- 85% of the population in Vietnam's four largest cities purchase goods under promotion each year, with gifted purchases being the most popular promotion type at 58% of promotion value. - Modern trade channels offer more promotions than traditional grocers and attract 34% of consumers who dedicate about 10% of their shopping basket to promoted items. - Promotions are most common during the lead-up to Tet, with spending under promotion increasing 50% during the Tet period and 30% in the preceding four weeks compared to normal months. However, promotions have limited impact on brand trial and show no significant positive effect on brand share after the promotion period ends.

1. Confectionary
PROMOTIONS
Understanding the impact on
your brand and consumers

2. DATA
 Source: Kantar Worldpanel – Household Panel
 2,150 households in Vietnam urban 4 key cities
(HCM, Hanoi, Danang, Cantho)
 In-home consumption
 131 FMCG categories
 More than 7000 brands
 All retailers: Traditional Trade, Modern Trade
2
© Kantar Worldpanel

3. DID YOU KNOW?
85%
population buy FMCG products under
promotion
(4% FMCG value share)
TOP 2 SECTORS:
PERSONAL CARE & HOME CARE
Source: Kantar Worldpanel – Household Panel – Vietnam 4 key urban cities – Total FMCG – 2012
© Kantar Worldpanel

4. What kinds of promotions are more popular
among consumers’ choice of purchase?
© Kantar Worldpanel

5. TOP 3 PROMOTION TYPES
#1
GIFTED PURCHASE
58% promotion value
73% population
#2
BUY 1/ MULTI GET 1 FREE
16% promotion value
56% population
#3
PRICE OFF
15% promotion value
21% population
Source: Kantar Worldpanel – Household Panel – Vietnam 4 key urban cities – Total FMCG – 2012
5
© Kantar Worldpanel

6. Which channels attract more promotion buyers
and sales under promotion?
© Kantar Worldpanel

7. WHICH CHANNEL OFFER MORE PROMOTION?
MODERN TRADE offers more promotions, and attracts
customers to spend more on promotion
PURCHASE UNDER PROMOTION
VALUE (%)
PROMOTION RELATIVE PENETRATION (%)
85
67
68
15
4
All retailers
GT
All retailers
MT
2
GT
MT
Source: Households Panel – Vietnam Urban 4 key cities – Total FMCG
7
© Kantar Worldpanel

8. Who are promotion seekers?
© Kantar Worldpanel

9. PROMOTION
SEEKERS
34%
POPULATION
PROFILE
TOP 3
PROMOTION
TYPES
are HEAVY BUYERS of
PROMOTION
(who purchase on promotion more
than an average person – dedicate
averagely 10% basket value)
•
•
•
•
•
South (HCM & Cantho)
Young & Middle HWife <40YO
Big family 5+ members
Middle High & High income
MT shoppers
1. Gifted purchase
2. Price off
3.
Buy 1/ Buy multi get 1 free
Source: Kantar Worldpanel – Household Panel – Vietnam 4 key urban cities – Total FMCG – 2012
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© Kantar Worldpanel

10. How do promotions impact on category/ brand?
© Kantar Worldpanel

11. PROMOTION HELPS ADD INCREMENTAL SALES DURING THE CAMPAIGN PERIOD
PROMOTION CAMPAIGN
Brand A - Seasoning powder category (*)
Millions
% volume add up by promotion
+30%
+65%
+37%
+21%
+34%
Dec'11
Jan'12
Feb'12
Mar'12
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
Nov'11
Extra sales (with promotion)
Base line sales (without promotion)
* The analysis based on the brand with highest promotion level in
seasoning powder category in Tet 2012 period
Source: Kantar Worldpanel – Household Panel – Vietnam 4 key urban cities – Seasoning powder
11
© Kantar Worldpanel

12. YET, CAN PROMOTION HELP
TO INDUCE BRAND TRIAL?
© Kantar Worldpanel

13. IT APPEARS THAT PROMOTION ISN’T THE KEY DRIVER TO INDUCE NEW TRIAL
AS MORE THAN 80% OF NEW CONSUMERS ENTER THE CATEGORY NOT VIA
PROMOTION
Penetration <65%
DEVELOPING
CATEGORIES
% new market entry
occasions via real purchase
% new market entry
occasions via promotion
Fabric softener
75
25
Seasoning powder
76
24
Bar soap
84
16
Liquid bath
90
10
Toilet tissue
96
4
Panty liner
74
26
Bathroom cleaner
76
24
Insecticide
77
23
Hair conditioner
81
19
Deodorant
92
8
Average
Penetration >65%
DEVELOPED
CATEGORIES
Category
82
18
Source: Kantar Worldpanel – Household Panel – Vietnam 4 key urban cities – Total FMCG - 2012
13
© Kantar Worldpanel

14. WHAT ABOUT BEFORE &
AFTER EFFECTS?
© Kantar Worldpanel

15. NO SIGNAL TO SEE THE POSITIVE IMPACT ON BRAND SHARE AMONG THE
PROMOTION BUYERS
Do promotion buyers purchase more of the brand after the promotion period?
Category
% brand share (among
promotion buyers) in
previous 6 months
% brand share (among
promotion buyers) in 6
months after
Seasoning Powder
49.6
46.4
Cooking Oil
52.4
51.8
Shampoo
44.0
41.8
Toothpaste
58.6
63.7
Fabric Softener
60.7
54.4
Average
53.1
51.6
(*) Based on the analysis of promotion buyers in Tet period, and
on the brand with highest promotion level of each category
Tet period: 4 weeks ending 22/01/2012
Source: Kantar Worldpanel – Household Panel – Vietnam 4 key urban cities – Total FMCG
15
© Kantar Worldpanel

16. When is the peak time of promotion?
© Kantar Worldpanel

17. 8 WEEKS BEFORE TET IS THE PEAK TIME OF PROMOTION
Total spending under
promotion
+50%
In Tet period (*)
+30%
In Pre-Tet period (*)
vs. normal month
(*) Tet period: 4 weeks before the 1st day of Lunar New Year
(*) Pre-Tet period: 4 weeks before Tet period
Source: Kantar Worldpanel – Household Panel – Vietnam 4 key urban cities – Total FMCG – Tet 2012 vs. avg month 2011
17
© Kantar Worldpanel

18. SUMMARY
85% population
purchase
promotion per
year
MT is the key
shopping place
for promotion
GIFTED
PURCHASE
34% population
are promotion
seekers,
dedicating 10%
basket for
promotion
They are MT
is the most
popular
promotion type,
followed by BUY
1 GET 1 &
PRICE OFF
WHAT
5W PROMOTION FINDINGS
SHOPPERS,
big size families
with middle high
& high income, in
the South
WHERE
WHO
Promotion helps
add incremental
sales uplift during
campaign period
TET season is
the peak time of
promotion
However, it is not
the key driver to
induce trial and
no significant
positive afterterm effect is
observed
HOW
WHEN
© Kantar Worldpanel

19. Want to know more about pricing & promotions?
Choose the right promotional
and pricing activity for a
specific objective
How Kantar Worldpanel
can help you further?
Right Activity
Benchmark my price and
promotional activity against
other brands and categories.
Benchmark
Maximise
Sales
Understanding how to
maximise promotional sales
through better understanding
of who buys on deal
Consumer
Response
Quantify the current and
potential value of your different
targets to allow you to make
actionable decisions
Pricing & Promotions
Optimise your promotions
investment and price strategies

20. Promotion Analysis:
Understanding ACTUAL CONSUMER BEHAVIOUR from your deals
WHAT IS THE ROLE OF PROMOTIONS IN YOUR CATEGORY ?
How promotion is driving overall sales on the
category ? Which promotion type is mostly
played ?
8.00%
Which promotions type drive the recruitment /
encourage competitor switching ?
30
7.00%
18%
8%
23%
26%
59%
55%
18%
19%
16%
25
6.00%
20
5.00%
4.00%
62%
60%
15
3.00%
59%
10
2.00%
5
1.00%
22%
0.00%
30%
25%
0
Gifted
Buy 1 /
Purchase Get 1
Sales Volume
Buy 1 / Get 1
Additional Vol
Gifted Purchase
Price Off
Price Off Sampling
Total
Market
New to Category
Switched Brand
Current Buyer
Fee is applied for the Promotion analysis. Please contact our Client Service representative for further information.
20
© Kantar Worldpanel

21. About Kantar Worldpanel
Kantar Worldpanel is the world leader in consumer knowledge and insights based on continuous
consumer panels. Its High Definition Inspiration™ approach combines market monitoring, advanced
analytics and tailored market research solutions to deliver both the big picture and the fine detail that
inspire successful actions by its clients. Kantar Worldpanel’s expertise about what people buy or use –
and why – has become the market currency for brand owners, retailers, market analysts and government
organisations globally.
With over 60 years’ experience, a team of 3,500, and services covering more than 55 countries directly or
through partners, Kantar Worldpanel delivers High Definition Inspiration™ in fields as diverse as FMCG,
impulse products, fashion, baby, telecommunications and entertainment, among many others.
For further information, please visit us at www.kantarworldpanel.com.vn
Contact us
Kantar Worldpanel Vietnam
58 Vo Van Tan Street, District 3,
Ho Chi Minh City, Vietnam
tel: +84 8 39306631
fax: +84 8 39306632
email: vietnam@kantarworldpanel.com
website: www.kantarworldpanel.com.vn
KWPVietNam
Kantar Worldpanel Vietnam
© Kantar Worldpanel