Big FMCG up in arms over AC Nielsen’s mkt share data

It's a war out there between big FMCG firms and market research firm Nielsen Company on the authenticity of data released on market shares. CNBC-TV18's Tanvi Shukla reports on what is FMCG companies' grouse against AC Neilsen?

Here is a verbatim transcript of Tanvi Shukla’s comments on CNBC-TV18. Also see the accompanying video.

Hindustan Unilever and Godrej Industries have both hit out on Neilsen’s data on market share alleging that it doesn’t capture the current picture. Last week, D Sundaram, VC and CFO, Hindustan Unilever, said, "What we have observed and which I am happy to share with you directionally is that there are divergent trends in some categories. There have been variations in the trends indicated by AC Nielson and the trends indicated by IMRB, household panel."

Yesterday, Adi Godrej came out in the analysts meet and said that one needs to be careful with Neilsen’s data. “It maybe good for trends, but may not necessarily be accurate with numbers,” he stated.

The Neilsen Company that uptil now has been refraining from commenting on issue came out for the first time in the open with its side of the story. It said it adheres to global quality standards and the data provided is well within the norms of relative standard error. “When clients want similar accuracy for smaller brands and finer market breakdowns, we would need to increase the sample size. We are in talks with clients on this very subject,” it stated.

Neilsen also doesn’t include several other channels such as defence or institutional sales in its retail audit, which it says may bring about more difference in its numbers and manufacturers internal shipments. After hearings of swearing by this data, FMCG giants who are now loosing market share in several categories are publically putting the blame on inaccurate data.

Also see:

HUL has lost mkt share in FY09, says AC Nielsen data

FMCG cos to struggle to maintain mkt share: Study