NPD Custom Research/Advanced Analytics

Drive Better Decisions:Industry Knowledge, Expert Perspectives

Call Charles Camaroto at 866-444-1411 or email [email protected] to find out how our custom2 Call Charles Camaroto at 866-444-1411 or email [email protected] to find out how our custom2

solutions and Advanced Analytics capabilities can help you make better business decisions. 3

Drive Better Decisions:Industry Knowledge, Expert Perspectives

Aftermarket industry leaders rely on our point-of-sale and

consumer information for benchmarking, product assortment and

line development, distribution planning, and more.

Did you know they also count on us to address their most

complex, specialized business questions?

You can, too. Find out more about our custom solutions and

Advanced Analytics capabilities.


Call Charles Camaroto at 866-444-1411 or email [email protected] to find out how our custom4

Driving Better Decisions with Custom Research

What if you had a better way to understand consumers’

attitudes, preferences, and motivations? Our custom

research solutions let you go straight to consumers to

answer your company’s toughest product development,

marketing and branding, advertising, packaging, and

other business questions. Many of our clients say the best

part of doing custom research with us is that they don’t

need to spend money and time building a sample and

doing the fieldwork — we do it for them. You can use

custom solutions to test packaging, concept-test advertising,

explore new concepts, change merchandising and brand

positioning, assess celebrity endorsements, and more.


What’s Possible with Custom Research

Which issues could you address with custom studies?

Here are a few examples of the ways you can use custom

studies in your business. In addition, we can develop a

study specific to your needs.

■ Measure awareness of your new products so you can

determine which actions will help you gain more

traction among consumers.

■ Prove to your retail partners that consumers prefer your

brand, which could get you more coveted shelf space!

■ Gauge the feasibility of new products and marketing

ideas in an economical way, and identify the concepts

that offer the greatest revenue potential.

■ Test new packaging ideas prior to launch to know if

you have a winner or a flop.


Custom Solutions at Work

Before you commit time and money to new product

development and marketing, determine how your

consumers view the product. We go straight to the

consumers you want, and they rate your new product

concept on measures such as future purchase intent,

likeability, uniqueness, and value.

Use the eye dropper to capture type set

Font for chart valuesPurchase Intent

Like/Dislike

Uniqueness

Value

Likeliehood toRecommend

1

Rank

8

5

5

1

38%

53%

26%

46%

33%

Font for title

Font for title — subhead

Font for x-axis of chart

Definitely/ProbablyWould Purchase

Like a lot/Somewhat

Extremely/VeryNew and Different

Very/FairlyGood Value

Definitely/ProbablyWould Recommend

Font for legend

New Product Concept Test Results Percentage Top Two Box Responses

Source: The NPD Group/Custom Research


If we discover they are likely to purchase the product, then

we can test naming and packaging options, too.

Use the eye dropper to capture type set

Font for chart valuesName 1

Name 2

Name 3

31%

34%

35%

Font for title

Font for title — subhead

Font for x-axis of chart

Font for legend

Which brand name do you prefer for the Brand X’s new product?

Source: The NPD Group/Custom Research


Drive Better Decisions with Advanced Analytics

Struggling with a complex business issue? Advanced

Analytics capabilities focus on these key areas, and we can

work with you to address other specialized needs, as well.

■ Price Evaluation

■ Forecasting

■ Marketing Evaluation

■ Test & Learn

■ Opportunity Identification

■ Consumer & Shopper Behavior

Our dedicated team of analysts trained in advanced

statistical methods can help you pinpoint your information

needs. Their unmatched industry expertise and research

experience — combined with robust data assets not

available anywhere else — result in targeted, creative

solutions for your business.


What’s Possible with Advanced Analytics

We can help you dig into the issues standing in the way

of your growth and success. Advanced Analytics can

equip you to:

■ Identify the differences between underperforming

stores and better-performing stores so you can

implement changes to spur sales.

■ Understand how your competitors’ marketing activities

affect your sales volume so you can determine which

actions you should take.

■ Determine the key price thresholds that exist for your

products so you don’t lose sales but maintain

profitabilty.

■ Evaluate marketing effectiveness and measure results

accurately.

■ Develop strategies to retain your loyal consumers while

reaching new consumers.

■ Establish the investment levels you should plan for in

the years ahead.


Advanced Analytics at Work

Setting the right price is essential to your profitability.

Understanding price elasticity, which measures how

consumers will respond to price changes, enables you to

set your product’s price at a level consumers are willing to

pay, while covering your margins.

Here’s how it works.

Our Advanced Analytics team will determine if your

products are price elastic or inelastic. If percent decreases

in demand are less than percent increases in price, it is

inelastic, and revenue will increase. But, if your product is

highly elastic, you will lose unit sales and revenue. For

example, if your brand is highly inelastic, you could gain

Price Elasticity Scale

HighlyInelastic

-0.5 -1.0 -1.7 -2.0

+ $1.2 million profits

- $2.2 million profits

*Assumption: $60 million brand with a 40% margin, 10% price increase

Inelastic ModeratelyElastic Elastic Highly

Elastic


an additional $1.2 million in profits by raising price. If it’s

highly elastic, that same price increase means risking $2.2

million in profit.

Once the price elasticity of your product(s) is determined,

we can provide additional analyses and other resources to

help you make the best pricing decisions.

Our Price Simulator can help you understand sales and

profit implications for price changes so you can develop

“what if” scenarios. It forecasts price changes’ impact on

unit sales, revenue, and profits.

Price Simulator

CurrentPrice

% PriceChange

% ChangeUnit Sales

Expected Revenue

RevenueChange

ExpectedProfit

ProfitChange

$4.50

$16.00

$16.25

$6.50

$18.25

$7.50

$19.00

10%

5%

5%

5%

5%

5%

5%

-5%

-8%

-4%

-1%

-2%

-5%

-7%

$16,095.15

$52,731.93

$55,687.60

$22,936.76

$64,085.93

$25,576.88

$63,233.20

Increase

Decrease

Increase

Increase

Increase

Decrease

Decrease

$6,438.06

$21,092.77

$22,275.04

$9,174.70

$25,634.37

$10,230.75

$25,293.28

Increase

Decrease

Increase

Increase

Increase

Decrease

Decrease

Ready to Drive Better Decisions?

Begin the conversation today. Call Charles Camaroto at

866-444-1411 or email [email protected] to find out

how our custom solutions and Advanced Analytics

capabilities can help you make better business decisions.

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Automotive Aftermarket Industry Expertise

The NPD Group is the premium provider of consumer and retail information

for the North American automotive aftermarket, petroleum marketing, and

convenience retailing industries. NPD expertise and data provide industry

leaders with essential market information to assist in making more effective

business decisions. NPD is uniquely qualified to help marketers apply infor-

mation to address key marketplace issues from multiple perspectives, based

on more than 20 years of experience in these industries.

NPD’s diverse portfolio of services includes consumer panel tracking and

national and Store Level retail point-of-sale (POS) tracking. Specifically, NPD

information supports benchmarking, competitive analysis, assortment and

product planning, and identification of new channel opportunities.

Documents

NPD Custom Research/Advanced Analytics