DELIVER VALUE

By Bill Lucas
President, NPD Retail Business Group

“Deliver Value” is not just a slogan for NPD’s Retail Business Group; it defines our focus, investment and efforts as we move into the new year. During 2004, NPD made a significant investment to broaden the scope, resources and management of this group. We made some great strides and have firmly committed to increasing the value of the interface between retailers and manufacturers' sales groups. Let me give you a quick overview of how we are approaching this challenge.

Expanding Coverage

Throughout 2004, we have expanded our POS sample in the U.S. to provide the broadest possible coverage of retail channels. Since April, here is a list of key additions:
Blockbuster	Limited Too
Chico's	Musicland Group
DSW	Niketown and Nike Stores
Filene's Basement	Office Depot
Footlocker	The Sports Authority
GameCrazy	Value City
Kohl's

In addition to these, we also added over a dozen smaller electronic, car audio, camera and apparel retailers. Though not listed specifically here, be aware that we have also added a number of the most important retailers in France to support a new fragrance/cosmetics service, and we have added some retailers in Canada.

From “What?” to “So What?” to “Now What?”
NPD has invested considerable effort and resources so we can provide broad coverage and quality data that accurately reflects WHAT is happening in the marketplace. Offering credible views of volume, share, price, consumer purchasing by retailer, and more is the cornerstone of our service. But we are working to move beyond "what happened.” Here’s how.

We will start by providing insights and direction that address SO WHAT? In other words, why should retailers and manufacturer sales groups care what the numbers say? Based on our experience and interpretation of the data and trends, where are the opportunities and vulnerabilities? Who is executing effectively in the market? Which items are hot?

Once we effectively answer the “so what?” questions, we will work with our partners to address NOW WHAT? -- given NPD’s analysis and perspective, what decisions can be made to grow retailers’/manufacturers' business? Our ultimate aim is that NPD information will be relied upon as valuable input into the decisions that companies make every day to manage their businesses.

So How Will We Do This?
Success will come from our products, tools and, of course, our people.

Products
Under the direction of Emil Martinez, our new vice president of Retail Product Development, we are developing products that are focused specifically for retailers and manufacturer sales groups.

• Retail Advantage Reports: As a tool in the category management process, NPD launched this product for the automotive industry last summer. Retailers and preferred vendors together use this to make assortment mix decisions, pricing and stocking decisions for both national and private label items. We plan to expand this to another industry in the year ahead.

• Refined Geographic Views: In channels where we have door-level data, we will help retailers and manufacturers view data at finer levels of standard and customized geographies. Views will include DMAs, retailer trading areas, manufacturer sales zones, and more. These new views will let our clients and partners develop targeted evaluations and approaches for effectively managing business.

• Customized Data Views: Later next year, we will help retailers and manufacturers customize and realign NPD data to reflect their unique perspectives on the market.

People and Tools
Our staff has been charged with going beyond the numbers to contribute valuable insight and analysis for the specific industries they follow, using some helpful new tools. Here’s what you’ll hear more about in the year ahead:.

• At a Glance Reports: Targeted at senior merchants and retail management, these reports will be top-line views of what is happening at the industry and key segment level, by retail channel. They will also capsulize how specific retailers have performed and identify important category movers. We will soon begin to e-mail this monthly report to our consumer electronics and IT retailers, with other industries to follow.
  
• Industry Experts: In 2005, we’re planning more online “Webinars” and in-person access to our Industry Experts, giving you an opportunity for insight and exchange with the brightest minds in the business.
  
• Operation Simplify: Our Operation Simplify initiative streamlined the data access tool on the NPD World Web sites. Solution Folders 3.0, the latest version of our innovative data access tool, makes it easier for Retail Partners and manufacturers to locate, use and share our information thanks to enhancements in navigation, customization and report-sharing capabilities.

What we’re doing today and what we have planned for tomorrow is evidence of our commitment to delivering value to all of our Retail Partners. If you would like more information on any of these highlights, please contact us at info@npd.com.