THE NEWLY FUSED PRC PAMS NIELSEN CPS DATA

THE NEWLY FUSED PRC PAMS & NIELSEN CPS DATA #

Fusion Insights - Jonathon Wells PAMS Brands - Peter Langschmidt

MARKET RESEARCH FOR THE NEW MILLENNIUM THE NEWLY FUSED PRC PAMS & NIELSEN CPS DATA

Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. MARKET RESEARCH IN THE NEW MILLENNIUM Data Fusion is the process of integrating multiple data sources by using common variables to match two or more datasets at the respondent level and create one unified database Fusion reduces the cost and technical difficulties in capturing all the data of interest in a single-source survey

NIELSEN EXPERIENCE IN DATA FUSION Multiple-media, multi-country experience to build cross media currency products Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. COUNTRY OTHER MARKETS WHERE WE PERFORM FUSIONS: MEDIA CONSIDERED IN FUSION FREQUENCY OF FUSION US TV + PC + MOBILE MONTHLY ● US SCARBOROUGH + LOCAL TV + RADIO MONTHLY ● AUSTRALIA CMV + TV + RADIO + ONLINE MONTHLY NEW ZEALAND CMV + TV + ONLINE MONTHLY PHILIPPINES CMV + TV + RADIO MONTHLY SINGAPORE CMV + TV TWICE YEARLY ● ● ● INDIA ITALY HONG KONG MEXICO JAPAN INDONESIA MALAYSIA THAILAND APPROXIMATELY 50 FUSION PROJECTS RUNNING IN PRODUCTION

THE IMPLICATIONS OF FRAGMENTATION NEWSPAPER Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. MAGAZINE PC SMART TV RADIO TABLET LAPTOP CREDIT E COMMERCE CASH TRADITIONAL TRADE STORE CATALOGUE

WHAT IS DATA FUSION? Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Statistical analytics and modeling in order to create a single data set that incorporates the attributes from both Data Set 1: (recipient) Print Title Reading + Platform Data Set 2: (donor) FMCG brand consumption Data Set 3: (integrated) Print Title FMCG consumption profile by platform

LINKING TWO DATA SETS Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. The importance of linking variables OWNS A HOME DRINKS WINE AGE GENDER OCCUPATION WATCHES TV SUBSCRIBES TO THE DAILY DISPATCH RACE LIKES TO TRAVEL SHOPS ONLINE EDUCATION INCOME LOCATION READS MAGAZINE FOLLOWS RUGBY

Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. A SIMPLE DATA FUSION EXAMPLE Nielsen TV People Meter panel tells us how many people watch a game on TV. Nielsen Homescan Panel tells us how many people buy soda. How many people watch the game and buy soda? Neither panel tells us this… but data fusion will!

Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. THIS TV RESPONDENT WATCHED THE GAME… ☑ THIS TV RESPONDENT DIDN’T… ☒ THIS HOMESCAN RESPONDENT BOUGHT THE SODA… ☑ THIS HOMESCAN RESPONDENT DIDN’T… ☒

Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. THREE PEOPLE METER RESPONDENTS WATCHED THE GAME… ☑ FOUR PEOPLE METER RESPONDENTS DIDN’T WATCH THE GAME… ☑ ☑ ☒ FOUR HOMESCAN RESPONDENTS BOUGHT THE SODA… ☑ ☑ ☑ ☒ ☒ ☒ THREE HOMESCAN RESPONDENTS DIDN’T BUY THE SODA ☑ ☒ ☒ ☒

Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. WITHOUT THE FUSION, ALL WE KNOW IS WHO WATCHED THE MATCH … ☑ ☑ … AND WHO BOUGHT A SODA ☑ ☑

Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. WITH THE FUSION … ☑ ☑☑ ☑ ☑ WE CAN SEE WHICH 2 PEOPLE BOTH WATCHED THE MATCH AND BOUGHT A SODA ☑

NOT ALL LINKS ARE CREATED EQUALLY Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Predicting variation in “Key Output Variables” ORIGINAL FUSION VISIT REALESTATE. COM ALL PEOPLE AGED 14+ 15% PLAN TO BUY A NEW HOME IN NEXT 12 M 16% INDEX 107 15

FINDING BETTER LINKS - FOCUSING ON BEHAVIORS Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. ORIGINAL FUSION AMENDED FUSION VISIT REALESTATE. COM ALL PEOPLE AGED 14+ 15% PLAN TO BUY A NEW HOME IN NEXT 12 M 16% 25% INDEX 107 16

SUMMARY Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. SAMPLE-BASED MEASUREMENT IS STILL IMPORTANT RELYING SOLELY ON SINGLE SOURCE MEASUREMENT IS FRAUGHT WITH RISK IN AN INCREASINGLY FRAGMENTED ENVIRONMENT FUSION IS WELL ESTABLISHED- BOTH WITHIN AND OUTSIDE NIELSEN - AND CONTINUES TO EVOLVE

HOMEPANEL GLOBAL FOOTPRINT • Over 230, 000 Households in 24 countries Finland 5, 000 Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. UK* Germany 15, 000 Canada * 20, 000 Switzerland France* 12, 300 3, 000 14, 000 Italy 9, 000 Greece 2. 100 Spain United States* 100, 000 Portugal 8, 000 South Korea 3, 000 Israel Puerto Rico Hong Kong 3, 000 1, 500 Philippines 830 Mexico* 3, 600 6, 260 Colombia 4, 000 Thailand 2, 000 Brazil 8, 000 Indonesia Singapore Australia* 1, 000 10, 500 10, 000 South Africa Chile 2, 000 4, 000 New Zealand 2, 500 Updated March 2015 Home Scanner Dustbin / Scan Diary Cash slip

Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. WHAT DO OUR PANELLISTS DO? Panel members purchase their FMCG goods and take them home At home they record their purchases in their Barcode Diary. Documenting when they shopped, where they shopped and each individual item they purchased Once they have recorded a product in their Diary, they take the corresponding Nielsen barcode sticker and attach it to the product purchased beside the actual barcode. This is so the auditor can later crossreference the product with what is recorded in the Panellists Diary The Panellists keep their till receipts for the auditor, Product packages are then either stored in the pantry or disposed of in a Nielsen dustbin. The auditor uses packaging to verify the information collected in the barcode book and vice versa.

Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. WHAT DO OUR AUDITORS DO? 3. They check the pantry to crossreference the information provided in the Diary, and to ensure nothing has been excluded from the read 1. Auditors go to the Panellists Diary and scan all items that have been recorded as purchased since their last visit 2. They check that all items on any available till receipts have been recorded 6. They use their handheld scanner to immediately send all of the information they collected back to Nielsen 4. They then go through the panellists rubbish bin to check their discarded packaging 5. They cross out the product barcode and the diary barcode on all products they have scanned to ensure they won’t be scanned again in future

An important things to remember Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. SAMPLE-BASED MEASUREMENT IS STILL IMPORTANT RELYING SOLELY ON SINGLE SOURCE MEASUREMENT IS FRAUGHT WITH RISK IN AN INCREASINGLY FRAGMENTED ENVIRONMENT Vs FUSION IS WELL ESTABLISHED- BOTH WITHIN AND OUTSIDE NIELSEN- AND CONTINUES TO EVOLVE PLANNING MEASUREMENT 22

INTRODUCING PAMS BRANDS® First Insights from the Data

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The 5 SEM Supergroups 1 2 3 22 19 0 -15 Supergroup 1 16 -30 Supergroup 2 Source : ES Jan- Dec 2017 4 33 31 -65 Supergroup 3 5 16 66 -85 Supergroup 4 10 86 -100 Supergroup 5

SEM - Average Household Income R 35, 000 R 34, 938 Monthly HH Income R 30, 000 R 25, 000 R 19, 366 R 20, 000 R 15, 000 R 10, 000 R 8, 371 National Average R 11 076 R 5, 000 R 0 Source : ES Jan- Dec 2017 R 3, 918 Supergroup 1 (0 -15) R 5, 506 Supergroup 2 (16 -30) Supergroup 3 (31 -65) Supergroup 4 (66 -85) Supergroup 5 (86 -100)

SEM- Share of Households Vs. Money * HOUSEHOLDS 34 35 26 Percentage Share 30 25 20 15 10 INCOME 21 20 7 10 Supergroup 1 (0 -15) Supergroup 2 (16 -30) 28 A QUARTER OF THE 16 PEOPLE 9 HAVE 60% OF THE MONEY 5 0 28 Supergroup 3 (31 -65) * Money= Number of HH x Avg monthly income Establishment Survey 12 months Jan – Dec 2017 Supergroup 4 (66 -85) Supergroup 5 (86 -100)

SEM – Source of Income * Money= Number of HH x Avg monthly income Establishment Survey 12 months Jan – Dec 2017

SEM – Profile By Language * * Spoken Most Often Source : Establishment Survey 12 months Jan – Dec 2017

SEM – Reach By Body Part EYES 100 96 90 90 98 91 BRAIN 98 87 80 60 EARS 89 91 98 93 96 78 62 53 40 20 0 Supergroup 1 (0 -15) Supergroup 2 (16 -30) Source : Establishment Survey 12 months Jan – Dec 2017 Supergroup 3 (31 -65) Supergroup 4 (66 -85) Supergroup 5 (86 -100)

SEM- Profile Food Retailers 60 Percent 55 50 45 42 40 35 30 25 20 20 15 10 5 4 5 0 0 56 41 37 28 29 25 21 20 33 30 29 12 12 1 34 31 25 20 8 6 37 4 15 16 14 0 2 3 Supergroup 1 Supergroup 2 Supergroup 3 Supergroup 4 Supergroup 5 (0 -15) (16 -30) (31 -65) (66 -85) (86 -100) PAMS 2017 Food and Grocery Spend Most

SEM- Share Food Retailers Percentage National Market Share 9 20 3 5 8 17 17 47 15 0 4 3 54 22 4 15 Supergroup 1 (0 -15) Supergroup 2 (16 -30) PAMS 2017 Food and Grocery Spend Most 2 14 15 3 52 17 4 6 30 5 13 39 38 19 2 2 12 1 0 57 Supergroup 3 (31 -65) 1 23 13 3 7 7 Supergroup 4 (66 -85) Supergroup 5 (86 -100)

Topline Results There are 5, 694 “brands” in CPS. Of these 3, 138 in 210 categories are included in the fusion Bought P 12 m and sample 30+ . 1. Spar : 93 2. Pick n Pay : 75 Many brands sell in multiple categories: after these are removed, 3. Rite Brand : 59 there are 1, 816 brands in the true sense 4. of Woolworths the word. : 56 5. Housebrand : 44 6. No Name : 39 7. Pick n Pay Choice : 32 8. Clicks : 24 9. Savemore : 23 10. Cambridge & Econo : 22 each Source : Pams Brands 2018

Topline Results Question Of the 5, 694 FMCG brands on the supermarket shelves, how many do you think that a single CPS household buys on average each year? Blue - Buys less than 1 in every 25 brands stocked (<4%) Green - Buys 1 of every 26 -40 brands stocked (2, 5 - 3, 9%) Red - Buys less than 1 in every 41 brands stocked (<2, 4%) Answer The panel average HH buys 136 brands per annum, That’s 2, 38% or 1 in every 42 brands on the shelves. Source : Nielsen CPS

CPS Deodorant s 77 Brands 97% incidence Source : PAMS BRANDS 2018 Technical Report

CPS Eggs 85 Brands 93% incidence Source : PAMS BRANDS 2018 Technical Report

FMCG Brands Bought P 12 M Avg Number of brands bought 175 168 153 150 National Average 136 -14% 125 100 135 +13% Supergroup 3 (31 -65) Supergroup 4 (66 -85) +23% -9% 123 116 Supergroup 1 (0 -15) Source : PAMS BRANDS 2018 Supergroup 2 (16 -30) Supergroup 5 (86 -100)

100% -25% Laundry Bar Soap Chicken - Frozen Yeast Desiccated Coconut Stock Cube / Tab / Powder Cigarettes Disinfectants Sauces - Relish Aftershave Maas aize Drink (Fermented Non Alcoholic) Cordials and Squashes Aluminium foil Baby Care Chest Rubs Conditioners - Leave On Face Care - Ethnic Floor Polish Gravy Other Infant Cereals Instant Mash Lemon Concentrates Moisturisers Powdered Soft Drinks Rheumatic Rubs Samp Soda Concentrates Sweets - Special Packed Tea Toothpaste Vinegar Furniture Polish Castor / Icing Sugar Hair Styling Preps Salad Dressing Acne / Antiseptic Creams Custard Powder Gravy (Defined) Sauces - Wet Pasta Soup - Canned Spreads - Sandwich Mayonnaise Cold & Flu Remedies (Liquid) Infant Milk Deodorants Artificial Sweeteners Scouring Pads Cheese - Processed Sauces - Table Tampons CSDs Sanitary Pads and Panty Liners Toilet Soap - Bars Baby Food - Homogenised Iced Tea Milk Modifiers (Hot) Soup - Instant Spreads – Syrup Fruit Juice - Long Life Canned Pilchards Chewing Gum Popcorn Cake Mixes Sauces - Chutney Pasteurised Milk Air Fresheners Pickled Vegetables Sweets - Mint Meal Solutions Spreads - Peanut Butter Fresh Cream Frozen Fish Eggs Disposable Nappies Food Wrap / Bags Cheese - Speciality Analgesics Canned Fruit Sanitary Cleaners Bread Boxed Assortments Ice Cream Pet - Snacks & Treats Pasta Snack Products Cheese - Vacuum Packed Coffee - Instant Vitamins / Supplements Coffee - Total Condensed Milk Fresh Milk Biscuits Chocolate Coated Line Relative Difference in No. of Brands Bought BY CATEGORY SG 5 Vs. SG 1 75% 50% 25% 0%

Shampoo Brands and the SEM Super Groups SEM SG 1 SEM SG 3 SEM SG 2 SEM SG 4 Source : PAMS BRANDS 2018 SEM SG 5

Magazines and the SEM Super Groups SEM SG 1 SEM SG 5 SEM SG 2 SEM SG 3 SEM SG 4 Source : PAMS BRANDS 2018

Shampoo Brands and Magazines Source : PAMS BRANDS 2018

10 5 0 -5 -10 SG 5 Percent vs Total Pop Relative Difference in Purchase Incidence CONDENSED MILK FOOD WRAP / BAGS PET FOOD - DRY CHOCOLATE COATED LINE FROZEN FISH FROZEN VEGETABLES CHEESE - SPECIALITY SANITARY CLEANERS CANNED FRUIT SCOURING - PADS AIR FRESHENERS STOMACH REMEDIES VITAMINS / SUPPLEMENTS FRESH MILK MUSTARD BATTERIES - DRY CELL COFFEE - INSTANT BUTTER FIRST AID DRESSINGS CHEESE - PROCESSED LEMON CONCENTRATES SPREADS - FISH & MEAT EXTS SAUCES-WET PASTA INSTANT PUDD TOILET PAPER FURNITURE POLISH TAMPONS EVAPORATED MILK SAUCES-RELISH SPREADS - SANDWICH DESICCATED COCONUT HERBS / SPICES SWEETS - MINT SHAVING PREPS POWDERED SOFT DRINKS CHEST RUBS INSECTICIDES OVEN CLEANERS EGGS HOT LEMON DRINKS FLOOR POLISH COSMETICS AFTERSHAVE VINEGAR BABY CARE CSDS CHICKEN - FROZEN FLOUR CORDIALS AND SQUASHES PASTEURISED MILK SOUP - FOIL PACK SALT DEODORANTS SANT PADS & PANTY LINERS CHICKEN PRODUCTS FRUIT JUICE - SHORT LIFE FLAVOURING CANNED PILCHARDS HAND BODY CREAMS FACE CARE - ETHNIC COFFEE - CREAMERS MAAS -20 BY CATEGORY SG 5 Vs. TOTAL 30 25 20 15 -15

20% 10% 0% Source : Pams Brands 2018 MAIZE DRINK (FERM NON ALCO) SOUP - LOW PRICED POWDERED MILK (PURE) CHICKEN PRODUCTS MAAS SOUP LOW PRICED IZE DRINK (FERM NON ALCOHOLIC) FACE CARE ETHNIC POWDERED MILK (PURE) INFANT MILK CANNED PILCHARDS SHOE POLISH GRAVY OTHER COFFEE CREAMERS MAIZE MEAL INFANT CEREALS SHOE POLISH STOCK CUBE / TAB / POWDER YEAST BABY FOOD HOMOGENISED CURRY POWDER CHICKEN PRODUCTS FLAVOURING RICE MAIZE (READY TO EAT) DISINFECTANTS ACNE / ANTISEPTIC CREAMS INFANT MILK COOKING OIL CEREALS - HOT DEODORANTS HEAVY DUTY DETERGENTS FRUIT JUICE - SHORT LIFE RICE SOUP - FOIL PACK ANITARY PADS AND PANTY LINERS TOOTHPASTE TOTAL BAKING POWDER BLEACH CORDIALS AND SQUASHES CANNED VEGETABLES SANITARY PADS AND PANTY LINERS CHICKEN FROZEN TOILET SOAP - BARS CUSTARD POWDER CANNED VEGETABLES FABRIC SOFTENER HERBS / SPICES INSECTICIDES FLOOR POLISH PASTA PASTEURISED MILK SAUCESTOMATO SUGAR SOUP FOIL PACK BABY CARE TOILET SOAP BARS COFFEE GROUND / BEANS VINEGAR SPREADS - JAM CANNED MEAT TOILET PAPER COFFEE CHILLED PROCESSED MEATS HWASHING LIQUIDS (HAND WASH) FABRIC SOFTENER FRUIT JUICE LONG LIFE GRAVY (DEFINED) HOUSEHOLD CLEANERS LEMON CONCENTRATES SPREADS JAM PASTA TOILET PAPER PASTA-CONVENIENCE CHILLED PROCESSED MEATS EGGS CUSTARD (LIQUID) BATH ADDITIVES JELLIES CANNED TOMATOES POWDERED MILK SALAD DRESSING SPORTS & ENERGY DRINKS CANNED FRUIT YOGHURT SCOURING - PADS FURNITURE POLISH BISCUITS AIR FRESHENERS CHEESE VACUUM PACKED FRUIT JUICE - CONCENTRATES SANITARY CLEANERS SAUCES-TABLE CANNED FRUIT FROZEN VEGETABLES MINERAL WATER CHEESE - VACUUM PACKED SAUCESTABLE COFFEE TOTAL YOGHURT DRINKING FRESH MILK FRUIT JUICE CONCENTRATES NUTS LEMON CONCENTRATES CAKE MIXES CHOCOLATE COATED LINE INSTANT PUDD METAL POLISH ESSENCES SOUP INSTANT EVAPORATED MILK CHEST RUBS SAUCES-RELISH HOT LEMON DRINKS CONDITIONERS - LEAVE ON MOUTH WASH CANNED TUNA CIGARETTES GRAVY (DEFINED) RHEUMATIC RUBS STOMACH REMEDIES MILK MODIFIERS (COLD) ICE CREAM ANALGESICS POWDERED SOFT DRINKS POWDERED MILK CHEWING GUM SODA CONCENTRATES SAUCEDRY/POWDER YOGHURT - DRINKING MEAL SOLUTIONS STOMACH REMEDIES BOXED ASSORTMENTS SWEETS - MINT MILK MODIFIERS (COLD) CONDENSED MILK SPREADS CHEESE RAZOR BLADES FRESH CREAM VITAMINS / SUPPLEMENTS FLAVOURED MILK TISSUES SAUCES-SOYA PRE WASH CLEANERS CANNED MUSHROOMS SHAMPOO SOUP - CANNED CONDENSED MILK TAMPONS FOOD WRAP / BAGS PET FOOD - DRY CONDITIONERS RINSE OFF CONDITIONERS - RINSE OFF ICED TEA SPREADS - MEAT AND VEG EXTS PET FOOD DRY MILK MODIFIERS (HOT) ADHESIVES (GENERAL) CHEESE - SPECIALITY PAPER TOWELS TOILET SOAP LIQUID ALUMINIUM FOIL SPREADS MEAT AND VEG EXTS ISHWASHING POWDER / RINSE AID BUTTER LAXATIVES ALUMINIUM FOIL AFTERSHAVE PET SNACKS & TREATS CHEWING GUM CHEESE CREAM / COTTAGE PET - SNACKS & TREATS HAIR STYLING PREPS BATTERIES - DRY CELL BATTERIES DRY CELL SHAVING PREPS PICKLED VEGETABLES FIRST AID DRESSINGS RICE FLAVOURED SEM Profile by CPS Category Heavy All Users 100% 90% SG 5 80% 70% 60% SG 4 50% 40% SG 3 30% SG 2 SG 1

SEM Medium and Platform

SEM Coffee Category 100 HOUSEHOLDS Percent Incidence 95 PERS RESPONSIBLE FOR PURCHASES 92 92 90 85 85 80 National Incidence 80% 77 75 70 75 Supergroup 1 (0 -15) Source : PAMS BRANDS 2018 79 75 75 Supergroup 2 (16 -30) 85 77 Supergroup 3 (31 -65) Supergroup 4 (66 -85) Supergroup 5 (86 -100)

SEM Coffee Brand Leaders Incidence Variation SG 5 VS. TOTAL 80 71 Percent Incidence 70 63 60 63 74 10% 66 50 40 30 30 24 20 19 10 0 30 4 Supergroup 1 (0 -15) Source : PAMS BRANDS 2018 35 40 29% 35 213% 4 Supergroup 2 (16 -30) 7 Supergroup 3 (31 -65) Supergroup 4 (66 -85) Supergroup 5 (86 -100)

Fusion 101 Today marks the launch of what can best be described as Fusion 101 in SA. In future we need to look at 6 monthly or quarterly fusions. But the real power of CPS would lie in subscribers fusing the complete CPS category and brand data with PAMS and other media studies. Here both the client and the agency would have the complete fused data set, which will take media planning, and hence advertising ROI to a new level: Price TIGER - TMS Pack size UNILEVER - Mindshare Precise Volumes/ Values Purchase Cycle/ Frequency P&G - Media. Com Seasonality /Day of week COLGATE - Wavemaker Brand by Store purchases

THANK YOU FOR COMING DATA RELEASE 12 MIDDAY FRIDAY 28 th SEPT #FUSION 2018