tns seminar mar22, 2012
DESCRIPTION
TRANSCRIPT
© TNS 2011
Activation Day
© TNS 2011
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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
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Which brands are represented today?
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Which brands are represented today?
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2011 growth review - 2012 growth strategies
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Ralf Matthaes
Regional Managing Director
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TNS Signature
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2010 2010 vsvs 2011 year in Review2011 year in Review
GDP
Inflation
Trade deficit
Exports
Imports
FDI
Retail spend*
Ad spend
FMCG Value
FMCG Volume
Tourism
Consumer confidence
Source: GSO / TNS / Kantar Media* VN Retail Association – not sure if accurate
Measure
6.78%
11.75%
US$12.4 B
US$71.6B
US$84.0B
US$18.6 B
US$78.0 B
US$726 M
21%growth
9%
5.0 M
78 index
2010
5.89%
18.13%
US$9.6 B
US$96.4 B
US$105.8 B
US$10.9 B
US$95.0B
US$760 M
16%growth
1.4%
6.0 M
83 index
2011 Ralf
6.0%
10%
US$12-14 B
US$95 B
US$115 B
US$14B
US$?B
US$800 M
14%growth
0%
6.5 M
75 index
2012 est.
2010 VS 2011 year in Review
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Will you spend More – Less – Same in 2012
Source: TNS VietCycle 2011 – Urban only
Only 6% note spending more in 2012 than in 2011.
The poor will spend more, as inflation rips into their wallets
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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
On What will you spend More-Same-Less than 2011
Top 3 growth sectors have remained the same for 3 years
Source: TNS VietCycle 2011 – Hanoi / HCMC
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% of population having bought luxury items
PAST 12 months
14
*Luxury item here is defined as valued over VND 10,000,000
2011
10
Source: TNS VietCycle 2011 – Urban only
Slow growth indicates luxury is still out of reach for most consumers
2008
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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
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Paths to growth in economic
down turn
An analysis of 4 paths to growth
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The four paths to growth
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1. Loyalty and new spend
2. New customers
3. New products and services 4. New Markets
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TNS Growth Map
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1. Loyalty and new spend
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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
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Competition is greater than ever before, the consumer is more
informed and has more choices of what and where to buy
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Downwards pressure on price down-trading and cutting back (recession)
Increased competition increase the chance of losing buyers
Today in Vietnam
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Retaining existing customers and / or capturing current customers’ spend with competitors
Increasing frequency
Up-selling
Cross-selling
New usage occasions
Price increases
A brand can grow by increasing the amount existing customers
spend on existing brands
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How do we grow?
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Case study of new occasions At the heart of everyday life: Increasing consumption frequency by targeting new occasions
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The Result
For the first time, Britain’s
supermarkets gave Walkers
shelf-space next to sandwiches
– increasing sales by 15.6m
packets of crisps
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2. New customers Loyalty and new spend
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TNS Signature
Improving penetration within an established
market by driving competitive advantage
Targeting new customers through brand
positioning, pricing changes, better
exploitation of retail channels
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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
20
How do we grow?
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Extreme makeover: Attracting new customers to drive growth via
repositioning and creating appeal to new customers
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A Case study of new positioning
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US: In the past 18 months, Old Spice
has become the nation's leading
deodorant for men, with 20% of the
$1 billion market
The Result
Positional change Old - Old Spice
Manly, “sex on the beach” New - Old Spice
Friendship & trust – go anywhere
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3. New products and services
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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
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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
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How do we grow?
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Taking playgrounds by storm: Driving growth
with new Lego products–affordable, collectable mini-figures
Case study of new formats
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The Result
UK growth in excess of
10% after 6 months
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4. New markets
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Driving growth through diversification
Moving into new geographies, entering new
verticals or categories
Often high risk and high opportunity, these
strategies require substantial investment
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Clients may consider diversifying and enter new markets to
compete in completely new spaces
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New geographies
New vertical markets
How do we grow?
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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.
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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
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Growth strategy considerations
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Some categories are
growing or declining
faster than others
Consideration 1
When reviewing growth options, understanding the
market and client context is essential
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When reviewing growth options, understanding the
market and client context is essential
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Market share varies and
has an impact on growth
options
Today’s business
Consideration 2
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The paths to growth are not independent
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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
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Growth Summary
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Growth insights
Price increases will not spur growth in 2012, due to lack of consumer confidence
Driving loyalty & new spend via discounts / volume added will help
Acquiring new customers via distribution expansion, superior positioning & new occasions is key
New Product & service innovation keeps your brands relevant and peak consumer trial
Plans for growth
Ensure you understand consumer price thresholds & what they can bear to pay Become closer to your consumers and provide them with what they love about your brands and even more Determine occasions use, and competitor gaps in the market and fill the gap Vietnamese consumer are all about the “NEW”. Reverse engineer your brands to meet consumer desire - Pull
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Let TNS help your business grow
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Building brands for the
consumer
Glyn Evans
Research Director
Digital is firmly on the agenda of
the world’s Chief Marketing
Officers
37
Top Transformation Projects in the Office of the CMO:
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
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Campaigns that successfully ‘go-viral’, driven by consumer advocacy
Most digital marketing campaigns fail to impress
Impact
Campaigns
The path to purchase used to be
simple
Until along came the internet
Digital media is the second
largest media behind television
67
83
9
28 30
11
Internet for leisure TV Radio Internet for work Newspapers Magazines
67%
12%
13%
80%
Internet
Penetration 30% 32% 8%
68%
33%
47%
81%
Go online daily
Are brand fans on SN
Write about brands online
Research brands online
% of internet users
that:
% of internet users
that:
% of internet users
that:
Vietnam’s consumers generally go online
frequently and research brands regularly
Global Vietnam India
8.8%
2.0%
10.7%
12.3%
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
46
% reading about brands
With a large audience, and fewer
competing conversations, those who do
write wield incredible influence
% reading about brands – Vietnam
% writing about brands – Vietnam
% writing (number of potential
advocates)
% reading (size of
audience, size of influence)
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
25 27 31 18
28
53
68 55 55
89 91 94
86 87
98 100 99 99
Cleaningproducts
Food Personal hygiene Alcohol Pres. Medicine Credit cards New Car TV Travel
% researching online
% researching at all
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
15 64
“I would be happy doing all my Internet surfing via my mobile”
“I would like to access the Internet more on my mobile phone, if it were more convenient, or had higher speed or connectivity”
(%) Agree (%) Disagree
17 55
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
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Growth Summary
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Growth insights
Brand as subject matter is alive and
well, but brand voices lack trust
Touchpoints along the path to purchase are varied and fragmented
Content is the currency of community, shaped and consumed by the masses
Plans for growth
- Add value by facilitating content
- Add value by providing services to
consumers beyond the core product
- Build connections earlier in the customer
journey to minimise
the impact of negative buzz
- Understand the nuances of your
geography and category to
optimise the mix at each stage
- Understand attitudes and motivations
- Within the “new noise”, quality, rather than
share, of voice counts
Deep dive in to the impact on
consumer mindsets and behaviors
of changing economic times
Alison Dexter - Executive Director
Bach Ngoc Hieu An – Senior Research Manager
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Qualitative insight & implications ranging across different consumer groups, categories and locations
What we did
• Review of global trends
• 16 deep dive interviews
• 4 age bands/lifestages
• Mixed occupations
• Mixed SEC
• Mixed genders
• Full category coverage
• HCMC, Hanoi
• Review of other current
and relevant research
conducted in other
locations
In-home Visits
Age Gender HCMC Hanoi
18-22 y.o.
University students
Male 1 1
Female 1 1
23-30 y.o.
Single and married (with
and w/o kids)
Male (working) 1 1
Female 1 (working) 1 (non-working)
31-40 y.o.
Married with kids
Male (working) 1 1
Female 1 (non-working) 1 (working)
41-50 y.o.
Married with kids
Male (working) 1 1
Female 1 (working) 1 (non-working)
Sub-total 8 8
TOTAL 16 IDIs
Who we talked to
• Six of our moderators spoke to:
What we talked about
Their personal
context
Understanding them, in their families, lifestyle
Current frame of mind, attitudes, life values,
hopes/dreams/goals, their definition of success
The VN macro context
through their eyes
What they see as the big picture; impacting factors for
Vietnam; terms used/knowledge/understanding
Positive & negative views; drivers of such; personal
connections
Impacts to them
Managing their day-to-day economy; strategies/tactics,
beliefs, influences
Their purchasing wishlist and views on 11 categories
(from education to groceries to entertainment & dining
out)
Their response to
global trends
12 global trends
Same same or different for you/in Vietnam? How so?
Personal contexts
Frame of mind,
attitudes, life values
• Older & lower SEC,
= more fatalistic
• Younger and higher
SEC more optimistic
and anything's
possible
• Family care and
responsibility very
strong
• Competence &
thriftiness crucial
Hopes, dreams and
goals
• Healthy family
• Happy family
• Wealthy family
• Career/business
succcess
• Wheels
• Property
• Travel
• Forever beautiful
Understanding them
• SEC has a huge
impact
• Life of a first jobber,
pre marriage/family
is a time of freedom;
even moreso for
men. Yet, also a time
of relative freedom
& opportunity for
women
• Marriage and family
= responsibility time
Notions of success
• Stable life
• Economic freedom
• Position < career/
business
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,
the worry always
sticks in my mind,
we don’t even
have time to feel
happy or
relaxed…”
“I don’t feel much
different. I don’t
feel the impact of
economic crisis
on me” vs
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
The 11 cats Key to the
future, a priority
An area of fear for
SEC; unchanged
higher
High
impact!
Lower
SEC
esp
Trading
down/less
<SEC
Mostly
same
Lower
SEC esp Lower
SEC esp Big dif
here
Big dif
here
Delete
vs Elite
Response to Global
Recession Trends
Recession?
I’m over it!
Recessionary
living
adjustments
Simple
pleasures
Energy
efficiency
The small
movement
Career
reinvention
and extension
A little touch of
luxury
Distraction as
entertainment
Authenticity
matters
Redistribution
of power
The collective
consciousness
The mobile
device as the
everything hub
The 12 global trends
1. RECESSIONARY LIVING
The threat of a global recession has triggered people to make
adjustments to their standard of living, eg.
- cutting back on spending,
- trading down,
- choosing quality over quantity,
- and rely on their own resources more, eg. the
uptake of DIY (do-it-yourself) activity
• Yes, cutting back on
some things
• The lower the SEC,
the bigger the impact
• Sometimes trading
down, but
sometimes not
• Yes, quality over
quantity mostly (esp.
as a mindset)
• Not necessarily DIY-
“outsource/exchange
to keep own
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 food.
An extended downturn can actually boost sales of high-quality daily
necessities…
Not really; pragmatism
is key, but hey, if you
want it and can afford it,
go for it!
3. SIMPLE PLEASURES
The reality or the risk of money running short is a major incentive for consumers to find new ways of enjoying what they have and what they can truly afford. Rather than
splurging on extravagant treats, consumers will look to simple pleasures as a more suitable and satisfying way to feel
good.
(Example: finding pleasure in simple things like a nice cup of coffee)
• Not if you are rich,
indeed you are
spending more on
showing your
position, eg. Travel,
expensive wedding
celebrations
• Yes for others- a trip
to the movies =
swapped for going
out for a coffee or
maybe you’ve cut
back on karaoke and
boozing and
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 everthing from, washing
machines and fridges with an ‘economy‘ cycle/setting to vehicles which are either
conservative on fuel consumption or driven by alternative energy
sources (eg. electricity) to building more energy efficient homes to simply being more
conscious about energy use in general
• Yes! Spending on
energy is impacting
people directly
• And energy-saving
features can be
found, and are
appreciated, on
everything from
aircon to motorbikes
5. THE SMALL MOVEMENT
Everything is getting
smaller, from stores to
cars, from mobile
technology to packaged
goods.
Smaller cash outlays are
easier to manage.
Yes and no
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 preferred hub for digital
activity. (Example: mobile devices as the first PC for some youth)
Absolutely!
7. CAREER REINVENTION AND
EXTENSION
More people will find themselves facing a career break (eg. being laid off), and many will question whether they want to return to the same line of work - either because it wasn’t
fulfilling in the first place or because more lucrative opportunities now lie
elsewhere.
Others will postpone retirement as they see their savings shrink and will formulate new ideas for late-
stage careers.
People in search of
the lucrative, yet be
safe in your space!
Yes, need to think
about income later in
life
8. A little touch of luxury
Consumers are treating themselves to daily luxuries and
replacing bigger luxury items (eg. Overseas holiday) with something
with a small-scale budget. Cosmetics companies are
faciltitaing the trend by handing out premium samples nowadays.
Beauty and wellness categories are ripe for premiumization.
Always there for
the rich and not
for the poor
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 (immersive) experience. By
layering a multitude of media into entertainment, they are
creating content designed for simultaneous consumption
and engagement.
Yes, it’s the new
trend!
Jump on board!
10. AUTHENTICITY MATTERS
Authenticity will become paramount for brands as they look to regain
credibility and trust. In the wake of a financial crisis that has seen
established institutions topple overnight and many others teeter on
the brink, consumers have lost a great deal of faith in brands; they
are searching for truths and clamouring for transparency.
(Example: Barack Obama’s authentic credibility connected with
voters in the U.S. presidential election.)
Yes!
“I need to know the
companies where
the products or
services are from
so I have
confidence to use
them”
11. REDISTRIBUTION OF POWER
The coming years will see a
widespread redistribution of power in
almost every major sphere:
economic, social and political.
(Example: the growing power of the
BRIC (Brazil, Russia, India, China)
markets)
• Some see US as still
powerful,
• Others see countries
like US and Japan
sliding down
• China at the fore
• Benefit for Vietnam-
in the right zone and
coming up fast
behind
12. THE COLLECTIVE CONSCIOUSNESS
With the increasing popularity of the internet and a new global mindset, people are thinking less about “me” and more about what “we” can do—
collectively—to address the challenges of modern society.
Real value comes from the relationships in our lives and how we
interact with the world around us.
How can we use our money to make things better, not only for ourselves,
but also for our country and the world around us?
• Polarized responses
• “No, people in
Vietnam only mind
their own business”
• Vs charity and
sharing strongly
valued
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Growth Summary
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Growth insights Plans for growth
- Not one for all! Huge SEC
differences impacting
- Competence & thriftiness
even more crucial
- Beware of professional
promotion hunters!!
- Still chances for huge
growth, esp. in some
cat.s, eg. technology
- Targeting and portfolio
management even more
critical
- Dial up your value
alongside your trust and
authenticity; help people to
make smart, safe choices
- Managing the role of
promotions key
- Stay ahead of the trends
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
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
0
20
40
60
80
100
120
Vietnam
AC Neilson Survey
Consumer Confidence Index
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
• 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
Using Emotion to Voice Value
Different responses to the Current
Economic Situation
A CHALLENGE TO CONFRONT
There IS a solution Opportunities that buck
the trend Won’t buy the media hype
A TEST - ONLY THE FITTEST WILL SURVIVE
See themselves as a solution Will be where the smart money is
A TIME TO REASSERT CONTROL
Complexity- seek Information Want to act responsibly
Will be better prepared next time
A THREAT Feel powerless with few choices
Look to others for a solution Afraid to spend
A NATURAL ORDER OF THINGS Will pass. Deal with human
implications Everyone in together. Embrace
practical solutions
ESCAPE May not acknowledge
Need to feel there is hope May even splurge
Make changes that don’t hurt much
How Brands can respond
SHOW FIGHTING SPIRIT
Do things differently
Offer opportunities
Empower, rather than about missing
out
Reward for effort, you deserve it
Brands superiority, enduring quality
Rather than being the best
INFORMATION AND
JUSTIFICATION
Reassure about sensible
choices
REASSURE & SOOTHE
Brand stories about
provenance & endurance
Long term view
Recognize smallest barriers
will obstruct
BRAND AS PART OF THE
COMMUNITY
Use of local talent
Remain down to earth
Be more human than usual
SHOW CUP HALF FULL
Provide opportunities for small
indulgences
But ensure that escapism is
grounded in realty
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
http://www.youtube.com/watch?v=6HNKqffU3Cc
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
The Optimist
http://www.youtube.com/watch?v=kOvv2VKFuMY&feature=player_embedded
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
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
© TNS 2011
Activation Day
Growth Summary
100
Growth insights
Plans for growth
Use the brand to connect with
Emotion. The message should be
about hope, peace and a better
future
Or it can be about adding cheer to
the now through delight. Surprise or
easy guiltless pleasure
Find a ‘value’ pathway that reflects
brand’s core values
Stay true to your positioning –
reinforce. Certainty during uncertain
times gives consumers an anchor
Recession can be glass half full
A time to engage the consumer when
they are re-evaluating / listening
‘Brand’ even more important
Acknowledging times are bad is
necessary
As consumers re-evaluate, so must
you
101
Coffee break
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
When blinded Pepsi wins
When branded Coke wins …because the brand genuinely
increases people’s preference for Coke
(An example from the US)
Neuroscience showed that the neural preference did correspond
to the brand chosen blind
Survival behaviours
Abstract brain
Emotional brain
Reward Centre
When told the brand name, the brain genuinely prefers the brand
with which it has an emotional attachment
Storing emotional memories
Biasing 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”
© TNS 2011
Activation Day
Ever noticed the similarities between the
devoted…?
110
I will give part of my income to this religion
I will go out of my way or face hardship to worship this religion
I am not interested in other religion’s messages and beliefs
I don’t need much persuading to keep practicing this religion
I talk to others about this religion, to convert them
I will pay more for this brand
I will go out of my way to find this brand
I ignore competitor brands’ discounts or promotions
I don’t need much persuading to spend more with the brand
I talk to others about this brand, I recommend it to them
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
© TNS 2011
Activation Day
Growth Summary
136
Growth insights
Branding works…because of
deep-held emotional connections
that trigger reactions in the brain
Effective brands which build
commitment demonstrate seven
consistent habits
Plans for growth
Define a hook
Show interest
Deliver!
Make it matter
Commit
Keep it up
Reminders
©TNS 2012
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Vietnam’s emerging sectors
Healthcare & Education
Phuc Ho & Matthew Erickson
©TNS 2012
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138
Healthcare
©TNS 2012
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Spending on healthcare is miniscule in comparison to overall spending.
MONTHLY HOUSEHOLD SPENDING ON HEALTHCARE*
*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).
Estimated annual spend
= US $3- 4 Billion
©TNS 2012
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51
50
Top-2-box agreement
“My pharmacist's recommendation is just as good as my doctors‘”
Attitudes to health – top-2-box agreement (%)
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).
Chronic disease sufferers
Even chronic disease sufferers rely heavily on recommendations from pharmacists. This highlights the importance of driving growth via pharmacists
TOTAL
©TNS 2012
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Percentage of overall drugs purchased that were prescription medicine (past 30 days) (%)
Prescribed vs. OTC
Average age: 43 Prevalence of chronic disease: 36%
Younger age Prevalence of chronic 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).
80-100% prescription profile 0% prescription profile
22% Means percentage of prescribed medicine purchased in past 30 days
©TNS 2012
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64
38
“I have increased my frequency of checkups compared with 5 years ago”
Attitudes to health – top-2-box agreement (%)
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).
TOTAL
YOUTH 20 – 24 years
SETTLED 45 – 60 years
©TNS 2012
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Prevalence and frequency of general pain
Head pain Flu symptoms Fatigue
67% 51% 55%
1.6 times per month
2.6 times per month
0.7 times per 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
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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
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Key demographic of sufferers – Females, 46-65 year olds and housewives
1720
38
31
23
Total Female Older Housewives SEC EF
Source: TNS VietCycle Healthcare 2011. Q83 Which of the following chronic diseases do you suffer from? Base: n= 2,000 (total).
Older females, housewives, especially from lower SEC’s show the highest prevelance of chronic disease, providing great opportunity for targetted
marketing.
©TNS 2012
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Roughly 4 in 10 consumers willing to pay 10% extra
for high quality medicine,
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.
Key implication: Price is a key indiactor of quality perception – pricing must be managed carefully.
©TNS 2012
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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.
Consumers have very practical needs with respect to selecting a
pharmacy, with close proximity and reasonable price the key drivers.
57
42
35
Close to home / office
Reasonably priced
Availability of medicine
Drivers for selecting pharmacy (%):
Expanding distribution via more outlets, PoS material presence and reasonable price will
drive growth
©TNS 2012
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Growth Summary
148
Growth insights
Market is growing due to wealth / income surge and consumer priorities
Pharmacies are critical in the purchasing path
Only 22% of the market is prescription
Head pain, flu symptoms and fatigue are the key symptoms experienced
Chronic pain is small but important
Quality perception linked to pricing
Precise plans for growth
Need to follow the below actions
Need to engage pharmacies and make them part of the sales force
Reinforces the role of the pharmacist
Do you have products in these categories and are they differentiated?
Target older female, housewives from low SEC households
Cheap no good / good no cheap in terms of efficacy
©TNS 2012
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Education
©TNS 2012
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2,835,025
High-school students
4,968,302
Secondary students
7,048,493
Primary students
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
Pre-primary pupils
*Source: http://www.moet.gov.vn
©TNS 2012
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Incidence of foreign language spoken:
32%
Chinese
(6%)
English
(91%)
Russian
(2%)
French
(3%)
Korean / Japanese
(2%)
Foreign languages most spoken
86
16 10 10
5
Local degree Franchised degree Entire program inforeign country
Twinning E learning /distance education
Source: Which of the following educational programs are you seriously considering for your children?
Base: n= 1,000 (total).
Trans-national education still a ways off for most families.
However, there is certainly some demand for it – esp. franchise programs.
Educational course/s considering for children’s future (%):
Hanoi (18%)
Education demand
©TNS 2012
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US 44%
UK 20%
Australia 19%
Singapore 7%
Canada 3%
France 3%
Japan 2%
Others 2%
Source: TNS VietCycle Education 2011. Q73: Which country would you like your child’s degree to be under?
Base: n= 1,045 (Total).
Education destinations
The USA is the preferred destination for overseas studies
©TNS 2012
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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
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International schools in Vietnam
‘International’ most commonly understood as having
foreign curriculum, foreign teachers and taught in a foreign language.
75
52 46 45
35
12
Foreign curriculum Foreign teachers Curriculum taught inforeign language
High quality facilities Foreignowned/managed
Foreign students
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)
How parents define ‘international’ for an international school (%):
©TNS 2012
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25% of parents is willing to enroll their children in international schools.
Yes 24%
No 76%
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)
% of parents willing to enroll child in an international school
Can Tho shows strong potential with almost 40% willing.
©TNS 2012
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Growth Summary
158
Growth insights
MBA Studies are driven by parents
Overseas education has high potential amongst parents in Hanoi and high SEC families
1 in 10 students plan to go overseas for their education
Other trans-national programs show strong potential, esp. for higher education
Precise plans for growth
Target parents to Grow MBA programs
Potential to target these segments
Is your country one of their consideration and how to you achieve?
Need to reinforce prestige of the partnering institutions
David Watts – Group Account Director
Nguyen Thi Phuong Linh - Senior Research Manager
160 160
Teen Life
TRU’s Trend Arc: In or out?
Celebrities
Sports participation and Favorites
Sports leagues and associations
Friends
Free time
Teen perspectives
TRU value monitor
Personal concerns
Teen’s place in the world
THERE IS ALSO 20-24 STUDY
TODAY IS ABOUT TEENS ONLY
Demographic Profile
Teen Target Profile
Home life
Work life
Education
Teen Consumers
Spending
TRU’s favourite brand meter
Spending on key categories
Cellphones
Tech and Durable items
Teen Media
Magazine readership
T.V viewership
Media participation
Online activities
Teen Study (12-19years): Content
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…
Tradition Modernity
Doing what I want and is good for me
THE LIFE OF A VIETNAMESE TEEN
90%
What’s Really Important for Teens (Top-2 Box %):
61%
87%
80%
Local degree (local institution)
Franchised degree (foreign degree with study entirely in local country)
Entire program in foreign country
Twinning degree
89%
5%
3%
3%
Education continues to be the door to opportunity, with…
Tertiary education – programme most likely to undertake (%):
85% aiming to complete an undergraduate degree
TEEN SPENDING
Street food Clothing Beverages Mobile phone
$6 $5 $4 $3
Books / study material
Transportation Fast food restaurants Sweet/salty snacks
$3 $2 $2 $2
Spending on food, clothing and staying in touch...
TEEN MEDIA
Teens say they cant live without TV and use it the most, BUT the internet is now…
most entertaining
40%
57%
0%
1
26%
71%
-
3
HCMC HANOI
TV
NEWSPAPERS
INTERNET
MAGAZINES
most informative
25%
61%
10%
4%
21%
61%
3%
7%
HCMC HANOI
TV
NEWSPAPERS
INTERNET
MAGAZINES
Best Channels for Engaging with Teens (%):
However, TV is still the preferred way to be told about your brands…
Television Non-social-networking
websites
Fliers Billboard, Outdoor Ads
Newspaper
Online Activities on Computer P1M (%)
Media streaming is growing in popularity…
76%
86%
Listened to streaming music
Used a search engine
72%
73%
Talked to someone in a chat room
Watched streaming video (like YouTube)
71%
71%
Instant messaged (IM)
Played a single-player game
What’s nóng and what’s not.
77
85
Social networking sites
Smart phones
65
72
Online photo sharing
Multi-player online games
50
55
Virtual worlds (Second Life)
PC games
TRU Trend Index - Technology
Smart Phones and social networking..
77
78
Going to coffee houses / tea houses
Going to malls / department stores
65
72
Going to the spa
Getting cosmetic surgery
50
55
Dating
Clubbing
TRU Trend Index - Activities
Shopping, coffee houses and nose jobs...
TEEN BRANDS
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
This is where brands matter to teens…
Top-5 Products Teens Must Have Brands of
Choice (%)
Take the challenge! Which brands are the favourites?
Teen Growth Summary
PLAN FOR GROWTH Show interest in THEIR growth Consider linking your brands to scholarships, career paths, and education to bond with teens. Consider the value equation you deliver… Make sure your products suit a pressing need and deliver real benefit to justify investment. So should you! Especially to educate about brands and products and be a part of the teen social world. Links to streaming and social networking sites may be fruitful.
Tap into this for promotions and communications… Opportunity to connect with branded apps, cellphone related promotions etc.
Reflect this in your attitude and imagery Healthy mind and body reflected in communications
INSIGHTS Teens are focused on education for money and success
Teens have a small disposable income , spent on mostly on day to day consumables.
The internet is where teens are heading for information and entertainment
Teen like convergence of technology…it simplifies their entertainment and social life
Teens care about health BUT in a holistic way
184
If you want to know more about me and my friends, please contact: [email protected] [email protected]
Thank you all and we
hope we have helped to
make your business
grow
March 22, 2012