KEY DEFINITIONS CALCULATION Copyright 2017 The Nielsen Company

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KEY DEFINITIONS & CALCULATION Copyright © 2017 The Nielsen Company. Confidential and proprietary.

KEY DEFINITIONS & CALCULATION Copyright © 2017 The Nielsen Company. Confidential and proprietary.

MARKETTRACK DATA Copyright © 2017 The Nielsen Company. Confidential and proprietary. A database is

MARKETTRACK DATA Copyright © 2017 The Nielsen Company. Confidential and proprietary. A database is made of 4 dimensions MARKET PRODUCTS FACTS PERIODS 2

DIFFERENT LEVELS IN YOUR PRODUCT TREE Products are down to SKU level and hierarchy

DIFFERENT LEVELS IN YOUR PRODUCT TREE Products are down to SKU level and hierarchy is flexible for customization Category Total Category Manufacturer Brand A Manu 2 Manu 1 Brand B Copyright © 2017 The Nielsen Company. Confidential and proprietary. Function 1 Function 2 Measurement Packtype Item NA Function 1 Function 2 1’s 2’s 3’s 90 ml 66 ml 90 ml …… 78 ml -M -R (B/W- …. . ) -R Etc… Brand C Subbrand B 1 Subbrand B 2 Function Others 3

PRODUCT - CLASSIFICATION Displayable SKUs Copyright © 2017 The Nielsen Company. Confidential and proprietary.

PRODUCT - CLASSIFICATION Displayable SKUs Copyright © 2017 The Nielsen Company. Confidential and proprietary. Regular Pack (R) - Normal Single Pack - With lucky draw coupon/free recipe without promotion indication Knorr Chicken Powder 500 gm - R Bonus Pack (B) - - More than one identical unit packaged together With additional volume written Knorr Chicken Powder 500 gm + 100 gm - B - - Multi Pack (M) Banded Pack (B/W) More than one (identical) unit of a product packed together - Same/cross category - Same/different brands/variant Usually sold at reduced price - Audit item/non-audit item Mead Johnson Enfapro A+ 400 gm*3 s Abbott Ensure NG Vanilla 900 g-R B/W Rice 4

BANDED PACK • Banded packs exist in a variety of combinations in different categories.

BANDED PACK • Banded packs exist in a variety of combinations in different categories. They can be classified as the following types: • Banded Pack with: Audit – Audit. Items Copyright © 2017 The Nielsen Company. Confidential and proprietary. 1. 2. 3. 4. 5. Cross Category (Different Brands) – e. g. , Dove Body + Sunsilk Shampoo Cross Category (Same Brands) – e. g. , Nivea Deodorant + Nivea Body Milk Same Category (Different Brands) – e. g. , Dove Body Milk + Sunsilk Body Milk Same Category (Same Brand Same Variant) – e. g. , Nivea Body Milk Cheery 200 ml + Nivea Body Milk Cheery 100 ml Same Category (Same Brand Different Variant) – e. g. , Nivea Body Milk Cherry + Nivea Body Milk Coconut – Non-Audit Items Non-Audit Item 5

PRICE CALCULATION FOR BANDED PACKS • For Freebies: Assign full price to main item

PRICE CALCULATION FOR BANDED PACKS • For Freebies: Assign full price to main item • For Non-Freebies: Pro rata pricing Free Package Price = $10 Banded Pack Copyright © 2017 The Nielsen Company. Confidential and proprietary. Package Price = $10 Nivea Body Lotion= $10 Nivea Deo = $0. 01 Freebies Main Items at Full Price Freebies at HK$0. 01 Benchmark Market Price Nivea Body Lotion = $9 Non-Freebies Nivea Deo = $3 Ratio 9: 3 = 3: 1 Pro Rata Price Nivea Body Lotion = $10 x $9 ÷ ($9 + $3) = $7. 5 Nivea Deo = $3 x $9 ÷ ($9 + $3) = $2. 5 6

WORDINGS TO BE CONSIDERED AS “FREEBIES” • 送/加送/ Free • 贈品 / Sample Copyright

WORDINGS TO BE CONSIDERED AS “FREEBIES” • 送/加送/ Free • 贈品 / Sample Copyright © 2017 The Nielsen Company. Confidential and proprietary. • 試用裝 /Sampling Pack • Not for resale 7

DATABASE KEY FACTS 1. Value / Volume / Price 2. Numeric Distribution (Num Dist)

DATABASE KEY FACTS 1. Value / Volume / Price 2. Numeric Distribution (Num Dist) 3. Weighted Distribution (Wtd Dist) Copyright © 2017 The Nielsen Company. Confidential and proprietary. 4. Sales Per Point of Distribution (S. P. P. D. ) 8

DISTRIBUTION – NUM & WTD Copyright © 2017 The Nielsen Company. Confidential and proprietary.

DISTRIBUTION – NUM & WTD Copyright © 2017 The Nielsen Company. Confidential and proprietary. Numeric Distribution • Quantity - % of retailers handling your products • E. g. 75% = 75 stores out of a 100 handle your products Weighted Distribution • Quality - for those retailers handling your product, what is the % sales contribution to total category • E. g. 94% = The 75 stores that handle your products representing 94% of the category value sales 9

DISTRIBUTION – NUM & WTD Numeric Distribution vs Weighted Distribution ~ Quantity vs Quality

DISTRIBUTION – NUM & WTD Numeric Distribution vs Weighted Distribution ~ Quantity vs Quality Sales Value of Total Category = $100 Sales $5 Sales $20 Sales $25 Sales $45 Sales $5 Shop A Shop B Shop C Shop D Shop E XY Z Copyright © 2017 The Nielsen Company. Confidential and proprietary. X Brand Y Brand Z XYZ Numeric Handling Distribution Weighted Handling Distribution 3/5 Stores 60% $50 / $100 50% 2/5 Stores 40% $45 / $100 45% 2/5 Stores 40% $65 / $100 65% 10

PRODUCTIVITY – S. P. P. D. • Sales per point of distribution (S. P.

PRODUCTIVITY – S. P. P. D. • Sales per point of distribution (S. P. P. D) Copyright © 2017 The Nielsen Company. Confidential and proprietary. S. P. P. D = Dollar Sales % Distribution • Normally we use weighted distribution for the calculation of S. P. P. D since we would like to compare sales per equivalent base. This enables us to compare the productivity of different Brands across the shop floor. 11

SUMMARY OF KEY DEFINITIONS & DEFINITIONS Understanding of database structure and key data facts

SUMMARY OF KEY DEFINITIONS & DEFINITIONS Understanding of database structure and key data facts • There are 4 dimensions: Market / Product / Period / Facts • Each database will have its own market breakdown, product hierarchy, available periods based on client subscription and customization • There are different types of SKUs coded with -R/-M/(B/W) Copyright © 2017 The Nielsen Company. Confidential and proprietary. • Banded packs prices may be fully assigned to main item or by pro-rata • Numeric and weighted distributions measures the quantity and quality of distribution • SPPD measures the productivity of products / brands etc. MARKETS PRODUCTS PERIODS FACTS 12

FURTHER QUESTIONS & INQUIRIES Please feel free to reach your Nielsen service representatives! •

FURTHER QUESTIONS & INQUIRIES Please feel free to reach your Nielsen service representatives! • Next, you may access the Nielsen database through our NAD software • For software trainings, please ask your service rep about the upcoming schedule Copyright © 2017 The Nielsen Company. Confidential and proprietary. • Also suggest to discuss with our team about your priorities and goals with Nielsen services so that we can move forward together What is Market. Track? It is… “A continuous monitor of the sale of goods to purchasers through defined retail outlets” 13

Copyright © 2017 The Nielsen Company. Confidential and proprietary.

Copyright © 2017 The Nielsen Company. Confidential and proprietary.