Shoppers vs Retailers

March 2016
Who should I focus on instore?
Win Both Shoppers and Retailers Through
Execution Excellence
SHOPPERS VERSUS RETAILERS

Copyright©2015TheNielsenCompany.Confidentialandproprietary.
2
WHY BOTHER?
Source: Retailer Sentiment Study Q1, 2015
1.3 M
GROCERY STORES ACCOUNT FOR
>85%
TT FMCG SALES
US$9.9 Billion

3
ENCOURAGING PROSPECTS
Source: RMS Data Nationwide MAT
30%
Fragmented – Cigarettes – 50%
Concentrated – Home/ Personal Care – 15-20%
There is so much value in a single % point reduction of OOS
Cigarettes 3% to 2% US $54+K / day
CSD 4% to 3% US $180+K / day
turnover
80%
store
No need to turn every store to get the opportunities

4
HOWEVER,
IT ALSO COMES WITH CHALLENGES
Source: Retailer Sentiment Study Q1/2, 2015
DAUNTING TASK
1.3 mil stores can look
overwhelming for manufacturers
WAIT AND SEE MODE
RCI 71 pts vs CCI 106 pts – Retailers are
not yet fully confident about state of
business
LIMITED CATEGORIES
Cannot handle more than 15 SKUs
in the space available
LIMITED SPACE
Average store size is only 19 SQM
RETAILERS NEED
MONITORING
Just 40% of retail stores comply with
manufacturer programs if not monitored
F&B DOMINATE SPACE
60% of limited space is occupied by
food and beverage categories

5
5
HOW TO BEAT THESE
CHALLENGES

6
6
5 INSIGHTS
TO WIN IN TRADITIONAL TRADE
IN VIETNAM
WIN THE SHOP, SHOPPER & SHOPKEEPER

7
1. STORE FRONT IS THE GOLDEN GATE
Source: Traditional Trade Thought Leadership Q4, 2015
Any brand exposure (product display or POSM) should aim to land at store-front to
maximize visibility.
55%
Image on Sign-
board
53%
Image on fridge/
Visicooler
32%
Image of
Shelf
% Who noticed POSM

8
Transactions happen outside the store with the golden gate in full view.
97%
Shoppers
stand outside
of the store
98%
Shoppers ask
store’s owners
to get the
products
1. CAPTURE THE GOLDEN GATE
Shoppers are running auto-pilot on their transactions.
The challenge is how to get them engaged to open up more purchase opportunities

9
2. SHOPPERS ARE GONE IN 90 SECONDS
ORDERING
FIRST 10
SECONDS
NEXT 60
SECONDS
LAST 20
SECONDS
MAKING PAYMENTWAITING FOR RETAILER TO GET THE ITEM
IDLE TIME = OPPORTUNITY
TO INTERVENE
…
Stores get an average 404 customers visiting every day. 3 out 4 transactions are less
than 2 minutes. Things happen fast but there’s a whole minute to capture the shopper
while he/she is idle.

10
ENGAGEMENT OPPORTUNITIES TO CAPTURE
IDLE TIME

11
3. SHOUT OUT YOUR PROMOTIONS
98%
of the
shoppers
are not
aware of
1%
of the
shopkeepers
actively talk
about
PROMOTION
The best way to shout about it is through the retailer. Unfortunately, it is not a
very common practice currently.
retailers made a
recommendation
to shopper
3%
2 out of the 3
shoppers will follow the
retailer’s recommendation.

12
4. EDUCATE RETAILERS WHERE THE MONEY IS
SHOPKEEPERS
10%
Recommend to shoppers
when product is out-of-stock
10%
Engage shoppers in
conversation about product
feedback, price, new
launches
Source: Retailer Sentiment Study Q2, 2015; Traditional Trade Thought Leadership Q4, 2015
Consumer
Off-take
Competition
from other
retailers
Revenue
/Margin
Stock quantity/
stock price/
sufficient stock
Supporting store management (inventory, space planning, shopper engagement)
are vital needs raised – opportunities to engage retailers. Concepts such as
upselling & cross-selling will be valued as it can drive growth for their business.
RETAILER CONCERNS

13
4. SHOW RETAILERS WHERE THE MONEY IS
Create a WIN – WIN opportunity for manufacturers and retailers to drive
growth and at the same time addressing issues such as out-of-stocks
AVERAGE RATE OUT-OF-
STOCK FOR CIGARETTE
3% = US $2 mil/day TOP 3 BRANDS THAT
ARE OUT-OF-STOCK
JET (7%) CRAVEN A
(6%)
HERO (6%)

14
5. DISRUPT THE TRANSACTION
Not all is lost with most transactions being planned. There are opportunities to
intervene and create opportunities for unplanned purchases and build your brand.
95%
planned
purchases 60
seconds
you can…
SHOPPERS
SHOPKEEPERS
IN-STORE COMMS
SMS promo
exclusive in TT
Mention there’s a
new product or a
promo item
Play a 15 sec TVC 4x via
LCD display
PG
Hand out a
product sample
In

15
5. DISRUPT THE TRANSACTION
Opportunities to increase basket size can be explored by partnering with often
bought categories. On the other hand, if your product is part of the destination
categories - protect your stock levels and ensure compliance from retailers.
Source: Trade Thought Leadership Q4, 2015
Cigarette
Food
(Instant noodles,
Snack)
Beverage
(CSD, Beer, Liquid
milk)
Personal care
(shampoo)
48%
36%
31%
6%
Food
(Instant noodles,
Fish/soy sauce)
60%
38%
17%
12%
Beverage
(Liquid milk, RTD Tea)
Personal care
(Sanitary napkin,
shampoo)
Household care
(Dish washing liquid,
washing powder)
46% 54%

16
16
WHERE TO FROM
HERE

17
WINNING CAN LOOK LIKE THIS
Product assortment
identified and in
stock
Branded store
sign secured
Retailer standard
response after getting
shopper order: “Brand X
is on promo today”
Dynamic POSM
(LCD, product
samples for sniffing,
touching, etc.)
located in front of
store,
Disruptions
created like a
promo Girl
handing out
product samples
All possible front
of store surface
area is maximized
for branding.

18
RETAILER VOICE NEEDS TO BE HEARD
Listen to retailers’
voice to help
manufacturers to
innovate and elevate
the relationship
Question: To sell more in Tet, which activities would you like manufacturers to support?
Source: Retailer Sentiment Study Q3, 2015
76%
Product Quality
65%
Promo for consumers
42%
Stock return/
Money-back
38%
Delay payment
34%
Incentive scheme for
stores achieving Tet
sales target
31%
POSM/Display

19
Space Planning and Management
POS and Inventory Management
Community of
Entrepreneurs
Business
Training
Microfinancing
Engaging retailers of traditional trade and taking the business to the next level is very
much possible
TRADITIONAL TRADE EVOLUTION
Source: hapinoy.com

20
20
PARTING WORDS…
Have them
shout out your
PROMOTIONS
and watch the
conversion grow.
Maximize branding
opportunities in the
Golden Gate
Capture shoppers
while they are idle.
You have
60 seconds
to make this happen
WIN-WIN
opportunities in
retailer engagement
– help grow each
other’s businesses
WIN RETAILERS
To
Win Shoppers
BE
DISRUPTIVE
use interactive
marketing activities that
could shake up the
shopper’s idle time.

23
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THANK YOU

Shoppers vs Retailers

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