Vietnamese Consumer Post WTO

Gaining the competitive edge
Vietnam – Post WTO

Gaining the competitive edge - AGENDA
Looking at Asian trends to predict Vietnam’s potential

Personal Care – appealing to consumers hearts

Food & Beverage opportunities – Post WTO

Advertising opportunities – Post WTO

Coffee Break

Vietnam’s Media landscape – Post WTO

Shopper insights – the new battleground

Rural consumers – The next great opportunity

Looking at Asian trends to
predict Vietnam‟s consumer
future – Post WTO Vietnam

Ralf Matthaes
Managing Director
TNS Vietnam

Gaining The Competitive Edge - AGENDA
Asian / Vietnamese Population Trends

Asian / Vietnamese Wealth Trends

Asian / Vietnamese Consumption Trends

Asian / Vietnamese Attitudinal Trends

Asia‟s Population (60% of global pop.)
Population in Million Asia = 3,137,500,000

Chindia China / India 77% on the Asian population 2400

Indonesia 246

Japan 127

Philippines 90

Vietnam 85 Vietnam = 2.7 % of Asia

Thailand 65

Korea 49

Malaysia 25

Taiwan 23

Hong Kong 7

Singapore 4.5
Vietnam is home to Asia‟s 6th largest population
*Population estimated in 2006
*Source: GeoHive (www.xist.org/earth/)

Vietnam has Asia‟s 2nd youngest population
Vietnam 38 19 21 13 8

Philippines 38 20 22 14 6

India 35 20 22 17 6

Malaysia 35 19 24 16 6

Indonesia 34 19 23 17 7

China 27 18 26 20 9

Thailand 27 19 27 19 7

Taiwan 24 18 27 21 11

Singapore 23 15 30 24 10

S Korea 23 18 28 21 9

Hong Kong 19 14 30 23 14

Japan 16 15 20 29 21

0% 20% 40% 60% 80% 100%

0-14 15-24 25-39 40-59 60+

57% of Vietnamese are under 25 years old
Growth Rate estimated in 2006
**Source: GeoHive (www.xist.org/earth/)

Vietnam‟s population growth rate
Population Growth %
Philippine 1.8

Malaysia 1.78

Singapore 1.42

Indonesia 1.41

India 1.38

Vietnam 1.20

Thailand 0.68

Taiwan 0.61

China 0.59

Hong Kong 0.59

Korea 0.42

Japan 0.02

Vietnam has a sustainable & healthy population growth rate

Growth Rate estimated in 2006

Vietnam has the 2nd largest family size
Australia 60 10

New Zealand 58 11

Japan 56 10

S Korea 39 11

Hong Kong 38 15

Taiwan 31 23

Singapore 30 26

China 29 17

Thailand 29 20

Indonesia 21 37

Malaysia 19 47

Vietnam 15 43

Philippines 13 56

1 - 2 persons 3 - 4 persons 5 + persons

As Vietnam begins to urbanize family sizes shall decrease

Growth Rate estimated in 2006 Page 9

Vietnam has the 3rd largest female working pop.
79.2
China 88.8

77.7
Thailand 89.7
Female(%)

77.3
Vietnam 83.5
Male (%)
59.7
Korea 79.9

59.5
Indonesia 84.7

52
Philippines 82.6

51.9
Malaysia 81.4

51.2
Taiwan 76.2

Female consumers will become more and more important
Employment%:
*Data estimated in 2003
*Source: Asian Development Bank (ADB)- Key Indicators 2005 (www.adb.org/statistics)

Number of Household - Millions
400 372.10

350

300

250
206.30
200

150

100
58.60 48.50
50 25.20 17.30 17.20 17.10
7.50 7.20 5.60 2.20 1.50 1.00
-

Au es
a

si a

d
a

s ia

e
m
n

HK
a

li a

d
an
an
di
in

pa

or
re

an
na

pin

ra
ne

ay
In

iw
Ch

ap
Ko
Ja

ail

al
et

st

Ta
i li p

al
do

ng
Th

Ze
Vi

M
In

Ph

Si
w
Ne
Vietnam has the 5th most number of households in Asia,
making Vietnam very attractive for Investment
**Source: GeoHive (www.xist.org/earth

Vietnam has Asia‟s smallest urban pop.
100 99
82 76 69
47 40

Singapore Hongkong N.Z. Australia Taiwan Korea Japan

66Cities will swell just like in China
55
48
43
29 29 27

Mal aysi a Indonesi a Phi l i ppi nes Chi na Indi a Thai l and VN
Source: Country Statistics Offices

Population Insights
Large, Young & Growing population
Smaller household sizes
Large female working population
Huge urban migration

More focus on…
Young consumers
Female consumers
Smaller size products
Demand for services
Building loyalty & consumer commitment

MUCH MORE COMPETITION & PRICE DISPARITY

40,000
36,260
35,390
GDP per head In USD
35,000

30,000
27,320 27,150
25,390
25,000

20,000
16,480
1 1
5,1 0
15,000

10,000

5,150
5,000
2,750
1,700 1,290 1 90
,1 740 730

-

es

a
Ph si a
nd

na
Th a
e

m
Ze n

K

a
li a

d

M n

si

di
ew apa

or

re
an

H

a

na
in
la
ra

hi

ne
ay

In
iw
ap

Ko

pp
ai
al

C

et
st

Ta
J

al

do
ng

Vi
i li
Au

In
Si
N

Vietnam‟s GDP/ per capita has increase seven fold in the past 15 years

Cost of Living in New York = 100 - 2006
Philippines 43

India 45

Vietnam 62

M alaysia 68

Thailand 69
Indonesia 76

China 80

Taiwan 85

New Zealand 86

Australia 106

HK 107

Singapore 108

Korea 15
1
Japan 124

0 20 40 60 80 100 120 140

Vietnam was 38% cheaper than New York in 2006,
but inflation is pushing the index up rapidly

The emergence of SEC Scale
A = US $1,001 +
B = US $1,000 - 501
an urban middle class C = US $500 - 351
D = US $350 - 251
E = US $250 - 151
F = US $150 below

2006 21 55 24

2003 14 36 50

2001 12 32 56

1999 7 31 62

0% 20% 40% 60% 80% 100%

SEC AB SEC CD SEC EF
Monthly declared household income

The middle class in Urban Vietnam will drive consumersim

Source: TNS VietCyle – N = 2000 Urban

My standard of living

VC-20060 2 40 51 5

VC-2004 2 5 37 49 6

Much lower than today Somewhat lower than today
Equal to today Somewhat higher than today
Much higher than today

Vietnamese are still very optimistic about their economic futures

Source: TNS / Gallup - Voice of People Survey

Wealth Insights
Developing Middle class
Larger spend contribution from urban areas
Electronic banking & E-commerce will help stimulate economy
More discretionary spend & Smaller household sizes

More focus on…
The middle class
Luxury goods
Mass high quality products at better price points
Modern trade – easier distribution
Technology to save time and money

Wealth segments will create greater marketing polarization
in terms of wants, needs, aspirations and affordability

Asia‟s Media Spend Growth – 2006
40

23
18
15

4 4 3

Viet nam India China Indonesia Malaysia Thailand Philippines
7
6
5.2 5.2
4

-2.4 -2.5

Hongkong Korea Aust ralia N.Z. Singapore Japan Taiwan

Vietnam is experiencing a Media bonanza, which will slow down

Source: TNS AP offices

FMCG Growth in Asian Countries (%)

20

11

4 3
2 1

Vietnam is experiencing the fastest FMCG growth in Asia

-8
Urban National National National National National National
Vietnam China Thailand Taiwan Malaysia Korea Philippines

Total FMCG – Value Growth Rate (%) - Year 2006 vs. Year 2005

Asia‟s Fast Food Penetration
Local & Foreign FF purchase in past week – urban only

99

73
65
55
40 39

10

P hilippines M alaysia China Indo nesia Thailand VN India

Though changing, Vietnamese still love their Pho! (88%)

Mobile Phone Ownership - Urban 2006
10 0 98 94 93 88
80 75

Singapo re Taiwan Ho ngko ng Ko rea Japan A ustralia N.Z.
90
79 78
70

58

30

13

Thailand P hilippines M alaysia China VN Indo nesia India

Bye Bye Bamboo telephone, we‟re
getting connected, like the rest of Asia
Own personal mobile phone – urban only

Internet Usage – In-home
88 85
80 78
71 70 70

A utralia Japan N.Z. Ko rea Singapo re Ho ngko ng Taiwan
37
35
30

20
19 18

10
5

Thailand China M alaysia VN P hilippines India Indo nesia

Growth in internet usage will be key
to catching up to the rest of Asia
In-home email account - Urban only

Retail environment in Asia - 2006

Direct Sales

Traditional Trade

82 Modern Trade

51 55 54 60
48
33 34
12

a
a

na

an
s
m

nd

a

n
i
i

ne

re

pa
ys
As

na

i

iw
a

Ch

Ko
pi

ail

Ja
ala
et

Ta
ilip

Th
Vi

M
Ph

Though still small, modern trade will grow substantially in Vietnam

Consumption Insights
Technology savvy consumers will leap frog technology

Ad spend shall increase but become less effective

Consumption will continue to increase, but products &
services will need to better fit Vietnamese tastes and needs

Retail outlets will become new battle ground for FMCG

Thus, more focus on…
Technology
New Advertising mediums
Stronger focus on retail
Better understanding of new consumer segments

INNOVATION & CONSUMER EXCELLENCE &
UNDERSTANDING WILL BE KEY TO SUCCESS

Vietnam happiest nation in Asia
Viet Nam N=989 49 43 7 1

United States N=1192 39 54 61

Philippines N=1198 38 49 12 1

Singapore N=1509 29 66 5

Japan N=1321 29 61 10 1

India N=1968 26 48 21 5

Indonesia N=995 21 74 5

China N=996 12 67 19 3

Korea N=1200 10 78 11 2

0% 20% 40% 60% 80% 100%
Very happy Quite happy Not very happy Not at all happy

Vietnam‟s economic turn around has had a profound
Positive effect on Vietnam‟s population – Will it Last?
Source: World value survey

A growing sense of national pride
Question :How proud are you to be [Nationality]?
1 Very proud
Philippines N=1200 87 11 2
1 2 Quite proud
3 Not very proud
4 Not at all proud
Viet Nam N=989 78 20 2

United States N=1184 72 24 4 Very proud

India N=1896 71 22 62
Quite proud
Indonesia N=995 48 45 61
Not very proud
Singapore N=1508 44 50 61

China N=952 26 56 14 4 Not at all proud

Japan N=1258 23 36 38 4

Korea N=1198 17 61 19 3

0% 20% 40% 60% 80% 100%

Economic development, success in sports and
technology, development of local entertainment,
realisation of own importance leading to higher pride

Question: For each of the following aspects, indicate
how important it is in your life. % saying “very important”

Family and Work on a four point scale.
World Values Survey

China

Korea

Philippines Family

Indonesia

Viet Nam
Work
Singapore

India

Japan

United States 0 20 40 60 80 100

In comparison to India & China, it appears that work will
become more important to Vietnamese in the near future


Asian traditional values
Question :Do you think that a woman
has to have children in order to be
Indonesia N=983 93 7 fulfilled or is this not necessary?

0 Not necessary
1 Needs children
Korea N=1043 92 8
World Values Survey

Philippines N=1182 87 13

Viet Nam N=959 86 14

India N=1917 85 15 Needs children
Not necessary
Japan N=917 66 34

Singapore N=1469 56 44

China N=863 37 63

United States N=1144 15 85

0% 20% 40% 60% 80% 100%

Looking again at China & India, it appears that
certain Vietnamese values will decline in the future


Question :With which of these two statements do you tend to agree?
A. One must always love and respect parents.
Respect for Parents B. Parents must earn love and respect
1 Always
2 Earned
3 Neither
World Values Survey

Viet Nam N=993 99.3 0.7

China N=993 94.5 5.5

Philippines N=1196 94.0 6.0

Singapore N=1505 93.0 7.0

Korea N=1200 92.2 7.8 Always
Earned
Indonesia N=987 90.2 9.8

India N=1924 88.8 11.2

United States N=1191 77.2 22.8

Japan N=1143 71.6 28.4

0% 20% 40% 60% 80% 100%

Due to Asian Confucian family values, respect for
parents should continue to be strong for years to come

Importance of Religion
Question: For each of the following aspects, indicate how important it is in your life.
% saying “very important” on a four point scale.
China World Values Survey

Korea

Philippines Religion

Indonesia

Viet Nam
Service to
Singapore others

India

Japan

United States
0 20 40 60 80 100

Religion is not a major influence in Vietnam, however, as
traditional values erode, religious affiliation may increase

Attitudinal insights
Happy Nation that will become less happy due to higher expectations

Family will become less important while chasing the economic dream

Further emancipation of women

Parents advise will become less important

National pride is very strong, this may erode

Religion not seen as important but may see
upswing due to above eroding values

With such a young population,
expectations will sky rocket

Attitudes will become more demanding & self centered

Indulgence
(Health consciousness)

Status
Men’s wealth)
(displaying care

Female
Health &
Emancipation
Beauty

Innovation
Innovation
5,000 new SKU‟s annually

Asian trends to predict Vietnam’s
potential Summation
Population shifts will impact both spending power & consumer
needs

Competition will increase steadily, creating pricing disparities

Wealth polarization will create clearer consumer segments

Distribution will become easier, while media fragmentation shall
reduce advertising impact
Attitudes will become more demanding & self centered – The “Me
generation”

Youth culture will need to be embraced, while managing
expectations

Personal Care-
Appealing to the hearts of
consumers

Marketing Truism
Those brands that are the most
successful are those that connect to
both the hearts and minds of
consumers

Once a brand connects emotively
and gains space in a consumer's
heart, it starts to develop a truly
sustainable competitive edge,
because connection at an emotive
level is the hardest to attack…

Markets develop in a consistent and
CONSUMER
predictable way
DISCRIMINATION
CONSUMERISATION

Stage 6:
Cause-Related
Marketing
Stage 5:
Post-Modern
Marketing
Stage 4:
Customer-Driven
Marketing
Stage 3:
Classic
Branding
AMOUNT OF COMPETIT

Stage 2:
Marketing
Stage 1:
Commodity
Selling

Why the personal care category?
The personal care category, still at a very nascent
stage in Vietnam, is a good category to reflect
on…….one where we see love blossoming at the
same time as we see enormous challenge as the
sub-categories develop along different growth
curves and the competition intensifies

Personal care is also relevant to reflect on as the
dynamism and growth of the market, in conjunction
with the continuing emergence of Vietnam on the
world stage, mean an ever growing number of new
entrants looking to share in the rewards…

Reflecting on 10 driving forces
Strongly performing economy and growing
affluence- more to spend on non-
essentials; upgrading of needs on the
essentials

Youth population

Growing exposure to international
influences- friends/family/personal travel,
television, magazines, increasingly the
internet


4. Growing image consciousness

5. Mounting aspirations

6. A continuing focus on health


7. Evolving gender roles

8. Changing lifestyles

9. Environmental challenges

10. Developing retail environment

And how they manifest…
A shift to higher quality products

A shift to more aspirational products

The growth of the premium and super-
premium segment

The ongoing need for value

The ongoing need for convenience

More market segmentation, along
age/lifestage and lifestyle lines

Increasing marketing diversification

Vietnamese holistic notion of health- an
essential part of life

More importance placed by females and males
on maintaining health and beauty; personal
care rituals increase in importance; a
connection with products that deliver on
confidence fundamentals

A more polluted environment increases the need for
personal care

A tropical climate means specific personal care challenges
and specific functionality requirements


Fragrance is a powerful driver

Sensuousness is a powerful driver

Expansion of supermarkets, speciality and department stores provide
a more upmarket and one-one-one environment, this correlates with
increased trial and experimentation with personal care products
Direct sellers help to diversify the competitive landscape
and assist in broadening the offer beyond the major urban
centres

So where is the love?
“I love this shower gel,
because it gives me a fresh
feeling, a relaxing moment
before and after a working “My spray deodorant:
day”
„I‟m conscious of people‟s smell,
and I like to smell good,
and it gives me a plus in sexual attraction
(at least I think so).
So I never leave home without putting on
“Hair gel- I got bad hair, deodorant and cologne”
very thin and unmanageable,
this helps shape up my hair,
giving it body, making me look good.
Another thing that I never leave “It is convenient, it refreshes me,
the house without putting on” it belongs to my morning rituals-
I would feel uncomfortable
without completing it”

Where else?
“It is a real pleasure to apply it-
“I use it at night to keep scent and texture,
my skin smooth and bright. It‟s actually become a mandatory ritual”
It brings me confidence to
face the difficulties in life.
Confidence to face my
colleagues, clients and
husband. Confidence to
realize I am not old and I “Actually I don‟t find the
am beautiful enough” effectiveness of whitening,
but it helps my skin be
smooth and anti acne”

“I love my mouth wash-I like the feeling
and sense of having a totally clean mouth” “It is my favourite fragrance
in any shower gel from any brand.
I usually take a shower before going to bed,
and my husband keeps smelling this
aroma and I feel that he loves me more”

Where else? “Sometimes I like to home make my product,
because I know that ingredient
“I loved their shower and
will make my skin soft”
shampoo gel in the old
version, because it is
creamy with a lovely
fragrance. It gives me a
fresh and cooling feeling
which makes me feel so
light as if I were flying up “I love it because of its
in the clouds” sweet powder scent and
gentleness on skin. It makes
me feel safe and protected
“I find it suitable for Asian skin
and soothed”
and suitable to my skin.
It has the desired effect””

“It‟s extracted from natural ingredients,
which seems safe to me,
it has a mild, herbal fragrance and
gives cooling feelings”

Love themes
Our hit predictions
The power of fragrance
The importance of ritual
Understanding both universal, male and female, young and old,
married and single confidence needs
Category emotional heartlands
Connecting the emotive needs behind the basic hygiene needs
Experiential needs
The convenience factor
Hierarchies of need
Product benefits delivery- relevance and reality
Notions of Asian beauty and realities of Vietnamese beauty needs
Aspirational natural ingredients
The health and beauty connection

alison.dexter@tns-global.com

TNS Vietnam
Qualitative Research
67

Consumer Food
Opportunities in Vietnam
26 September 2007

The Opportunities for specific food
categories in Vietnam

Per capita/per IFFO/baby Coffee MILO/Ovaltine RTD Milk
annum (kg) (cups) (cups) (liters)
Vietnam 5.3 29 4 5.7

Indonesia 11.7 68 1 5.4

Philippines 19.2 157 27 9.3

Thailand 31.0 148 12 21

Malaysia 35.0 119 130+ 13

Vietnamese food habits are
traditional and regional
Meal structure:

5 dishes .
Finish w rice +
soup./beverage
Breakfast: UMAMI TASTE separate
Left-over rice
Seasonal cooking:
Tea (hot) In-home Summer: boiled
Winter fried

HOT TASTE
Coffee Out-of -
(iced) home
3 dishes,
beverage
Breakfast:
with
Noodles/Bread SWEET TASTE meal/decora
tion and
garnishing

The 60/40+ rule

• The 60/40+ concept combines taste
superiority (60/40 consumer preference
in blind tasting) & relevant nutrition

The "plus" is not to impose artificially a nutritional benefit,
but to explore the possibility of improving the nutritional
value of a product compared to its main competitor.

60/40 preference – hard to achieve,
harder to maintain (2 recent examples)

26
31
42
58
69 74

Dry test Soup test Stir fry test

41 33
59
67

Hot test Cold test

Nutritional Foundation

1. All public health sensitive
nutritional factors rated at
least “adequate”
 Nutritional Foundation
(NF)

The NF answers the
2. All other key nutritional question: "does my product
factors rated at least
“adequate”
 meet nutritional expectations
for Public Health Sensitive
Nutrients and for its own
All criteria met Yes category?".

Two forms of malnutrition

%

Obesity

12%

Malnutrition

2007
Source: Study on nutritional status & physical activities of
children 6-11y.o – NIN & Nestlé

Comparing sub-urban and urban
diet
Sub-urban Urban

Fat 16,3g/day Fat 20,6g/day
Sugar 54,8g / day
Sugar 56,1g / day

Meat 156,8g/day Meat 167,8g/day

Milk 115,5g/day Milk 201,0 g/day

Veget 131,2g/day Veget 124,3g/day

Fruits 56,3g/day Fruits 93,5g/day

Source: Study on Nutritional status and
physical activities among children 6-11, NIN
& Nestlé

Nutritional enhancement

Reducing Sugar Increasing Calcium

Reducing Fat Increasing Fiber

Reducing Salt

WTO
New Opportunities
for Brand
Communications
1/24/2010 Saatchi & Saatchi 79

WTO is not
a magic wand
All of us have to make efforts to
try to take the best advantages of
that frame works


The Effects of
Open Doors


For Advertisers
• More products • The opportunity is to
competing for build or rebuild the
consumer choice LOVE of the
• Local products invest consumers for the
more in brand brand
building
• More demand of
“non-traditional”,
effective approach to
brand building


Video clip


For advertising industry
• Growth of spend, especially from local brands:
– Projected 30% growth of ad spend
• 6,000 local and 30 international agencies
competing for the pie:
– There will not be more players.
– The better ones will win
• The need to invest in local insights.. Real good
ones
• Need to really invest money and manpower into
areas beyond TVC and prints and POSM, and a
token slide of “online campaign”


For the media
• The degree of openness will be less and the
speed slower:
• No private ownership or foreign investment
• Only BCC in program production
• But to expect foreign involvement and private management.
• More and better of traditional media will be
available: more channels, or publications, better
products
• New medium: Digital age with mobile, online,
IPTV

We live in The Screen Age:

The screen has stepped out of the living room
into our pockets, our hands, our offices, our
cars, our stores, our streets…We’re never
more than an arm-length away from a
screen.

The Screen is getting larger and smaller

Screens are converging. TVs are becoming
more game-like, mobile phones more movie-
like, and technology more human-like.


And facing the Digital Tsunami

• Anticipate Digital growth • Highest growth in
by 2008 to 34.2 billion users is:
dollars or 7.3 % of all
– Internet (18%)
spending
– Mobile Phone (14%)
• Average growth of spend
with China leading the
is 20% yoy
pack, reaching 0.5
• Vietnam spends online billion in 2009
about 2 millions a year,
– PC (11%)
about 0.5%.


How do they use the
internet?
• Search
• Share
• Self-broadcast
• Sell and buy


User Generated Contents
Has become a powerful factor
• Wikipedia, MySpace, YouTube are the
fastest growing sites in # of visitors
• FaceBook, Flickr, Yahoo360..have become
very popular even among professionals


What does this mean for
marketers?


Target Audience?
• Not just • But also
– Consumer – Participant
– User – Human
– Audience – Communicators


The Influx of New Media
• Bottom up instead of • Opportunity:
top-down: – To target better
– People chose when
they consume the
media
– The media is
becoming fragmented
– The audience becomes
smaller, even to “one
person”


The Sharing and Networking
• Easy to exchange • Harder to control the
information about information
products and brands • But can build a better
• The speed of sharing is connection with the
that of a mouse click consumers where they
• Information cross become proactive
geographical and even • Viral marketing
cultural boundaries
• User-generated contents


Is Classic so-called
ATL Advertising Dead?


The Answer Is No,
Absolutely Not
especially in Asia

TV is still by far # 1


China Sample
• Total ATL Ad Spend is 49.86 billion USD in
2006
• TV is 81%, newspapers 17% and
magazine 2% (growing at 27% yoy)
• Online Ad Spend is USD 610 million in
2006, projected growth between 35% to
50%, up to 1.8 billion in 2008


So what is the key to success in
the post WTO era?

Contents

Why so?
• With the choice of media becoming so
diversified, and the control shifts to the
audience, what to say has become so much
more important than channels
• The more interesting programs, articles and
adverts in its message and execution, the better
its chance to attract the consumers
• The control of contents will persist, but by
default the ability to control will weaken
• Interesting contents will ATTRACT the
consumers to our brands, to the channels
themselves

ATTENTION ECONOMY 
ATTRACTION ECONOMY
DIRECTION  CONNECTION

ONE-TO-MANY  MANY-TO-ONE

REACTIVE  INTERACTIVE

CUT-THROUGH MESSAGES  ENGAGING CONTENT

HEAVY USERS  INSPIRATIONAL CONSUMERS

PRODUCT PLACEMENT  CONSUMER EXPERIENCES

LARGER-THAN-LIFE  CLOSER-TO-MY-LIFE

WHAT YOU NEED  WHAT I WANT

Is everything going to be
great with WTO?
• Media driven approach (TV spend)
• Rushed, “instant noodle” programs
• Over-commercialization of contents: logos
everywhere
• A “token” chart on “online” or “360°
marketing”


A few thoughts to share with
(potential) advertisers
• Invest in talents, especially local, to get the best
out of your agency
• Look for an idea company, not an ad agency
• Dare to be different
• Don’t waste your media $$ on poor creative
• Choose strategies, programs, agencies by
CONTENTS, not just by the numbers


No longer the choice of the
media, but the viewers!

The changing
Media landscape
of Vietnam

Tran Thi Thanh Mai
Managing Director
TNS Media

Content
 Country At A Glance
 Demographic and social development indicators
 Economic development indicators
 Vietnam Media landscape

 Vietnam‟s Changing Media landscape
 Television viewing habit – The post WTO trend
 Other media as alternates to TV
 TNS Media‟s forecast

Country at a glance
Socio-demographic indicators
 59 provinces and 5 municipalities
 Population (2006): 84.1 mill.
 Pop. growth (2006): 1.2%
 Total fertility rate (2004): 2.3
 Life expectancy at birth (2004): 71 years
 Adult literacy rate (2004): 93.9%
 Urban population (2006): 73%
 72% of urban pop. in 6 largest cities
 Non-agro workforce (2004): 40%

Source: GSO/UNDP

Country at a glance
Economic Development
 Real GDP growth (2005): 8.4%
 Inflation rate (2006): 6.6%
 GDP per capita (2006): US$ 637.56
 FDI (1st half 2007): US$ 5.2 billion
 GDP composition (2006):
• Agriculture: 20.89%
• Manufacturing: 41.03%
• Service: 38.08%
 Poverty rate (2002): 29%
 HID ranking (2006): 109/177 countries
Source: UNDP/AAD

Vietnam Media Landscape
Print Media

 713 daily and periodical
publications
 77% urban population read last
week
 All major newspapers have online
versions
 Ownership: State-owned

Source: TNS Media Vietnam

Radio
 288 local FM stations

 11 national radio stations (VOV)

 Hundreds of radio transmitters at sub-
district/village level

 36% of population in 6 largest cities listen to
radio everyday


Television
 1 national TV station (VTV)
 1 Terrestrial Digital TV - VTC
 65 local TV stations
 Mode of delivery:
 Free-to-air broadcast
 Cable
 Satellite dish antenna
 MMDS/DTH
 Cable providers: 6

Internet

 Users (Aug. 2007): 20.6% of pop.
 Increase rate 2003-2007: 73.3% pa
 Broadband subscribers: 953,758
 Increase rate 2003-2007: 367.6% pa
 Internet households: 12% in 6 largest
cities
 7 IXP and 18 ISP
 Ownership: state and private

Source: VNNIC/TNS Media Vietnam

Mobile phone

 Subscribers (2006): 11 mill. (13.2% of pop)

 Annual growth rate 2003-2006: 59.7%
 Service providers:
• VinaPhone

• MobiPhone
• Viettel Mobile
• S-Fone
• EVN Telecom
• Hanoi Telecom

 Media ownership: state owned
Source: VN Post

The changing Media
Landscape

Television Viewing
Habits Post WTO
trend analysis

Growth of cable channels at the expense of Free2Air
Percent of households receiving Free2Air vs. cable/sat TV in Ha Noi
100
88.9

80.5 79
80
Percent of households

58.2
60 64.2
Free-to-air antenna
55.8 46.9
TV cable
40

35.9

20 25.5

0 3.6
2003 2004 2005 2006 2007

Source: TNS Media Habit Survey, 2003-2007

Growth of cable channels at the expense of Free2Air
Percent of households receiving broadcast vs. cable/sat TV in HCMC

120

95.9
100 92.8
87.3

80 70.5

56.8
60
Free-to-air antenna

40 TV cable 48.7 32.6

20 12.9

2.6
0.7
0
2003 2004 2005 2006 2007


More choices to watch
Hanoi
14.0
13.0
Domestic channel
12.0 11.5
Foreign channel
10.7
10.3
10.0
Number of channels

8.0
6.3
6.0
4.5
4.0
4.0

2.0

0.0
0.0
2001 2005 2006 2007


More choices to watch
HCM City
25.0

Domestic channel
20.2
20.0 Foreign channel
16.5

15.0 13.2
Number of
channels

10.1
9.4
10.0

5.0
5.0
2.6

0.0
0.0
2001 2005 2006 2007


Gains & loss of TV viewership by reach
Most affected time slots – 4 cities

Percent of persons watching free2air channels during primetime period

75

7067.1 66.2
64.9 64.3
65
Percent of persons

58.2
60
53.2 53
55
50.7
50 48

45
40.2
40 11h-13h 20h-22h

35
First half 2003 First half 2004 First half 2005 First half 2006 First half 2007

Source: TNS TV Audience Measurement,2003-2007

Gains & loss of TV viewership by consumption
Most affected time slots – 4 cities

6057.0 57.0
54.0
53.0
Average minutes viewed

55

50
45.0
45

40 37.0
36.0
35.0
34.0
35

30 28.0
11h-13h 20h-22h
25
First half 2003 First half 2004 First half 2005 First half 2006 First half 2007


Total TV viewer-ship
By consumption

250
TTV

Cab/sat TV
Minutes viewed

200

Free2Air TV

150
1st half 1st half 1st half 1st half 1st half
2003 2004 2005 2006 2007
Source: TNS TV Audience Measurement, 2003-2007

The bigger the share the higher the loss
TV rating of HTV7 in HCM City


Fast growing of other
media as rivals to
television

media

Internet penetration
Percent of households connected to internet

20 18.8 18.8
17.7
18
16.5 16.5

16
13.9
14

11.8
12
9.5
10

8
6.2
6 4.9
3.8 4.1
4

2

0
2003 2005 2006 2007

Ha Noi Ho Chi Minh City Four cities


Internet and the youth
Average minutes used for internet per day by age group
80

70
Average minutes used

60

50

40

30

20

10

0
2003 2005 2006 2007

15-24 25-34 35-44 45+ Total


Other Upcoming Media
 Increased competition among producers of electronic goods and
new media (VCD/DVD players, LCD, Plasma display, mobile
phones and other portable device) and among service providers
lead to big drops in prices and user fees and hence increased
penetration of new media. These new media are reshaping
people‟s TV viewing habits.

 More services offered by TV cable providers: Using TV for
functions other than watching TV, e.g. gaming and internet surfing.

 Higher income earnings + longer holidays may change the way
people use their leisure time, e.g., more out-of-home recreational
activities at weekends and/or more frequent visits to high-end
cinema, especially among the youngsters.

 OOH LCD reaching out to busy city dwellers at office buildings,
shopping centers, supermarkets and high end apartments.

TNS Media‟s forecast of TV viewer-ship to 2010
Average minutes spent viewing TTV and cab/sat TV channels
Vietnam‟s four largest cities

250
225 224 227
214
TTV

200 198

150
139 min.

110 min.

100
Cab/sat
TV
79.1%
50
21 34

1 3 6
-
2003 2004 2005 2006 2007 2008 2009 2010


Internet as a major rival to TV viewer-ship
TNS Media‟s forecast
Average minutes spent using internet by a person per day

70.0

60.0 58 min.

50.0
+ 24.3 min.
Minutes used per day

40.0

33.7 min.
30.0 33.7
28.0
20.0

10.0 15.0

8.4
0.0
2.2
2001 2003 2005 2006 2007 2008 2009 2010


Broadcast TV channels declining
Average time spent viewing free2air channels per person per day
Hanoi showcase

250
228
216
204
200
200

166
Average minutes

166 min.

150 -35 min.

131 min.

100

50
2003 2004 2005 2006 2007 2008 2009 2010


Broadcast TV channels declining
Average time spent viewing free2air channels per person per day
HCM City showcase

250

220.0 221.0
209.0 208.0
-23 min.
200

157.0
157 min.
150

134 min.

100

50
2003 2004 2005 2006 2007 2008 2009 2010


Other TNS Media‟s forecast
 Government continues to own and strictly control the media.
 Commercial channels will not come to exist in near future.
 Partial policy deregulation that allows private companies to participate in
producing and distributing TV programs leads to more competition among
media content producers and more diversified offers to TV stations. Purely
commercial channels will not come to exist in near future.

 More open policies and better investment environment will bring more big
investors and thus more competition among advertisers and advertising
agencies.

 Television advertisement will be facing increasingly more severe
competition from advertisement on new forms of media, such as out-of-
home LCD, Internet, mobile phone, cinema, and VCD/DVD contents.

About TNS Media Vietnam
TNS Media Vietnam offers continuous comprehensive media
study of 06 major cities, including Ha Noi, Ho Chi Minh City, Da
Nang, Can Tho, Nha Trang and Hai Phong.

Services include:
 Television Audience Measurement (TAM);
 Media Habit Surveys (MHS); and
 Advertising Expenditure Monitoring (AdEx).

For more information, please contact TNS Media Vietnam at:
3A-5B Nguyen Van Thu, District 1, HCMC, Vietnam.
Phone: +84 (8) 9111 252, 9111 254 to 257
Fax: +84 (8) 9 111 253

Shopper Insights
Growth & Profitability for Brand
Owners at the Point of Sale

Ashish Kanchan
Research Director
TNS Vietnam

The shopper – An area growing interest
Why is it important?
A Changing environment
Increased competition
Proprietary Brands and Private Label; Explosion of brands/line
extensions, cross category competition as people demand more
choice, new experiences

Grocery retailer dominance
Introduction of category management techniques – pressure on
space and sku performance
How do the manufacturers gain leverage/space?

Communication channels are diversifying and fragmenting

Marketing savvy and blasé consumers who are „resistant‟ to traditional
advertising
How do we reach/engage the market?

“Experiential” shopping – Shopping as recreation and the associated
expectations

132
All materials Copyright © TNS, 2007

The shopper – An area growing interest
Why is it important?
Understanding that the consumer can be different from the shopper
Purchase decision maker v/s shopper
Consumer v/s shopper
Purchases made for gifting

The moment of truth: the shelf unit – An opportunity to „lock in‟ or convert a sale
But how to communicate in this environment?
No longer just shelf nodders/talkers
Price promotions undermine the brand/too frequent sales
undermine the store brand
Packaging, display etc

133

TNS thought leadership
The dual aspects of brand equity

Brand power in the Brand power in the
market mind

Brand Purchase
Decision

Importance of Brand Power in the Market on purchase decision is
recognised
Decline in Above the Line in favour of Below the Line investment reinforces
this
We use this framework to clarify the definition of shopper research
134


Brand Power in The Market Brand Power in The Mind

Price Communications

BRAND
PURCHASE
Distribution DECISION Brand Experience

Retail Context Brand image

135

Brand Power in The Market Brand Power in The Mind

Price Communications

BRAND
PURCHASE
Distribution DECISION Brand Experience

Retail Context Brand image

TNS Shopper Insights
136

Where relevant, we also offer a
Worldpanel/Custom integrated service for
Shopper Research
Powerful synergies between TNS Custom and WorldPanel in relation to
shopper research

Retail
Impact
WorldPanel
POS
Impact Purchasing behaviour
– transaction based

Integrated servicing enhances our delivery of shopper Insights with validation of custom
data diagnostics in relation to panel data

In addition, joint initiative underway to enhance 2 way link and develop data fusion where
relevant

137

What is TNS‟ role?
TNS is ideally placed at the core interactions points with Shoppers…

Pre-Shopping
Shopper type, Type of occasion, State of mind, Channel choice, Store choice and
reasons, Extent of planning, Retailer relationship, Category involvement…

Retail Impact
Store layout, Store dynamics, Store atmosphere,
Shopping style, Shopping route, Shopping basket, Cross
category dynamics…

Moments of Truth
Shelf position and layout,
Signage, Promotions, Shelf-
talkers, Visual Category
cues

Post-
shopping
analysis
138

The Shopper Journey
Brand Equity
Pre-Disposition

PRE- Shopper type
STORE Type of occasion Consumer
State of mind Experts
Channel choice
Pre-planning
Retailer choice

Retailer experience
STORE Store layout
Consumption
Store dynamics
experience feeds
Store atmosphere
back into brand
Shopper Shopping style equity
Experts Shopping basket
Shopping route
In-store advertising
Shelf layout
TNS/Sorensen Signage
P.O.P.

“The In-Store Research Company®”
Promotions
Pack standout
Pack communication

Transaction
Seals Purchase
decision
139

TNS Retail and Shopper Insights
Offer 4 Specialist Strengths
Brand
Equity

Retail Purchasing
behaviour
Strategy

In-store
marketing

Introducing TNS Retail Forward
Retail Growth Consultants

Management consulting firm
Retail vertical focus: Retail strategies,
processes, technologies, best practices
Fact based, forward thinking consultancy
using retail knowledge to create
strategies and action plans for profitable
top line growth

Premier provider of business intelligence
on retailing via RFIS
Over 250 clients
Strategic perspectives on retailing
Tracks food, drug, CPG, Softgoods,
Homegoods, Global, Retail Key
Accounts
Daily Newsletter read by thousands of
executives
141

Introducing TNS Sorensen
„the in-store research company®‟

Specialized in in-store research for 35
years
Developed unique level of retail
understanding
Heavy
Unparalleled experience of how shoppers Traffic

shop and purchasing decision is made
Normative database - thousands of
shoppers/millions of trips
Outstanding client track record

High quality client servicing
Light

PathTracker® unique store Traffic

management tool - powerful
understanding of in-store behavior

142

Understanding the shopper

PRODUCT EXPERIENCE SHOPPER NEEDS
How and why consumers use brand/product? Key needs fulfilled and impacting
Consumption Occasions the shopping experience
Consumption Need States Who are they?
Brand Perceptions Emotional needs
Brand Experience Functional needs
Brand Drivers Household experience
Impact on next purchase Motivations
Family

SHOP EXPERIENCE
During the shopping trip.
Shopper behavior
Channel choice
In store influencers
Functional / emotional drivers
In-store experience
Displays & merchandising, point of purchase
Price/value relationship

144


 Validated segmentation of your customers
 Emotive level understanding of category and of SHOPPER NEEDS
consumers needs Key needs fulfilled and impacting
 Understanding of what each brand mean to consumers: the shopping experience
Who are they?
 Where brands are positioned compared to the Emotional needs
consumer needs Functional needs
Household experience
 What personality/attributes/emotive cues define the
Motivations
brand and its position
Family
 How are your brand is delivering against the ideal –
under or over delivering?
 Tells us how to improve brands, and how to create
communication which will „tug at the heartstrings‟ of the
core consumer needs
 Portfolio Planning – how far can each brand stretch?
 Opportunity analysis - „grey space‟

TNS Solution  NeedScope
145


SHOPPER NEEDS
Key needs fulfilled and impacting
the shopping experience
Who are they?
Emotional needs
Functional needs
Household experience
Motivations
Family

SHOP EXPERIENCE
Shopper behavior
Channel choice
In-store experience

146

In store groups
workshops
TNS Solutions  Qualitative Techniques
Accompanied
shopping
A variety of qualitative techniques can be adopted in store,
depending on the degree of spontaneity, openness or
Ethnographic
naturalness required during the shop itself.
documentaries

Observation
staff IDIs

SHOP EXPERIENCE
Shopper behavior
Channel choice
In-store experience

147

TNS Solutions  Advanced
Tools

Various advanced solutions are available to
provide expert analysis, such as Heat maps,
showcasing path of travel, or Eye tracking and
RFID tagging, allowing an in-depth analysis of
shopping behaviors and patterns.

In-store Path Tracker®
and Heat Maps
From TNS/Sorensen

148

From TNS/Sorensen
149


Family

SHOP EXPERIENCE
Shopper behavior
Channel choice
In-store experience

150

 90% of current research happens here…..
 Brand health trackers
PRODUCT EXPERIENCE  Advertising trackers
How and why consumers use brand/product?
Consumption Occasions  U & A studies
Consumption Need States  Groups, depths
Brand Perceptions
Brand Experience In store intercepts – repurchasing,
Brand Drivers why/why not?
Impact on next purchase
 Product tests

TNS Solutions  Consumer TRI*M
 MarketWhys
 NeedScope
 MindZeye
 AdEval

151


Family

SHOP EXPERIENCE
Shopper behavior
Channel choice
In-store experience

152

Vietnamese Consumer Post WTO

Recommandé

Recommandé

Contenu connexe

Similaire à Vietnamese Consumer Post WTO

Similaire à Vietnamese Consumer Post WTO (20)

Plus de ISC Marketing Corporation

Plus de ISC Marketing Corporation (20)

Dernier

Dernier (20)

Vietnamese Consumer Post WTO