Client Brand - Today'S Change For Future Growth: Preliminary Round

CLIENT BRAND - TODAY’S CHANGE
FOR FUTURE GROWTH

PRELIMINARY ROUND
TEAM REVOLUTIONISTS
October 9th, 2020
This artwork was created using Nielsen data.
Copyright © 2019 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.
AGENDA
1.
BRAND
EVALUATION
PERFORMANCE
2.
GROWTH
SOURCE OF
&
3.
ROADMAP
RISK MANAGEMENT
2
EXECUTIVE SUMMARY
BRAND PERFORMANCE EVALUATION

Trialists have substantial space to grow
Alarmingly high lapse ratio due to TASTE problems
TARGET CUSTOMERS (for short-term approach)

Student/ Apprentice
Male
18-24 years old
CATEGORIES AND BRANDS TO RECRUIT

Short-term: Carbonated Soft Drinks, Coca Cola.
Long-term: Energy Drinks, Red Bull.
3
Performance evaluation Source of growth Roadmap & Risk Management
PERFORMANCE MEASURE NEEDS TO BE BASED

ON ENERGY DRINK USERS
Since Energy Drinks category is the must-recruit category of Client Brand
Carbonated Energy drink with coffee flavor
Especially Coffee Flavor makes it typical to Energy Drinks:

Coffee Flavor is renowned for conciousness effect
Source:
4
OVERALL, BRAND TRIALS PROMISE

FURTHER GROWTH
% Energy drinks users by Client Brand funnel
41%
72% are Energy

Energy Drink users 28%
Drink users who who tried*
haven’t tried Client
Brand
31%
Trialists* Non-Aware Aware but not tried

Source: NCC 2020 round 1, Appendix 4
5
HOWEVER, LAPSE RATIO IS POSING PROBLEM

Which can make raising trials efforts a waste
X X X X X X X X
8 out of 10
Energy Drink users lapsed after trying Client Brand product (*)
A fundamental problem of Brand Funnel that needs handling
Source: NCC 2020 round 1, Appendix 4

6
SUCH HIGH LAPSE IS MAINLY CAUSED BY THE

PRODUCT ITSELF
Other than just COVID-19
Although COVID-19 did impact Energy Drinks to ...It is NOT the main culprit of high lapse
some extent...
Client Brand did not rebound after
the pandemic situation normalized (P4Ws)
15.4%
61% v
Client Brand Lapsers
still used Energy Drink in P4Ws
Value % change L3Ms

of Energy Drink
There must be something wrong with the product itself

Source: NCC 2020 round 1
7
THE EXACT PRODUCT ISSUE LIES IN TASTE

It could not serve as a differentiation to well compete in Energy Drinks
However, it did not succeed in

Coffee taste did well in triggering trials retaining trialists
TOP TRIGGERS FOR TRIALS IN TERM REASON TO CONSUME MORE

OF FUNCTIONAL BENEFITS (%) THAN ONCE (%)
8% 8% 48%
New taste Have extra coffee taste Provide energy/ Coffee related
Keep conscious is LOW
Source: Statista- Main attributes driving purchase behavior for F&B category NCC 2020 round 1
8
STRATEGIC APPROACHES
ISSUE & OPPORTUNITY STRATEGIC APPROACH WHY SOURCE OF
IN ENERGY DRINKS GROWTH
Keep selling to • Maintain sales while • CSD

"Brand Acceptors"* with R&D • Student/Apprentice

trade activities* • Leverage opportunities Male, 18-24 y.o
HIGH LAPSE RATIO

Modify product taste Solve core problem Energy drinks
Increase trialists by By then Client has got

Great space to grow LONG-TERM emphasizing “Coffee new product
taste” in Communication
trials
Source:
9
Short-term
RECRUIT CONSUMERS FROM CSD

As a temporary substitute for ED while waiting for new product
CSD has 2nd largest market share There is large space to CSD users are highly likely to
(only behind ED) increase Client Brand trialists accept Client Brand current
in CSD products
Brand Shares % CSD users Client Brand current users consumed
by Beverages in L3Ms (%) by Client Brand funnel other categories in P4Ws (%)
Coffee Cola carbonated soft drinks 100

9.4
Unbranded beverages 77
Healthy Food 21.1 6.8 2.1
Drink
35% Branded bottled purified water/ mineral water 53
Sport Drink 38% Energy drink 45
RTD Tea 14.6 Flavored carbonated soft drinks 42
Packaged Water RTD milk/ fruit milk/ flavored milk / drinking yogurt 38
Fruit Juice 31.6 9.4 Branded RTD tea 34
27% Branded RED juice 23
Energy Drink 5
Branded soy milk 23
Soft Drink
Branded ready-to-drink coffee 6
Trialists* Non-Aware Aware but not tried
Sports drink 6
10
Short-term
IN CSD, RECRUIT FROM COCA-COLA

Coca-Cola has the largest market share in CSD Coca-Cola users are highly likely to
accept Client Brand
Brand Shares of Client Brand current users consumed

Off-trade CSD in 2019 (%) CSD in P4Ws (%)
2
9.1 Coca-Cola 72
21.2 Pepsi 17
5.5
6.2 7 UP 9
Mirinda 8
12.2 15.9 Chuong Duong 4
Big 2
13 14.9 Mountain Dew 2
Sprite 2
Coca-Cola Mirinda 7-Up Fanta 2
Fanta Pepsi Chuong Duong
Diet Pepsi
Sprite Tribeco Others
Coca-Cola Zero
Source: Euromonitor- Soft Drink in Vietnam, NCC 2020 round 1

11
Short-term
TARGET MALE STUDENTS/APPRENTICES,

AGED 18-24 YEARS OLD
For highest chance of trials and least chance of lapse
Conversion rate by occupation (%) Conversion rate by age (%) Conversion rate by gender (%)
80%
75.8% 73%
67% 68%
67.6% 63%
57.2%
53.0%
47.8%
44.1% 46.5%
37.8% 38.7% 38.8%
37.9%
Student/ Other self- Executive/Officer 18-24 y.o 25-29 y.o 30-35 y.o
Apprentice employment Male Female

12
Short-term
RAISE AWARENESS VIA PACK VISIBILITY AND DISPLAY

IN STORE
Utilize the dominant First sources of awareness WHAT WE CAN DO
in Trade
Packs in shop Increase visibility by

presenting next to Coca-Cola
1st in HN 2nd in HCM

(25%) (17%)
Use POSM or LED screens to communicate top

benefits people value under the COVID-19 impacts
Display
3rd in First both HN and HCMC Top 4: Manufactured with Top 5: High quality
highest safety guarantee ingredients
Source: NCC 2020 round 1, Nielsen Measuring innovation during economic crisis
13
Short-term
FOCUS ON GIFTING FOR TRIAL TRIGGERS, AND MT

(ESP. CVS) FOR DISTRIBUTION CHANNEL
Gifting is an effective in-store tactic
Top 10 reasons Trigger for trial - Client Brand (%)
Recommended by friends 30 MT channel is the only growing

New product 14 (+7%)* channel during COVID-19
Free sample/ gift 11 Especially CVS - favorite channel for
New taste 8 TA*, is expected to rebound soon
Saw TVCs 8
Have extra coffee taste 8 will back to usual
Displayed at stores/ supermarket/ sheves where I shop 7 73% CVS visit frequency in 3 months
Provide energy/ Keep conscious 6
Delicious coffee taste 4
Real coffee taste 3
Source: NCC 2020 round 1, *Nielsen Hau Covid San sang cho mot cuoc song moi, Appendix 1
14
Long-term
RED BULL IS THE BRAND TO RECRUIT

Red Bull & Sting are dominant Red Bull users are more willing to try
in Energy Drinks
Brand Shares of Red Bull has higher conversion rate

Off-trade Energy Drinks in 2019 (%) Awareness to Trialists
Awareness to Trialists (%)

14.6
55.5%
11.1 41.1 44.8%
11.3
21.9
Red Bull Sting Number 1 Wake-up 247 Others Red Bull Sting
Source: Euromonitor- Soft Drink in Vietnam, NCC 2020 round 1

15
EXPECTED TIMELINE & RISK MANAGEMENT

New product New product launching Brand performance
finalized evaluation
TIMELINE
Long
Manufacturing
term
Short 4 months later 6 months later 9 months later

term
Keep selling to Brand acceptors
with trade activities
RISK LIKELINESS SOLUTION

MANAGEMENT
Fail to R&D the coffee taste that meets Retarget, keep trying to sell to consumers more likely to accept
1
consumer demand Low current product
Change coffee taste to another favored taste
RISK
ED industry sales loss due to increase Add healthy attributes

2 “natural ingredients”
in health concern* High
(e.g. natural-extracted sugar...)
Retailers refuse to stock because of Promotion price
3 previous low sales Medium Attractive refund and return policies Consignment
Source: Appendix 2 16
APPENDIX

Copyright © 2019 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute. 17
APPENDIX 1: THE SHIFT TO CVS
Do not distribute.
Convenient store Super/Hyper Traditional Grocery Wet market
Under 24y.o 58% 27% 20% 16%

proprietary.
distribute.
White collar
Do notand
- 36% 26% 20% 21%

Confidential
professional
(US), LLC.and proprietary.
Student 23% 11% 16%

LLC. Confidential
4%
Company
Nielsen(US),
The Company
Student <24 y.o usually go to to CVS the most

Copyright
Copyright © 2019 The Nielsen
© 2019
Source: Nielsen The Need For Speed

18
APPENDIX 2: INCREASING HEALTH CONCERN
Concerns of Vietnamese consumers
49%
Do not distribute.
45% 44%
40%
31%
proprietary.
27%
23%
21%
distribute.
Do notand
Confidential
8%
and proprietary.
6%
(US), LLC.
LLC. Confidential
Job securities Health The economy Work/life Increasing

Company
balance utility bills

Nielsen(US),
Q1 2020 Q2 2020
The Company
The Nielsen
Health is top 2 concern in VN Q2'20

Copyright
Copyright © 2019
© 2019
Source: Nielsen-CCI-Q2-2020-VI
19
APPENDIX 3: PRODUCT TASTE CHANGE PROCESS
MUST-DOS
Fulfilling all steps are critical to successful modification
Marketing Marketing Marketing Marketing
Do not distribute.
R&D + All R&D R&D
Concept Marketing
development strategy
proprietary.
Idea generation Idea screening & Testing development

(US), LLC.
LLC. Confidential and proprietary. distribute.
Do notand
Confidential
Product
Business
Company
Commercialization Test marketing development

analysis
Nielsen(US),
Marketing Marketing R&D Marketing

The Company
Sale R&D Manufacturing Finance

The Nielsen
Sales, Marketing
© 2019
© 2019
Expected Outcome
Copyright
Increase Coffee Taste Attribute in Reason to consume more than once

Copyright
20
APPENDIX 4: FUNNEL CALCULATION
How to calculate : "Energy Drink users who tried"
Base :
Do not distribute.
Number of Those consumed Energy Drink in P4W = Total*60% = 360

proprietary.
Number of Client Brand Trialists = 180*56% = 100,8

distribute.
Do notand
Confidential
Energy Drink users who tried = Number of Client Brand Trialists/Number of Those consumed
(US), LLC.and proprietary.
Energy Drink in P4W= = 28%

Nielsen(US),
The Company LLC. Confidential
Company
Others are calculated similarly

Copyright
Copyright © 2019 The Nielsen
© 2019

21

Client Brand - Today'S Change For Future Growth: Preliminary Round

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CLIENT BRAND - TODAY’S CHANGE

FOR FUTURE GROWTH

BRAND PERFORMANCE EVALUATION

Alarmingly high lapse ratio due to TASTE problems

TARGET CUSTOMERS (for short-term approach)

CATEGORIES AND BRANDS TO RECRUIT

PERFORMANCE MEASURE NEEDS TO BE BASED

Carbonated Energy drink with coffee flavor

Especially Coffee Flavor makes it typical to Energy Drinks:

OVERALL, BRAND TRIALS PROMISE

72% are Energy

Trialists* Non-Aware Aware but not tried

HOWEVER, LAPSE RATIO IS POSING PROBLEM

A fundamental problem of Brand Funnel that needs handling

Source: NCC 2020 round 1, Appendix 4

SUCH HIGH LAPSE IS MAINLY CAUSED BY THE

Value % change L3Ms

There must be something wrong with the product itself

THE EXACT PRODUCT ISSUE LIES IN TASTE

However, it did not succeed in

TOP TRIGGERS FOR TRIALS IN TERM REASON TO CONSUME MORE

Keep selling to • Maintain sales while • CSD

"Brand Acceptors"* with R&D • Student/Apprentice

HIGH LAPSE RATIO

Increase trialists by By then Client has got

RECRUIT CONSUMERS FROM CSD

Coffee Cola carbonated soft drinks 100

IN CSD, RECRUIT FROM COCA-COLA

Brand Shares of Client Brand current users consumed

Source: Euromonitor- Soft Drink in Vietnam, NCC 2020 round 1

TARGET MALE STUDENTS/APPRENTICES,

Source: NCC 2020 round 1

RAISE AWARENESS VIA PACK VISIBILITY AND DISPLAY

Packs in shop Increase visibility by

1st in HN 2nd in HCM

Use POSM or LED screens to communicate top

FOCUS ON GIFTING FOR TRIAL TRIGGERS, AND MT

Top 10 reasons Trigger for trial - Client Brand (%)

Recommended by friends 30 MT channel is the only growing

RED BULL IS THE BRAND TO RECRUIT

Brand Shares of Red Bull has higher conversion rate

Awareness to Trialists (%)

Source: Euromonitor- Soft Drink in Vietnam, NCC 2020 round 1

EXPECTED TIMELINE & RISK MANAGEMENT

Short 4 months later 6 months later 9 months later

RISK LIKELINESS SOLUTION

ED industry sales loss due to increase Add healthy attributes

This artwork was created using Nielsen data.

Convenient store Super/Hyper Traditional Grocery Wet market

Under 24y.o 58% 27% 20% 16%

- 36% 26% 20% 21%

Student 23% 11% 16%

Student <24 y.o usually go to to CVS the most

Source: Nielsen The Need For Speed

Concerns of Vietnamese consumers

Job securities Health The economy Work/life Increasing

balance utility bills

Health is top 2 concern in VN Q2'20

R&D + All R&D R&D

Idea generation Idea screening & Testing development

Commercialization Test marketing development

Marketing Marketing R&D Marketing

Sale R&D Manufacturing Finance