Nielsen Case Competition 2018's r Team 3 Sample

1. TEAM 3
Đào Huy Đức
Lê Huỳnh Đức
Lê Thành Trung
Nguyễn Minh Khuê
Nguyễn Quang Lập
Nguyễn Khánh Linh
Hoàng Thị Thanh Bình
The launch of YOJI Natureganic in
Strategic markets: TT South & MT Urban
New milk, Old friends

2. YOJI is the second biggest
player in Liquid Milk category
in Vietnam, having 2 brands -
Smartmilk and Star. However,
both are losing share from
2016 to 2017.
• Competitors are taking
sales from YOJI by
organic - healthy product
line.
• Consumers’ need for
organic milk is also
increasing
• YOJI is now considering
to launch a new product -
Organic Liquid Milk to
recover their
performance.
• Should YOJI Launch
Organic Liquid Milk?
• If launch this new
product, which are the
regions to focus on?
• YOJI should launch new
products
• YOJI should focus
launching YOJI Organic
on TT South to pull back
its market share and can
set a reasonable foothold
in MT Urban.
• YOJI should launch with
Sweetened and Vanilla
flavors. Besides, prioritize
Carton & TFA for
packaging.
Situation Complication Question Answer
SCQA Reasons to launch Regions to focus Product to launch
SCQA

3. YOJI sales decreased 7.8% during 2016-2017
This fall is not a symptom of a shrinking market...
...but rather a result of changing inside-market
forces: Competitor and Customer
• Q1/2017 witnessed a sudden fall in YOJI’s
sales, which is a commencement of
consecutive falls in the following quarters.
• Especially in their traditional brands, Star and
Smartmilk (sweetened & carton)
+3.5%
+7.8% -15.3%
SCQA Reasons to launch Regions to focus Product to launch
Source: Nielsen Case Competition 2018
Source: Nielsen Case Competition 2018

4. Competitors are taking sales from YOJI
since Q1.2017
The main sources of growth of
competitors are organic - healthy products
• Products with healthy attributes "organic", "less sugar", "fresh" is the
main source to push sales of competitors
• While sales decrease in traditional (sweetened, carton) product was
a common trend for all market players
Goldmilk Farmy
Wonderland
Goldmilk
Less Sugar +16%
Mina
Organic +14%
Pro 100%
Fresh
+33%
SCQA Reasons to launch Regions to focus Product to launch
Source:
Nielsen
Case
Competition
2018
Source:
Nielsen
Case
Competition
2018
The downfall of non-organic categories creates a new space for organic
category’s growth, which is a urgent call for YOJI to launch a new organic
product.
YOJI decreased its
sale since Q1’2017.
Meanwhile, the
increase in sales was
witnessed in all other
companies.

5. Consumers are also increasingly
aware and prefer Organic Liquid Milk
HOWEVER, the penetration
rate of Organic Milk is still low
98%
87%
Family Health is my top
concern
Organic Liquid Milk is a new
consumption trend
Intention to use in next 3
months
are willing to pay a higher price for
healthier dairy products
Source: Vietnam Insight E-book 2017 (Kantar)
YOJI can step in this emerging
Organic category or on the larger
scale, Healthy Liquid Milk category
58%
14%
9%
Aware of Organic Liquid Milk
Use Organic Liquid Milk in the
last 6 months
Currently use Organic Liquid
Milk
growth year-on-year of Online
searches for "organic food", "natural
food", "no chemicals" in 2018
Source: Vietnam: Year in Search 2018 (Google)
Source: Nielsen Case Competition 2018
SCQA Reasons to launch Regions to focus Product to launch
41%
30%
79%
Under the force from competitor and
customer, YOJI should launch YOJI
Natureganic to survive and grow
Source: Nielsen Case Competition 2018

6. Healthy liquid milk market potential by regions
SCQA Reasons to launch Regions to focus Product to launch
MT Urban TT Off North TT Off Central TT Off South
Market
Size
Market
Growth
Market
Penetration
YOJI’s
strategic
market (*)
Market selection criteria
*Strategic market: The market plays an important role in YOJI’s revenue structure in terms of share and growth

7. TT Off North is the region should be disregarded for now due to its low potential for
healthy milk market and YOJI' temporary loss of position here
● TT Off North is the smallest market of 524 bil. VND.
● TT is also experiencing the lowest growth rate of
8%/year.
TT Off North is the least attractive in terms of
market potential.
+0.2%
-12%
-14.3%
-5.8%
Beside TT Off Central, TT
Off North is the 2nd
detrimental force that drags
YOJI's sale down during
2016-2017.
YOJI is losing its position
and resource efficiency in TT
Off North.
SCQA Reasons to launch Regions to focus Product to launch
Source: Nielsen Case Competition 2018
Source: Nielsen Case Competition 2018 2016 2017

8. Though being attractive with high growth, TT Central should not be entered now
due to YOJI's lack of resource to compete with market dominator - Unami Organic
2nd highest
'organic' market
size
1125
bil.VND
High market
growth 27 %
Dominating
Stagnating
Lagging
Emerging
But already-high
market
penetration
26 %
The battlefield has been set:
• Unami Organic with 76% market share
and 35% annual growth
• Mina Organic with 24% annual growth
Both are direct competitors of YOJI
Organic.
YOJI lost its share in TT Central faster at
(14,3%), higher than the average share loss in
Vietnam market.
With current resources, YOJI hardly can
confront and gain share from its
competitors in TT Central.
In contrast, competition in MT Urban is less severe, YOJI should set a foothold based
on its rising position here • Regardless of low growth, the
market share is equivalent to TT
Central of 24%,
• During the hard time, MT Urban is
the only region add 0,2% to YOJI
sales 2016-2017
• The market penetration rate is
23%, without any market
dominators. Unami Organic is
stagnant with its move here.
YOJI can tap MT Urban and set a
reasonable foothold here
SCQA Reasons to launch Regions to focus Product to launch
Source: Nielsen Case Competition 2018
Source: Nielsen Case Competition 2018

9. TT South is the most potential market to enter and also a
strategic market that YOJI must keep
The largest
market size
1841
bil.VND
2nd highest
market growth 20 %
Low market
penetration rate 21 %
Dominating
Stagnating
Lagging
Emerging
avr.share 25%
avr.growth 22%
• The market is not yet polarized with no
dominator.
• 2 direct competitors: Unami Organic is
stagnating, while Mina Organic is lagging
The healthy liquid milk
market in TT South is the
most potential with the
highest value and high
grow
There is the chance for YOJI to take a leap with
e new organic product in TT South
• TT South contributed
nearly half of YOJI
revenue
• Together with MT Urban,
TT South increase its
importance in YOJI
revenue
• TT South is the strategic
market of YOJI
• YOJI has enough efficient
resource in TT South to
support a new launch
YOJI should focus launching YOJI
Organic on TT South to pull back its
market share
SCQA Reasons to launch Regions to focus Product to launch
Source: Nielsen Case Competition 2018
Source: Nielsen Case Competition 2018

10. The best option for YOJI should be the products whose flavor and packaging
match the popular taste and growth trend.
• ‘Sweetened’ is the basic flavor with the largest market share. Thus, to
gain back market share in short-term.
• ‘Vanilla’ is the 2nd potential flavor - emerging flavor, which can help YOJI
grow in long-term.
• YOJI should plan packaging in order from most effective to
least effective are: Carton, TFA and PLBT.
About package size, Yoji should consider 220ml, 180ml and 110ml which were top 3 best sellers.
Market size
Sweetened
Plain
Vanilla
Less sugar
Market size
Market growth
Market growth
Carton
PLBT
TFA
Emerging
Dominating
Lagging Stagnating
Emerging Dominating
Lagging Stagnating
SCQA Reasons to launch Regions to focus Product to launch

11. Summary
Under the force from Competitor & Customer, YOJI
should launch YOJI Natureganic to survive and
grow.
YOJI should focus on launching YOJI Organic in TT South
to pull back its market share. Furthermore, YOJI can tap into
MT Urban and set a reasonable foothold here.
YOJI Natureganic should be launched with flavor of
‘Sweetened’ to gain back market share in short-term and
“Vanilla” to expect high growth in long-term. Besides,
packaging of Carton & TFA should be prioritized for the
launch.
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