Nielsen's New Tool Boosts Presence In Consumer Goods Sector

Nielsen Holding Plc (NYSE:NLSN) is striving to strengthen presence in the consumer sector with its new solution, Total Food View.

The company aims to make the business model of retailers and FMCG companies efficient with the help of its new tool. Notably, Total Food View provides insights on grocery product dynamics to the company manufacturing that particular product.

Nielsen’s FMCG and retail clients will be able to access data regarding volatility in customer’s demand. It will also provide idea about the opportunities related to UPC and fresh random-weight products which many traditional tools fail to offer. Further, these companies will have access to data about the most frequented department of the store which will enable them to analyze market competition.

All these will be available on a weekly basis via the company’s uniform platform called Answers on Demand (“AOD”). Consequently, the clients of Nielsen will be able to focus on their product efficiency and other key areas to benefit from.

We believe the unique and business friendly features of this solution will help to attract more clients to the company’s platform. This will aid the market share of the company, driving its top-line.

Consumer Goods Sector Holds Promise

The consumer goods market has become highly competitive with competition growing in the retail as well as FMCG sectors. Changing taste and preferences of consumers remains one of the primary reasons for this intensifying competition.

Consequently, the retailers and consumer packaged as well non-packaged goods producers are trying to have access to data on consumer buying habits on a regular basis to maintain their position and reap benefits from this rapidly expanding market.

According to the latest report from Mordor Intelligence, the global retail industry is anticipated to grow at a CAGR of 5.3% between 2018 and 2023 and reach $31.9 trillion by 2023.

Further, the FMCG market is expected to grow at a CAGR of 4.12% between 2018 and 2023 and reach $623.6 billion by 2023.

Nielsen is likely to gain traction with its innovative new solution in this high growth market with intensifying competition.

Strengthening Solutions Portfolio

Nielsen’s strong focus toward innovation of solutions will continue to aid its business growth. Total Food View has strengthened the company’s product portfolio.

With the help of the insights provided by this solution, the companies will be able to strategize their product selection and production per the consumer demand. Additionally, they will be able to analyze growth prospects across fresh produce segments like meat, seafood, bakery, deli and many more.

According the Nielsen’s latest consumer report, fresh produce category is contributing 49% to growth across FMCG and retail market.

Apart from this, the company has partnered with CBS Corporation (NYSE:CBS) to develop a solution for addressable advertising. Moreover, the company launched Advanced Audience Forecasting tool that provides predictions of TV audiences, defined by advanced audience segments to clients.

We note that Nielsen is well poised to gain momentum in the market with its expanding product portfolio.

Zacks Rank & Stocks to Consider

Currently, Nielsen carries a Zacks Rank #3 (Hold).

A few better-ranked stocks that can be considered in the broader technology sector are Twitter (NYSE:TWTR) , Attunity (NASDAQ:ATTU) and TransUnion (NYSE:TRU) . While Twitter and Attunity sport a Zacks Rank #1 (Strong Buy), TransUnion carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Twitter, Attunity and TransUnion is currently pegged at 23.1%, 20% and 10%, respectively.

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