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Activation Day
© TNS 2011
© TNS 2011
AGENDA FOR GROWTH
2011 review and 2012 outlook - analyzing growth strategies
Ralf Matthaes
Building brands for the online consumer
Glyn Evans
Magnifying growth via Qualitative insights into consumer
Alison Dexter & Bach Ngoc Hieu An
Managing growth during recessionary times
Petra Alincova & Shirley Raman
                    Popcorn break – 3:00pm – 3:20pm
Brand Management in Changing Times
Ashish Kanchan & Henry Heywood
Vietnam’s emerging sectors
Matt Erickson & Nguyen Pham Phuc Ho
Harnessing the Youth market
David Watts & Nguyen Thi Phuong Linh
Vietnam Advertising Industry expert Panel Discussion
Ogilvy Digital - Alfred Leitao / JWT - Saby Mishra / Lowe – Michel Borelli / Y&R - Matt Collier


                       Activation Day
                       © TNS 2011
                       © TNS 2011
Which brands are represented today?




       Activation Day
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Which brands are represented today?




        Activation Day
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2011 growth review - 2012 growth strategies




         Activation Day   Ralf Matthaes
         © TNS 2011                                5
                          Regional Managing Director
2010 VS 2011 year in Review
                          2010 vs 2011 year in Review
Measure                                        2010         2011       Ralf         2012 est.
 GDP                                          6.78%       5.89%                    6.0%
 Inflation                                    11.75%      18.13%                   10%
 Trade deficit                                US$12.4 B   US$9.6 B                 US$12-14 B
 Exports                                      US$71.6 B   US$96.4 B                US$95 B
 Imports                                      US$84.0 B   US$105.8 B               US$115 B
 FDI                                          US$18.6 B   US$10.9 B                US$14B
 Retail spend*                                US$78.0 B   US$95.0B                 US$?B
 Ad spend                                     US$726 M    US$760 M                 US$800 M
 FMCG Value                                   21%growth   16%growth                14%growth
 FMCG Volume                                  9%          1.4%                     0%
 Tourism                                      5.0 M       6.0 M                    6.5 M
                            TNS Signature
 Consumer confidence 78 index
              Activation Day                              83 index                 75 index
                            © TNS 2011                                                                      6
    * VN Retail Association – not sure if accurate                       Source: GSO / TNS / Kantar Media
Will you spend More – Less – Same in 2012




     Only 6% note spending more in 2012 than in 2011.
  The poor will spend more, as inflation rips into their wallets

         Activation Day
         © TNS 2011
                                               Source: TNS VietCycle 2011 – Urban only
On What will you spend More-Same-Less than 2011


                            Education

      Health care products / services

         Food & beverages products

                   Household utilities

           House hold care products

             Personal care products

                        Transportation

                     Communications

          Entertainment & dining out

                 Personal equipment

                    Home appliances


     Top 3 growth sectors have remained the same for 3 years
            Activation Day
               © TNS 2011
                                         Source: TNS VietCycle 2011 – Hanoi / HCMC
% of population having bought luxury items
                PAST 12 months
    *Luxury item here is defined as valued over VND 10,000,000


         2008                               2011

                                               14
           10



Slow growth indicates luxury is still out of reach for most consumers

              Activation Day
              © TNS 2011
                                               Source: TNS VietCycle 2011 – Urban only
2011 Summary

 2011 saw a slowing down of over all purchasing
    Ad spend up only 3%
    FMCG volume sales only up 1.4%
    Luxury goods sales only 4% up over 3 years
    A reduction in spend across many sectors
    94% will spend the same or less than in 2011
    Inflation still at 16% in 2012


 Thus, the key to 2012 Brand success in Vietnam &
  its biggest challenge will be delivering growth



             Activation Day
             © TNS 2011
Paths to growth in economic
down turn




 An analysis of 4 paths to growth


       Activation Day
       © TNS 2011
       © TNS 2011
The four paths to growth


1. Loyalty and new spend

2. New customers

3. New products and services

4. New Markets

     Activation Day
     © TNS 2011                12
TNS Growth Map




Activation Day
© TNS 2011               13
1. Loyalty and new spend


Building on the relationship that the you
 have with existing customers.


Driving increased involvement and spend
 from them and making them greater
 advocates of the brand



           Activation Day
           © TNS 2011                        14
Today in Vietnam
Competition is greater than ever before, the consumer is more
informed and has more choices of what and where to buy



            Increased competition
            increase the chance of
            losing buyers




                                 Downwards pressure
                                 on price down-trading and
                                 cutting back (recession)


                Activation Day
                © TNS 2011                                      15
How do we grow?
A brand can grow by increasing the amount existing customers
spend on existing brands
                               Retaining existing
                               customers and / or
                               capturing current
                               customers’ spend with
                               competitors
                                Increasing frequency
                                Up-selling
                                Cross-selling
                                New usage occasions
                                Price increases

              Activation Day
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Case study of new occasions
At the heart of everyday life:
Increasing consumption frequency by targeting new occasions




              Activation Day
              © TNS 2011                                      17
The Result



For the first time, Britain’s
supermarkets gave Walkers
shelf-space next to sandwiches
– increasing sales by 15.6m
packets of crisps



     Activation Day
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2. New customers
         Loyalty and new spend

Improving penetration within an established
 market by driving competitive advantage


Targeting new customers through brand
 positioning, pricing changes, better
 exploitation of retail channels



           TNS Signature
           Activation Day
           © TNS 2011                          19
How do we grow?
Brand growth by attracting new customers to the existing
range



                                Switching from
                                 competitors
                                Attracting more buyers
                                 than you lose
                                Non-category users
                                Advocacy:
                                 recommendations from
                                 your current buyers


              Activation Day
              © TNS 2011                                   20
A Case study of new positioning
Extreme makeover: Attracting new customers to drive growth via
repositioning and creating appeal to new customers




              Activation Day
              © TNS 2011                                         21
The Result
            Positional change
Old - Old Spice
   Manly, “sex on the beach”
New - Old Spice
   Friendship & trust – go anywhere


US: In the past 18 months, Old Spice
has become the nation's leading
deodorant for men, with 20% of the
$1 billion market

        Activation Day
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3. New products and services
Discovering and creating opportunities for
 growth that go beyond the current mix


Launching product and service innovations,
 line extensions….
   thus extending spend within the existing franchise
    and
   attracting new customers to the extendedportfolio




               Activation Day
               © TNS 2011                                23
How do we grow?
Developing new products and services gives new
and existing buyers more reasons to buy by expanding
the range



                           Line extensions
                           New formats
                           New sub-brands
                           Within the same
                            broad category


          Activation Day
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Case study of new formats
Taking playgrounds by storm: Driving growth
with new Lego products–affordable, collectable mini-figures




              Activation Day
              © TNS 2011
The Result




UK growth in excess of
 10% after 6 months




Activation Day
© TNS 2011                    26
4. New markets

 Driving growth through diversification


 Moving into new geographies, entering new
  verticals or categories


 Often high risk and high opportunity, these
  strategies require substantial investment




            Activation Day
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How do we grow?
Clients may consider diversifying and enter new markets to
compete in completely new spaces




                               New geographies
                               New vertical markets




              Activation Day
              © TNS 2011                                     28
Case study of new markets
TNS opens up office in Phnom Penh, Q.2 2012,
     solidifying our Indochina presence.




  Going where our clients need us.

      Activation Day
      © TNS 2011                               29
Growth strategy considerations
Brands have to continually re-win customers and
spend–growth initiatives are required to maintain
current market share



                             Directly linked to the
                             duration of the
                             purchase cycle




           Activation Day
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Consideration 1
When reviewing growth options, understanding the
market and client context is essential




                            Some categories are
                             growing or declining
                             faster than others




           Activation Day
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Consideration 2
When reviewing growth options, understanding the
market and client context is essential




                             Market share varies and
                             has an impact on growth
                             options


Today’s
business




           Activation Day
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The paths to growth are not independent




1. Activities to drive higher spend may also attract new customers
2. Activities to attract new customers will also impact on current
   customer behaviour
3. New product & service launches will impact on the existing
   business
4. New market growth will be independent of the base business
              Activation Day
              © TNS 2011                                             33
Growth Summary
Growth insights                        Plans for growth
Price increases will not spur growth   Ensure you understand
in 2012, due to lack of consumer       consumer price thresholds &
confidence                             what they can bear to pay

                                       Become closer to your
Driving loyalty & new spend via
                                       consumers and provide them
discounts / volume added will help
                                       with what they love about your
                                       brands and even more

Acquiring new customers via            Determine occasions use, and
distribution expansion, superior       competitor gaps in the market
positioning & new occasions is key     and fill the gap

                                       Vietnamese consumer are all
New Product & service innovation
                                       about the “NEW”. Reverse
keeps your brands relevant and
                                       engineer your brands to meet
peak consumer trial
                                       consumer desire - Pull
              Activation Day
              © TNS 2011                                                34
Let TNS help your business grow




     Activation Day
     © TNS 2011                   35
Building brands for the



      consumer
                      Glyn Evans
                 Research Director
Digital is firmly on the agenda of
  the world’s Chief Marketing
              Officers
Top Transformation Projects in the Office of the CMO:




                                                        37
And, consumers are getting
  louder; 4 million times
    louder than in 2007

              Tweets per day in 2007 :
              5,000


              Tweets per day in 2009:
              2,500,000


              Tweets per day as of June 2011:
              200,000,000
Digital media environments are
interactive, marketers need advocacy to
 reach critical mass to drive successful
                campaigns
Impact
         Campaigns that
         successfully ‘go-viral’,
         driven by consumer
         advocacy                   Most digital marketing
                                    campaigns fail to impress




                                                                Campaigns

                                                                     39
The path to purchase used to be
             simple
Until along came the internet
Digital media is the second
         largest media behind television

                       83


        67




                                           28              30



                             9                                          11



Internet for leisure   TV   Radio   Internet for work   Newspapers   Magazines
Vietnam’s consumers generally go online
  frequently and research brands regularly

                        Global         Vietnam                  India
 Internet
                            30%        32%                       8%
Penetration
                                                              % of internet users
                % of internet users     % of internet users
                                                                     that:
                               that:    that:

Go online                                                        8.8%
daily                        68%              67%



Are brand
                   33%                  12%                    2.0%
fans on SN


Write about                                                      10.7%
                       47%              13%
brands online


Research                         81%              80%             12.3%
brands online
Driving Growth Online

 67% of Vietnam’s online users
 access the Internet every single
 day; 31% have accessed via
 mobile in the last month


                               Once online, the digital
                               population of Vietnam are very
                               engaged. Having a digital
                               strategy prepared to capture
                               consumers as they adopt is the
                               key to capitalize on this; a
                               mobile component is a critical
                               aspect of this strategy
The developing digital markets
have lower numbers talking
about brands online
% writing about brands
Yet they are as likely to read
comments; brand conversations have
  massive reach in these markets
% reading about brands




                                     46
With a large audience, and fewer
        competing conversations, those who do
           write wield incredible influence
       % reading about brands – Vietnam
       % writing about brands – Vietnam




  % reading
    (size of
audience, size
 of influence)                             % writing
                                          (number of
                                           potential
                                          advocates)
Online reviews can influence brands
in the opinion of online writers and
   more than half of them expect
     companies to contact them
             thereafter




                                        (%)




                                       % Agree
Activate Your Brand Online

 56% of online writers in Vietnam
 talk about their brand
 experience and another 63%
 seek advice on brand usage
 and other related aspects
                              Ensure ample content is
                              available on brand networks on
                              product usage, benefits and
                              other related information
                              commonly asked by consumers
                              – regularly update this and
                              engage members of the brand
                              community
Dealing with the negatives

 42% online readers in Vietnam
 on average feel even a single
 negative review can impact on a
 consumer’s purchase decision


                             Advocacy is very important and
                             can have a significant role in
                             the purchase decision. Be
                             aware of what is being said
                             about your brand (but
                             remember not to intrude too
                             strongly)
As the value of purchases increases,
  the amount of research both off and
   particularly online also increases
 % researching online
 % researching at all

                                                                          98          100      99    99
                              94
  89             91
                                             86           87




                                                                                       68
                                                                          53                   55    55

                 27           31                          28
  25
                                             18

Cleaning        Food    Personal hygiene   Alcohol   Pres. Medicine   Credit cards   New Car   TV   Travel
products
The Path to Purchase

 Consumers use multiple touch
 points throughout the journey
 to purchase, with offline
 touchpoints the more heavily
 used
                             Brands must also use multiple
                             touchpoints, and prioritise
                             offline whilst learning to
                             integrate with online channels.
                             Utilise bought media to
                             increase awareness and owned
                             and earned sources that are
                             used to drive purchase
                             decisions
Mobile Internet has huge potential in
Vietnam, improvements in connectivity
  through 3G rollout along with data
   affordability will drive this growth
                                   (%) Disagree   (%) Agree


 “I would be happy doing all my
 Internet surfing via my mobile”
                                           17           55




 “I would like to access the Internet
 more on my mobile phone, if it were
 more convenient, or had higher speed       15          64
 or connectivity”
Prepare for Mobile Online

 8% of mobile users research
 products online daily via pre-
 purchase sites, compared with
 13% of PC users




                              The increasing adoption of
                              mobile devices is likely to drive
                              the uptake of e-commerce
                              services – prepare now for a
                              cross-platform friendly
                              interface to engage consumers
Growth Summary
    Growth insights                               Plans for growth
Brand as subject matter is alive and    -   Add value by facilitating content
well, but brand voices lack trust       -   Add value by providing services to
                                            consumers beyond the core product

                                        -   Build connections earlier in the customer
Touchpoints along the path to               journey to minimise
purchase are varied and fragmented          the impact of negative buzz
                                        -   Understand the nuances of your
                                            geography and category to
                                            optimise the mix at each stage

                                        -   Understand attitudes and motivations
Content is the currency of community,
shaped and consumed by the masses       -   Within the “new noise”, quality, rather than
                                            share, of voice counts



                    Activation Day
                    © TNS 2011                                                             55
Alison Dexter - Executive Director
            Bach Ngoc Hieu An – Senior Research Manager




  Deep dive in to the impact on
consumer mindsets and behaviors
   of changing economic times
What we did
•   Review of global trends
•   16 deep dive interviews       Qualitative insight &
•   4 age bands/lifestages        implications ranging
•   Mixed occupations             across different
•   Mixed SEC                     consumer groups,
•   Mixed genders
•   Full category coverage
                                  categories and
•   HCMC, Hanoi                   locations
•   Review of other current
    and relevant research
    conducted in other
    locations



                 Activation Day
                 © TNS 2011                               57
Who we talked to
• Six of our moderators spoke to:

           Age                      Gender        HCMC                    Hanoi
       18-22 y.o.            Male                   1                       1
   University students       Female                 1                       1
         23-30 y.o.          Male (working)         1                       1
 Single and married (with
 In-home Visits kids)
      and w/o                Female             1 (working)         1 (non-working)

       31-40 y.o.            Male (working)         1                       1
    Married with kids        Female           1 (non-working)           1 (working)
       41-50 y.o.            Male (working)         1                       1
    Married with kids        Female             1 (working)         1 (non-working)
                 Sub-total                          8                       8
                  TOTAL                                       16 IDIs
What we talked about
                        Understanding them, in their families, lifestyle
   Their personal
      context           Current frame of mind, attitudes, life values,
                        hopes/dreams/goals, their definition of success
                     What they see as the big picture; impacting factors for
The VN macro context Vietnam; terms used/knowledge/understanding
  through their eyes Positive & negative views; drivers of such; personal
                     connections
                        Managing their day-to-day economy; strategies/tactics,
                        beliefs, influences
   Impacts to them      Their purchasing wishlist and views on 11 categories
                        (from education to groceries to entertainment & dining
                        out)
  Their response to     12 global trends
    global trends       Same same or different for you/in Vietnam? How so?
Personal contexts
Understanding them

                              Frame of mind,
•   SEC has a huge
                              attitudes, life values
    impact

•   Life of a first jobber,   •   Older & lower SEC,
    pre marriage/family           = more fatalistic
    is a time of freedom;
    even moreso for           •   Younger and higher
    men. Yet, also a time                               Hopes, dreams and
                                  SEC more optimistic
    of relative freedom           and anything's        goals
    & opportunity for             possible
    women                                               •   Healthy family
                                                                                Notions of success
                              •   Family care and       •   Happy family
•   Marriage and family           responsibility very   •   Wealthy family
    = responsibility time         strong                •   Career/business
                                                            succcess            •   Stable life
                              •   Competence &          •   Wheels              •   Economic freedom
                                  thriftiness crucial   •   Property            •   Position < career/
                                                        •   Travel                  business
                                                        •   Forever beautiful       achievement for
                                                                                    males; family
                                                                                    harmony for females
                                                                                •   Relationships
                                                                                •   Knowledge
                                                                                •   Confidence
Their views on the macro
                    context

   SEC; education, lifestage impacting views & involvement
   Vietnam is developing
   Standard of living is increasing
   Yet some good things, some bad things
   ‘General management’ is shaky; inflation; transportation;
    interest rates; investment management; transparency
   Day to day- price increases, food hygiene, pollution
   Some industries better now- tea, coffee, banking
   Not enough progress- too much manual/outmoded ways of
    doing things; too much inefficiency- eg. Infrastructure- roads
    half done/redone
   Direct and indirect personal impacts are felt
Impacts
 SEC differences are stark- A, B: relatively safe & stable in the
  “storm”, yet conscious of what’s happening around/ to poorer
  people
 D-E are doing it tough; it’s really tough in E- managing a family
  on 3 million VND a month is about daily survival; sometimes
  quite desperate, mentally & physically, for all members of the
  family

                                         “too much stress,
         “I don’t feel much
                                         the worry always
          different. I don’t
                                         sticks in my mind,
         feel the impact of
          economic crisis
               on me”
                               vs          we don’t even
                                          have time to feel
                                              happy or
                                             relaxed…”
Key to the
  The 11 cats                     future, a priority

                                      An area of fear for
                                      SEC; unchanged
                    Education              higher

Health care products / services                     High
                                                   impact!
   Food & beverages products
                                     Lower
                                                  Trading
            Household utilities       SEC
                                                down/less
                                      esp
     House hold care products                      <SEC
                                            Mostly
       Personal care products               same
                                                    Lower
                Transportation
                                                   SEC esp
                                     Lower
              Communications        SEC esp
                                                    Big dif
    Entertainment & dining out                       here

          Personal equipment             Big dif
                                          here
             Home appliances
                                            Delete
                                            vs Elite
Response to Global
 Recession Trends
The 12 global trends

Recessionary
                    Recession?        Simple           Energy
   living
                    I’m over it!     pleasures        efficiency
adjustments



                     The mobile        Career
 The small                                           A little touch of
                    device as the    reinvention
 movement                                                  luxury
                   everything hub   and extension




Distraction as      Authenticity    Redistribution   The collective
entertainment        matters          of power       consciousness
1. RECESSIONARY LIVING
                                     • Yes, cutting back on
 The threat of a global recession            some things
  has triggered people to make        • The lower the SEC,
 adjustments to their standard of       the bigger the impact
            living, eg.               • Sometimes trading
                                              down, but
   - cutting back on spending,             sometimes not
         - trading down,               • Yes, quality over
                                        quantity mostly (esp.
- choosing quality over quantity,           as a mindset)
     - and rely on their own         • Not necessarily DIY-
      resources more, eg. the           “outsource/exchange
    uptake of DIY (do-it-yourself)           to keep own
                activity                 spending ability up-
                                           time is money!”
2. Recession? I‘m Over It!

 Global recession trends show that
  consumers get sick of being in a
recession and reward themselves by
  ‘trading up’ on items that play an
  important role in their daily lives,
such as PC/laptops, electronics, and     Not really; pragmatism
                food.                     is key, but hey, if you
                                         want it and can afford it,
                                                  go for it!

An extended downturn can actually
 boost sales of high-quality daily
          necessities…
3. SIMPLE PLEASURES
                                               • Not if you are rich,
                                                    indeed you are
   The reality or the risk of money running       spending more on
short is a major incentive for consumers to          showing your
 find new ways of enjoying what they have        position, eg. Travel,
and what they can truly afford. Rather than       expensive wedding
       splurging on extravagant treats,               celebrations
consumers will look to simple pleasures as    • Yes for others- a trip
 a more suitable and satisfying way to feel         to the movies =
                     good.                        swapped for going
                                                   out for a coffee or
                                                   maybe you’ve cut
                                                 back on karaoke and
   (Example: finding pleasure in simple               boozing and
     things like a nice cup of coffee)           swapped it for more
                                                   nights in, reading,
                                                  surfing online more
                                                • Hard times bring
                                                    people together
4. ENERGY EFFICIENCY

 Energy-efficient technologies
   become more important in         • Yes! Spending on
     everthing from, washing          energy is impacting
  machines and fridges with an           people directly
    ‘economy‘ cycle/setting to     • And energy-saving
     vehicles which are either          features can be
                                         found, and are
conservative on fuel consumption        appreciated, on
 or driven by alternative energy        everything from
    sources (eg. electricity) to     aircon to motorbikes
  building more energy efficient
  homes to simply being more
 conscious about energy use in
              general
5. THE SMALL MOVEMENT


  Everything is getting
 smaller, from stores to
   cars, from mobile       Yes and no
technology to packaged
         goods.
Smaller cash outlays are
   easier to manage.
6. THE MOBILE DEVICE AS THE
      EVERYTHING HUB
As the availability of wireless
broadband expands and the
   cost of advanced mobile
   phones drop, the mobile
    device will become the        Absolutely!
   preferred hub for digital
            activity.
(Example: mobile devices as
 the first PC for some youth)
7. CAREER REINVENTION AND
        EXTENSION
   More people will find themselves
facing a career break (eg. being laid
off), and many will question whether       People in search of
 they want to return to the same line      the lucrative, yet be
  of work - either because it wasn’t       safe in your space!
fulfilling in the first place or because
more lucrative opportunities now lie        Yes, need to think
                elsewhere.                 about income later in
                                                    life
Others will postpone retirement as
they see their savings shrink and
 will formulate new ideas for late-
           stage careers.
8. A little touch of luxury

        Consumers are treating
  themselves to daily luxuries and
 replacing bigger luxury items (eg.
 Overseas holiday) with something       Always there for
      with a small-scale budget.        the rich and not
      Cosmetics companies are             for the poor
faciltitaing the trend by handing out
    premium samples nowadays.
  Beauty and wellness categories
     are ripe for premiumization.
9. DISTRACTION AS ENTERTAINMENT

Understanding that people do
more than one thing at a time,
 content creators are turning
   what could be a negative
  (distraction) into a positive   Yes, it’s the new
 (immersive) experience. By            trend!
layering a multitude of media     Jump on board!
 into entertainment, they are
creating content designed for
  simultaneous consumption
       and engagement.
10. AUTHENTICITY MATTERS
Authenticity will become paramount
  for brands as they look to regain
credibility and trust. In the wake of a          Yes!
     financial crisis that has seen
    established institutions topple       “I need to know the
overnight and many others teeter on        companies where
  the brink, consumers have lost a           the products or
  great deal of faith in brands; they      services are from
      are searching for truths and              so I have
    clamouring for transparency.           confidence to use
      (Example: Barack Obama’s                    them”
 authentic credibility connected with
    voters in the U.S. presidential
                election.)
11. REDISTRIBUTION OF POWER




                                        • Some see US as still
                                                  powerful,
    The coming years will see a         • Others see countries
widespread redistribution of power in       like US and Japan
                                                sliding down
    almost every major sphere:
                                          • China at the fore
   economic, social and political.       • Benefit for Vietnam-
(Example: the growing power of the         in the right zone and
                                               coming up fast
 BRIC (Brazil, Russia, India, China)
                                                    behind
              markets)
12. THE COLLECTIVE CONSCIOUSNESS

 With the increasing popularity of the
  internet and a new global mindset,
 people are thinking less about “me”
                                          • Polarized responses
 and more about what “we” can do—
      collectively—to address the           • “No, people in
     challenges of modern society.           Vietnam only mind
       Real value comes from the            their own business”
relationships in our lives and how we
   interact with the world around us.       • Vs charity and
How can we use our money to make              sharing strongly
                                                   valued
 things better, not only for ourselves,
    but also for our country and the
            world around us?
Growth Summary
Growth insights                       Plans for growth
-   Not one for all! Huge SEC     -   Targeting and portfolio
    differences impacting             management even more
                                      critical
                                  -   Dial up your value
- Competence & thriftiness            alongside your trust and
  even more crucial                   authenticity; help people to
                                      make smart, safe choices

- Beware of professional          - Managing the role of
  promotion hunters!!               promotions key
- Still chances for huge
  growth, esp. in some            - Stay ahead of the trends
  cat.s, eg. technology

                Activation Day
                © TNS 2011                                           78
we wish you well on your path to success   ……

                                 We invite you
                                 to:
                                 - Contact us to
                                   come and give
                                   you more of
                                   this..
                                 - To introduce
                                   our team to
                                   you..
                                 - alison.dexter@
                                   tnsglobal.com
                                 - hieuan.bach@
                                   tnsglobal.com
Every Cloud has a Silver Lining


 Managing Growth During Recessionary Times




                      Shirley Raman – Associate Vice President
                            Petra Alincova – Research Manager
It is a difficult time
Vietnam less optimistic than the rest of the
                 region
      Consumer Confidence Index
120

100

80

60

40

20

  0



      Vietnam

                                   AC Neilson Survey
Those who succeeded in the last recession

    Stuck to their brand values

    Continued investment into R&D, Advertising which
     enabled speedier recoveries

    Focused on product rather than corporate image

    Trimmed the portfolio, to deepen their focus
How some brands are doing it

   Add purpose & meaning into buying

   Simplicity- Less is More

   Engaging Differently
But all of them stay true to their
        positioning promise.

It is a time to reinforce and strengthen
emotive connection, provide certainty
  and anchors, rather than add to the
           panic and uncertainty
Add Purpose, Meaning into Buying



 Consumers in recession
  exhibit heightened
  sensitivity to those in need

 Buying into propositions
  with meaning adds purpose,
  a feeling of virtuousness.
Brands as Responsible Institutions

 Brands as beacons of trust, transparent and
  engaged “pillars of the earth” to replace
  outdated, untrustworthy institutions in a post-
  recessionary “new world”

     Chrysler /Fiat campaign focus on
      rebuilding country in times of adversity




                                            http://www.youtube.com/watch?v=TqI_nxwyZa8
Simplicity - Less is More
 Packaging to engage, entertain, reassure long after the purchase
New rules of Engagement

 Clinique leverage the fact that recession
  consumers talk more to retail and sales
  personnel on the phone and shop floors
    Persuasive brand demos and scripts
      that help sales staff verbalize effectively
Using Emotion to Voice Value


• Nowhere in marketing do emotions run hotter during today’s slowly
  fading Great Recession than when it comes to the role of VALUE
  being highlighted in advertising

• The uncertainty and anxiety evoke a range of emotive responses

• From a marketing perspective, the challenge is to understand how
  different consumers will express themselves in the current climate.

• And how brands can best react to those keeping the brand codes
  intact
Different responses to the Current
        Economic Situation

                         ESCAPE                   A CHALLENGE TO
                  May not acknowledge                 CONFRONT
                 Need to feel there is hope       There IS a solution
                    May even splurge             Opportunities that buck
                Make changes that don’t hurt            the trend
                           much                 Won’t buy the media hype



A NATURAL ORDER OF THINGS                                       A TEST - ONLY THE FITTEST
   Will pass. Deal with human                                           WILL SURVIVE
           implications                                         See themselves as a solution
 Everyone in together. Embrace                                 Will be where the smart money is
        practical solutions

                        A THREAT                     A TIME TO REASSERT
              Feel powerless with few choices              CONTROL
                Look to others for a solution    Complexity- seek Information
                      Afraid to spend                Want to act responsibly
                                                Will be better prepared next time
How Brands can respond


                 SHOW CUP HALF FULL
                                                  SHOW FIGHTING SPIRIT
               Provide opportunities for small
                                                    Do things differently
                        indulgences
                                                    Offer opportunities
                But ensure that escapism is
                     grounded in realty

BRAND AS PART OF THE                                     Empower, rather than about missing
     COMMUNITY                                                          out
    Use of local talent                                   Reward for effort, you deserve it
  Remain down to earth                                   Brands superiority, enduring quality
Be more human than usual                                     Rather than being the best

                REASSURE & SOOTHE
                   Brand stories about            INFORMATION AND
                provenance & endurance              JUSTIFICATION
                     Long term view              Reassure about sensible
               Recognize smallest barriers              choices
                      will obstruct
The FIGHTER




 It communicated by telling how
  jetting on jet blue is a lot like a
  private jet with a few basic
  differences
 In a cheeky, irreverent tone, making
  fun of the CEO’s expensive habits


                              http://www.youtube.com/watch?v=OmDiDJ7QrdU&feature=player_embedded
The Survivor




 A brand that made no compromises
 Talks enduring quality while maintaining its
  status equity
 Makes it easier for people to rationalize
  premium purchases as a reward

                                    http://www.youtube.com/watch?v=BdNoqqHju0U
The Analyst




 Its Radio ads tout company’s financial solvency,
  stability and strength.
 Conveys value through the wisdom of conservative
  investment strategy, recent upgrade in financial-
  strength ratings
The Fearful



 A brand that made no compromises
 Talks enduring quality while maintaining
  its status equity
 Makes it easier for people to rationalize
  premium purchases as a reward


                                    http://www.youtube.com/watch?v=6HNKqffU3Cc
The Optimist


 Havaianas, a Brazilian flip flop maker connects
  through a ‘don’t worry be happy’ approach
 Kept it upbeat and positive, while generating
  buzz
 Offered a positive experience, a permission to
  indulge

                                   http://www.youtube.com/watch?v=kOvv2VKFuMY&feature=player_embedded
The Optimist


 Target Store offers invites consumers to
  enjoy their recession lifestyle
  compromises to the hilt
 Provides light relief, keeps it positive
 Reinforces value through cheap chic and
  ‘more for less’ image

                             http://www.youtube.com/watch?v=GPEyrCvNXFs&feature=player_embedded
Growth Summary
Growth insights                             Plans for growth

Recession can be glass half full   Use the brand to connect with
                                   Emotion. The message should be
A time to engage the consumer when about hope, peace and a better
they are re-evaluating / listening future

‘Brand’ even more important         Or it can be about adding cheer to
                                    the now through delight. Surprise or
                                    easy guiltless pleasure

Acknowledging times are bad is      Find a ‘value’ pathway that reflects
necessary                           brand’s core values

As consumers re-evaluate, so must   Stay true to your positioning –
you                                 reinforce. Certainty during uncertain
                                    times gives consumers an anchor

                Activation Day
                © TNS 2011                                                  100
Coffee break




               101
Brand management in
   changing times




                      Henry Heywood – Research Director
It’s time to bring back the love!
You Love your iPhone. Literally.
How branding works
(An example from the US)




When blinded Pepsi wins
When branded Coke wins …because the brand genuinely
                        increases people’s preference for Coke
Neuroscience showed that the neural preference did correspond
to the brand chosen blind




                                 Abstract brain



                                Emotional brain
                            RewardSurvival
                            Centre behaviours
When told the brand name, the brain genuinely prefers the brand
with which it has an emotional attachment




                                     Storing
                                    emotional      Biasing
                                    memories        choice
                                                   towards
                                                  emotional
                                                  memories
Neuroscience showed brand
  impact on preference is
         genuine
Back to Lindstrom again…looking at the similarities between
strong brands and great religion




                          “We found that the brain
                           activity was uncannily
                         similar when viewing both
                             types of imagery”
Ever noticed the similarities between the
devoted…?


 I will pay more for this brand     I will give part of my income to
 I will go out of my way to find     this religion
  this brand                         I will go out of my way or face
 I ignore competitor brands’         hardship to worship this religion
  discounts or promotions            I am not interested in other
 I don’t need much persuading        religion’s messages and beliefs
  to spend more with the brand       I don’t need much persuading to
 I talk to others about this         keep practicing this religion
  brand, I recommend it to them      I talk to others about this
                                      religion, to convert them




                 Activation Day
                 © TNS 2011                                               110
The World’s Leading Measure of Commitment




                    +

                    =                 Over 11,000 studies
                                       Global, all sectors
Commitment measures the strength of relationships


 You can’t tell what your customers are feeling by looking at what they
  are doing…




 …and you can’t be sure you’ll keep them,
  unless the relationship is good




 The relationship acts as an early warning sign of what people might do
  in the future based on how they feel
More than 80% of the world’s most valuable brands have
used Brand Commitment to understand their consumers
better
7 habits of highly effective brands
1. The Hook


              Get an introduction

                Be remarkable
1. The Hook


 Be a no-brainer - leverage peer pressure
         Not many people would turn down the obvious choice

                     Safe choices are good choices

   ..or “if everyone else is using it, then surely it is the right choice?”
There’s an app for that!
2. Show Interest and Understanding

Show interest in, or understanding of, customer’s
               situation and needs
             People respond well to
            others’   interest in them
             Demonstrate that it
          makes sense to be together
            Make me feel (& believe)
            that it's destined to be!
3. Deliver the Goods

     There's no better way to create a strong
       relationship than delivering on every
            need, whether real or perceived
 Needs may be functional/physical or emotional
     If I talk just enough, say the right things,
     anticipate all the right moves and the right
  timing, and know what you want, even before
    you do, you will have no choice but to ‘love’
                           me
4. Make It Matter


 If you want to build a strong relationship, make

                    them care
4. Make It Matter

             A word of warning:


         just making someone care
      doesn't ensure that they will choose

                    you
         to have the relationship with!
5. Commit


             You reap what you sow
   If you show willingness to commit, you're more likely
                to get commitment in return

  Value can be used to illustrate seriousness
6. Keep It Up – Make sure the Love
doesn’t die!

    Once you've delivered, and committed,

          you've got to keep   it up,
          or the relationship weakens


        Keep it fresh and exciting
7. Reminders

 Don't let them forget why the relationship was
                built in the first place
 Impress the customer’s network, so that the
            network also helps remind


         Everyone wants to feel good
Growth Summary
Growth insights                       Plans for growth
Branding works…because of             Define a hook
deep-held emotional connections
that trigger reactions in the brain   Show interest

                                      Deliver!
Effective brands which build
commitment demonstrate seven
                                      Make it matter
consistent habits
                                      Commit

                                      Keep it up

                                      Reminders


               Activation Day
               © TNS 2011                                136
Vietnam’s emerging sectors

Healthcare & Education



                  Phuc Ho & Matthew Erickson
 ©TNS 2012
Healthcare




                         138

©TNS 2012
Spending on healthcare is miniscule in
comparison to overall spending.


                                                         MONTHLY HOUSEHOLD
                                                         SPENDING ON HEALTHCARE*




                                                                                       Estimated annual
                                                                                            spend
                                                                                               =
                                                                                        US $3- 4 Billion


                 *Defined as overall spending on doctors / pharmaceutical / medicine


                 Source: TNS VietCycle Healthcare 2011. Q56 How much does your household spend on the following
                 functions in a typical month? Base: n= 2,000 (total).
     ©TNS 2012
Attitudes to health – top-2-box agreement (%)

      “My pharmacist's recommendation is just as good as my doctors‘”


                                                                                   Top-2-box agreement


                   TOTAL                                                                       50

              Chronic disease
                 sufferers                                                                      51
  Even chronic disease sufferers rely heavily on recommendations from pharmacists.
   This highlights the importance of driving growth via pharmacists


                   Source: TNS VietCycle Healthcare 2011. Q97 Using this 5-point scale, can you tell me how much you agree or disagree with the following
                   statements? Base: n= 2,000 (total).




       ©TNS 2012
Prescribed vs. OTC


Percentage of overall drugs purchased that were prescription
medicine (past 30 days) (%)




                                   Means percentage of prescribed
         22%                       medicine purchased in past 30 days




       80-100% prescription profile                            0% prescription profile

       Average age: 43                                          Younger age
       Prevalence of chronic                                    Prevalence of chronic
       disease: 36%                                             disease: 14%




                    Source: TNS VietCycle Healthcare 2011. Q99 Of the amount you spent on medicine, what percent of this was spent of
                    prescription drugs? Base: n= 951 (total).

       ©TNS 2012
Attitudes to health – top-2-box agreement (%)

     “I have increased my frequency of checkups compared with 5 years ago”




                   TOTAL




                   YOUTH
                 20 – 24 years                                      38

                  SETTLED
                 45 – 60 years                                                               64

                       Source: TNS VietCycle Healthcare 2011. Q97 Using this 5-point scale, can you tell me how much you agree or disagree with the
                       following statements? Base: n= 2,000 (total).



     ©TNS 2012
Prevalence and frequency of general pain




    67%                                                    55%                                                         51%
   Head pain                                          Flu symptoms                                                          Fatigue

  1.6 times per                                        0.7 times per                                                2.6 times per
     month                                                month                                                        month


                          Frequency of suffering from general
                                      symptoms



                 Source: TNS VietCycle Healthcare 2011. Q80 Which of the following symptoms do you sometimes suffer from?
                  Base: n= 2,000 (total).



     ©TNS 2012
Almost 1 in 5 consumers aged 20-65 suffer from
at least one form of chronic disease




                 Source: TNS VietCycle Healthcare 2011. Q83 Which of the following chronic diseases do you suffer from?
                  Base: n= 2,000 (total).



     ©TNS 2012
Key demographic of sufferers – Females, 46-65 year olds
and housewives

                                                                     38
                                                                                                        31

                                                                                                                            23
                                   20
      17




     Total                    Female                              Older                       Housewives                   SEC EF

    Older females, housewives, especially from lower SEC’s show the highest
     prevelance of chronic disease, providing great opportunity for targetted
                                   marketing.


                  Source: TNS VietCycle Healthcare 2011. Q83 Which of the following chronic diseases do you suffer from?
                   Base: n= 2,000 (total).



      ©TNS 2012
Roughly 4 in 10 consumers willing to pay 10% extra
for high quality medicine,




     Key implication: Price is a key indiactor of quality
     perception – pricing must be managed carefully.




                  Source: TNS VietCycle Healthcare 2011. Q92 Thinking about the amount you pay for medicine, how much extra would you be willing
                  to pay for a high quality drug from a reputable brand? Base: n= 2,000 (total.



      ©TNS 2012
Consumers have very practical needs with respect to selecting a
pharmacy, with close proximity and reasonable price the key drivers.
                                         Drivers for selecting pharmacy (%):




                                           Close to home / office                                                                           57




                                                Reasonably priced                                                          42




                                         Availability of medicine                                                  35




  Expanding distribution via more outlets, PoS material presence and reasonable price will
                                         drive growth

                     Source: TNS VietCycle Healthcare 2011. Q96 What are the two most important things when deciding on a pharmacy to purchase medicine? Base: n=
                     2,000 (total.



         ©TNS 2012
Growth Summary

Growth insights                            Precise plans for growth

 Market is growing due to wealth /         Need to follow the below actions
  income surge and consumer priorities

 Pharmacies are critical in the            Need to engage pharmacies and make
  purchasing path                            them part of the sales force

 Only 22% of the market is prescription    Reinforces the role of the pharmacist

 Head pain, flu symptoms and fatigue       Do you have products in these
  are the key symptoms experienced           categories and are they differentiated?

 Chronic pain is small but important       Target older female, housewives from
                                             low SEC households
 Quality perception linked to pricing      Cheap no good / good no cheap in
                                             terms of efficacy



                                                                                148

          ©TNS 2012
Education




©TNS 2012
According to a 2011 statistic* of MoET

There are                                  from primary to upper-

                        secondary level.




   On top of this, there are 3,599,663 pre-primary children.



  3,599,663        7,048,493        4,968,302         2,835,025
  Pre-primary       Primary         Secondary        High-school
     pupils         students         students         students




                                                  *Source: http://www.moet.gov.vn



    ©TNS 2012
Incidence of foreign language spoken:


                           32%
 Foreign languages most spoken

                                                  Korean /
English          Chinese     French     Russian
                                                  Japanese
(91%)             (6%)           (3%)    (2%)
                                                   (2%)




     ©TNS 2012
Education demand
Trans-national education still a ways off for most families.
However, there is certainly some demand for it – esp. franchise programs.

               86
                           Educational course/s considering for children’s future (%):




                                                          Hanoi
                                                         (18%)

                                       16
                                                           10                     10
                                                                                                         5


          Local degree      Franchised degree Entire program in              Twinning             E learning /
                                               foreign country                                distance education




             Source: Which of the following educational programs are you seriously considering for your children?

             Base: n= 1,000 (total).
Education destinations
The USA is the preferred destination for overseas studies

                                   France                           Others
                                          Japan
                                     3%                              2%
                                           2%
                                Canada
                                  3%
                        Singapore
                           7%




                                                                                                              US
                                                                                                             44%


                  Australia
                    19%




                                                  UK
                                                 20%

                       Source: TNS VietCycle Education 2011. Q73: Which country would you like your child’s degree to be under?

                       Base: n= 1,045 (Total).
      ©TNS 2012
US dominates in all regions, especially in the South.
Hanoians have more diversified tastes


          HCMC




          Hanoi




        Da Nang




        Can Tho



                  Source: TNS VietCycle Education 2011. Q73: Which country would you like your child’s degree to be under?

                  Base: n= 1,045 (Total), 289 (HCMC), 319 (Hanoi), 235 (Danang), 202 (Cantho)


      ©TNS 2012
International schools in Vietnam




   ©TNS 2012
‘International’ most commonly understood as having
foreign curriculum, foreign teachers and taught in a
foreign language.

        75
                                       How parents define ‘international’ for an
                                       international school (%):
                               52
                                                        46                       45
                                                                                                          35



                                                                                                                                   12


 Foreign curriculum    Foreign teachers       Curriculum taught in High quality facilities            Foreign               Foreign students
                                               foreign language                                    owned/managed


                  Source: TNS VietCycle Education 2011. Q75: If a school in Vietnam calls itself “international”, what do you understand that to
                  mean?
                  Base: n= 1,090 (total)
25% of parents is willing to enroll their
children in international schools.
 % of parents willing to enroll child in an international school



                                                                  Yes
                                                                  24%




                                 No
                                76%




    Can Tho shows strong potential with almost 40% willing.

                    Source: Q76: Would you consider enrolling your children in an international school in Vietnam?

                    Base: n= 1,090 (Total), 308 (HCMC), 329 (Hanoi), 239 (Danang), 214 (Cantho)


       ©TNS 2012
Growth Summary

Growth insights                              Precise plans for growth

 MBA Studies are driven by parents           Target parents to Grow MBA programs

 Overseas education has high potential       Potential to target these segments
  amongst parents in Hanoi and high SEC
  families
                                              Is your country one of their
 1 in 10 students plan to go overseas for     consideration and how to you achieve?
  their education
                                              Need to reinforce prestige of the
 Other trans-national programs show           partnering institutions
  strong potential, esp. for higher
  education




                                                                                    158

          ©TNS 2012
David Watts – Group Account Director
Nguyen Thi Phuong Linh - Senior Research Manager
Teen Study (12-19years): Content


     Demographic Profile                 Teen Life
     Teen Target Profile                    TRU’s Trend Arc: In or out?
        Home life                           Celebrities
        Work life                           Sports participation and
        Education                             Favorites
     Teen Consumers                         Sports leagues and
        Spending                              associations
        TRU’s favourite brand meter         Friends
        Spending on key categories          Free time
        Cellphones                       Teen perspectives
        Tech and Durable items              TRU value monitor
     Teen Media                             Personal concerns
        Magazine readership                 Teen’s place in the world
        T.V viewership
        Media participation            THERE IS ALSO 20-24 STUDY
        Online activities
                                        TODAY IS ABOUT TEENS ONLY




                                                                            160
                                                                                  160
We were teens once ….
David – 19 years        Linh – 19 years
But we’ve GROWN…(bigger)
David NOW                  Linh NOW
The youth market is huge…




        Over 20 million
         aged 12-24
The annual spend for teens is…



      4.9 billion

        And they are optimistic about the future…


                 89% Expect to spend the
                  same or more in 2012
TEEN LIFE
Success means making a lot of money
It's important for me to eat and live healthy right now
I always try to have as much fun as I possibly can
Life is an ongoing balancing act!
Understand and integrate this when talking to teens…

What’s Really Important for Teens (Top-2 Box %):



                       Tradition                         Modernity


  80%                                                                         61%

 87%                                               Doing what I want and is
                                                        good for me           90%
                             THE LIFE OF A VIETNAMESE TEEN
Education continues to be the door to opportunity, with…

        85% aiming to complete an
          undergraduate degree

Tertiary education – programme most likely to undertake (%):




              Local degree (local institution)                 89%
     Franchised degree (foreign degree
     with study entirely in local country)                     5%
        Entire program in foreign country                      3%
                              Twinning degree                  3%
TEEN SPENDING
Spending on food, clothing and staying in touch...




  Street food       Clothing          Beverages            Mobile phone
      $6               $5                $4                     $3




  Books / study
                  Transportation   Fast food restaurants   Sweet/salty snacks
    material
       $3              $2                   $2                    $2
TEEN MEDIA
Teens say they cant live without TV and use it the
most, BUT the internet is now…

    most informative             most entertaining
    HCMC               HANOI     HCMC               HANOI

    25%       TV        21%      40%       TV        26%


    61%    INTERNET     61%      57%    INTERNET     71%


    10% NEWSPAPERS      3%       0%    NEWSPAPERS     -


    4%     MAGAZINES    7%        1     MAGAZINES     3
However, TV is still the preferred way to be
told about your brands…
Best Channels for Engaging with Teens (%):




Television        Non-social-            Fliers    Billboard,   Newspaper
                  networking                      Outdoor Ads
                   websites
Media streaming is growing in popularity…

Online Activities on Computer P1M (%)


  86%      Used a search engine

  76%      Listened to streaming music
           Watched streaming video
  73%
           (like YouTube)
  72%      Talked to someone in a chat room

  71%      Played a single-player game

  71%      Instant messaged (IM)
What’s nóng and what’s not.
Smart Phones and social networking..

TRU Trend Index - Technology

     85     Smart phones

     77     Social networking sites

     72     Multi-player online games

     65     Online photo sharing

     55     PC games

     50     Virtual worlds (Second Life)
Shopping, coffee houses and nose jobs...

TRU Trend Index - Activities

     78      Going to malls / department stores

     77      Going to coffee houses / tea houses

     72      Getting cosmetic surgery

     65      Going to the spa

     55      Clubbing

     50      Dating
TEEN BRANDS
This is where brands matter to teens…

          Top-5 Products Teens Must Have Brands of
          Choice (%)                                 Total   Male   Female


           Beverages (soft drinks, juice, tea)        62     66       58


           Apparel (non-athletic)                     61     64       58


           Hair products (shampoo,
           conditioner, styling)                      51     49       52


           Cell phone/ Mobile phone                   43     46       40


           Body/ Face wash                            36     26       45
Take the challenge!
Which brands are the favourites?
Teen Growth Summary
INSIGHTS                                          PLAN FOR GROWTH

                                                  Show interest in THEIR growth
Teens are focused on education for                Consider linking your brands to scholarships, career paths,
money and success                                 and education to bond with teens.

                                                  Consider the value equation you deliver…
Teens have a small disposable income , spent Make sure your products suit a pressing need and deliver real
on mostly on day to day consumables.         benefit to justify investment.

                                                  So should you!
                                                  Especially to educate about brands and products and be a part of
The internet is where teens are heading for       the teen social world. Links to streaming and social networking
information and entertainment                     sites may be fruitful.

                                                  Tap into this for promotions and communications…
Teen like convergence of technology…it            Opportunity to connect with branded apps, cellphone related
simplifies their entertainment and social life    promotions etc.

                                                  Reflect this in your attitude and imagery
Teens care about health BUT in a holistic way Healthy mind and body reflected in communications
If you want to know more about me
and my friends, please contact:
David.Watts@tnsglobal.com
PhuongLinh.Nguyen@tnsglobal.com




                                    184
Thank you all and we
hope we have helped to
 make your business
        grow

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TNS Seminar Mar22, 2012

  • 1. Activation Day © TNS 2011 © TNS 2011
  • 2. AGENDA FOR GROWTH 2011 review and 2012 outlook - analyzing growth strategies Ralf Matthaes Building brands for the online consumer Glyn Evans Magnifying growth via Qualitative insights into consumer Alison Dexter & Bach Ngoc Hieu An Managing growth during recessionary times Petra Alincova & Shirley Raman Popcorn break – 3:00pm – 3:20pm Brand Management in Changing Times Ashish Kanchan & Henry Heywood Vietnam’s emerging sectors Matt Erickson & Nguyen Pham Phuc Ho Harnessing the Youth market David Watts & Nguyen Thi Phuong Linh Vietnam Advertising Industry expert Panel Discussion Ogilvy Digital - Alfred Leitao / JWT - Saby Mishra / Lowe – Michel Borelli / Y&R - Matt Collier Activation Day © TNS 2011 © TNS 2011
  • 3. Which brands are represented today? Activation Day © TNS 2011 3
  • 4. Which brands are represented today? Activation Day © TNS 2011 4
  • 5. 2011 growth review - 2012 growth strategies Activation Day Ralf Matthaes © TNS 2011 5 Regional Managing Director
  • 6. 2010 VS 2011 year in Review 2010 vs 2011 year in Review Measure 2010 2011 Ralf 2012 est. GDP 6.78% 5.89% 6.0% Inflation 11.75% 18.13% 10% Trade deficit US$12.4 B US$9.6 B US$12-14 B Exports US$71.6 B US$96.4 B US$95 B Imports US$84.0 B US$105.8 B US$115 B FDI US$18.6 B US$10.9 B US$14B Retail spend* US$78.0 B US$95.0B US$?B Ad spend US$726 M US$760 M US$800 M FMCG Value 21%growth 16%growth 14%growth FMCG Volume 9% 1.4% 0% Tourism 5.0 M 6.0 M 6.5 M TNS Signature Consumer confidence 78 index Activation Day 83 index 75 index © TNS 2011 6 * VN Retail Association – not sure if accurate Source: GSO / TNS / Kantar Media
  • 7. Will you spend More – Less – Same in 2012 Only 6% note spending more in 2012 than in 2011. The poor will spend more, as inflation rips into their wallets Activation Day © TNS 2011 Source: TNS VietCycle 2011 – Urban only
  • 8. On What will you spend More-Same-Less than 2011 Education Health care products / services Food & beverages products Household utilities House hold care products Personal care products Transportation Communications Entertainment & dining out Personal equipment Home appliances Top 3 growth sectors have remained the same for 3 years Activation Day © TNS 2011 Source: TNS VietCycle 2011 – Hanoi / HCMC
  • 9. % of population having bought luxury items PAST 12 months *Luxury item here is defined as valued over VND 10,000,000 2008 2011 14 10 Slow growth indicates luxury is still out of reach for most consumers Activation Day © TNS 2011 Source: TNS VietCycle 2011 – Urban only
  • 10. 2011 Summary  2011 saw a slowing down of over all purchasing  Ad spend up only 3%  FMCG volume sales only up 1.4%  Luxury goods sales only 4% up over 3 years  A reduction in spend across many sectors  94% will spend the same or less than in 2011  Inflation still at 16% in 2012  Thus, the key to 2012 Brand success in Vietnam & its biggest challenge will be delivering growth Activation Day © TNS 2011
  • 11. Paths to growth in economic down turn An analysis of 4 paths to growth Activation Day © TNS 2011 © TNS 2011
  • 12. The four paths to growth 1. Loyalty and new spend 2. New customers 3. New products and services 4. New Markets Activation Day © TNS 2011 12
  • 13. TNS Growth Map Activation Day © TNS 2011 13
  • 14. 1. Loyalty and new spend Building on the relationship that the you have with existing customers. Driving increased involvement and spend from them and making them greater advocates of the brand Activation Day © TNS 2011 14
  • 15. Today in Vietnam Competition is greater than ever before, the consumer is more informed and has more choices of what and where to buy Increased competition increase the chance of losing buyers Downwards pressure on price down-trading and cutting back (recession) Activation Day © TNS 2011 15
  • 16. How do we grow? A brand can grow by increasing the amount existing customers spend on existing brands Retaining existing customers and / or capturing current customers’ spend with competitors  Increasing frequency  Up-selling  Cross-selling  New usage occasions  Price increases Activation Day © TNS 2011 16
  • 17. Case study of new occasions At the heart of everyday life: Increasing consumption frequency by targeting new occasions Activation Day © TNS 2011 17
  • 18. The Result For the first time, Britain’s supermarkets gave Walkers shelf-space next to sandwiches – increasing sales by 15.6m packets of crisps Activation Day © TNS 2011 18
  • 19. 2. New customers Loyalty and new spend Improving penetration within an established market by driving competitive advantage Targeting new customers through brand positioning, pricing changes, better exploitation of retail channels TNS Signature Activation Day © TNS 2011 19
  • 20. How do we grow? Brand growth by attracting new customers to the existing range  Switching from competitors  Attracting more buyers than you lose  Non-category users  Advocacy: recommendations from your current buyers Activation Day © TNS 2011 20
  • 21. A Case study of new positioning Extreme makeover: Attracting new customers to drive growth via repositioning and creating appeal to new customers Activation Day © TNS 2011 21
  • 22. The Result Positional change Old - Old Spice  Manly, “sex on the beach” New - Old Spice  Friendship & trust – go anywhere US: In the past 18 months, Old Spice has become the nation's leading deodorant for men, with 20% of the $1 billion market Activation Day © TNS 2011 22
  • 23. 3. New products and services Discovering and creating opportunities for growth that go beyond the current mix Launching product and service innovations, line extensions….  thus extending spend within the existing franchise and  attracting new customers to the extendedportfolio Activation Day © TNS 2011 23
  • 24. How do we grow? Developing new products and services gives new and existing buyers more reasons to buy by expanding the range Line extensions New formats New sub-brands Within the same broad category Activation Day © TNS 2011 24
  • 25. Case study of new formats Taking playgrounds by storm: Driving growth with new Lego products–affordable, collectable mini-figures Activation Day © TNS 2011
  • 26. The Result UK growth in excess of 10% after 6 months Activation Day © TNS 2011 26
  • 27. 4. New markets  Driving growth through diversification  Moving into new geographies, entering new verticals or categories  Often high risk and high opportunity, these strategies require substantial investment Activation Day © TNS 2011 27
  • 28. How do we grow? Clients may consider diversifying and enter new markets to compete in completely new spaces New geographies New vertical markets Activation Day © TNS 2011 28
  • 29. Case study of new markets TNS opens up office in Phnom Penh, Q.2 2012, solidifying our Indochina presence. Going where our clients need us. Activation Day © TNS 2011 29
  • 30. Growth strategy considerations Brands have to continually re-win customers and spend–growth initiatives are required to maintain current market share  Directly linked to the duration of the purchase cycle Activation Day © TNS 2011 30
  • 31. Consideration 1 When reviewing growth options, understanding the market and client context is essential Some categories are growing or declining faster than others Activation Day © TNS 2011 31
  • 32. Consideration 2 When reviewing growth options, understanding the market and client context is essential  Market share varies and has an impact on growth options Today’s business Activation Day © TNS 2011 32
  • 33. The paths to growth are not independent 1. Activities to drive higher spend may also attract new customers 2. Activities to attract new customers will also impact on current customer behaviour 3. New product & service launches will impact on the existing business 4. New market growth will be independent of the base business Activation Day © TNS 2011 33
  • 34. Growth Summary Growth insights Plans for growth Price increases will not spur growth Ensure you understand in 2012, due to lack of consumer consumer price thresholds & confidence what they can bear to pay Become closer to your Driving loyalty & new spend via consumers and provide them discounts / volume added will help with what they love about your brands and even more Acquiring new customers via Determine occasions use, and distribution expansion, superior competitor gaps in the market positioning & new occasions is key and fill the gap Vietnamese consumer are all New Product & service innovation about the “NEW”. Reverse keeps your brands relevant and engineer your brands to meet peak consumer trial consumer desire - Pull Activation Day © TNS 2011 34
  • 35. Let TNS help your business grow Activation Day © TNS 2011 35
  • 36. Building brands for the consumer Glyn Evans Research Director
  • 37. Digital is firmly on the agenda of the world’s Chief Marketing Officers Top Transformation Projects in the Office of the CMO: 37
  • 38. And, consumers are getting louder; 4 million times louder than in 2007 Tweets per day in 2007 : 5,000 Tweets per day in 2009: 2,500,000 Tweets per day as of June 2011: 200,000,000
  • 39. Digital media environments are interactive, marketers need advocacy to reach critical mass to drive successful campaigns Impact Campaigns that successfully ‘go-viral’, driven by consumer advocacy Most digital marketing campaigns fail to impress Campaigns 39
  • 40. The path to purchase used to be simple
  • 41. Until along came the internet
  • 42. Digital media is the second largest media behind television 83 67 28 30 9 11 Internet for leisure TV Radio Internet for work Newspapers Magazines
  • 43. Vietnam’s consumers generally go online frequently and research brands regularly Global Vietnam India Internet 30% 32% 8% Penetration % of internet users % of internet users % of internet users that: that: that: Go online 8.8% daily 68% 67% Are brand 33% 12% 2.0% fans on SN Write about 10.7% 47% 13% brands online Research 81% 80% 12.3% brands online
  • 44. Driving Growth Online 67% of Vietnam’s online users access the Internet every single day; 31% have accessed via mobile in the last month Once online, the digital population of Vietnam are very engaged. Having a digital strategy prepared to capture consumers as they adopt is the key to capitalize on this; a mobile component is a critical aspect of this strategy
  • 45. The developing digital markets have lower numbers talking about brands online % writing about brands
  • 46. Yet they are as likely to read comments; brand conversations have massive reach in these markets % reading about brands 46
  • 47. With a large audience, and fewer competing conversations, those who do write wield incredible influence % reading about brands – Vietnam % writing about brands – Vietnam % reading (size of audience, size of influence) % writing (number of potential advocates)
  • 48. Online reviews can influence brands in the opinion of online writers and more than half of them expect companies to contact them thereafter (%) % Agree
  • 49. Activate Your Brand Online 56% of online writers in Vietnam talk about their brand experience and another 63% seek advice on brand usage and other related aspects Ensure ample content is available on brand networks on product usage, benefits and other related information commonly asked by consumers – regularly update this and engage members of the brand community
  • 50. Dealing with the negatives 42% online readers in Vietnam on average feel even a single negative review can impact on a consumer’s purchase decision Advocacy is very important and can have a significant role in the purchase decision. Be aware of what is being said about your brand (but remember not to intrude too strongly)
  • 51. As the value of purchases increases, the amount of research both off and particularly online also increases % researching online % researching at all 98 100 99 99 94 89 91 86 87 68 53 55 55 27 31 28 25 18 Cleaning Food Personal hygiene Alcohol Pres. Medicine Credit cards New Car TV Travel products
  • 52. The Path to Purchase Consumers use multiple touch points throughout the journey to purchase, with offline touchpoints the more heavily used Brands must also use multiple touchpoints, and prioritise offline whilst learning to integrate with online channels. Utilise bought media to increase awareness and owned and earned sources that are used to drive purchase decisions
  • 53. Mobile Internet has huge potential in Vietnam, improvements in connectivity through 3G rollout along with data affordability will drive this growth (%) Disagree (%) Agree “I would be happy doing all my Internet surfing via my mobile” 17 55 “I would like to access the Internet more on my mobile phone, if it were more convenient, or had higher speed 15 64 or connectivity”
  • 54. Prepare for Mobile Online 8% of mobile users research products online daily via pre- purchase sites, compared with 13% of PC users The increasing adoption of mobile devices is likely to drive the uptake of e-commerce services – prepare now for a cross-platform friendly interface to engage consumers
  • 55. Growth Summary Growth insights Plans for growth Brand as subject matter is alive and - Add value by facilitating content well, but brand voices lack trust - Add value by providing services to consumers beyond the core product - Build connections earlier in the customer Touchpoints along the path to journey to minimise purchase are varied and fragmented the impact of negative buzz - Understand the nuances of your geography and category to optimise the mix at each stage - Understand attitudes and motivations Content is the currency of community, shaped and consumed by the masses - Within the “new noise”, quality, rather than share, of voice counts Activation Day © TNS 2011 55
  • 56. Alison Dexter - Executive Director Bach Ngoc Hieu An – Senior Research Manager Deep dive in to the impact on consumer mindsets and behaviors of changing economic times
  • 57. What we did • Review of global trends • 16 deep dive interviews Qualitative insight & • 4 age bands/lifestages implications ranging • Mixed occupations across different • Mixed SEC consumer groups, • Mixed genders • Full category coverage categories and • HCMC, Hanoi locations • Review of other current and relevant research conducted in other locations Activation Day © TNS 2011 57
  • 58. Who we talked to • Six of our moderators spoke to: Age Gender HCMC Hanoi 18-22 y.o. Male 1 1 University students Female 1 1 23-30 y.o. Male (working) 1 1 Single and married (with In-home Visits kids) and w/o Female 1 (working) 1 (non-working) 31-40 y.o. Male (working) 1 1 Married with kids Female 1 (non-working) 1 (working) 41-50 y.o. Male (working) 1 1 Married with kids Female 1 (working) 1 (non-working) Sub-total 8 8 TOTAL 16 IDIs
  • 59. What we talked about Understanding them, in their families, lifestyle Their personal context Current frame of mind, attitudes, life values, hopes/dreams/goals, their definition of success What they see as the big picture; impacting factors for The VN macro context Vietnam; terms used/knowledge/understanding through their eyes Positive & negative views; drivers of such; personal connections Managing their day-to-day economy; strategies/tactics, beliefs, influences Impacts to them Their purchasing wishlist and views on 11 categories (from education to groceries to entertainment & dining out) Their response to 12 global trends global trends Same same or different for you/in Vietnam? How so?
  • 60. Personal contexts Understanding them Frame of mind, • SEC has a huge attitudes, life values impact • Life of a first jobber, • Older & lower SEC, pre marriage/family = more fatalistic is a time of freedom; even moreso for • Younger and higher men. Yet, also a time Hopes, dreams and SEC more optimistic of relative freedom and anything's goals & opportunity for possible women • Healthy family Notions of success • Family care and • Happy family • Marriage and family responsibility very • Wealthy family = responsibility time strong • Career/business succcess • Stable life • Competence & • Wheels • Economic freedom thriftiness crucial • Property • Position < career/ • Travel business • Forever beautiful achievement for males; family harmony for females • Relationships • Knowledge • Confidence
  • 61. Their views on the macro context  SEC; education, lifestage impacting views & involvement  Vietnam is developing  Standard of living is increasing  Yet some good things, some bad things  ‘General management’ is shaky; inflation; transportation; interest rates; investment management; transparency  Day to day- price increases, food hygiene, pollution  Some industries better now- tea, coffee, banking  Not enough progress- too much manual/outmoded ways of doing things; too much inefficiency- eg. Infrastructure- roads half done/redone  Direct and indirect personal impacts are felt
  • 62. Impacts  SEC differences are stark- A, B: relatively safe & stable in the “storm”, yet conscious of what’s happening around/ to poorer people  D-E are doing it tough; it’s really tough in E- managing a family on 3 million VND a month is about daily survival; sometimes quite desperate, mentally & physically, for all members of the family “too much stress, “I don’t feel much the worry always different. I don’t sticks in my mind, feel the impact of economic crisis on me” vs we don’t even have time to feel happy or relaxed…”
  • 63. Key to the The 11 cats future, a priority An area of fear for SEC; unchanged Education higher Health care products / services High impact! Food & beverages products Lower Trading Household utilities SEC down/less esp House hold care products <SEC Mostly Personal care products same Lower Transportation SEC esp Lower Communications SEC esp Big dif Entertainment & dining out here Personal equipment Big dif here Home appliances Delete vs Elite
  • 64. Response to Global Recession Trends
  • 65. The 12 global trends Recessionary Recession? Simple Energy living I’m over it! pleasures efficiency adjustments The mobile Career The small A little touch of device as the reinvention movement luxury everything hub and extension Distraction as Authenticity Redistribution The collective entertainment matters of power consciousness
  • 66. 1. RECESSIONARY LIVING • Yes, cutting back on The threat of a global recession some things has triggered people to make • The lower the SEC, adjustments to their standard of the bigger the impact living, eg. • Sometimes trading down, but - cutting back on spending, sometimes not - trading down, • Yes, quality over quantity mostly (esp. - choosing quality over quantity, as a mindset) - and rely on their own • Not necessarily DIY- resources more, eg. the “outsource/exchange uptake of DIY (do-it-yourself) to keep own activity spending ability up- time is money!”
  • 67. 2. Recession? I‘m Over It! Global recession trends show that consumers get sick of being in a recession and reward themselves by ‘trading up’ on items that play an important role in their daily lives, such as PC/laptops, electronics, and Not really; pragmatism food. is key, but hey, if you want it and can afford it, go for it! An extended downturn can actually boost sales of high-quality daily necessities…
  • 68. 3. SIMPLE PLEASURES • Not if you are rich, indeed you are The reality or the risk of money running spending more on short is a major incentive for consumers to showing your find new ways of enjoying what they have position, eg. Travel, and what they can truly afford. Rather than expensive wedding splurging on extravagant treats, celebrations consumers will look to simple pleasures as • Yes for others- a trip a more suitable and satisfying way to feel to the movies = good. swapped for going out for a coffee or maybe you’ve cut back on karaoke and (Example: finding pleasure in simple boozing and things like a nice cup of coffee) swapped it for more nights in, reading, surfing online more • Hard times bring people together
  • 69. 4. ENERGY EFFICIENCY Energy-efficient technologies become more important in • Yes! Spending on everthing from, washing energy is impacting machines and fridges with an people directly ‘economy‘ cycle/setting to • And energy-saving vehicles which are either features can be found, and are conservative on fuel consumption appreciated, on or driven by alternative energy everything from sources (eg. electricity) to aircon to motorbikes building more energy efficient homes to simply being more conscious about energy use in general
  • 70. 5. THE SMALL MOVEMENT Everything is getting smaller, from stores to cars, from mobile Yes and no technology to packaged goods. Smaller cash outlays are easier to manage.
  • 71. 6. THE MOBILE DEVICE AS THE EVERYTHING HUB As the availability of wireless broadband expands and the cost of advanced mobile phones drop, the mobile device will become the Absolutely! preferred hub for digital activity. (Example: mobile devices as the first PC for some youth)
  • 72. 7. CAREER REINVENTION AND EXTENSION More people will find themselves facing a career break (eg. being laid off), and many will question whether People in search of they want to return to the same line the lucrative, yet be of work - either because it wasn’t safe in your space! fulfilling in the first place or because more lucrative opportunities now lie Yes, need to think elsewhere. about income later in life Others will postpone retirement as they see their savings shrink and will formulate new ideas for late- stage careers.
  • 73. 8. A little touch of luxury Consumers are treating themselves to daily luxuries and replacing bigger luxury items (eg. Overseas holiday) with something Always there for with a small-scale budget. the rich and not Cosmetics companies are for the poor faciltitaing the trend by handing out premium samples nowadays. Beauty and wellness categories are ripe for premiumization.
  • 74. 9. DISTRACTION AS ENTERTAINMENT Understanding that people do more than one thing at a time, content creators are turning what could be a negative (distraction) into a positive Yes, it’s the new (immersive) experience. By trend! layering a multitude of media Jump on board! into entertainment, they are creating content designed for simultaneous consumption and engagement.
  • 75. 10. AUTHENTICITY MATTERS Authenticity will become paramount for brands as they look to regain credibility and trust. In the wake of a Yes! financial crisis that has seen established institutions topple “I need to know the overnight and many others teeter on companies where the brink, consumers have lost a the products or great deal of faith in brands; they services are from are searching for truths and so I have clamouring for transparency. confidence to use (Example: Barack Obama’s them” authentic credibility connected with voters in the U.S. presidential election.)
  • 76. 11. REDISTRIBUTION OF POWER • Some see US as still powerful, The coming years will see a • Others see countries widespread redistribution of power in like US and Japan sliding down almost every major sphere: • China at the fore economic, social and political. • Benefit for Vietnam- (Example: the growing power of the in the right zone and coming up fast BRIC (Brazil, Russia, India, China) behind markets)
  • 77. 12. THE COLLECTIVE CONSCIOUSNESS With the increasing popularity of the internet and a new global mindset, people are thinking less about “me” • Polarized responses and more about what “we” can do— collectively—to address the • “No, people in challenges of modern society. Vietnam only mind Real value comes from the their own business” relationships in our lives and how we interact with the world around us. • Vs charity and How can we use our money to make sharing strongly valued things better, not only for ourselves, but also for our country and the world around us?
  • 78. Growth Summary Growth insights Plans for growth - Not one for all! Huge SEC - Targeting and portfolio differences impacting management even more critical - Dial up your value - Competence & thriftiness alongside your trust and even more crucial authenticity; help people to make smart, safe choices - Beware of professional - Managing the role of promotion hunters!! promotions key - Still chances for huge growth, esp. in some - Stay ahead of the trends cat.s, eg. technology Activation Day © TNS 2011 78
  • 79. we wish you well on your path to success …… We invite you to: - Contact us to come and give you more of this.. - To introduce our team to you.. - alison.dexter@ tnsglobal.com - hieuan.bach@ tnsglobal.com
  • 80. Every Cloud has a Silver Lining Managing Growth During Recessionary Times Shirley Raman – Associate Vice President Petra Alincova – Research Manager
  • 81. It is a difficult time
  • 82. Vietnam less optimistic than the rest of the region Consumer Confidence Index 120 100 80 60 40 20 0 Vietnam AC Neilson Survey
  • 83.
  • 84. Those who succeeded in the last recession  Stuck to their brand values  Continued investment into R&D, Advertising which enabled speedier recoveries  Focused on product rather than corporate image  Trimmed the portfolio, to deepen their focus
  • 85. How some brands are doing it  Add purpose & meaning into buying  Simplicity- Less is More  Engaging Differently
  • 86. But all of them stay true to their positioning promise. It is a time to reinforce and strengthen emotive connection, provide certainty and anchors, rather than add to the panic and uncertainty
  • 87. Add Purpose, Meaning into Buying  Consumers in recession exhibit heightened sensitivity to those in need  Buying into propositions with meaning adds purpose, a feeling of virtuousness.
  • 88. Brands as Responsible Institutions  Brands as beacons of trust, transparent and engaged “pillars of the earth” to replace outdated, untrustworthy institutions in a post- recessionary “new world”  Chrysler /Fiat campaign focus on rebuilding country in times of adversity http://www.youtube.com/watch?v=TqI_nxwyZa8
  • 89. Simplicity - Less is More  Packaging to engage, entertain, reassure long after the purchase
  • 90. New rules of Engagement  Clinique leverage the fact that recession consumers talk more to retail and sales personnel on the phone and shop floors  Persuasive brand demos and scripts that help sales staff verbalize effectively
  • 91. Using Emotion to Voice Value • Nowhere in marketing do emotions run hotter during today’s slowly fading Great Recession than when it comes to the role of VALUE being highlighted in advertising • The uncertainty and anxiety evoke a range of emotive responses • From a marketing perspective, the challenge is to understand how different consumers will express themselves in the current climate. • And how brands can best react to those keeping the brand codes intact
  • 92. Different responses to the Current Economic Situation ESCAPE A CHALLENGE TO May not acknowledge CONFRONT Need to feel there is hope There IS a solution May even splurge Opportunities that buck Make changes that don’t hurt the trend much Won’t buy the media hype A NATURAL ORDER OF THINGS A TEST - ONLY THE FITTEST Will pass. Deal with human WILL SURVIVE implications See themselves as a solution Everyone in together. Embrace Will be where the smart money is practical solutions A THREAT A TIME TO REASSERT Feel powerless with few choices CONTROL Look to others for a solution Complexity- seek Information Afraid to spend Want to act responsibly Will be better prepared next time
  • 93. How Brands can respond SHOW CUP HALF FULL SHOW FIGHTING SPIRIT Provide opportunities for small Do things differently indulgences Offer opportunities But ensure that escapism is grounded in realty BRAND AS PART OF THE Empower, rather than about missing COMMUNITY out Use of local talent Reward for effort, you deserve it Remain down to earth Brands superiority, enduring quality Be more human than usual Rather than being the best REASSURE & SOOTHE Brand stories about INFORMATION AND provenance & endurance JUSTIFICATION Long term view Reassure about sensible Recognize smallest barriers choices will obstruct
  • 94. The FIGHTER  It communicated by telling how jetting on jet blue is a lot like a private jet with a few basic differences  In a cheeky, irreverent tone, making fun of the CEO’s expensive habits http://www.youtube.com/watch?v=OmDiDJ7QrdU&feature=player_embedded
  • 95. The Survivor  A brand that made no compromises  Talks enduring quality while maintaining its status equity  Makes it easier for people to rationalize premium purchases as a reward http://www.youtube.com/watch?v=BdNoqqHju0U
  • 96. The Analyst  Its Radio ads tout company’s financial solvency, stability and strength.  Conveys value through the wisdom of conservative investment strategy, recent upgrade in financial- strength ratings
  • 97. The Fearful  A brand that made no compromises  Talks enduring quality while maintaining its status equity  Makes it easier for people to rationalize premium purchases as a reward http://www.youtube.com/watch?v=6HNKqffU3Cc
  • 98. The Optimist  Havaianas, a Brazilian flip flop maker connects through a ‘don’t worry be happy’ approach  Kept it upbeat and positive, while generating buzz  Offered a positive experience, a permission to indulge http://www.youtube.com/watch?v=kOvv2VKFuMY&feature=player_embedded
  • 99. The Optimist  Target Store offers invites consumers to enjoy their recession lifestyle compromises to the hilt  Provides light relief, keeps it positive  Reinforces value through cheap chic and ‘more for less’ image http://www.youtube.com/watch?v=GPEyrCvNXFs&feature=player_embedded
  • 100. Growth Summary Growth insights Plans for growth Recession can be glass half full Use the brand to connect with Emotion. The message should be A time to engage the consumer when about hope, peace and a better they are re-evaluating / listening future ‘Brand’ even more important Or it can be about adding cheer to the now through delight. Surprise or easy guiltless pleasure Acknowledging times are bad is Find a ‘value’ pathway that reflects necessary brand’s core values As consumers re-evaluate, so must Stay true to your positioning – you reinforce. Certainty during uncertain times gives consumers an anchor Activation Day © TNS 2011 100
  • 101. Coffee break 101
  • 102. Brand management in changing times Henry Heywood – Research Director
  • 103. It’s time to bring back the love!
  • 104. You Love your iPhone. Literally.
  • 105. How branding works (An example from the US) When blinded Pepsi wins When branded Coke wins …because the brand genuinely increases people’s preference for Coke
  • 106. Neuroscience showed that the neural preference did correspond to the brand chosen blind Abstract brain Emotional brain RewardSurvival Centre behaviours
  • 107. When told the brand name, the brain genuinely prefers the brand with which it has an emotional attachment Storing emotional Biasing memories choice towards emotional memories
  • 108. Neuroscience showed brand impact on preference is genuine
  • 109. Back to Lindstrom again…looking at the similarities between strong brands and great religion “We found that the brain activity was uncannily similar when viewing both types of imagery”
  • 110. Ever noticed the similarities between the devoted…?  I will pay more for this brand  I will give part of my income to  I will go out of my way to find this religion this brand  I will go out of my way or face  I ignore competitor brands’ hardship to worship this religion discounts or promotions  I am not interested in other  I don’t need much persuading religion’s messages and beliefs to spend more with the brand  I don’t need much persuading to  I talk to others about this keep practicing this religion brand, I recommend it to them  I talk to others about this religion, to convert them Activation Day © TNS 2011 110
  • 111. The World’s Leading Measure of Commitment + = Over 11,000 studies Global, all sectors
  • 112. Commitment measures the strength of relationships  You can’t tell what your customers are feeling by looking at what they are doing…  …and you can’t be sure you’ll keep them, unless the relationship is good  The relationship acts as an early warning sign of what people might do in the future based on how they feel
  • 113. More than 80% of the world’s most valuable brands have used Brand Commitment to understand their consumers better
  • 114. 7 habits of highly effective brands
  • 115. 1. The Hook Get an introduction Be remarkable
  • 116.
  • 117.
  • 118. 1. The Hook Be a no-brainer - leverage peer pressure Not many people would turn down the obvious choice Safe choices are good choices ..or “if everyone else is using it, then surely it is the right choice?”
  • 119. There’s an app for that!
  • 120. 2. Show Interest and Understanding Show interest in, or understanding of, customer’s situation and needs People respond well to others’ interest in them Demonstrate that it makes sense to be together Make me feel (& believe) that it's destined to be!
  • 121.
  • 122.
  • 123. 3. Deliver the Goods There's no better way to create a strong relationship than delivering on every need, whether real or perceived Needs may be functional/physical or emotional If I talk just enough, say the right things, anticipate all the right moves and the right timing, and know what you want, even before you do, you will have no choice but to ‘love’ me
  • 124.
  • 125. 4. Make It Matter If you want to build a strong relationship, make them care
  • 126.
  • 127. 4. Make It Matter A word of warning: just making someone care doesn't ensure that they will choose you to have the relationship with!
  • 128. 5. Commit You reap what you sow If you show willingness to commit, you're more likely to get commitment in return Value can be used to illustrate seriousness
  • 129.
  • 130. 6. Keep It Up – Make sure the Love doesn’t die! Once you've delivered, and committed, you've got to keep it up, or the relationship weakens Keep it fresh and exciting
  • 131.
  • 132.
  • 133.
  • 134. 7. Reminders Don't let them forget why the relationship was built in the first place Impress the customer’s network, so that the network also helps remind Everyone wants to feel good
  • 135.
  • 136. Growth Summary Growth insights Plans for growth Branding works…because of Define a hook deep-held emotional connections that trigger reactions in the brain Show interest Deliver! Effective brands which build commitment demonstrate seven Make it matter consistent habits Commit Keep it up Reminders Activation Day © TNS 2011 136
  • 137. Vietnam’s emerging sectors Healthcare & Education Phuc Ho & Matthew Erickson ©TNS 2012
  • 138. Healthcare 138 ©TNS 2012
  • 139. Spending on healthcare is miniscule in comparison to overall spending. MONTHLY HOUSEHOLD SPENDING ON HEALTHCARE* Estimated annual spend = US $3- 4 Billion *Defined as overall spending on doctors / pharmaceutical / medicine Source: TNS VietCycle Healthcare 2011. Q56 How much does your household spend on the following functions in a typical month? Base: n= 2,000 (total). ©TNS 2012
  • 140. Attitudes to health – top-2-box agreement (%) “My pharmacist's recommendation is just as good as my doctors‘” Top-2-box agreement TOTAL 50 Chronic disease sufferers 51 Even chronic disease sufferers rely heavily on recommendations from pharmacists. This highlights the importance of driving growth via pharmacists Source: TNS VietCycle Healthcare 2011. Q97 Using this 5-point scale, can you tell me how much you agree or disagree with the following statements? Base: n= 2,000 (total). ©TNS 2012
  • 141. Prescribed vs. OTC Percentage of overall drugs purchased that were prescription medicine (past 30 days) (%) Means percentage of prescribed 22% medicine purchased in past 30 days 80-100% prescription profile 0% prescription profile Average age: 43 Younger age Prevalence of chronic Prevalence of chronic disease: 36% disease: 14% Source: TNS VietCycle Healthcare 2011. Q99 Of the amount you spent on medicine, what percent of this was spent of prescription drugs? Base: n= 951 (total). ©TNS 2012
  • 142. Attitudes to health – top-2-box agreement (%) “I have increased my frequency of checkups compared with 5 years ago” TOTAL YOUTH 20 – 24 years 38 SETTLED 45 – 60 years 64 Source: TNS VietCycle Healthcare 2011. Q97 Using this 5-point scale, can you tell me how much you agree or disagree with the following statements? Base: n= 2,000 (total). ©TNS 2012
  • 143. Prevalence and frequency of general pain 67% 55% 51% Head pain Flu symptoms Fatigue 1.6 times per 0.7 times per 2.6 times per month month month Frequency of suffering from general symptoms Source: TNS VietCycle Healthcare 2011. Q80 Which of the following symptoms do you sometimes suffer from? Base: n= 2,000 (total). ©TNS 2012
  • 144. Almost 1 in 5 consumers aged 20-65 suffer from at least one form of chronic disease Source: TNS VietCycle Healthcare 2011. Q83 Which of the following chronic diseases do you suffer from? Base: n= 2,000 (total). ©TNS 2012
  • 145. Key demographic of sufferers – Females, 46-65 year olds and housewives 38 31 23 20 17 Total Female Older Housewives SEC EF Older females, housewives, especially from lower SEC’s show the highest prevelance of chronic disease, providing great opportunity for targetted marketing. Source: TNS VietCycle Healthcare 2011. Q83 Which of the following chronic diseases do you suffer from? Base: n= 2,000 (total). ©TNS 2012
  • 146. Roughly 4 in 10 consumers willing to pay 10% extra for high quality medicine, Key implication: Price is a key indiactor of quality perception – pricing must be managed carefully. Source: TNS VietCycle Healthcare 2011. Q92 Thinking about the amount you pay for medicine, how much extra would you be willing to pay for a high quality drug from a reputable brand? Base: n= 2,000 (total. ©TNS 2012
  • 147. Consumers have very practical needs with respect to selecting a pharmacy, with close proximity and reasonable price the key drivers. Drivers for selecting pharmacy (%): Close to home / office 57 Reasonably priced 42 Availability of medicine 35 Expanding distribution via more outlets, PoS material presence and reasonable price will drive growth Source: TNS VietCycle Healthcare 2011. Q96 What are the two most important things when deciding on a pharmacy to purchase medicine? Base: n= 2,000 (total. ©TNS 2012
  • 148. Growth Summary Growth insights Precise plans for growth  Market is growing due to wealth /  Need to follow the below actions income surge and consumer priorities  Pharmacies are critical in the  Need to engage pharmacies and make purchasing path them part of the sales force  Only 22% of the market is prescription  Reinforces the role of the pharmacist  Head pain, flu symptoms and fatigue  Do you have products in these are the key symptoms experienced categories and are they differentiated?  Chronic pain is small but important  Target older female, housewives from low SEC households  Quality perception linked to pricing  Cheap no good / good no cheap in terms of efficacy 148 ©TNS 2012
  • 150. According to a 2011 statistic* of MoET There are from primary to upper- secondary level. On top of this, there are 3,599,663 pre-primary children. 3,599,663 7,048,493 4,968,302 2,835,025 Pre-primary Primary Secondary High-school pupils students students students *Source: http://www.moet.gov.vn ©TNS 2012
  • 151. Incidence of foreign language spoken: 32% Foreign languages most spoken Korean / English Chinese French Russian Japanese (91%) (6%) (3%) (2%) (2%) ©TNS 2012
  • 152. Education demand Trans-national education still a ways off for most families. However, there is certainly some demand for it – esp. franchise programs. 86 Educational course/s considering for children’s future (%): Hanoi (18%) 16 10 10 5 Local degree Franchised degree Entire program in Twinning E learning / foreign country distance education Source: Which of the following educational programs are you seriously considering for your children? Base: n= 1,000 (total).
  • 153. Education destinations The USA is the preferred destination for overseas studies France Others Japan 3% 2% 2% Canada 3% Singapore 7% US 44% Australia 19% UK 20% Source: TNS VietCycle Education 2011. Q73: Which country would you like your child’s degree to be under? Base: n= 1,045 (Total). ©TNS 2012
  • 154. US dominates in all regions, especially in the South. Hanoians have more diversified tastes HCMC Hanoi Da Nang Can Tho Source: TNS VietCycle Education 2011. Q73: Which country would you like your child’s degree to be under? Base: n= 1,045 (Total), 289 (HCMC), 319 (Hanoi), 235 (Danang), 202 (Cantho) ©TNS 2012
  • 155. International schools in Vietnam ©TNS 2012
  • 156. ‘International’ most commonly understood as having foreign curriculum, foreign teachers and taught in a foreign language. 75 How parents define ‘international’ for an international school (%): 52 46 45 35 12 Foreign curriculum Foreign teachers Curriculum taught in High quality facilities Foreign Foreign students foreign language owned/managed Source: TNS VietCycle Education 2011. Q75: If a school in Vietnam calls itself “international”, what do you understand that to mean? Base: n= 1,090 (total)
  • 157. 25% of parents is willing to enroll their children in international schools. % of parents willing to enroll child in an international school Yes 24% No 76% Can Tho shows strong potential with almost 40% willing. Source: Q76: Would you consider enrolling your children in an international school in Vietnam? Base: n= 1,090 (Total), 308 (HCMC), 329 (Hanoi), 239 (Danang), 214 (Cantho) ©TNS 2012
  • 158. Growth Summary Growth insights Precise plans for growth  MBA Studies are driven by parents  Target parents to Grow MBA programs  Overseas education has high potential  Potential to target these segments amongst parents in Hanoi and high SEC families  Is your country one of their  1 in 10 students plan to go overseas for consideration and how to you achieve? their education  Need to reinforce prestige of the  Other trans-national programs show partnering institutions strong potential, esp. for higher education 158 ©TNS 2012
  • 159. David Watts – Group Account Director Nguyen Thi Phuong Linh - Senior Research Manager
  • 160. Teen Study (12-19years): Content  Demographic Profile  Teen Life  Teen Target Profile  TRU’s Trend Arc: In or out?  Home life  Celebrities  Work life  Sports participation and  Education Favorites  Teen Consumers  Sports leagues and  Spending associations  TRU’s favourite brand meter  Friends  Spending on key categories  Free time  Cellphones  Teen perspectives  Tech and Durable items  TRU value monitor  Teen Media  Personal concerns  Magazine readership  Teen’s place in the world  T.V viewership  Media participation  THERE IS ALSO 20-24 STUDY  Online activities  TODAY IS ABOUT TEENS ONLY 160 160
  • 161. We were teens once …. David – 19 years Linh – 19 years
  • 163. The youth market is huge… Over 20 million aged 12-24
  • 164. The annual spend for teens is… 4.9 billion And they are optimistic about the future… 89% Expect to spend the same or more in 2012
  • 166. Success means making a lot of money
  • 167. It's important for me to eat and live healthy right now
  • 168. I always try to have as much fun as I possibly can
  • 169. Life is an ongoing balancing act! Understand and integrate this when talking to teens… What’s Really Important for Teens (Top-2 Box %): Tradition Modernity 80% 61% 87% Doing what I want and is good for me 90% THE LIFE OF A VIETNAMESE TEEN
  • 170. Education continues to be the door to opportunity, with… 85% aiming to complete an undergraduate degree Tertiary education – programme most likely to undertake (%): Local degree (local institution) 89% Franchised degree (foreign degree with study entirely in local country) 5% Entire program in foreign country 3% Twinning degree 3%
  • 172. Spending on food, clothing and staying in touch... Street food Clothing Beverages Mobile phone $6 $5 $4 $3 Books / study Transportation Fast food restaurants Sweet/salty snacks material $3 $2 $2 $2
  • 174. Teens say they cant live without TV and use it the most, BUT the internet is now… most informative most entertaining HCMC HANOI HCMC HANOI 25% TV 21% 40% TV 26% 61% INTERNET 61% 57% INTERNET 71% 10% NEWSPAPERS 3% 0% NEWSPAPERS - 4% MAGAZINES 7% 1 MAGAZINES 3
  • 175. However, TV is still the preferred way to be told about your brands… Best Channels for Engaging with Teens (%): Television Non-social- Fliers Billboard, Newspaper networking Outdoor Ads websites
  • 176. Media streaming is growing in popularity… Online Activities on Computer P1M (%) 86% Used a search engine 76% Listened to streaming music Watched streaming video 73% (like YouTube) 72% Talked to someone in a chat room 71% Played a single-player game 71% Instant messaged (IM)
  • 177. What’s nóng and what’s not.
  • 178. Smart Phones and social networking.. TRU Trend Index - Technology 85 Smart phones 77 Social networking sites 72 Multi-player online games 65 Online photo sharing 55 PC games 50 Virtual worlds (Second Life)
  • 179. Shopping, coffee houses and nose jobs... TRU Trend Index - Activities 78 Going to malls / department stores 77 Going to coffee houses / tea houses 72 Getting cosmetic surgery 65 Going to the spa 55 Clubbing 50 Dating
  • 181. This is where brands matter to teens… Top-5 Products Teens Must Have Brands of Choice (%) Total Male Female Beverages (soft drinks, juice, tea) 62 66 58 Apparel (non-athletic) 61 64 58 Hair products (shampoo, conditioner, styling) 51 49 52 Cell phone/ Mobile phone 43 46 40 Body/ Face wash 36 26 45
  • 182. Take the challenge! Which brands are the favourites?
  • 183. Teen Growth Summary INSIGHTS PLAN FOR GROWTH Show interest in THEIR growth Teens are focused on education for Consider linking your brands to scholarships, career paths, money and success and education to bond with teens. Consider the value equation you deliver… Teens have a small disposable income , spent Make sure your products suit a pressing need and deliver real on mostly on day to day consumables. benefit to justify investment. So should you! Especially to educate about brands and products and be a part of The internet is where teens are heading for the teen social world. Links to streaming and social networking information and entertainment sites may be fruitful. Tap into this for promotions and communications… Teen like convergence of technology…it Opportunity to connect with branded apps, cellphone related simplifies their entertainment and social life promotions etc. Reflect this in your attitude and imagery Teens care about health BUT in a holistic way Healthy mind and body reflected in communications
  • 184. If you want to know more about me and my friends, please contact: David.Watts@tnsglobal.com PhuongLinh.Nguyen@tnsglobal.com 184
  • 185. Thank you all and we hope we have helped to make your business grow