In the fast-paced world of business, especially for emerging food and beverage companies, data is a goldmine. It empowers brands to make informed decisions, attract buyers, and drive growth. Patrick Dougherty, a seasoned professional with nearly a decade at NIQ, specializes in helping organizations harness the power of data for their sales efforts. In this Q&A session, Patrick shares invaluable insights on the role of data, communication with buyers, and the importance of telling a compelling sales story.

When you think about data that’s available for emerging food and beverage companies where does that data usually come from? What kind of data is accessible through NIQ Byzzer?

When emerging food and beverage companies embark on their journey, they often focus on shipment data, mainly focused on POS dollars in, versus the bigger picture: how to communicate the data to who needs it. NIQ is well known for its retail scan data (data collected directly through the retail POS system). This data not only helps brands understand their performance but also allows them to compare it with their competitors. It’s a crucial tool for identifying Key Performance Indicators (KPIs) and developing growth strategies.

As a small brand, what insights would a buyer find most helpful?

One common question that arises is, “Why invest in data when buyers already have it?” or “What can I tell them that they don’t already know?”. The answer lies in the brand’s responsibility to craft its own narrative. Buyers may have access to data, but they don’t always have the time or inclination to delve into the specifics or your brand or product. Patrick emphasizes the importance of showcasing what makes your brand unique and highlighting the gaps in the buyer’s assortment that your products can fill.

Smaller brands must understand that buyers frequently change roles and may not be fully acquainted with their inventory. Brands must be more than product providers; they should be knowledgeable resources. While it’s vital to talk about your product’s qualities, you should also evaluate your performance in the category compared to your competitors.

What data points are the key to telling your story?

Newer brands will typically just have 10-30 minutes to present their brand during a line review. In a time-constrained meeting with a buyer, certain data points can make a significant impact.

Patrick advises focusing on:

1. Velocity: Show how your product is selling in relation to your competitors.
2. Benchmarking: Highlight how your performance compares to industry benchmarks. Whether it be the categories benchmarks, or your personal benchmarks.
3. Unit Volumes: Even soft unit volumes can be persuasive if you demonstrate that you’re moving units, or if you’re showing growth.
4. Uniqueness: Back your brand’s unique features with data. What makes your product different from the rest? How can you show that consumers are seeking it?
5. Incrementality: Prove that your product will add value to the category, not cannibalize it.

How do brands provide context to their data?

To enhance the effectiveness of your sales pitch, consider adding context to your data. Look at the same metrics that you are looking at for your internal review, but then look at the regional data, the buyer’s category growth compared to the market as a whole and compare it to your brand or product and it’s performance. For more impactful insights, NIQ offers official assortment studies to understand your brand’s potential impact on the shelf.

Put yourself in your buyers’ shoes, they are always going to be focused on how their category is performing in relation to the market. Give them a that report card that they are seeking, but for your brand or product.

As a pre-product brand, how can I estimate competitor sales and market share? Are there specific Byzzer reports that can lay out that info?

For pre-product brands, understanding the competitive landscape is crucial. NIQ offers lots of tools to support pre-product brands, including affordable one-time reports that help brands comprehend market trends and identify key players. It’s important to understand the surrounding market to see how your products/competitors are performing there.

Also, there is panel data that NIQ can offer to support your story. For example, say that you’re a Gluten Free Bread brand, and you’re pitching to a retailer that has no Gluten Free Bread in their set. You can use panel data from that area that shows how many people with a Gluten Free diet is coming to their store and leaving to buy bread elsewhere.

It’s important to harvest data that shows you can be incremental to the category. Think about chocolate milk – every data report in the world will show that white milk outperforms chocolate milk. It’s more than just being a top performer. Think of incrementality; you don’t want to take away, you want to add a purchase that wouldn’t have happened otherwise.

Data isn’t just about showcasing your brand’s performance; it’s also a tool for proactive decision-making. Brands can use data to understand the market better, identify trends, and ensure that their story aligns with the buyer’s needs and expectations.

When talking about promotions, a lot of brands are investing in trade spend and trying to figure out if the promotion was effective. How do you think about using data to measure things like promotional activity?

To understand promotion performance, you first want to understand your base. To establish a base, you will analyze your sales history when your regular price and when you are on promotion. Once you have a base established, you can see clearly how much better you are performing on promotion by seeing your lift in unit sales or dollar sales.

NIQ can support in establishing your base sales, and then analyzing each promotion you run. They can see which promotional tactic works best for your brand by comparing all activity across the market and tell you when your best weeks to promote are.

How often should I be looking at data, and how do I build that into my strategic planning?

The frequency of data analysis varies with your business cycle. If you are not in the market yet, but meeting with a buyer, you may just need a snapshot. If you actively have distribution, the frequency increases and maybe it’s something that you’re looking at on a monthly or quarterly basis.

From securing distribution to preparing for line reviews, data plays different roles at different stages. It’s essential to start slow, communicate internally, and gradually build data analysis into your strategic planning.

Common Data Mistakes

One of the common data mistakes Patrick has seen is focusing solely on generic placement in category. Or just showing a singular grab of the item ranking without really diving deeper or understanding what they are presenting.

Another is just focusing on door counts. Door counts tend to be a benchmark for a lot of brands, but it is wildly subjective from a revenue standpoint. Not all doors are created equal. Instead of looking at door count, Patrick suggests looking at ACV to understand how well you’re doing in the doors you are in.

In the past, data has been expensive. What does data look like now, from an affordability standpoint? How much should brands be paying for data?

Data is a powerful tool for emerging food and beverage companies to succeed in a competitive marketplace. Patrick’s expertise underscores the importance of data in sales, providing actionable insights to help brands create compelling narratives, drive growth, and make informed decisions. With the right data and the ability to use it effectively, brands can position themselves for long-term success in the industry.

Traditionally, data has been expensive, but that is the reason NIQ developed the Byzzer platform. Byzzer aims to democratize data, making it more affordable for emerging brands so they can compete effectively in the marketplace. The cost of data depends on your revenue, and Byzzer offers a flexible model that grows with your business. Additionally, since you are a part of the Foodbevy community, NIQ is offering you 3 free Byzzer reports. Click the button below to access your complementary account and you’re free Byzzer reports or to set up a consultation with someone at NIQ. You deserve the Full View of the market, why not start today.