Nielsen Case Competition

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D.O.M Plus
05/11/2019
STEPPING INTO
VIETNAM MARKET
An analysis generates insight and recommendations
Client
Logo

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This report helps LION to identify:
BUSINESS PROBLEMS
• Lion Corporation is a growing Japanese company
with products belong to Personal Care and
Household care.
CURRENT
MARKET
SITUATION
RECOMMENDATIONS
• After considering, Lion decided to penetrated into
Vietnam market with toothpaste.
INSIGHT
4P
Prepared for: [LION]
Source: Nielsen Case Competition 2019 – round 2

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Current
market
situation
Products
:
: Price
Place :
: Promotion
AGENDA
MT Urban
Matured, fragmented
Prepared for: [LION]
Source: Nielsen Case Competition 2019 – round 1
Super Premium
Small size, Whitening, Natural
Online
Offline

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TOOTHPASTE MARKET IS MATURED AND
FRAGMENTED
Prepared for: [LION]
AP: Average price
Source: Nielsen Global Premiumization Study (2018).
Source: CAPTURING THE VIETNAMESE CONSUMER MARKET - Business Sweden in Vietnam - February 2018
Super
premium
Promise
AP: 481,216 (TY)
Bamboo
AP: 188,767 (TY)
Premium
Fresh
AP: 161,677 (TY)
Upper
Medium
Aim
AP: 126,011 (TY)
Close
AP: 116,302 (TY)
Value and
lower
Medium
7
-2
Toothpaste Growth
TT VN + MT urban
Volume % Chg YA Value % Chg YA
8
9
MAT YA MAT TY
TT VN + MT urban
Average Price % Chg PP
In order to gain profits in Vietnam, Lion should have higher price
Vietnam Toothpaste market is matured Fragmented in toothpaste market

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CHANGING CONSUMPTION PATTERNS
Prepared for: [LION]
Source: Nielsen Insights Pocketbook 2018
37%
Vietnamese
consumers are
showing an affinity
for premium oral
care products
1
3
GDP per capita, 2010-2020,
KUSD
2010 2020
CONSUMER TRENDS
On-the-go Premiumization
Health and
wellness
Connected
Increase in consumption
expenditure
HIGHER INCOME
Demand more
convenience, healthy
and premium products.
Influence on customer
behavior
TREND IN ORAL CARE

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NATURAL INGREDIENTS ARE TRENDING
Prepared for: [LION]
Source: Nielsen Case Competition
50%
Of Asia Pacific are willing to pay
more for products with organic
ingredients
43%
Vietnamese consumers stating
health as top 2 biggest concerns
Herbal and naturally
positioned products are
the new trend for
toothpaste due to
consumers’ increasing
health awareness.
Products with natural claim receive
attention from consumers, resulting in
higher growth rate of revenue
7.2%
9.8%
6.2%
9%

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WHITENING IS THE SUPERIOR END-BENEFIT
Prepared for: [LION]
Source: Toothbrush and toothpaste usage in Vietnam. Q&Me Vietnam Market Research (2016), Nielsen Case Competition
Whitening products
have the highest
value change
consumers pay more for
superior function
consumers think premium
products mean “superior
customer experience”
Whitening is the effect that most
people consider as important
feature when they buy toothpaste
Whitening is an added
value for higher price
products
Vietnamese consumers
have strong concerns
about color of teeth
0%
20%
40%
60%
18 - 25 26 - 30 Over 30
Teeth Color Dental Calculus
Tooth decay
58% 49%
71%
Teeth problems
19%
Value Change in TT VN + MT Urban

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ADULT SEGMENT AND SMALLER PACKAGE
96.5% value share
Adult segment is a large market
with higher growth rate in MT
0%
5%
10%
15%
Value Change
TT VN + MT Urban MT Urban
Household is getting smaller
With households shrinking and
MT’s fast growth, smaller
package is preferable
4.4 3.8
In high density community,
people like smaller
package size due to easier
buying procedure.
2000 2015
Prepared for: [LION]
Source: Nielsen Insights Pocketbook (2018), Nielsen (2017), The need for speeding: giving Vietnamese consumers what they want.

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(2) (6)
14 15
45
104
21 17
TT
VN
+
MT
Urban
MT
Urban
Value % Change vs. YA
Value & Lower Medium Upper Medium
Premium Super Premium
PREMIUMIZATION IS THE MARKET TREND
There is an increase in toothpaste price, especially those in Super premium tier.
Super premium is the price tier to go
Toothpaste price is on the
increase
8
9
8 8
6
8
7
8
5
10
MAT YA MAT TY
Average Price % Chg PP
TT VN + MT Urban TT Urban
TT Rural TT 6 CTs
MT Urban
Prepared for: [LION]
Source: MCC 2019 - Round 2
Toothpaste by Price Tier
68.0 64.7 63.2
49.4 48.5 48.6
20.1
20.6 20.5
21.3 20.5 19.4
1.9
2.5 2.7
3.9 5.6 6.0
10.0 12.2 13.6
25.3 25.5 26.1
MAT
2YA
MAT
YA
MAT
TY
MAT
2YA
MAT
YA
MAT
TY
TT VN + MT Urban MT Urban
Value % Share
While the Value % Change of Super premium price tier is
generally lower than that of Premium, It's value % share is
bigger

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CUSTOMER IS SPENDING MORE ON
PREMIUM PRODUCT
Vietnamese are preferring and affording higher number of premium products.
A healthy growth in consumer spending habit
An increase in demand of “Premium products”
An increase in discretionary spending
Reasons to buy
+
Added value
Why Vietnamese consumers buy premium product
17
30
31
48
48
53
35
23
15
Vietnam
South East
Asia
Global
Consumers perception on ablility
to spend
I only have money for basic necessities
I live comfortably and able to buy something just because I want to
I am able to spend freely
Feel Confident - 72%
Self-Expression - 42%
Superior Experience - 49%
Money Worthy - 69%
Prepared for: [LION]
Source: NCC 2019 - Round 2
NCC 2018 - What's next in Southeast Asia

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COMPETITIVE PRICING STRATEGY FOR LION
Super
Premium
Premium
Upper
Medium
Value &
lower
Medium
Promise
Bamboo
Fresh
Aim
Close
Main competitor
Price per Pack: ~53,203 đ
Average price: 481,216 đ
+
Synchronized
Premiumization trend in
Market and Customer
Lion's toothpaste should be of the same price as Promise's
Prepared for: [LION]
Source: NCC 2019 - Round 2

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MT URBAN IS THE QUICK-WIN STRATEGY IN
THE FIRST PHASE
11
1
MT urban
Toothpaste Growth
Volume % Chg YA
5
10
MAT YA MAT TY
MT Urban
Average price % Chg PP
MT urban experienced
significant growth in
Value and Price
94
100
69
99
73
99
37
96
28
90
83
96
40
93
51
92
9
82
2
56
0
20
40
60
80
100
TT
VN
+
MT
Urban
MT
Urban
TT
VN
+
MT
Urban
MT
Urban
TT
VN
+
MT
Urban
MT
Urban
TT
VN
+
MT
Urban
MT
Urban
MAT
YA
MAT
TY
Close Fresh Aim Promise Bamboo
Wtd Dist Num Dist
MT urban is higher than
VN market in term of both
Wtd and Num distribution
14.8
7.4
1
8
MT
urban
TT
urban
TT rural TT 6
cities
‘Promise’ value %
share
Direct rival has the
largest value share in
MT Urban channel
Prepared for: [LION]
Source: NCC 2019 - Round 2

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TT URBAN CANNOT PASS UNNOTICED
TT 6 CTs has the highest
value % share in toothpaste
by p tier
A relatively immature
retail market -
TT remain main
channel
15.8
2.8
16.4
Toothpaste by price tier-
Value % share (TY)
TT off Urban TT off rural
TT off 6 CTs
7.4
1
8
‘Promise’-Value % share
(TY)
TT off Urban TT off rural
TT off 6 CTs
Direct competitor has the
largest value share in TT
6CTs
LION should
focus on TT 6CTs
before expanding
distribution into
TT Urban
channel.
Prepared for: [LION]
Source: NCC 2019 - Round 2
Source: CAPTURING THE VIETNAMESE CONSUMER MARKET - Business Sweden in Vietnam - February 2018

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Prepared for: [LION]
Source: NCC 2019 - Round 2
Source: Nielsen Insights Pocketbook (2018),
Source: Nielsen (2017) - The need for speeding: giving Vietnamese consumers what they want.
BRAND POSITIONING
Premium
Whitening Natural
STAIN OFF TOOTHPASTE - SUPER
BRIGHT WHITE

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PROMOTION STRATEGIC RECOMMENDATION
Prepared for: [LION]
Source: Nielsen (2013). What do Vietnamese grocery shoppers want?
Promotion Display in MT store
For retailers:
- Discount
- Offer
infrastructure
For shoppers:
- Discount
- Free gifts
- Multi-buys
- Combo
- Paying for best
displaying
position in
shelves
- POSM
(Gondola end,
divider,…)
Sample in MT
channel
Activation
Above the line
Below the line
TVC
Online advertising widely
spreads in Vietnam
Online
ads
Functional
concept
Television remains the most
effective channel in influencing
consumers’ decision
Youtube ads
Google ads
Facebook ads

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Prepared for: Lion Corp
Source: Nielsen Insights Pocketbook (2018), Nielsen (2017), The need for speeding: giving Vietnamese consumers what they want.
KEY TAKEAWAYS
- Toothpaste market is matured and fragmented
- Consumers tend to centralize and demand more convenience, healthy
and premium products.
- Natural ingredients are trending
- Whitening is the superior end-benefit
- Adult segment and smaller package
- Premiumization is the market trend
- Lion's toothpaste should be of the same price as Promise's
- MT Urban is the Quick-win strategy in the first phase
- TT urban cannot pass unnoticed
- Brand positioning: Stain off toothpaste - super bright white
- Promotion: ATL, BTL

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