Nielsen measures product sales, market share, distribution, price and merchandising conditions in tens of thousands of retail outlets such as grocery stores, drug stores, mass merchandisers and convenience stores. Reporting periods can be as short as a single day for selected electronic point-of-sale (POS) information or up to bimonthly for manual field audits. Data-collection methods will vary by country and type of outlet being reported.
Nielsen also measures the purchasing behaviour of more than 250,000 households in 27 countries through our industry-leading consumer panels. Our Canadian panel is the largest and most representative static sample in the country.
Retail Measurement
For many major retail chains, Nielsen employs census POS methodology to capture retail sales movement and price. For remaining chains and independent outlets, Nielsen employs the industry’s leading sample-based methodology to track sales movement and price. Nielsen samples are also used to measure merchandising conditions in the store, including observation of displays and advertisements. Nielsen samples utilize POS data whenever available. When electronic data is not available, Nielsen utilizes field audit methodology. The audit samples derive estimates of sales, based on observed inventory changes and store shipments.
Manufacturers use the data that result from all methods to understand their market position, and to make tactical decisions regarding merchandising strategy.
Consumer Panel
Participating households are balanced based on the population and demographic characteristics of the universe being measured. These households provide data on the specific products they purchase, the retailer where each purchase occurs, and the price paid. Data collection methods can vary by Nielsen country, but are drawn from three general techniques. Households with handheld scanners transmit purchase data to Nielsen via computer or modem connection. Alternatively, some households send sales receipts from all their purchases to Nielsen, while others record purchases in manual diaries and keep their product packaging for Nielsen analysis.
Nielsen clients use panel data to understand consumer dynamics by product such as penetration and purchase frequency as well as identifying and tracking target buyer groups.
