Tribes of Toy Nation: The Researchers

Tribes of Toy Nation: The Researchers

Access to good data can make the difference between success and failure in a business. The NPD Group is a worldwide research firm that tracks consumer buying data.   Toys are just one of a number of product categories they follow. 

Though well known to, and used by, a number of toy manufacturers and retailers, NPD’s data analysis may not be fully understood or appreciated by everyone in the industry.

In order to find out more about what NPD does and how users can benefit, I have interviewed Anita Frazier, Industry Analyst for Video Games, Entertainment Software, and Toys. Here is my interview:

Richard:

Thanks for speaking with us today. For starters, could you tell us a bit about the services the NPD Group provides?

Anita: 

NPD offers consumer panel and retail sales tracking services, special reports, modeling and analytics, and custom research.  Though insights generated from these services, we help our clients understand and profit from consumer and retail trends by telling them what people are buying and who is buying, where, and why – in local, national, and international markets. 

NPD products and services are available for the following industry sectors: Automotive, Beauty, Consumer Technology, Entertainment (Music, Movies, PC Games, and Video Games), Fashion (Apparel and Footwear), Food & Beverage, Foodservice, Home (Appliances, Home Improvement, Home Textiles, and House wares), Office Supplies, Software, Technology Distribution Channel, Toys, and Wireless.  As one of several industry analysts at NPD, I specifically cover the toys and video games markets. 

We also issue a number of topical reports throughout the year aimed at helping our clients understand specific topics in greater depth.  Many of those that we have produced in the toys and kids area include an analysis of Kids Leisure Time and how this has changed over time; Kids & Consumer Electronics, to examine kids’ interaction with CE devices; Cross-category purchasing which looks at how dollars were spent against kids during the holiday season and how that broke out among properties, retailers, and product categories; and our latest toy industry specific product, Toy Market Dynamics, which     looks at toy purchases among households to get at penetration and buying rates.  This has been a very exciting addition to our traditional toy tracking service.

Richard:

What kind of a company becomes a client of the NPD Group?

Anita: 

Our clients are manufacturers, retailers, and service companies in all of the industries we serve. NPD also provides its information to financial services companies that are tracking these industry sectors and companies. NPD has over 1600 clients, ranging from Fortune 100 leaders to smaller businesses.  We also count licensors as major clients since our coverage across multiple categories helps them understand their properties at more of an aggregate level than just at the category level.

Richard:

What are the benefits of using NPD data?

Anita: 

This one is simple:  to make fact-based decisions.  Whether a client is trying to uncover an untapped opportunity, monitor market share, or back-up a recommendation to a retailer with an objective third-party fact, there is great power in having data (science) to augment the art of business.

Richard:

What are some ways that a client could use NPD data to increase their business?

Anita: 

Insights gleaned from NPD information can be used both strategically and tactically for identifying new business opportunities, guiding product development, creating marketing plans, enhancing sales force performance, category management, and promotion / advertising / product mix optimization.  The potential uses and benefits are numerous, and really depend on the individual client and what their particular business objectives are.  The closer we work with clients and understand their needs, the better we can tailor a solution that is right for them.  In the words of Jerry Maguire, "help us, help you".  Sorry, as a movie buff, couldn’t help but throw that in.

Richard:

Any piece of research data that you think our readers would find of interest?

Anita:

 We have so much research related to the toy industry, to kids in general, and to related industries that it would be impossible to pinpoint one, and as I mentioned before, what is most interesting will vary from reader to reader.  That said, I urge your readers to go on to our website (www.npd.com) as there is a wealth of information there across industries, ranging from press releases to blogs.  We also have a free newsletter available at www.npdinsights.com/ which folks can subscribe to for even more information.  I know clients have said that just reading something pertaining to a completely different industry sparked an idea for them.  You never know where inspiration will come from!  I am also on Twitter and post facts about the toys and video games industries on a weekly basis.  I can be followed at NPDFrazier. 

Thank you Anita.

Thanks Richard!