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Nielsen Launches Everyday Analytics to Serve FMCG Sector

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Nielsen Holdings plc yesterday rolled out a new suite of sophisticated analytics for fast-moving consumer goods (FMCG) clients.

Known as Everyday Analytics, the company claims that the new offering has an edge over traditional analytics due to its simplicity, efficiency and cost effectiveness. It will streamline everyday decision making pertaining to pricing, sales promotion, advertising and innovation.

Jeanne Danubio, Head of Marketing and Sales Effectiveness for Lead Markets at Nielsen stated, “With access to easier, more nimble analytics, sales teams can spend less time analyzing data and more time with their retail clients, while ultimately making smarter financial decisions for their brands every day.”

Eases Data-based Decision Making

The new suite of tools is based on the same proven model that backs Nielsen's custom analytics. However, it uses it to deliver largely accessible and consistently updated but less resource intensive custom analytics in a self-service manner.

The suite offers updated price dynamics across different retail markets, which help clients better assess the effects of marketing efforts on their top and bottom lines. The tools come with an in-built guide system and do not require much training.

Our Take

The deal is a prime example of how Nielsen is utilizing its strong position in retail measurement, consumer panel measurement, consumer intelligence and analytical services markets and focus on innovation to gain new clients.

We believe that the move is an attempt by the company to expand its client base and boost its Buy segment revenues from developed markets. The performance of the segment was particularly weak in the last quarter.

In the fourth quarter, Buy business revenues were $868 million (52% of total revenue), down 1.3% year over year but up 0.9% on a constant currency basis. Excluding the foreign currency impact, revenues from the developed market were down 1.4% due to softness in discretionary services, especially in the U.S. market. However, revenues from emerging markets were up 7.2% on a constant currency basis. (Read More: Nielsen Q4 Earnings Fall Y/Y, Revenues Top Estimates)

Nielsen N.V. Revenue (TTM)

We note that Nielsen’s shares depreciated 21.9% in the last one year in contrast to the Zacks Business - Information Services  industry’s gain of 2.4%. An increase in Buy segment revenues could boost its share price.

With the same goal in mind, the company announced the renewal of its data insights and analytics services for RaceTrac convenience stores on Mar 29. As a part of the renewal program, Nielsen’s services will cover over 450 RaceTrac convenience stores and market metrics for Georgia, Florida, Louisiana and Texas. (Read More: Nielsen, RaceTrac Renew Convenience Store Measurement Deal)

The company has a huge and diversified client base that includes various Fortune 500 companies, most of which are Consumer Packaged Goods (CPG) and media companies. 

Zacks Rank and Stocks to Consider

Currently, Nielsen is a Zacks Rank #4 (Sell) stock.

Better-ranked stocks in the broader technology space include TDK Corp (TTDKY - Free Report) , Acxiom Corporation and PC Connection, Inc. (CNXN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Notably, the projected long-term growth rates of TDK, Acxiom and PC Connection are 10.75%, 15% and 7%, respectively.

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