

13.87

15.03

328.49

334.85

China

974

1,114

0.69

0.83

42.76

15.64

Italy

757

771

12.66

12.77

225.85

193.53

Brazil

540

815

3.07

4.22

59.75

54.48

Australia

576

657

18.76

29.56

525.87

542.62

South Korea

295

338

6.05

6.90

-

95.30

Russia

258

315

1.83

2.24

73.26

55.86

India

174

197

0.16

0.16

6.27

3.78

Thailand

114

135

1.70

2.11

-

48.79

Source: Global Market Research 2010, ESOMAR Industry Report



Page 20 of 21

Exhibit 4 Organization chart of Nielsen India

Source: Nielsen



Page 21 of 21

Appendix A A perceptual map, such as shown in Figures 10 and 12 depicts how consumers  brands on various dimensions. For Exhibit 10, consumers were asked to rate each of the 8 brands on 19 personality dimensions on a scale of 1  10. Rating 8 brands on 19 dimensions yields 152 numbers. Perceptual mapping finds the best way to show in two dimensions the information content of the 152 numbers. It uses the statistical techniques of factor analysis or multi-dimensional scaling. Arrows pointing in the same general direction show attributes that are highly correlated with one another. To see where a brand lies on a given attribute, one must envision a line from the brand perpendicular to the attribute. For example, consider the attribute -    Figure 10.

Palmolive

Family-Oriented

The dotted line projects Palmolive back on to the - attribute. To see where Head and Shoulders lies on Family-oriented attribute, we have to extend the - vector back through the origin and then drop the line perpendicular to the vector. Perceptual maps usually extend a vector from the origin in only one direction, so that the map does not become too cluttered.

Palmolive

Head and Shoulders

           -    


Case Pantene

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