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Page 1 Confidential & ProprietaryCopyright © 2009 The Nielsen CompanyConfidential & Proprietary • Copyright © 2009 The Nielsen Company
Modern Trade& The Retail
Business
August 28th, 2009
V
Confidential & ProprietaryCopyright © 2009 The Nielsen CompanyConfidential & Proprietary • Copyright © 2009 The Nielsen Company
Executive Summary
• Modern trade is still developing positively in Vietnam given consumer trends and the economic recovery
• The competition is increasingly fierce with the opening of the market: key international players have eyed the market and see Vietnam as a big potential
• Retailers need to speed up to ensure maximized revenue and profit– a combination of understanding and actions
Understand market
Understand consumers
Know yourself and competitors
Management Optimum
• Nielsen has tools to help ensuring and maximizing your revenue and profits
Confidential & ProprietaryCopyright © 2009 The Nielsen CompanyConfidential & Proprietary • Copyright © 2009 The Nielsen Company
• Research Design
• Modern trade perspective
• Ensure growth in an increasingly competitive environment
• Who knows the answers knows how to deal with it
– Findings the answers to the key retailers’ needs
• Nielsen as your retailer partner
– Increase your profit and revenue with Nielsen
Agenda
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Research Design• Nielsen Shopper Study
– Qualitative Study – Mystery Shopper– Quantitative – n=200– Saigon Coop HCMC– ABC HIB, females, 20 to 45 yo
• Nielsen Shopper trends– N = 1500– HCMC and Hanoi, DN, CT– ABC HIB, males & females, 20 to 45 yo– 40 categories FMCG & non FMCG
• Nielsen Retail Audit– Data up to Jul 2009– Based on 2 cities (HCMC, Hanoi)– Covering 43 FMCG categories
• Nielsen Consumer Confidence Study
– Conducted March 2009– Global online study > 50 countries
• Nielsen Omnibus – N=300 (each wave)– HCMC and Hanoi (Jan to May 2009)– Males & Females, 15 to 55 yo
• Macro Economic data– Vietnam Govt. General Statistics Office
• Nielsen Space Man– A merchandizing software
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Modern Tradeperspective
Vietnam vs Region
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368
425
2007 2008
Modern Trade continues to expand in 2008!Modern Trade is still growing 16% in store number and proves to be a more and more important channel ….
+16%
Number of Modern Trade stores – HCMC+HN
Discover who is driving the increase in stores…
17 20 24
83 80 76
0102030405060708090
100
2008 2009F 2010F
GTMT
Sales contribution by sector – HCMC + HN
Source: Nielsen Retail Audit
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A lot of potential compared to our neighborsComparing MT Vietnam to our neighbors, we also enjoy, growth, but the channel is relatively untapped versus our neighbors
88
4843
32
7
89
4843
35
9
5145
36
10
46 46
90
48
Singapore Malaysia Thailand Philippines Indonesia Vietnam
2005 2006 2007
Share of trade for modern self-service outlets in Asia
Source: Nielsen Retail Audit, all FMCG
Average
Source: Nielsen Retail Audit
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7366
5040 43
14
7568 64
43 47
19
7669
6054
47
20
71
Thailand Singapore Vietnam Malaysia Indonesia Philippines
2004 2005 2006 2007
And room for more playersTop 5 chains contribute to 71% of total Vietnam Modern trade
Trade concentration within the Modern Trade HCMC & HanoiShare for the top 5 chains
(Top 5 chains: Saigon CoopMart, BigC, CitiMart, MaxiMart, FiviMart)
Source: Nielsen Retail Audit, Based on FMCG categories tracked by Nielsen
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Positive feedback from the experts …
• “Việt Nam ranked 6th globally in retail trade with an estimated revenue of USD37 Bil. Target this number will reach USD50 Bil by 2010.
Ms. Đinh Thị Mỹ Loan – Vice President, Secretary of Vietnam Retailer Association
• Vietnam falls six places due to declines in exports and the resulting decline in GDP, but long-term outlook is still positive
2009 Global Retail Development Index™, AT Kearney• According to trade department’s plan, every 100.000 residents needs a big trade center, every 10,000 residents needs a supermarket and every 1,000 residents needs at least 1 - 3 convenient stores, then the current number of modern trade isstill a far cry.
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66
92
96
93
Super &Hypermarkets
TraditionalGrocery
2007
2008
Occasional usage incidence of
Hyper & Supermarketsis closing up
on Traditional Grocery in 2008!
%
Source: Nielsen Shopper Trends 2009, Base: All respondents (n=1900)
Occasional usage
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100%
105%
109%
113%
118%
126%
135%
143%
151%
100% 101% 102%
111%
115%
119%
124%
132%
143%
2000 2001 2002 2003 2004 2005 2006 2007 2008E
UrbanRural
Source: Government Statistics Offices
Urban and Rural Growth GDP Per CapitaCompound Growth in GDP, Indexed on 2000
High GDP Growth is mostly coming from the Urban areas in Vietnam (+50% since 2000)…
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33%24%
14% 9% 6% 9%2% 2%
48%53%
53%51%
43% 35%
21%14%
14% 15%24%
30%39%
39%
54%58%
6% 8% 8% 11%7%
9%12% 14%
5% 8% 11% 12%
2002 2003 2004 2005 2006 2007 2008F 2009F
10+m VND7-10m VND7+m VND4-7m VND2-4m VND<2m VND
Emerging Middle Class: Increasingly Affluent And Sophisticated Consumers – HCMC+HN
Source: Nielsen Omni Bus
…and Household Income is also growing - HCMC/ HN sees increasing disposable income for consumers – an indicator for the channel development
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• Vietnam’s modern trade still has a lot of potential and is consistently gaining importance in share of baskets
• Currently dominated by just 5 key players
• Positive support from consumers – more money and migration trend towards Modern trade channels
Modern trade V Traditional sector
In summary
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Ensure growth in a more competitive environment
Current vs. CurrentCurrent vs. Future
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Competition is fiercer among current playersCoop-mart still has a very strong SEI relative to its competitors in spite of a slight decline. Big C equity rises significantly putting it slightly above Metro.
Source: Nielsen Shopper Trends 2009, Base: All Supermarket/Hypermarket shoppers (2007 n=1009,2008 n=1494 )
0.20.3 0.1 0.1
1.2
3.7
2.5
0.8 0.80.5
0.2 0.1 0.1
1.8
0.7
0.3 0.2
0.7 0.5
3.3
1.9
Coop-martSPM
Big C SPM Metro MaximarkSPM
FivimartSPM
IntimexSPM
CitimartSPM
VinatexSPM
Hapro SPM Uni-martSPM
Bai ThoSPM
2007 2008
Store Equity
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While the threat is still there from the outsiders
Retail market Opening Route 1/2007: foreign retailers able to found joint-ventures with foreign capital of less than 49%. 01/01/2008: joint-ventures with no limitation for foreign retailers. 01/01/2009: 100% foreign-owned retailers allowed. First location to be approved. 01/01/2010: open trade – foreign traders are allowed to execute all kinds of retail and wholesale business in Vietnam
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• Location – where to put my stores?
• Suppliers – How to make them deliver quickly and give me a good price?
• Current client vs. current in-store environment- more spent / more frequent / heavier basket- in-store promotion, ranges & merchandizing
• New customers: Marketing activities effectives
What a retailer needsWhat a retailer needs……
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Key points to build your competitive edge
Tools to ensure revenue and profits
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Key points to take note
Store location
Supplier management
Current customers vs. in-store management
New customer development
Finding the solutions…Finding the solutionsFinding the solutions……
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Key points to take note
Store location
Supplier management
Current customers vs. in-store management
New customer development
An important decision when trying to determine the overall competitive marketing strategy is place
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We need to understand the areas well enough
Income structure
Population Structure
Store number / type density
Our strategy vs. consumer needs
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What should be the best position for the store?
Source: Nielsen Map Info
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Store location?
• Know your strategy
• Know the areas
• Know the consumers
• Nielsen Infomap + Nielsen
Shopper study can help
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Key points to take note
Store location
Supplier management
Current customers vs. in-store management
New customer development
Improving supply chain management is critical to strategy for reducing cost and maximizing added value
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What are your strength & weaknesses vs. competitors
We need to understand our partners well enough
Factors and attributes that drives supplier loyalty and satisfaction
How do they rank your store vs. competitors?
Key areas for improvement?
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Power of purchaseFrequency of purchaseEase of order request
Reliable/Trustworthy Progressive Store equity Pricing Strategy
Clear and standard ordering process Ethics of purchaser Payment Process Payment abidance Returned goods policy Responsiveness to problemsTrading terms
Openness/Receptiveness Works with me to improve my business Shares market information Is Proactive Category Management Shelf Management
Source: Nielsen eQ Study
Purchasing Power
Image
Order & payment
MKT/trade Support
Retailer promotion Trade support budget Sales/Merchandising materials Effective Advertising/Promotions Speed of implementation
Buildingtrade
partnership
A decent understanding of your suppliers is required
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Improve ASAP Maintain
Secondary improvement are
Strength
Maintain – low priority Maintain
Impo
rtan
ce
100
0
Store performance
HighAverageLow
Promotion campaign
A resource allocation plan to be in place
Location
Service
Accessibility
Placement Price
Source: Nielsen eQ Study
Page 28 Confidential & ProprietaryCopyright © 2009 The Nielsen Company
Supplier management?
• Know the suppliers’ needs
• Know your SWOT vs other supermarkets
• Nielsen eQTM study can help
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Key points to take note
Store location
Supplier management
Current customers vs. in-store management
New customer development
Delivering a consistent in-store experience satisfying your customers help drive both repeat visits and store productivity.
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Current customers vs. in-store management is not as simple as it looks. Key areas to cover:
• Understand consumer channel choice
• Understand consumer behavior withinMT channel
• Understand your store equityvs. competitors
• Within stores:
• Understand cross category position
• Understand the consumer behavior by category – ranges and merchandizing - Liquid Milk example
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Current customers vs. in-store management is not as simple as it looks. Key areas to cover:
• Understand consumer channel choice
• Understand consumer behavior withinMT channel
• Understand your store equityvs. competitors
• Within stores:
• Understand cross category position
• Understand the consumer behavior by category – ranges and merchandizing - Liquid Milk example
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Decrease vs.2007
21
59
96
100
SUPERMARKETS
96%
61%
36%
Spend mostmoney
Use Past 7days
Use Past 4weeks
OccasionallyUse
74
93
99
0
(%)
94%
80%99
100
100
77
100%
99%
77%
WET MARKET
0
3
9
4
44%
75%
CONVENIENCE STORES
Increase vs.2007
Channel Leverage 2008Wet market is still the key channel consumers spend the most and visit most while 50% consumers use supermarket on a occasional & regular basic besides traditional grocery exhibits the chance of modern trade to convert
TRADITIONAL GROCERY
Source: Nielsen Shopper Trends 2009
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%
Ref: Q27-Q41
7 9 7
29 33
60 63
27
582
16
8
62
45
30 31
60
37
92 91 92
4 32 3 23
5
33 3 32 1 112
0
20
40
60
80
100
fresh fruit &vegetables
fresh meat orpoultry
fresh fish orseafood
Carbonatedsoft drinks
Biscuits Shampoo LaundryDetergent
Snacks Toothbrush
Bakeries
Dealer
Cash & Carry
Wet Markets
Traditional Grocery
Cosmetics Shops
Confectionery Shops
Supermarket
Place of Most Often Purchase by CategoryWet market is chosen for Fresh Food Traditional grocery is visited for Non-fresh food like snacks, biscuits…Supermarket is a favorite place for Personal Care products like detergent, shampoo, toothbrush.
Source: Nielsen Shopper Trends 2009, Base: All respondents (n=1500)
Place of Most Often Purchase by Category
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Top 3 factors in driving store loyalty
1.Convenience 2. Near house3. Easy to shop
1.Convenience2. Near house3. Reasonable
price1.Convenience 2. Near house3. Promotion program
1.Convenience 2. Near house 3. Easy to shop
1.Convenience2. Reasonable price3.Near my house
1.Convenience 2. Near house
3.Product availabity
1.Convenience2. Reasonable price3. Product availabity
1. Clean & Clear2. Product diversity
3. Food quality
1. Easy to shop2. One-stop shopping
3. Product quality
1. Easy to shop2. Reasonable price
3.One stop shopping
1.Convenience 2. Near house
3. Reasonable price
Source: Nielsen Shopper Trends 2009
“Convenience” and “Near my house” are 2 key factors in store choice and store loyalty. Yet in those well-developed modern-trade markets, it goes further than that!
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• Requirement for more choice range– Income increase– More product availabiity– More “new product” awareness
• Convenience still the key– Near house or easy to get to– One-stop shopping
• Having more experience with MT– Ambience & atmosphere– Product and service quality – Clean and sanitery
• More members during shopping trip– Family entertainment cases– Responsibility sharing for housewives
Source: Nielsen Shopper Study
Shopping trip and shopping behaviors have been changing overtime
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Current customers vs. in-store management is not as simple as it looks. Key areas to cover:
• Understand consumer channel choice
• Understand consumer behavior withinMT channel
• Understand your store equityvs. competitors
• Within stores:
• Understand cross category position
• Understand the consumer behavior by category – ranges and merchandizing - Liquid Milk example
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In-store TV media needs to fit within the shopper experience
…even though shoppers noticed the TV showing ads placed above the aisle, very few actually watched
on average the customers shop the aisle for 36 secs, they don’t have time to take in a 30 sec ad
consumers would be more open to ad messages when queuing at the check-out.Brief ad messages embedded in the display may be more effective in the aisle itself
Source: Nielsen Shopper Study
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And sales assistants play an important role
…. 23% who shopped the aisle made contact with a sales assistant
Source: Nielsen Shopper Study
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Use baskets/trolleys encourages purchasing
…. one third of consumers who shopped the aisle did not use a trolley or basket
….having an assistant offering baskets/trolleys means they shop for longer (average of 39 seconds with a basket vs 33 seconds with no basket/trolley) and buy more (average of 1.45 packs with a trolley vs1.23 with none).
Source: Nielsen Shopper Study
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Channel choice & Modern Trade opportunity?
• Chance to convert shoppers from other channel to supermarket/convenient stores
• Convenience to the house still key yet customers are being more sophisticated. A distinct difference in ambience, product range, service, quality or price is needed
• Appropriate shopping aids helps to increase shopper’s spending
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Current customers vs. in-store management is not as simple as it looks. Key areas to cover:
• Understand consumer channel choice
• Understand consumer behavior withinMT channel
• Understand your store equityvs. competitors
• Within stores:
• Understand cross category position
• Understand the consumer behavior by category – ranges and merchandizing - Liquid Milk example
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Efficiency/ Loyalty Program (12%)
Large Store Format & Wide Selection (12%)
Store Accessibility (14%)
The Brand Equity model deconstructs the sources of store equity to understand its building blocks
SOURCESSOURCESWhat people know
store equityindex
Awareness (21%)
Consideration (20%)
Quality products (11%)
Pricing & VFM (10%)
Source: Nielsen Shopper Trends 2009
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0.48
0.330.33
0.31
0.30
0.290.29
0.29
0.29
0.28
0.27
0.260.25
0.24
0.24
0.240.24
0.24
0.22
0.170.06
0.28
Convenient to get to
Always have what I want in stock
A place where it's easy to quickly find what I need
Attractive and interesting promotions
Everything I need in the one shop
High quality prepared meal
Has programs that reward regular purchase of food & groceries
High quality fresh food
Pleasant store environment
Has high quality brands
Staff provide good service
Food and Groceries are good value for money
Has wide range of well known brands
Well presented display of products
Clean and hygienic store
Spacious
Wide range of fruit & vegetables
Wide range of fresh fish & meat
Ease of parking
Low prices for most items
Efficient checkout counters
Provides own brands as a good alternative to the main brands
Store Accessibility (14%)
Efficiency/ Loyalty Program (12%)
Quality Products (11%)
Derived Importance Ranking of Supermarket Store Attributes - All Shoppers
Large Store Format & Wide Selection (12%)
Pricing and Value for Money (10%)
• The top 2 attributes driving SEI are related to location and convenience of finding items once in store, showing people do not want to waste any time when making a shopping trip.
Source: Nielsen Shopper Trends 2009
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Relative Retailer Performance on Store Attributes
Base: All Supermarket/Hypermarket shoppers who rate Coop-mart SPM (n=677), Big C SPM (n=905), Metro (n=1089), Maximark SPM (n=294)
0 20 40 60 80 100
Chain AChain BChain CChain D
Convenient to get toAlways have what I want in stock
A place where it's easy to quickly find what I needAttractive and interesting promotions
Everything I need in the one shopHigh quality prepared meal
Has programs that reward regular purchase of food & groceriesHigh quality fresh food
Pleasant store environmentHas high quality brands
Staff provide good serviceFood and Groceries are good value for money
Has wide range of well known brandsWell presented display of products
Clean and hygienic storeSpacious
Wide range of fruit & vegetablesWide range of fresh fish & meat
Ease of parkingLow prices for most items
Efficient checkout countersProvides own brands as a good alternative to the main brands
% Associated with Retailer
diffe
rent
iato
rsim
port
ant
expe
cted
Quality Products Efficiency/ Loyalty Program
Large Store Format & Wide Selection
Pricing and Value for Money Store Accessibility Ref: Q18
Derived importance – ranked in order
• Chain A builds its successful store image from its higher convenience in the customer’s mind. Chain B performs better than Chain C on most attributes. However, Chain C stands out for its low price while Chain D need to improve in most attributes to catch up with the retail leaders.
Source: Nielsen Shopper Trends 2009
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29
15
62
9
45
38
18
9
9
9
29 33 71
22
15
44
17
64
56
31
17
18
18
35 26 78
33
1
39
41
65
61
49
41
40
40
21 5 67
Not Aware
Hard to get to
Not Consider
Awareness
Trialists
Considerers
Regulars
Dependables
Preferrers
Recommenders
38
2
46
40
58
54
47
40
38
39
18 4 62
Store Relationship Tiers
TOM Other Spont.
Prompted TOM Other Spont.
Prompted TOM Other Spont.
Prompted TOM Other Spont.
Prompted
Ref: Q11abcd, 12ab, 13abcd
SEI (3.7) 2007 SEI (3.3) 2008
Chain A Chain BSEI (1.2) 2007 SEI (1.9) 2008
Base: All Supermarket/Hypermarket shoppers (2007 n=1009, 2008 n=1494)
• A great performance of Chain B as most KPIs significantly rose vs. last year. Chain A is still strong but declined across key indicators. Encouraging shoppers to visit on regular basic with better convenience will further strengthen Chain B standing
Source: Nielsen Shopper Trends 2009
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Your chain in the consumers’ mind
• Understand the key driver for store equity
• Understand your SWOT vs. competitors
• Understand your relationship with your current clients
• Customer retention and new customer attraction is key!
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Current customers vs. in-store management is not as simple as it looks. Key areas to cover:
• Understand consumer channel choice
• Understand consumer behavior withinMT channel
• Understand your store equityvs. competitors
• Within stores:
• Understand cross category position
• Understand the consumer behavior by category – ranges and merchandizing - Liquid Milk example
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What are the most important categories?
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Hair Conditioner
Personal Wash
Toothbrush
Body Cream Lotion
Shampoo
Deodorants
Toothpaste
Facial Care Product
Razor & Blade
Insecticide
PERSONAL CARE
Laundry Product
Insec. Aerosol
Insec. Coil
Fabric Softener
HH Cleansers
Dishwashing Liquids
HOUSEHOLD CARE
Cigarette
Gums
Ready-to-drink Tea
Soft Drink
Packaged Water
Energy
Beverage + Cigarette
Ready-To-Drink Milk
Sweetened Condensed Milk
Total Milk (IF, ADM, FCM)
Biscuit
Cooking Oil
Instant Noodle
Bouillon-Msg
Sauce
Powdered Concentrates
Tea bag
FOOD
Coffee
Snack
Sport Drink
Feminine Protection
Fruit Juice
Beer
Tissues
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Category Contribution
0 2 4 6 8 10
Ready-To-Drink Tea
Feminine Protection
Cooking Oil
Instant Noodle
Personal Wash
Laundry Products
Shampoo
Biscuits & Pie
Ready-To-Drink Milk
YTD LY YTD TY
VALUE % SHARE VAL GROWTH YTD TY VS. YTD LY
TOP 10 CATEGORIES IN MT HCMC & HN
Do you know? – Top category in MTRTDM, Biscuits & Pie & Shampoo are they key categories in HCMC+HN MT, in which LP & RTDT enjoy the highest growth!
Source: Nielsen Retail Audit
Category Growth
0 20 40 60 80 100 120
Ready-To-Drink Tea
Feminine Protection
Cooking Oil
Instant Noodle
Personal Wash
Laundry Products
Shampoo
Biscuits & Pie
Ready-To-Drink Milk
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Within one category, what brands / items should be on your range?
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Do you know? – Top brands in RTDTIn RTDT, Khong Do & C2 still the key brand yet DR Thanh is gaining share with amazing growth!
VAL % GROWTH YA BY BRANDS
10 13
0102030405060708090
100
C2
Dr.Tha
nh
Khong
Do
Shik
i
Pokk
a
% BRAND (VALUE)
C254%
Dr.Thanh23%
Shiki4%Pokka
3%
Khong Do16%
Source: Nielsen Retail Audit
New launch
TOP READY-TO-DRINK-TEA BRANDS IN MT HCMC & HN – YTD TY
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Top 20 SKUs in RTDTHave you got these in your RTDT ranges?
Volume %Share
C2 Green Tea Lemon Plastic Bottle 360 ml
Khong Do Green Tea Lemon Plastic Bottle 500 ml
Dr.Thanh 9 Herbals Plastic Bottle 350 ml
Shiki Green Tea Lemon Plastic Bottle 500 ml
Dr.Thanh 9 Herbals Plastic Bottle 500 ml
100 Green Tea Lemon Plastic Bottle 500 ml
C2 Green Tea Forest Fruit Plastic Bottle 360 ml
Wonderfarm Winter Melon Can 330 ml
C2 Green Tea Apple Plastic Bottle 360 ml
Khong Do Barley Tea Plastic Bottle 470 ml
Shiki Green Tea Honey Plastic Bottle 500 ml
Lipton Black Tea Lemon Plastic Bottle 455 ml
Lipton Ice Tea Lemon Can 330 ml
Lipton Pure Green Original Plastic Bottle 455 ml
Lipton Pure Green Green Tea Lemon Honey Plastic Bottle 455 ml
Khong Do Fruit Tea Green Tea Apple Plastic Bottle 365 ml
C2 Green Tea Peach Plastic Bottle 360 ml
Pokka Oolong Plastic Bottle 500 ml
Pokka Japanese Green Tea Plastic Bottle 500 ml
Khong Do Winter Melon Can 330 ml
34.7
10.9
4.7
4.7
4.4
4.3
4.2
3.9
3.3
2.9
2.3
2.3
1.3
1.2
1.2
1.1
1.0
1.0
1.0
0.9
Source: Nielsen Retail Audit
Is your ranking
the same?
Is yourpricingin line?
Compared to
General trade ?
Any new launches?
TOP READY-TO-DRINK-TEA SKUS IN MT HCMC & HN – YTD TY
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Stock management
Sufficient stock level
Source: Nielsen Retail Audit & Spaceman
Under stock levelOver stock level
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Your product range
• Understand the size and growth of the category
• What are the most potential categories and segments?
• Within the category, we need to focus on the right brand & right SKUs!
• Is your range in line with Total Modern trade or total General trade?
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Once you got the right range, what should be the merchandizing scheme?- Example with Liquid Milk category
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In order to have a good planogram, we need to understand how
consumers shop the liquid milk category
Source: Nielsen Shopper Study
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RulesRulesAmongst the safe brands, choose
the one that tastes the best
Amongst the safe brands, choose
the one that tastes the best
Must buy a ‘safe’/ good
brand
Must buy a ‘safe’/ good
brand
Kids impactKids impact29% of primary shoppers are accompanied by kids aged under 13; Of these, 59% have influenced the purchase
29% of primary shoppers are accompanied by kids aged under 13; Of these, 59% have influenced the purchase
PackPack1 litre pack sizes
play a role in conveying
information, but 81% bought 4x
small packs
1 litre pack sizes play a role in
conveying information, but 81% bought 4x
small packs
PromotionPromotion
Only works for brands within consideration
set via pre-store advertising/word
of mouth –switching – not
increasing purchase power
Only works for brands within consideration
set via pre-store advertising/word
of mouth –switching – not
increasing purchase power
DisplayDisplay
43% of purchasers
bought liquid milk from a
free-standing display
43% of purchasers
bought liquid milk from a
free-standing display
Decision making treeDecision making tree
Need – brand – price -Pack - flavor
Need – brand – price -Pack - flavor
But we also need to put in action some of the other findings about the shopper behavior
Source: Nielsen Shopper Study
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Proposed layout
Enhanced nutrition
Kids development
Nutrition
Nutrition(teens)
VinamilkDutch Lady
DutchLady Vinamilk Dutch
Lady
VinamilkOthers (Campina, Daisy, etc.)
Others (Campina, Ovaltine, Milo, etc.)
Category signage
890 – 1000ml
110ml – 140ml
Source: Nielsen Shopper Study & Space man
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Your merchandising
• Understand the behavior of shoppers
• What are the “hot spots” what are the “cold spots”?
• What is the shopper decision tree?
• What is the most profitable planogram?
• Nielsen Shopper Study and Nielsen Spaceman software can help
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Key points to take note
Store location
Supplier management
Current customers vs. in-store management
New customer development
The matter of prime importance to survive and growth is getting the new customers you need.
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77%
61%
5%
10%
1%
3%
6%
2%
0%
I shopped at the same store I always do
I just went to the closest store
I shopped at a store that a colleague, friend orrelative had recommended
I checked the newspaper or flyers for coupons andwent to the store with the attractive deals
I chose the store that I'd seen advertised recently
I heard of a new store and decided to try it
I was visiting friends/ family and went to a store thatthey usually shop at
I was passing a store that caught my attention and Itried it
None of the above
Store visit TriggersAuto-pilot is a dominant trigger for store choice. Location is another driver. Promotions only play secondary roles in triggering more shoppers.
Base : All Supermarket/Hypermarket Shoppers (n=1494)
HABIT Auto-pilot
Source: Nielsen Shopper Trends 2009
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New consumers grasp
• Understand the behavior of shoppers?
• What are your store destination categories?
• Nielsen Shopper Study can help
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Nielsen as your retailer partner
Increase profit and revenue with Nielsen
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What a Retailer needs in sum –What you need
• Comprehensive View of Retail Market
• Thorough Understanding of Shoppers
• Objective & Independent Assessment of Your Market
• Position, Strength & Weakness
• Efficient In-store Operation
• Etc…
Nielsen Retailer Services can help!
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Options of Services available
Data Exchange Service
Retailer AdvisoryService
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Retail Tracking Services Data Exchange
Track your performance as against the market and your competitors. Provide essential insights to development of effective
business strategies
Shopper Shopper TrendTrend
Retail Market Retail Market StudyStudy
Retailer Retailer PerformancePerformance
Review Review
Retailer Retailer Vendor Vendor ReviewReview
Retailer Retailer Category Category ReviewReview
Training & Training & Client ServicesClient Services
Answer your questions likeWhat is the retail market dynamic?
How am I performing as against the market?
How am I performing as against my competitor?
How am I performing on the department/category level ?
What is the general shoppers habits, perceptions and behaviour?
Data Exchange service
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Data Exchange Service Flow Chart
Receipt Quality Check &Control Data Transfer Load Report
ACNielsen对数据的处理
Retailer Report output
Nielsen
Deliver Data
Data is strictly managed to ensure Confidentiality!!
Data Exchange service
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Open new stores
Increaseshopper loyalty
Reposition
Serve for Retailers’ Strategy with different focus
EXPAND
OPTIMIZE
RETHINK
High growth potential in current stores
Fast changing shopping trends threaten established business model
Intensifying competition limits same-store salesgrowth
Challenges Objective Strategy
Retailer Advisory
Service
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Expand geographic reach
??
Market feasibility Market feasibility studiesstudies
Is it time to enterthis new market?
Site location Site location studiesstudies
Is this a good locationfor a new store?
?
?
?
?
Retailer Advisory
Service
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Customer Customer SatisfactionSatisfaction
Mystery Mystery ShopperShopper
Price Price ChecksChecks
Promotion Promotion EffectivenessEffectiveness
Category Category ManagementManagement
Price Price ElasticityElasticity
Assortment Assortment ChecksChecks
Optimize store performance
Pricing
ShoppingexperiencePromotions
Assortment
SHOPPERLOYALTY
Retailer Advisory
Service
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Rethink business model
Lifestyle & segmentation
studies
U&A studies
Price image
Brand image
Brand Positioning Store Design
Store ConceptTesting
AccompaniedShopping
Private Label
Concept & productTesting
Naming & Packagingresearch
House Brand image
Store Catchment area study
Retailer Advisory
Service
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Thank you
Q&A