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Vietnamese Consumer Post WTO

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Vietnamese Consumer Post WTO - Nghiên cứu hành vi tiêu dùng Việt Nam sau WTO - From TNS

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Vietnamese Consumer Post WTO

  1. 1. Gaining the competitive edgeVietnam – Post WTO
  2. 2. Gaining the competitive edge - AGENDALooking at Asian trends to predict Vietnam’s potentialPersonal Care – appealing to consumers heartsFood & Beverage opportunities – Post WTOAdvertising opportunities – Post WTOCoffee BreakVietnam’s Media landscape – Post WTOShopper insights – the new battlegroundRural consumers – The next great opportunity
  3. 3. Looking at Asian trends topredict Vietnam‟s consumerfuture – Post WTO Vietnam Ralf Matthaes Managing Director TNS Vietnam
  4. 4. Gaining The Competitive Edge - AGENDAAsian / Vietnamese Population TrendsAsian / Vietnamese Wealth TrendsAsian / Vietnamese Consumption TrendsAsian / Vietnamese Attitudinal Trends
  5. 5. Population Trends
  6. 6. Asia‟s Population (60% of global pop.)Population in Million Asia = 3,137,500,000 Chindia China / India 77% on the Asian population 2400 Indonesia 246 Japan 127 Philippines 90 Vietnam 85 Vietnam = 2.7 % of Asia Thailand 65 Korea 49 Malaysia 25 Taiwan 23 Hong Kong 7 Singapore 4.5 Vietnam is home to Asia‟s 6th largest population *Population estimated in 2006 *Source: GeoHive (www.xist.org/earth/)
  7. 7. Vietnam has Asia‟s 2nd youngest population Vietnam 38 19 21 13 8 Philippines 38 20 22 14 6 India 35 20 22 17 6 Malaysia 35 19 24 16 6 Indonesia 34 19 23 17 7 China 27 18 26 20 9 Thailand 27 19 27 19 7 Taiwan 24 18 27 21 11 Singapore 23 15 30 24 10 S Korea 23 18 28 21 9 Hong Kong 19 14 30 23 14 Japan 16 15 20 29 21 0% 20% 40% 60% 80% 100% 0-14 15-24 25-39 40-59 60+ 57% of Vietnamese are under 25 years old Growth Rate estimated in 2006 **Source: GeoHive (www.xist.org/earth/)
  8. 8. Vietnam‟s population growth rate Population Growth % Philippine 1.8 Malaysia 1.78 Singapore 1.42 Indonesia 1.41 India 1.38 Vietnam 1.20 Thailand 0.68 Taiwan 0.61 China 0.59 Hong Kong 0.59 Korea 0.42 Japan 0.02 Vietnam has a sustainable & healthy population growth rate Growth Rate estimated in 2006 **Source: GeoHive (www.xist.org/earth/)
  9. 9. Vietnam has the 2nd largest family size Australia 60 10 New Zealand 58 11 Japan 56 10 S Korea 39 11 Hong Kong 38 15 Taiwan 31 23 Singapore 30 26 China 29 17 Thailand 29 20 Indonesia 21 37 Malaysia 19 47 Vietnam 15 43 Philippines 13 56 1 - 2 persons 3 - 4 persons 5 + persons As Vietnam begins to urbanize family sizes shall decrease Growth Rate estimated in 2006 Page 9 **Source: GeoHive (www.xist.org/earth/)
  10. 10. Vietnam has the 3rd largest female working pop. 79.2 China 88.8 77.7 Thailand 89.7 Female(%) 77.3 Vietnam 83.5 Male (%) 59.7 Korea 79.9 59.5 Indonesia 84.7 52 Philippines 82.6 51.9 Malaysia 81.4 51.2 Taiwan 76.2 Female consumers will become more and more important Employment%: *Data estimated in 2003 *Source: Asian Development Bank (ADB)- Key Indicators 2005 (www.adb.org/statistics)
  11. 11. Number of Household - Millions400 372.10350300250 206.30200150100 58.60 48.50 50 25.20 17.30 17.20 17.10 7.50 7.20 5.60 2.20 1.50 1.00- Au es a si a d a s ia e m n HK a li a d an an di in pa or re an na pin ra ne ay In iw Ch ap Ko Ja ail al et st Ta i li p al do ng Th Ze Vi M In Ph Si w Ne Vietnam has the 5th most number of households in Asia, making Vietnam very attractive for Investment **Source: GeoHive (www.xist.org/earth
  12. 12. Vietnam has Asia‟s smallest urban pop. 100 99 82 76 69 47 40 Singapore Hongkong N.Z. Australia Taiwan Korea Japan 66Cities will swell just like in China 55 48 43 29 29 27 Mal aysi a Indonesi a Phi l i ppi nes Chi na Indi a Thai l and VNSource: Country Statistics Offices
  13. 13. Population Insights Large, Young & Growing population Smaller household sizes Large female working population Huge urban migration More focus on… Young consumers Female consumers Smaller size products Demand for services Building loyalty & consumer commitment MUCH MORE COMPETITION & PRICE DISPARITY
  14. 14. Wealth Trends
  15. 15. 40,000 36,260 35,390 GDP per head In USD35,00030,000 27,320 27,150 25,39025,00020,000 16,480 1 1 5,1 015,00010,000 5,150 5,000 2,750 1,700 1,290 1 90 ,1 740 730 - es a Ph si a nd na Th a e m Ze n K a li a d M n si di ew apa or re an H a na in la ra hi ne ay In iw ap Ko pp ai al C et st Ta J al do ng Vi i li Au In Si NVietnam‟s GDP/ per capita has increase seven fold in the past 15 years
  16. 16. Cost of Living in New York = 100 - 2006 Philippines 43 India 45 Vietnam 62 M alaysia 68 Thailand 69 Indonesia 76 China 80 Taiwan 85New Zealand 86 Australia 106 HK 107 Singapore 108 Korea 15 1 Japan 124 0 20 40 60 80 100 120 140 Vietnam was 38% cheaper than New York in 2006, but inflation is pushing the index up rapidly
  17. 17. The emergence of SEC Scale A = US $1,001 + B = US $1,000 - 501an urban middle class C = US $500 - 351 D = US $350 - 251 E = US $250 - 151 F = US $150 below 2006 21 55 24 2003 14 36 50 2001 12 32 56 1999 7 31 62 0% 20% 40% 60% 80% 100% SEC AB SEC CD SEC EF Monthly declared household income The middle class in Urban Vietnam will drive consumersim Source: TNS VietCyle – N = 2000 Urban
  18. 18. My standard of livingVC-20060 2 40 51 5VC-2004 2 5 37 49 6 Much lower than today Somewhat lower than today Equal to today Somewhat higher than today Much higher than today Vietnamese are still very optimistic about their economic futures Source: TNS / Gallup - Voice of People Survey
  19. 19. Wealth Insights Developing Middle class Larger spend contribution from urban areas Electronic banking & E-commerce will help stimulate economy More discretionary spend & Smaller household sizes More focus on… The middle class Luxury goods Mass high quality products at better price points Modern trade – easier distribution Technology to save time and moneyWealth segments will create greater marketing polarization in terms of wants, needs, aspirations and affordability
  20. 20. Consumption Trends
  21. 21. Asia‟s Media Spend Growth – 2006 40 23 18 15 4 4 3 Viet nam India China Indonesia Malaysia Thailand Philippines 7 6 5.2 5.2 4 -2.4 -2.5 Hongkong Korea Aust ralia N.Z. Singapore Japan Taiwan Vietnam is experiencing a Media bonanza, which will slow down Source: TNS AP offices
  22. 22. FMCG Growth in Asian Countries (%) 20 11 4 3 2 1 Vietnam is experiencing the fastest FMCG growth in Asia -8 Urban National National National National National National Vietnam China Thailand Taiwan Malaysia Korea Philippines Total FMCG – Value Growth Rate (%) - Year 2006 vs. Year 2005
  23. 23. Asia‟s Fast Food Penetration Local & Foreign FF purchase in past week – urban only 99 73 65 55 40 39 10P hilippines M alaysia China Indo nesia Thailand VN India Though changing, Vietnamese still love their Pho! (88%)
  24. 24. Mobile Phone Ownership - Urban 2006 10 0 98 94 93 88 80 75 Singapo re Taiwan Ho ngko ng Ko rea Japan A ustralia N.Z. 90 79 78 70 58 30 13 Thailand P hilippines M alaysia China VN Indo nesia India Bye Bye Bamboo telephone, we‟re getting connected, like the rest of Asia Own personal mobile phone – urban only
  25. 25. Internet Usage – In-home 88 85 80 78 71 70 70A utralia Japan N.Z. Ko rea Singapo re Ho ngko ng Taiwan 37 35 30 20 19 18 10 5 Thailand China M alaysia VN P hilippines India Indo nesia Growth in internet usage will be key to catching up to the rest of AsiaIn-home email account - Urban only
  26. 26. Retail environment in Asia - 2006 Direct Sales Traditional Trade 82 Modern Trade 51 55 54 60 48 33 34 12 a a na an s m nd a n i i ne re pa ysAs na i iw a Ch Ko pi ail Ja ala et Ta ilip Th Vi M Ph Though still small, modern trade will grow substantially in Vietnam
  27. 27. Consumption Insights Technology savvy consumers will leap frog technology Ad spend shall increase but become less effective Consumption will continue to increase, but products & services will need to better fit Vietnamese tastes and needs Retail outlets will become new battle ground for FMCGThus, more focus on… Technology New Advertising mediums Stronger focus on retail Better understanding of new consumer segments INNOVATION & CONSUMER EXCELLENCE & UNDERSTANDING WILL BE KEY TO SUCCESS
  28. 28. Attitudinal Trends
  29. 29. Vietnam happiest nation in Asia Viet Nam N=989 49 43 7 1 United States N=1192 39 54 61 Philippines N=1198 38 49 12 1 Singapore N=1509 29 66 5 Japan N=1321 29 61 10 1 India N=1968 26 48 21 5 Indonesia N=995 21 74 5 China N=996 12 67 19 3 Korea N=1200 10 78 11 2 0% 20% 40% 60% 80% 100% Very happy Quite happy Not very happy Not at all happy Vietnam‟s economic turn around has had a profound Positive effect on Vietnam‟s population – Will it Last? Source: World value survey
  30. 30. A growing sense of national pride Question :How proud are you to be [Nationality]? 1 Very proud Philippines N=1200 87 11 2 1 2 Quite proud 3 Not very proud 4 Not at all proud Viet Nam N=989 78 20 2United States N=1184 72 24 4 Very proud India N=1896 71 22 62 Quite proud Indonesia N=995 48 45 61 Not very proud Singapore N=1508 44 50 61 China N=952 26 56 14 4 Not at all proud Japan N=1258 23 36 38 4 Korea N=1198 17 61 19 3 0% 20% 40% 60% 80% 100% Economic development, success in sports and technology, development of local entertainment, realisation of own importance leading to higher pride Source: World value survey
  31. 31. Question: For each of the following aspects, indicate how important it is in your life. % saying “very important”Family and Work on a four point scale. World Values Survey China Korea Philippines Family Indonesia Viet Nam Work Singapore India Japan United States 0 20 40 60 80 100 In comparison to India & China, it appears that work will become more important to Vietnamese in the near future Source: World value survey
  32. 32. Asian traditional values Question :Do you think that a woman has to have children in order to be Indonesia N=983 93 7 fulfilled or is this not necessary? 0 Not necessary 1 Needs children Korea N=1043 92 8 World Values Survey Philippines N=1182 87 13 Viet Nam N=959 86 14 India N=1917 85 15 Needs children Not necessary Japan N=917 66 34 Singapore N=1469 56 44 China N=863 37 63 United States N=1144 15 85 0% 20% 40% 60% 80% 100% Looking again at China & India, it appears that certain Vietnamese values will decline in the future Source: World value survey
  33. 33. Question :With which of these two statements do you tend to agree? A. One must always love and respect parents.Respect for Parents B. Parents must earn love and respect 1 Always 2 Earned 3 Neither World Values Survey Viet Nam N=993 99.3 0.7 China N=993 94.5 5.5 Philippines N=1196 94.0 6.0 Singapore N=1505 93.0 7.0 Korea N=1200 92.2 7.8 Always Earned Indonesia N=987 90.2 9.8 India N=1924 88.8 11.2 United States N=1191 77.2 22.8 Japan N=1143 71.6 28.4 0% 20% 40% 60% 80% 100% Due to Asian Confucian family values, respect for parents should continue to be strong for years to come Source: World value survey
  34. 34. Importance of Religion Question: For each of the following aspects, indicate how important it is in your life. % saying “very important” on a four point scale. China World Values Survey Korea Philippines Religion Indonesia Viet Nam Service to Singapore others India Japan United States 0 20 40 60 80 100 Religion is not a major influence in Vietnam, however, as traditional values erode, religious affiliation may increase Source: World value survey
  35. 35. Attitudinal insights Happy Nation that will become less happy due to higher expectations Family will become less important while chasing the economic dream Further emancipation of women Parents advise will become less important National pride is very strong, this may erodeReligion not seen as important but may seeupswing due to above eroding values With such a young population, expectations will sky rocket Attitudes will become more demanding & self centered
  36. 36. 12 Trends 21 Words
  37. 37. Upgrading needs
  38. 38. ConvenienceConvenienc e
  39. 39. Indulgence(Health consciousness)
  40. 40. Status Men’s wealth)(displaying care
  41. 41. Female Health &Emancipation Beauty
  42. 42. InnovationInnovation 5,000 new SKU‟s annually
  43. 43. Differentiation
  44. 44. UrbanMigration
  45. 45. Technology savvy
  46. 46. Fading traditions
  47. 47. Mediafragmentation
  48. 48. Brand affiliation
  49. 49. Summation
  50. 50. Asian trends to predict Vietnam’s potential SummationPopulation shifts will impact both spending power & consumerneedsCompetition will increase steadily, creating pricing disparitiesWealth polarization will create clearer consumer segmentsDistribution will become easier, while media fragmentation shallreduce advertising impactAttitudes will become more demanding & self centered – The “Megeneration”Youth culture will need to be embraced, while managingexpectations
  51. 51. Thank you
  52. 52. Personal Care-Appealing to the hearts ofconsumers
  53. 53. Marketing TruismThose brands that are the mostsuccessful are those that connect toboth the hearts and minds ofconsumersOnce a brand connects emotivelyand gains space in a consumersheart, it starts to develop a trulysustainable competitive edge,because connection at an emotivelevel is the hardest to attack…
  54. 54. Markets develop in a consistent and CONSUMERpredictable way DISCRIMINATION CONSUMERISATION Stage 6: Cause-Related Marketing Stage 5: Post-Modern Marketing Stage 4: Customer-Driven Marketing Stage 3: Classic Branding AMOUNT OF COMPETIT Stage 2: Marketing Stage 1: Commodity Selling
  55. 55. Why the personal care category? The personal care category, still at a very nascent stage in Vietnam, is a good category to reflect on…….one where we see love blossoming at the same time as we see enormous challenge as the sub-categories develop along different growth curves and the competition intensifies Personal care is also relevant to reflect on as the dynamism and growth of the market, in conjunction with the continuing emergence of Vietnam on the world stage, mean an ever growing number of new entrants looking to share in the rewards…
  56. 56. Reflecting on 10 driving forcesStrongly performing economy and growing affluence- more to spend on non- essentials; upgrading of needs on the essentialsYouth populationGrowing exposure to international influences- friends/family/personal travel, television, magazines, increasingly the internet
  57. 57. Reflecting on 10 driving forces 4. Growing image consciousness 5. Mounting aspirations 6. A continuing focus on health
  58. 58. Reflecting on 10 driving forces7. Evolving gender roles8. Changing lifestyles9. Environmental challenges10. Developing retail environment
  59. 59. And how they manifest…A shift to higher quality productsA shift to more aspirational productsThe growth of the premium and super-premium segmentThe ongoing need for value
  60. 60. And how they manifest…The ongoing need for convenienceMore market segmentation, alongage/lifestage and lifestyle linesIncreasing marketing diversificationVietnamese holistic notion of health- anessential part of life
  61. 61. And how they manifest…More importance placed by females and maleson maintaining health and beauty; personalcare rituals increase in importance; aconnection with products that deliver onconfidence fundamentals A more polluted environment increases the need for personal care A tropical climate means specific personal care challenges and specific functionality requirements
  62. 62. And how they manifest…Fragrance is a powerful driverSensuousness is a powerful driverExpansion of supermarkets, speciality and department stores providea more upmarket and one-one-one environment, this correlates withincreased trial and experimentation with personal care products Direct sellers help to diversify the competitive landscape and assist in broadening the offer beyond the major urban centres
  63. 63. So where is the love? “I love this shower gel, because it gives me a fresh feeling, a relaxing moment before and after a working “My spray deodorant: day” „I‟m conscious of people‟s smell, and I like to smell good, and it gives me a plus in sexual attraction (at least I think so). So I never leave home without putting on “Hair gel- I got bad hair, deodorant and cologne” very thin and unmanageable, this helps shape up my hair, giving it body, making me look good. Another thing that I never leave “It is convenient, it refreshes me, the house without putting on” it belongs to my morning rituals- I would feel uncomfortable without completing it”
  64. 64. Where else? “It is a real pleasure to apply it- “I use it at night to keep scent and texture, my skin smooth and bright. It‟s actually become a mandatory ritual” It brings me confidence to face the difficulties in life. Confidence to face my colleagues, clients and husband. Confidence to realize I am not old and I “Actually I don‟t find the am beautiful enough” effectiveness of whitening, but it helps my skin be smooth and anti acne”“I love my mouth wash-I like the feelingand sense of having a totally clean mouth” “It is my favourite fragrance in any shower gel from any brand. I usually take a shower before going to bed, and my husband keeps smelling this aroma and I feel that he loves me more”
  65. 65. Where else? “Sometimes I like to home make my product, because I know that ingredient “I loved their shower and will make my skin soft” shampoo gel in the old version, because it is creamy with a lovely fragrance. It gives me a fresh and cooling feeling which makes me feel so light as if I were flying up “I love it because of its in the clouds” sweet powder scent and gentleness on skin. It makes me feel safe and protected “I find it suitable for Asian skin and soothed” and suitable to my skin. It has the desired effect”” “It‟s extracted from natural ingredients, which seems safe to me, it has a mild, herbal fragrance and gives cooling feelings”
  66. 66. Love themesOur hit predictions The power of fragrance The importance of ritual Understanding both universal, male and female, young and old, married and single confidence needs Category emotional heartlands Connecting the emotive needs behind the basic hygiene needs Experiential needs The convenience factor Hierarchies of need Product benefits delivery- relevance and reality Notions of Asian beauty and realities of Vietnamese beauty needs Aspirational natural ingredients The health and beauty connection
  67. 67. alison.dexter@tns-global.com TNS VietnamQualitative Research 67
  68. 68. Consumer FoodOpportunities in Vietnam 26 September 2007
  69. 69. The Opportunities for specific food categories in VietnamPer capita/per IFFO/baby Coffee MILO/Ovaltine RTD Milkannum (kg) (cups) (cups) (liters)Vietnam 5.3 29 4 5.7Indonesia 11.7 68 1 5.4Philippines 19.2 157 27 9.3Thailand 31.0 148 12 21Malaysia 35.0 119 130+ 13
  70. 70. Vietnamese food habits are traditional and regional Meal structure: 5 dishes . Finish w rice + soup./beverageBreakfast: UMAMI TASTE separateLeft-over rice Seasonal cooking: Tea (hot) In-home Summer: boiled Winter fried HOT TASTE Coffee Out-of - (iced) home 3 dishes, beverage Breakfast: with Noodles/Bread SWEET TASTE meal/decora tion and garnishing
  71. 71. The 60/40+ rule• The 60/40+ concept combines tastesuperiority (60/40 consumer preference in blind tasting) & relevant nutrition The "plus" is not to impose artificially a nutritional benefit, but to explore the possibility of improving the nutritional value of a product compared to its main competitor.
  72. 72. 60/40 preference – hard to achieve,harder to maintain (2 recent examples) 26 31 42 58 69 74 Dry test Soup test Stir fry test 41 33 59 67 Hot test Cold test
  73. 73. Nutritional Foundation1. All public health sensitive nutritional factors rated at least “adequate”  Nutritional Foundation (NF) The NF answers the2. All other key nutritional question: "does my product factors rated at least “adequate”  meet nutritional expectations for Public Health Sensitive Nutrients and for its own All criteria met Yes category?".
  74. 74. Source: NIN
  75. 75. Two forms of malnutrition% Obesity 12% Malnutrition 2007 Source: Study on nutritional status & physical activities of children 6-11y.o – NIN & Nestlé
  76. 76. Comparing sub-urban and urban diet Sub-urban Urban Fat 16,3g/day Fat 20,6g/daySugar 54,8g / day Sugar 56,1g / dayMeat 156,8g/day Meat 167,8g/day Milk 115,5g/day Milk 201,0 g/dayVeget 131,2g/day Veget 124,3g/day Fruits 56,3g/day Fruits 93,5g/day Source: Study on Nutritional status and physical activities among children 6-11, NIN & Nestlé
  77. 77. Nutritional enhancement Reducing Sugar Increasing Calcium Reducing Fat Increasing Fiber Reducing Salt
  78. 78. Break
  79. 79. WTO New Opportunities for Brand Communications1/24/2010 Saatchi & Saatchi 79
  80. 80. WTO is not a magic wand All of us have to make efforts to try to take the best advantages of that frame works1/24/2010 Saatchi & Saatchi 80
  81. 81. The Effects of Open Doors1/24/2010 Saatchi & Saatchi 81
  82. 82. For Advertisers• More products • The opportunity is to competing for build or rebuild the consumer choice LOVE of the• Local products invest consumers for the more in brand brand building• More demand of “non-traditional”, effective approach to brand building1/24/2010 Saatchi & Saatchi 82
  83. 83. Video clip1/24/2010 Saatchi & Saatchi 83
  84. 84. For advertising industry• Growth of spend, especially from local brands: – Projected 30% growth of ad spend• 6,000 local and 30 international agencies competing for the pie: – There will not be more players. – The better ones will win• The need to invest in local insights.. Real good ones• Need to really invest money and manpower into areas beyond TVC and prints and POSM, and a token slide of “online campaign”1/24/2010 Saatchi & Saatchi 84
  85. 85. For the media• The degree of openness will be less and the speed slower: • No private ownership or foreign investment • Only BCC in program production • But to expect foreign involvement and private management.• More and better of traditional media will be available: more channels, or publications, better products• New medium: Digital age with mobile, online, IPTV1/24/2010 Saatchi & Saatchi 85
  86. 86. We live in The Screen Age: The screen has stepped out of the living room into our pockets, our hands, our offices, our cars, our stores, our streets…We’re never more than an arm-length away from a screen. The Screen is getting larger and smaller Screens are converging. TVs are becoming more game-like, mobile phones more movie- like, and technology more human-like.1/24/2010 Saatchi & Saatchi 86
  87. 87. And facing the Digital Tsunami• Anticipate Digital growth • Highest growth in by 2008 to 34.2 billion users is: dollars or 7.3 % of all – Internet (18%) spending – Mobile Phone (14%)• Average growth of spend with China leading the is 20% yoy pack, reaching 0.5• Vietnam spends online billion in 2009 about 2 millions a year, – PC (11%) about 0.5%.1/24/2010 Saatchi & Saatchi 87
  88. 88. How do they use the internet? • Search • Share • Self-broadcast • Sell and buy1/24/2010 Saatchi & Saatchi 88
  89. 89. User Generated Contents Has become a powerful factor• Wikipedia, MySpace, YouTube are the fastest growing sites in # of visitors• FaceBook, Flickr, Yahoo360..have become very popular even among professionals1/24/2010 Saatchi & Saatchi 89
  90. 90. What does this mean for marketers?1/24/2010 Saatchi & Saatchi 90
  91. 91. Target Audience?• Not just • But also – Consumer – Participant – User – Human – Audience – Communicators1/24/2010 Saatchi & Saatchi 91
  92. 92. The Influx of New Media• Bottom up instead of • Opportunity: top-down: – To target better – People chose when they consume the media – The media is becoming fragmented – The audience becomes smaller, even to “one person”1/24/2010 Saatchi & Saatchi 92
  93. 93. The Sharing and Networking• Easy to exchange • Harder to control the information about information products and brands • But can build a better• The speed of sharing is connection with the that of a mouse click consumers where they• Information cross become proactive geographical and even • Viral marketing cultural boundaries• User-generated contents1/24/2010 Saatchi & Saatchi 93
  94. 94. Is Classic so-called ATL Advertising Dead?1/24/2010 Saatchi & Saatchi 94
  95. 95. The Answer Is No, Absolutely Not especially in Asia TV is still by far # 11/24/2010 Saatchi & Saatchi 95
  96. 96. China Sample• Total ATL Ad Spend is 49.86 billion USD in 2006• TV is 81%, newspapers 17% and magazine 2% (growing at 27% yoy)• Online Ad Spend is USD 610 million in 2006, projected growth between 35% to 50%, up to 1.8 billion in 20081/24/2010 Saatchi & Saatchi 96
  97. 97. So what is the key to success in the post WTO era? Contents1/24/2010 Saatchi & Saatchi 97
  98. 98. Why so?• With the choice of media becoming so diversified, and the control shifts to the audience, what to say has become so much more important than channels• The more interesting programs, articles and adverts in its message and execution, the better its chance to attract the consumers• The control of contents will persist, but by default the ability to control will weaken• Interesting contents will ATTRACT the consumers to our brands, to the channels themselves1/24/2010 Saatchi & Saatchi 98
  99. 99. ATTENTION ECONOMY  ATTRACTION ECONOMY DIRECTION  CONNECTION ONE-TO-MANY  MANY-TO-ONE REACTIVE  INTERACTIVE CUT-THROUGH MESSAGES  ENGAGING CONTENT HEAVY USERS  INSPIRATIONAL CONSUMERS PRODUCT PLACEMENT  CONSUMER EXPERIENCES LARGER-THAN-LIFE  CLOSER-TO-MY-LIFE WHAT YOU NEED  WHAT I WANT1/24/2010 Saatchi & Saatchi 99
  100. 100. Is everything going to be great with WTO?• Media driven approach (TV spend)• Rushed, “instant noodle” programs• Over-commercialization of contents: logos everywhere• A “token” chart on “online” or “360° marketing”1/24/2010 Saatchi & Saatchi 100
  101. 101. A few thoughts to share with (potential) advertisers• Invest in talents, especially local, to get the best out of your agency• Look for an idea company, not an ad agency• Dare to be different• Don’t waste your media $$ on poor creative• Choose strategies, programs, agencies by CONTENTS, not just by the numbers1/24/2010 Saatchi & Saatchi 101
  102. 102. No longer the choice of themedia, but the viewers!The changingMedia landscapeof Vietnam Tran Thi Thanh Mai Managing Director TNS Media
  103. 103. Content Country At A Glance  Demographic and social development indicators  Economic development indicators  Vietnam Media landscape Vietnam‟s Changing Media landscape  Television viewing habit – The post WTO trend  Other media as alternates to TV  TNS Media‟s forecast
  104. 104. Country at a glanceSocio-demographic indicators  59 provinces and 5 municipalities  Population (2006): 84.1 mill.  Pop. growth (2006): 1.2%  Total fertility rate (2004): 2.3  Life expectancy at birth (2004): 71 years  Adult literacy rate (2004): 93.9%  Urban population (2006): 73%  72% of urban pop. in 6 largest cities  Non-agro workforce (2004): 40% Source: GSO/UNDP
  105. 105. Country at a glanceEconomic Development  Real GDP growth (2005): 8.4%  Inflation rate (2006): 6.6%  GDP per capita (2006): US$ 637.56  FDI (1st half 2007): US$ 5.2 billion  GDP composition (2006): • Agriculture: 20.89% • Manufacturing: 41.03% • Service: 38.08%  Poverty rate (2002): 29%  HID ranking (2006): 109/177 countries Source: UNDP/AAD
  106. 106. Vietnam Media LandscapePrint Media 713 daily and periodicalpublications 77% urban population read lastweek All major newspapers have onlineversions Ownership: State-owned Source: TNS Media Vietnam
  107. 107. Vietnam Media LandscapeRadio 288 local FM stations 11 national radio stations (VOV) Hundreds of radio transmitters at sub-district/village level 36% of population in 6 largest cities listen toradio everyday Ownership: State-owned Source: TNS Media Vietnam
  108. 108. Vietnam Media LandscapeTelevision  1 national TV station (VTV)  1 Terrestrial Digital TV - VTC  65 local TV stations  Mode of delivery:  Free-to-air broadcast  Cable  Satellite dish antenna  MMDS/DTH  Cable providers: 6  Ownership: State-owned Source: TNS Media Vietnam
  109. 109. Vietnam Media LandscapeInternet Users (Aug. 2007): 20.6% of pop. Increase rate 2003-2007: 73.3% pa Broadband subscribers: 953,758 Increase rate 2003-2007: 367.6% pa Internet households: 12% in 6 largestcities 7 IXP and 18 ISP Ownership: state and private Source: VNNIC/TNS Media Vietnam
  110. 110. Vietnam Media LandscapeMobile phone Subscribers (2006): 11 mill. (13.2% of pop) Annual growth rate 2003-2006: 59.7% Service providers: • VinaPhone • MobiPhone • Viettel Mobile • S-Fone • EVN Telecom • Hanoi Telecom Media ownership: state owned Source: VN Post
  111. 111. The changing MediaLandscapeTelevision ViewingHabits Post WTOtrend analysis
  112. 112. Growth of cable channels at the expense of Free2AirPercent of households receiving Free2Air vs. cable/sat TV in Ha Noi 100 88.9 80.5 79 80 Percent of households 58.2 60 64.2 Free-to-air antenna 55.8 46.9 TV cable 40 35.9 20 25.5 0 3.6 2003 2004 2005 2006 2007 Source: TNS Media Habit Survey, 2003-2007
  113. 113. Growth of cable channels at the expense of Free2AirPercent of households receiving broadcast vs. cable/sat TV in HCMC 120 95.9 100 92.8 87.3 Percent of households 80 70.5 56.8 60 Free-to-air antenna 40 TV cable 48.7 32.6 20 12.9 2.6 0.7 0 2003 2004 2005 2006 2007 Source: TNS Media Habit Survey, 2003-2007
  114. 114. More choices to watchHanoi 14.0 13.0 Domestic channel 12.0 11.5 Foreign channel 10.7 10.3 10.0 Number of channels 8.0 6.3 6.0 4.5 4.0 4.0 2.0 0.0 0.0 2001 2005 2006 2007 Source: TNS Media Habit Survey, 2001-2007
  115. 115. More choices to watchHCM City 25.0 Domestic channel 20.2 20.0 Foreign channel 16.5 15.0 13.2 Number of channels 10.1 9.4 10.0 5.0 5.0 2.6 0.0 0.0 2001 2005 2006 2007 Source: TNS Media Habit Survey, 2003-2007
  116. 116. Gains & loss of TV viewership by reachMost affected time slots – 4 cities Percent of persons watching free2air channels during primetime period 75 7067.1 66.2 64.9 64.3 65 Percent of persons 58.2 60 53.2 53 55 50.7 50 48 45 40.2 40 11h-13h 20h-22h 35 First half 2003 First half 2004 First half 2005 First half 2006 First half 2007 Source: TNS TV Audience Measurement,2003-2007
  117. 117. Gains & loss of TV viewership by consumptionMost affected time slots – 4 cities 6057.0 57.0 54.0 53.0 Average minutes viewed 55 50 45.0 45 40 37.0 36.0 35.0 34.0 35 30 28.0 11h-13h 20h-22h 25 First half 2003 First half 2004 First half 2005 First half 2006 First half 2007 Source: TNS TV Audience Measurement,2003-2007
  118. 118. Total TV viewer-ship By consumption 250 TTV Cab/sat TVMinutes viewed 200 Free2Air TV 150 1st half 1st half 1st half 1st half 1st half 2003 2004 2005 2006 2007 Source: TNS TV Audience Measurement, 2003-2007
  119. 119. The bigger the share the higher the lossTV rating of HTV7 in HCM City Source: TNS TV Audience Measurement,2003-2007
  120. 120. Fast growing of othermedia as rivals totelevision media
  121. 121. Internet penetrationPercent of households connected to internet 20 18.8 18.8 17.7 18 16.5 16.5 16 13.9 14 Percent of households 11.8 12 9.5 10 8 6.2 6 4.9 3.8 4.1 4 2 0 2003 2005 2006 2007 Ha Noi Ho Chi Minh City Four cities Source: TNS Media Habit Survey, 2003-2007
  122. 122. Internet and the youthAverage minutes used for internet per day by age group 80 70 Average minutes used 60 50 40 30 20 10 0 2003 2005 2006 2007 15-24 25-34 35-44 45+ Total Source: TNS Media Habit Survey, 2003-2007
  123. 123. Other Upcoming Media Increased competition among producers of electronic goods and new media (VCD/DVD players, LCD, Plasma display, mobile phones and other portable device) and among service providers lead to big drops in prices and user fees and hence increased penetration of new media. These new media are reshaping people‟s TV viewing habits. More services offered by TV cable providers: Using TV for functions other than watching TV, e.g. gaming and internet surfing. Higher income earnings + longer holidays may change the way people use their leisure time, e.g., more out-of-home recreational activities at weekends and/or more frequent visits to high-end cinema, especially among the youngsters. OOH LCD reaching out to busy city dwellers at office buildings, shopping centers, supermarkets and high end apartments.
  124. 124. TNS Media‟s forecast of TV viewer-ship to 2010Average minutes spent viewing TTV and cab/sat TV channelsVietnam‟s four largest cities 250 225 224 227 214 TTV 200 198 150 139 min. 110 min. 100 Cab/sat TV 79.1% 50 21 34 1 3 6 - 2003 2004 2005 2006 2007 2008 2009 2010 Source: TNS TV Audience Measurement, 2003-2007
  125. 125. Internet as a major rival to TV viewer-shipTNS Media‟s forecastAverage minutes spent using internet by a person per day 70.0 60.0 58 min. 50.0 + 24.3 min. Minutes used per day 40.0 33.7 min. 30.0 33.7 28.0 20.0 10.0 15.0 8.4 0.0 2.2 2001 2003 2005 2006 2007 2008 2009 2010 Source: TNS TV Audience Measurement, 2003-2007
  126. 126. Broadcast TV channels decliningAverage time spent viewing free2air channels per person per dayHanoi showcase 250 228 216 204 200 200 166 Average minutes 166 min. 150 -35 min. 131 min. 100 50 2003 2004 2005 2006 2007 2008 2009 2010 Source: TNS TV Audience Measurement, 2003-2007
  127. 127. Broadcast TV channels decliningAverage time spent viewing free2air channels per person per dayHCM City showcase 250 220.0 221.0 209.0 208.0 -23 min. 200 157.0 157 min. 150 134 min. 100 50 2003 2004 2005 2006 2007 2008 2009 2010 Source: TNS TV Audience Measurement, 2003-2007
  128. 128. Other TNS Media‟s forecast Government continues to own and strictly control the media. Commercial channels will not come to exist in near future. Partial policy deregulation that allows private companies to participate in producing and distributing TV programs leads to more competition among media content producers and more diversified offers to TV stations. Purely commercial channels will not come to exist in near future. More open policies and better investment environment will bring more big investors and thus more competition among advertisers and advertising agencies. Television advertisement will be facing increasingly more severe competition from advertisement on new forms of media, such as out-of- home LCD, Internet, mobile phone, cinema, and VCD/DVD contents.
  129. 129. About TNS Media Vietnam TNS Media Vietnam offers continuous comprehensive media study of 06 major cities, including Ha Noi, Ho Chi Minh City, Da Nang, Can Tho, Nha Trang and Hai Phong. Services include:  Television Audience Measurement (TAM);  Media Habit Surveys (MHS); and  Advertising Expenditure Monitoring (AdEx). For more information, please contact TNS Media Vietnam at: 3A-5B Nguyen Van Thu, District 1, HCMC, Vietnam. Phone: +84 (8) 9111 252, 9111 254 to 257 Fax: +84 (8) 9 111 253
  130. 130. Thank you for your time!
  131. 131. Shopper InsightsGrowth & Profitability for BrandOwners at the Point of Sale Ashish Kanchan Research Director TNS Vietnam
  132. 132. The shopper – An area growing interestWhy is it important? A Changing environment Increased competition Proprietary Brands and Private Label; Explosion of brands/line extensions, cross category competition as people demand more choice, new experiences Grocery retailer dominance Introduction of category management techniques – pressure on space and sku performance How do the manufacturers gain leverage/space? Communication channels are diversifying and fragmenting Marketing savvy and blasé consumers who are „resistant‟ to traditional advertising How do we reach/engage the market? “Experiential” shopping – Shopping as recreation and the associated expectations 132 All materials Copyright © TNS, 2007
  133. 133. The shopper – An area growing interestWhy is it important? Understanding that the consumer can be different from the shopper Purchase decision maker v/s shopper Consumer v/s shopper Purchases made for gifting The moment of truth: the shelf unit – An opportunity to „lock in‟ or convert a sale But how to communicate in this environment? No longer just shelf nodders/talkers Price promotions undermine the brand/too frequent sales undermine the store brand Packaging, display etc 133 All materials Copyright © TNS, 2007
  134. 134. TNS thought leadershipThe dual aspects of brand equity Brand power in the Brand power in the market mind Brand Purchase Decision Importance of Brand Power in the Market on purchase decision is recognised Decline in Above the Line in favour of Below the Line investment reinforces this We use this framework to clarify the definition of shopper research 134 All materials Copyright © TNS, 2007
  135. 135. TNS thought leadershipThe dual aspects of brand equity Brand Power in The Market Brand Power in The Mind Price Communications BRAND PURCHASEDistribution DECISION Brand Experience Retail Context Brand image 135 All materials Copyright © TNS, 2007
  136. 136. TNS thought leadershipThe dual aspects of brand equity Brand Power in The Market Brand Power in The Mind Price Communications BRAND PURCHASEDistribution DECISION Brand ExperienceRetail Context Brand image TNS Shopper Insights 136 All materials Copyright © TNS, 2007
  137. 137. Where relevant, we also offer aWorldpanel/Custom integrated service forShopper Research Powerful synergies between TNS Custom and WorldPanel in relation to shopper research Retail Impact WorldPanel POS Impact Purchasing behaviour – transaction based Integrated servicing enhances our delivery of shopper Insights with validation of custom data diagnostics in relation to panel data In addition, joint initiative underway to enhance 2 way link and develop data fusion where relevant 137 All materials Copyright © TNS, 2007
  138. 138. What is TNS‟ role? TNS is ideally placed at the core interactions points with Shoppers… Pre-Shopping Shopper type, Type of occasion, State of mind, Channel choice, Store choice and reasons, Extent of planning, Retailer relationship, Category involvement… Retail Impact Store layout, Store dynamics, Store atmosphere, Shopping style, Shopping route, Shopping basket, Cross category dynamics… Moments of Truth Shelf position and layout, Signage, Promotions, Shelf- talkers, Visual Category cues Post- shopping analysis 138 All materials Copyright © TNS, 2007
  139. 139. The Shopper Journey Brand Equity Pre-Disposition PRE- Shopper type STORE Type of occasion Consumer State of mind Experts Channel choice Pre-planning Retailer choice Retailer experience STORE Store layout Consumption Store dynamics experience feeds Store atmosphere back into brand Shopper Shopping style equity Experts Shopping basket Shopping route In-store advertising Shelf layout TNS/Sorensen Signage P.O.P. “The In-Store Research Company®” Promotions Pack standout Pack communication Transaction Seals Purchase decision 139 All materials Copyright © TNS, 2007
  140. 140. TNS Retail and Shopper InsightsOffer 4 Specialist Strengths Brand Equity Retail Purchasing behaviour Strategy In-store marketing
  141. 141. Introducing TNS Retail ForwardRetail Growth Consultants Management consulting firm Retail vertical focus: Retail strategies, processes, technologies, best practices Fact based, forward thinking consultancy using retail knowledge to create strategies and action plans for profitable top line growth Premier provider of business intelligence on retailing via RFIS Over 250 clients Strategic perspectives on retailing Tracks food, drug, CPG, Softgoods, Homegoods, Global, Retail Key Accounts Daily Newsletter read by thousands of executives 141
  142. 142. Introducing TNS Sorensen„the in-store research company®‟Specialized in in-store research for 35yearsDeveloped unique level of retailunderstanding HeavyUnparalleled experience of how shoppers Trafficshop and purchasing decision is madeNormative database - thousands ofshoppers/millions of tripsOutstanding client track recordHigh quality client servicing LightPathTracker® unique store Trafficmanagement tool - powerfulunderstanding of in-store behavior 142
  143. 143. TNS InnovativeSolutions
  144. 144. Understanding the shopper PRODUCT EXPERIENCE SHOPPER NEEDS How and why consumers use brand/product? Key needs fulfilled and impacting Consumption Occasions the shopping experience Consumption Need States Who are they? Brand Perceptions Emotional needs Brand Experience Functional needs Brand Drivers Household experience Impact on next purchase Motivations Family SHOP EXPERIENCE During the shopping trip. Shopper behavior Channel choice In store influencers Functional / emotional drivers In-store experience Displays & merchandising, point of purchase Price/value relationship 144 All materials Copyright © TNS, 2007
  145. 145. Understanding the shopper  Validated segmentation of your customers  Emotive level understanding of category and of SHOPPER NEEDS consumers needs Key needs fulfilled and impacting  Understanding of what each brand mean to consumers: the shopping experience Who are they?  Where brands are positioned compared to the Emotional needs consumer needs Functional needs Household experience  What personality/attributes/emotive cues define the Motivations brand and its position Family  How are your brand is delivering against the ideal – under or over delivering?  Tells us how to improve brands, and how to create communication which will „tug at the heartstrings‟ of the core consumer needs  Portfolio Planning – how far can each brand stretch?  Opportunity analysis - „grey space‟ TNS Solution  NeedScope 145 All materials Copyright © TNS, 2007
  146. 146. Understanding the shopper SHOPPER NEEDS Key needs fulfilled and impacting the shopping experience Who are they? Emotional needs Functional needs Household experience Motivations Family SHOP EXPERIENCE During the shopping trip. Shopper behavior Channel choice In store influencers Functional / emotional drivers In-store experience Displays & merchandising, point of purchase Price/value relationship 146 All materials Copyright © TNS, 2007
  147. 147. Understanding the shopper In store groups workshopsTNS Solutions  Qualitative Techniques Accompanied shoppingA variety of qualitative techniques can be adopted in store,depending on the degree of spontaneity, openness or Ethnographicnaturalness required during the shop itself. documentaries Observation staff IDIs SHOP EXPERIENCE During the shopping trip. Shopper behavior Channel choice In store influencers Functional / emotional drivers In-store experience Displays & merchandising, point of purchase Price/value relationship 147 All materials Copyright © TNS, 2007
  148. 148. Understanding the shopper TNS Solutions  Advanced Tools Various advanced solutions are available to provide expert analysis, such as Heat maps, showcasing path of travel, or Eye tracking and RFID tagging, allowing an in-depth analysis of shopping behaviors and patterns. In-store Path Tracker® and Heat Maps From TNS/Sorensen“The In-Store Research Company®” 148 All materials Copyright © TNS, 2007
  149. 149. From TNS/Sorensen“The In-Store Research Company®” 149 All materials Copyright © TNS, 2007
  150. 150. Understanding the shopper PRODUCT EXPERIENCE SHOPPER NEEDS How and why consumers use brand/product? Key needs fulfilled and impacting Consumption Occasions the shopping experience Consumption Need States Who are they? Brand Perceptions Emotional needs Brand Experience Functional needs Brand Drivers Household experience Impact on next purchase Motivations Family SHOP EXPERIENCE During the shopping trip. Shopper behavior Channel choice In store influencers Functional / emotional drivers In-store experience Displays & merchandising, point of purchase Price/value relationship 150 All materials Copyright © TNS, 2007

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