Ddma china-market-research-credentials-f&b-q2-2015

info@ddm-asia.com
An introduction to Data Driven Marketing Asia
Food & Beverage Research Experience in China
Q2, 2015
Shanghai headquartered China-wide market research and consultancy
www.ddm-asia.com

www.ddm-asia.com Private and Confidential – Prepared for Weber Shandwick 2
Introduction to DDMA
The facts
 Founded in 2002
 Independent full service agency
providing qualitative and quantitative
market research
 Headquartered in Shanghai with
coverage across 28 cities in China
 Clients include major multinationals,
with particular strength in FMCG and
retail
 DDMA works closely with Chinese
companies such as the China Sports
Lottery and leading baijiu brands

Introduction to DDMA Business Units
DDMA Group has three divisions working across multiple categories & disciplines
DDMA Market Research:
Provides clients quantitative consumer, trade and retail distribution
research across China and Asia Pacific. DDMA Market Research is
best able to recruit and quantitatively research decision makers
and consumers. (www.ddm-asia.com)
Focus Group China:
One of largest independent qualitative research networks in China.
Provides international standard research at independent agency
prices. Highly experience moderators, and excellent facilities in all
major China markets. (www.focusgroupchina.com)
DDMA Business Consulting:
Led by a highly experienced management team of people with
Fortune 500 experience our team consults on: market entry,
corporate restructuring, business development and joint venture
formation. Clients include private equity companies, finance groups
and large scale brand owners.

www.ddm-asia.com Private and Confidential – Prepared for Weber Shandwick
Consumer Products
4
Our Industry Experience
We bring China experience in these industries with particular strength in FMCG and Retail
Food & Beverage
Banking & Finance
Retail & Hotel
Healthcare & Government

DDMA China Market Research
Examples of Our Work

DDMA Case Study – Norwegian Seafood Council
Incidence Check - China
6
Project Outcome:
Helped Norwegian
Seafood Council to
understand the
market in terms of
consumption habits,
spending, preference
and image.
Project Objectives:
To measure the incidence of last twelve months salmon consumption across
markets and all relevant demographic subgroups.
To identify the most important channels for salmon consumption and determine
how these vary in importance across markets.
To determine the most preferred salmon format, the incidence of sashimi
consumption and the most preferred types of sashimi.
To identify the key drivers of salmon consumption and the key barriers that prevent
salmon consumption
To highlight the key off premise retail channels for at home consumption of salmon.
To measure the perceived origin of salmon in China, the awareness of and familiarity
with Norway and the consumer perceptions of salmon from Norway.
Project Methodology:
A total of 5,043 telephone interviews were conducted across Shanghai, Beijing,
Guangzhou, Chengdu and Wuhan. All interviews were conducted via telephone.
Target respondents were aged between 21 years old and 60 years old and lived in a
household with a monthly income above RMB 4,000 per month

Project Objectives:
Understand the structure of the Japanese restaurant channel
Determine the type of fish these accounts sell, what the share of seafood is within
the total portfolio, with particular emphasis on salmon and mackerel.
Understand the role of country of origin and its importance to restaurants and
determine awareness of Norwegian mackerel versus mackerel from other countries.
Test and recommend strategy and alliance concept.
Methodology:
Stage One:
2,500 Mystery shopping of Japanese restaurants.
1500 in Shanghai and 1,000 in Beijing.
Stage Two:
175 In-depth Interviews to Store Manager of
Japanese restaurants.
Project Outcome:
Japanese restaurants were profiled and
segmented.
The supply model of salmon & mackerel for
Japanese restaurants was identified and mapped.
On-site storage and preparation of salmon and
mackerel profiled and the impact on supply chain
management identified.
The NORGE Logo and alliance concept was tested.
DDMA Case Study – China Salmon and Mackerel
Mystery shopping and in-depth interviews – Shanghai and Beijing

DDMA Case Study – Silere Merino Lamb
A three stage study for premium New Zealand Merino lamb
Methodology:
DDMA recruited head chefs from 4/5 star hotels and high-end
restaurants for a three stage study consisting of pre FGDs, In
Restaurant Placement Trial, then post FGDs. Through this
research, the chefs’ opinions, preferences, and
recommendations were collected towards the concept and
product in terms of taste, aroma, texture and colour.
Project Outcome:
As a result of the conclusions and recommendations Silere Merino
proceeded to launch and occupies a premium position for lamb in
the Foodservice category.
Project Objectives:
Silere Merino was considering the
launch of a range of premium
lamb from New Zealand Merino
sheep into the China market.
DDMA was appointed to research
the market structure for lamb in
China, identify opportunities and
recommend a strategy for launch
into the Foodservice market.

DDMA Case Study – Treasury Wine Retail Audit
Retail Audit - China
9
Project Outcome:
We checked the
penetration and price
point of target brands
and SKUs to help
Treasury develop
channel strategy.
Project Objectives:
To get the incidence of Treasury brands in both on premise channels and off premise
channels.
To gauge the price point of Treasury brands at SKU level and Brand Family level.
To obtain the incidence for key competitor brands.
To obtain the highest and lowest price for key competitor brands at Brand Family
level.
To understand the city differences in distribution for both Treasury brands and key
competitor brands.
Project Methodology:
A total of 3,200 mystery store visits were conducted by DDMA researchers, with 800
store visits in each city.
There were 11 key distribution channels checked in each city, including international
supermarket, international hypermarket, domestic supermarket, domestic
hypermarket, convenience store, high-end wine stores, high-end restaurants, five
star hotels, bars, chained restaurants, independent restaurants.

DDMA Case Study – Pop Weaver
Product Taste Test – Shanghai & Beijing
Methodology:
We recruited 200 white collar consumers to attend a sensory test
at our focus group facilities in Shanghai and Beijing. All were
frequent consumers of concession popcorn aged between 20 and
35 years old. Also we researched 32 respondents for focus groups
to test their consumption behavior and opinions of the test
products.
Project Outcome:
We determined the preferred taste and appearance profile.
Project Objectives:
Our objectives were to identify
the preferred taste profile for a
concession popcorn in terms of
overall flavor, butter flavor,
crunchiness, and appearance,
including kernel size. We were
also tasked with identifying the
ideal price level for on-premise
consumption.

Project Objectives:
Objectives were to measure the level of acceptance among Chinese consumers for
Icelandic Glacial Mineral Water. We were also tasked with identifying preferred
brand name, packaging and label design, acceptable price point, taglines and most
compelling brand positioning and brand communication strategy for the brand. In
addition, we were charged with measuring brand positioning relative to key
competitors and identifying strengths and weaknesses relative to key competitors.
Methodology:
We conducted a total of 24 focus
groups were across four key
markets. We recruited white
collar respondents aged between
25 and 45 years old. All
respondents were current buyers
of premium bottled water.
Project Outcome:
We determined final brand name and
brand positioning as well as pricing
strategy for various different SKUs.
Brand communication strategy was
finalized as a result of this research and
Icelandic Glacial was successfully launched
in Shanghai and Beijing in mid-2010.
DDMACaseStudy-Icelandic GlacialMineralWater
Brand & Packaging Evaluation – Shanghai, Beijing, Guangzhou , Chengdu

DDMA Case Study - V&S Group/Absolut Vodka
New Product Development - China
12
Project Objectives:
V&S(Absolut Vodka)
commenced a project
to identify potential
opportunities within
the Chinese domestic
baijiu market.
Methodology:
Our team conducted extensive market and industry research among consumers,
business leaders in producer and distributor companies and senior government
officials. The result of this research was the identification of several key
opportunities within the baijiu category. As the project moved forward we held
direct negotiations with over 20 leading baijiu producers. From this process three
potential partners were identified. Negotiations progressed with one key company
and a joint venture was formed in 2007. In addition, two new baijiu brands were
developed, and are the property of the joint venture. The first of these is a super-
premium baijiu that has won awards for taste and design. The second is a
completely new type of baijiu for young drinkers.
Project Outcome:
The joint venture has been successful in the development of new brands and
demonstrated that the new brands have high potential in the market. These brands
are imbedded in and sold through the Pernod Ricard China network.

Project Objectives:
Objectives were to Develop a new and fashionable baijiu for Chinese consumers,
determine brand name, packaging, advertising concept, tagline design and price
point for Purfeel 21. We were charged with measuring channels Purfeel 21 is
perceived as being most suitable to be consumed in and on which type of drinking
occasions Purfeel is most suitable for. We also were responsible for testing which
flavor is most liked by Chinese consumers.
Methodology:
We held 48 focus groups across four key markets.
In addition, our team invited 150 respondents to Chinese
restaurants for taste testing and perceived suitability
testing. We recruited 300 respondents to participate in our
online research.
Target respondents were white collar consumers aged
between 25 and 40 years old and drink baijiu at least once
every three months.
Project Outcome:
Our research determined final brand name,
packaging, tagline and key advertising
concept. Pricing strategy for on-premise
and off-premise channels was completed.
We determined most popular flavors
among target consumers. Purfeel 21 was
successfully launched in Shanghai market
in December 2009.
DDMA Case Study – Purfeel 21 Baijiu
Brand, Taste, Packaging & Advertising Evaluation – Shanghai, Beijing, Guangzhou , Chengdu

ProductConcept,Brand&PackagingEvaluation,TasteTest–Shanghai,Beijing,Guangzhou,Chengdu
14
Project Objectives:
Objectives were to identify an appropriate modern baijiu product concept that
meets the needs of modern successful Chinese business people. We were tasked
with measuring the acceptance of Tianchengxiang’s taste, packaging design and
brand name. Our team was also responsible for testing the most suitable drinking
occasions as well as ideal price relative to competitors.
Methodology:
A total of 48 focus groups were
conducted across four key markets.
Target respondents were aged
between 30 years old and 50 years
old. All respondents were current
premium baijiu drinkers and consume
baijiu most often in business
occasions.
Project Outcome:
Based on target consumer insight attained through the research
process a complete brand positioning, brand value and brand
vision was developed.
Final brand naming and packaging was determined.
Pricing strategy for various different SKUs was determined.
Brand communication strategy was finalized as a result of this
research and Tianchengxiang was successfully launched in
Chengdu and Shanghai.
DDMA Case Study – Tianchengxiang Baijiu

15
Project Objectives:
Methodology:
occasions.
Project Outcome:

16
Project Objectives:
Methodology:
occasions.
Project Outcome:

Other Relevant DDMA Case Studies
A selection of other projects that DDMA Management and DDMA have conducted
Budweiser – Anheuser Busch: China and North Asia
DDMA has conducted multiple projects in the areas of new product and brand
development, brand positioning and the development of brand communication strategies.
DDMA and DDMA management have worked with Anheuser Busch for over 20 years in
Asia.
Johnson & Johnson: Asia Pacific
DDMA management led the new product development research for Johnson and Johnson
for many years across Asia Pacific markets. The specific area of specialization was in new
product idea screening. Once the winning ideas were identified, these ideas would then
transition into the formal new product development process.
Brown Forman – Jack Daniel’s: China and North Asia
DDMA has worked with Brown Forman for over 12 years in China and North Asia. Our
research work includes new product development and brand positioning and
communication research across multiple product categories including ready to drink
cocktails, full strength American whisky, aged American whisky.
Multiple retail projects – China.
DDMA has also conducted multiple research and research based strategy development
projects for leading online and offline retailers in China. Clients include Tesco Express,
Walmart, 7-11 China, Reliance Retail of India and Yihaodian – the largest online
supermarket in China.

Relevant Client References - Food and Beverage in China
18
Over a 10 year period DDMA have delivered major customer insight and Market research projects for me.
The briefs have originated from China, India and Thailand and required an in depth knowledge of both the
originating market and the target market of China. DDMA have always delivered to brief, on time and
given high quality, valuable and actionable insight and recommendations.
DDMA are a truly first class team that deliver first class results and I look forward to many more successful
years of working together
Big C Supercenter Public Co Ltd, President and CEO Rob Cissell
I have worked with DDMA for more than 3 years on numerous projects. The projects has included a whole
variety of tasks, from classic focus groups and quantitative research to complex restaurant U&A studies,
product pre-launch studies and complicated value chain analysis. DDMAs strengths are decomposing the
client’s needs, high analytical skills, and a flexibility to set up the research design far outside classic
research products in order to meet the client’s needs. DDMA is our preferred research company in China,
and it is a pleasure to work with their team.
Norwegian Seafood Council, Director of Mainland China and Hong Kong, Sigmund Bjørgo
Over the years, DDMA has proven to be an extremely valuable partner in helping Jack Daniel's develop its
consumer brand building platform in China. No one knows the Chinese alcohol beverage market better
than DDMA. They have assembled an exceptional team, which is the key ingredient to delivering
exceptional consumer and market insights.
Jack Daniel's (Brown Forman), Global Director Consumer Insights Daniel Schapker

Overview of the food market in China – 1
19
Repeated food scandals and changing buying behavior have created great opportunities
With an established middle class, growing disposable income levels and repeated food scandals, demand and consumption of
imported foods has increased greatly. Core reasons for growth are listed below and should be imbedded inside the core
positioning for a foreign food brand, particularly the no additives and the origin. In addition, shopping behavior is changing with
increased purchase in international retail channels, convenience stores and in particular, online supermarkets.
Source: DDMA China Market Research -
Changing Chinese Consumer Survey – Wealthy
Chinese Household Grocery Decision Makers –
n=550. January 2015

Overview of the food market in China –2
20
EXAMPLE - The UK origin is a strong positive and should be emphasized – this will help
justify price
An earlier DDMA study on the impact of country of origin on food from selected companies
revealed that England is the 6th most favorable origin for foreign foods among Chinese
consumers.
Some core attitudes to foreign food purchase, especially the level of research that goes into the
purchase decision are also relevant to the international food marketing challenge.
Source: DDMA Food Safety and Opportunities for Foreign Brands in China Food Market – Jan 2014

21
Example of impact of country of origin on acceptable price levels with Chinese
consumers
65
75
85
95
105
115
125
135
145
25% 30% 35% 40% 45% 50% 55% 60% 65%
Norway
USA -
Alaska
Canada
Australi
a
New Zealand
United Kingdom
China
Japan
Argentina
Russi
a
Price
Willing to
Pay per 500g
(CNY)
% of consumers that will definitely buy at this price level
Impact of country of origin on acceptable price levels per 500g of seafood & purchase intention at acceptable price point
DDMA – Changing China Consumer Series - January 2015
A recent DDMA study demonstrated the impact of country of origin on the acceptable price levels and purchase intention among
Chinese consumers.
A standard seafood concept was tested across a panel of consumers. The only variable that was changed during testing was the
country of origin. This test demonstrated that seafood from certain countries or regions – such as Norway or Alaska – could
command a very high premium price point relative to the exact same seafood offering from China and a selection of other countries.
Source: DDMA China
Market Research -
Changing Chinese
Consumer Survey –
Wealthy Chinese
Household Grocery
Decision Makers – n=550.
January 2015

Online Supermarkets are a very important channel and not just from a sales
perspective
22
73%
59%
57%
57%
53%
43%
43%
43%
39%
37%
Snacks - such as potato chips
Coffee
Fresh Fruit
Dairy Products (including…
Cooking oil
Fruit Juice
Tea
Rice
Soft Drinks (such as cola)
Frozen Beef
Top Online Grocery Purchases Over the Last Three Months –
Wealthy Chinese Households - January 2015
Statements on Imported Food , Overseas Processing and Overseas
Packaging – Wealthy Chinese Households - January 2015
Statements on Imported Food
%
Strongly
Agree
I will pay more for imported food than Chinese produced
food
75%
I will pay more for food that is processed overseas, not
processed in China
65%
I will pay more for food that is packaged overseas, not
packaged in China
64%
Source: DDMA China Market Research - Changing Chinese Consumer Survey – Wealthy Chinese Household
Grocery Decision Makers – n=550. January 2015
International Hypermarkets – almost 40% of wealthier Chinese
households purchase imported food and groceries in this channel
at least once a week.
Online Supermarkets – almost 30% of wealthier Chinese
households purchase imported food and groceries in this channel
at least once a week. However, this is the most often used channel
for the purchase of imported foods among almost 40% of wealthy
Chinese households.

DDMA Reports on Food Safety – Extract
23
DDMA tracks the changes in food safety concerns among Chinese consumers

Retail Audit and Penetration Check across 3,020 Off premise
accounts – China
24
Treasury Wine Estates – Report provided via DDMA Online Reporting Platform
The key objectives were:
• To get the incidence of Treasury brands in both on premise channels
and off premise channels.
• To gauge the price point of Treasury brands at SKU level and Brand
Family level.
• To obtain the incidence for key competitor brands.
• To obtain the highest and lowest price for key competitor brands at
Brand Family level.
• To understand the city differences in distribution for both Treasury
brands and key competitor brands.

Retail Audit and Penetration Check across 3,020 Off premise
accounts – China
25
Complete data profiles provided down to individual account level
 Incidence, presence and pricing provided per brand, SKU, brand family and price segment
 All data in searchable format – city, channel, district
 Each store location mapped and contact details of retail management provided

Retail Audit and Penetration Check – Frozen Seafood
26
 Focus on key off premise retail channels – final sample of 275 stores completed
 Methodology: A total of 275 retail stores were visited across five key markets and five key retail channels. The channels
selected were based on research results with consumers and reflected the main channels were consumers buy deep sea
white fish.
 The core research objectives were to:
 Measure the incidence of selling deep sea white fish across retail channels
 Identify the most prominent type of deep sea white fish that was available
 Measure how this deep sea white fish was presented to Chinese consumers in terms of naming, branding, species,
packaging, SKU size and format
 Research took place during the first two weeks of August 2014 .

27
Focus on key off premise retail channels – data on 420 SKUs collected
 Incidence by category and brand recorded
 Category and brand profiles developed
 Analysis conducted on price point, package type, origin, format and SKU size and format included in report

28
Brand profiles included
 Detailed brand profiles included
 Report included price point, distributor details, promotional activity

Route to Market – Frozen Seafood
29
Distribution and route to market mapped – 150 interviews with distributors and
retailers conducted
 Distributor and Retail interviews allowed for a detailed route to market overview to be developed
 Cross referenced with retail volumes.

Price Trees – Frozen Seafood
30
Margin Pool calculated based on distributor and seafood interviews
 Margin pools and price trees developed on a per channel basis

Route to Market – Domestic White Spirits – China
31
Route to market based on 220 interviews with distributors, retailers and HORECA
 Designed to provide an overview of the route to market for domestic spirits in China

Price Trees – Domestic White Spirits – China
32
Based on interviews with distributors and retailers of competing brands
 Price trees allowed brand owner to compare planned margin pool to key competitors

Seafood – Building a Database of Potential Distribution Partners
33
Study based on interviews with 472 companies in China

Recommended Distributor Profiles
34
Those that met pre determined criteria as potential distributors were profiled in detail
Company Profiles & Contact Details Business Scope and Categories Management & Trading Terms

Recommended Distributor Profiles
35
Profiles included retail coverage, in store activities and examples of products
distributed
Range of Products
Key Accounts and
Retail Coverage and
Activities
Range of Products Range of Products

Market Research
Facilities and Capabilities

Qualitative Research Capabilities
www.focusgroupchina.com
DDMA in-house qualitative unit
Focus Group China provides our
clients the following services:
 Focus Groups
 Mini Focus Groups
 In-Depth Interviews
 Buddy Groups
 Observational and Mystery
Shopping

Qualitative Research Capabilities
www.focusgroupchina.com
Our qualitative team of moderators are highly experienced and employ some of the most advanced
projective techniques.
Our recent qualitative projects include:
 Online Purchase Behavior Studies
 Brand Positioning and Repositioning Studies
 Communication and Advertising Evaluation and Testing
 Concept Screening and Testing
 Customer Needs Mapping
 Industry Process and Performance
 Mystery Shopping
 New Product Development
 Senior Management/Executive Interviews

Qualitative Research Facilities across China
Most advanced facilities in Shanghai and coverage across China
Focus Group China research facilities across China offer clients:
 Spacious city-center focus group rooms
 Seamless online viewing system allows clients to observe and interact with focus groups in real-
time from anywhere in the world
 Large capacity client viewing rooms with one-way mirror and comfortable client lounges with
refreshments
 Shanghai headquarter facilities are the most advanced in the market, and are fitted with high-end
Logitech and Sony AV equipment

Quantitative Consumer and Trade Research
www.ddm-asia.com
DDMA Market Research provides data
collection capabilities, and conducts large
scale consumer, trade and research projects
across China, and in other Asian markets.
DDMA Market Research uses a variety of
different methodologies in our data collection
operations including :
 Telephone Interviewing
 Face to Face Interviews via Central
Location, Door-to-Door, and Street
Intercept
 Mail & Online Surveys
 Hall Test

Quantitative Consumer and Trade Research
www.ddm-asia.com
Recent quantitative research projects conducted by
DDMA Market Research include:
 Retail and Channel Evaluation Studies
 Retail Audits
 Retail Census
 Brand Usage and Awareness Studies
 Brand and Product Switching Studies
 Concept Test
 Taste Test
 Packaging Test
 Advertising Test

Full China Coverage
We manage research across China from 28 Research Centers
We conduct research in:
Shanghai Headquarters
Beijing
Changsha
Chengdu
Chongqing
Dalian
Fuzhou
Guangzhou
Guiyang
Haerbin
Hangzhou
Haikou
Hefei
Jinan
Kunming
Lanzhou
Nanchang
Nanjing
Ningbo
Qingdao
Shenyang
Shenzhen
Taiyuan
Tianjin
Wuhan
Wulumuqi
Xiamen
Xian

Ddma china-market-research-credentials-f&b-q2-2015

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