IRI data promises more accurate market info
Six Sigma data quality initiatives will allow it to provide faster,
more accurate, and more actionable market information to companies
such as PepsiCo.
These initiatives are focused on decreasing error tolerances of its marketplace data and enhancing its census-based data collection capabilities. This effort, says IRI, supports its goal of addressing the critical business needs of both manufacturers and retailers.
IRI continues to strengthen its census-infused reporting throughout the US, rather than relying on sample-based projections that are commonly used by other providers. The enterprise solutions provider integrates census-based data throughout all geographies and levels, including aggregate market reporting, so all geographies reported reap the benefits of granular, census-level insight.
"Highly accurate, reliable, timely data is crucial to PepsiCo and today we benefit tremendously from IRI's census-based collection approach," said Ramin Eivaz, PepsiCo vice president of business intelligence and customer Insight.
"The application and reach of scanner data continues to increase and so does the need for improved accuracy. We are very pleased with the precision of IRI's information and their commitment to quality."
Several unique market forces are driving the need for granular, census-based marketplace information. Most critical is the negative business impact when decisions are powered by inaccurate sample-based information. Reviewing trade funds or media spending using inaccurate market shares and trends for competitors and retailers at critical lower-level geographies can be extremely costly.
With billions of dollars of industry trade funds and media spending annually at stake, even the slightest market misinterpretations can result in millions of dollars lost because of missed opportunities.
The quality and accuracy of sample-based data further erodes when drilling down from the Total US geography to regional and market levels. IRI claims that only its unique solution employs data from over 36,000 retailer stores throughout the US, providing clients with better projections from more measured stores, enabling greater accuracy item by item with more UPCs captured.
According to IRI analysis, error ranges from sample-based data can be upwards of 55 per cent higher than that of census-based data when comparing accuracy at market levels.
"Simply put, inaccurate sample-based scan volumes drive poor decisions for the very detailed geographies that are at the heart of today's highly targeted, neighbourhood marketing movement," said IRI president Scott W. Klein. "IRI recognises the costs associated with missing emerging trends in stores not covered by sample-based projections and is committed to delivering superior census-based marketplace information to ensure our clients have the most complete information picture available today."
IRI contends that census-based data delivers the level of accuracy and insight retailers need to be competitive in a very dynamic retail environment. Retailers with targeted, regionalised marketing strategies and collaborative category management initiatives require accurate visibility down to the store level, which census-based data best deliver.
