Demystify the ‘MILLENNIALS’

Millward Brown Vietnam

Nov 24, 2016
 2. 3.
1.
05 BIG INSIGHTS OF IMPLICATIONS FOR
WHO ARE THEY?
MILLENNIALS AJINOMOTO
1.
MILLENNIALS, WHO ARE THEY?

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Who are they?
• Age: 19 – 35 years old as of 2016
(was born from 1982-1997) 31%
• Account for 31% of Vietnam
population*
* Census, Vietnam Department of Population, 2009

• Worldwide, millennials = 2.3 billion

consumers & they account for around
32% the world’s population in 2015
• The largest millennial populations in the
world are India & China. Of the developed
markets, the US has the largest number
of millennials

Source: Euromonitor / United Nations

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Why Millennials matter?

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What makes the global Millennials so different from young people of past generations?

Have spending power… Best

educated
Earn $16.8Tn generation
ever,
especially
women
26.6% of $63.1 global income

Women far more likely Began working during the Most

to be working deepest global recession socially
conscious

73% value impact over

salary

Source: PEW, Forbes.com

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 What makes the global Millennials so different from young people of past generations?

Put off marriage till older Have only lived in a global Live in a world with 97% mobile
economy cellular penetration, 10x in 2000
26% - 2008
60% - 1960

Percentage of
18-34 year olds married in US
and existed their whole lives Shop diverse
Global internet retail channels
penetration is – Ecommerce
will be nearly

43% 9% of retail
sales in 2018

Source: PEW, Forbes.com

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2.
05 BIG INSIGHTS OF MILLENNIALS & IMPLICATIONS FOR BRANDS

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 1. 2. 3. 4. 5.
THE ‘ME’ THE PIONEERS & THE SMART THE PRAGMATIC THE DIGITAL
GENERATION CONQUERORS INVESTORS CARERS NATIVES

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 1.
THE ‘ME’
GENERATION

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 Millennials love both large and small brands

1. They want to make their There is a tendency to greater love for big brands in
“conspicuously consumed” categories in developing countries

own brand

Brands with strong equity amongst Millennials are:

1. Genuine innovators – of products, brand or category
2. Prestige brands that offer status
3. Authenticity brands with a distinct heritage
 1. Help them to express their personal
1. They want to make their identity

own brand

“You have the right to wear anything

you like either the bikini or the
traditional ao dai”
(Ms. Nguyen Thi Phuong Thao – Vietjet Air CEO)

2. Customize/ personalize offerings with

meaningful & different benefits

SUCCESSFUL
BUSINESS-MINDED
ASSERTIVE

3. Co-create/ collaborate with them

2. They are striving for progress 1. Offer products/ services that help them to
live a better life or to have a better ‘me’
(both inner & outer) in different ways and want
people to recognize it

‘Being healthy is progressing. I am active in

taking care of my health everyday and often
practise a variety of health and nutrition as
each has its own advantage and benefit to
maximize my performance at work’
2. Offer emotional values that inspire
consumers to move forward in life
ACTIVE
FASHIONABLE

Brand Equity is much

strong among young
consumer (18-25) vs
older group
 2.
The PIONEERS &
CONQUERORS

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 They are hard working, but not afraid of
3. They want to live to the full and not risk… meet generation Flux
missing out any opportunities

‘I want to challenge my limit &

experience everything out there’
Bombardment of new opportunities
(entertainment, leisure, work, technology, etc.)
Sense of urgency
(now rather than later/ YOLO trend)

“If I work hard enough, eventually I will be able to

achieve what I want out of life” - % strongly/slightly agree
Millennials Gen X Gen S

Source: The Futures Company

3. They want to live to the full and not 1. Promote this value of living life to the max
missing out any opportunities

‘I want to challenge my limit &

experience everything out there’
Bombardment of new opportunities
(entertainment, leisure, work, technology, etc.)
Sense of urgency
(now rather than later/ YOLO trend)
2. Enable them to discover new horizons
and test their own limits
4. They are thirsty for new inspirations 1. Continue to innovate. Disruption is
very possible to achieve, and can be a
everyday and get bored with status quo 1. Continue
threat to innovate. brands
to long-established Disruption is
very possible to achieve, and can be a
threat to long-established brands

USA, coffee
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Older
20
>>> Millennials
Desire to make progresses in their life 10

0 Source: GFK
>>> Desire to experiment and experience life to the full 2007 2008 2009 2010 2011 2012 2013 2014 2015

The perception of choice has ben amplified more than ever 2. Be disruptive in engagement activities
with consumers
2. Be disruptive in engagement activities
 Have great advertising (+17)
with consumers
 Distinctive appearance (+6)
 Shake things up (+10)

Source: Millward Brown Brand Z

 3.
THE SMART
INVESTORS

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6. They always look for improved 1. Be visible at wherever and whenever
millennials might need our brands
efficiency in their life Vinamilk eShop for Online shopping
So that they can focus their time and energy on achieving Millennial Moms
their passions, and success 46 had purchased a fashion
% product

39 had purchased an IT
% product or mobile phone
Source: Q&Me, July 2016,
HCM & Hanoi, 18-39 y.o

2. Offer convenient services at their finger

tips, and products that can be consumed fast
 1. Premiumnization – yet need to prove
7. They are smart SHOPPERS superiority benefits/ features
18-35 35+
- Scrutinize value of brands they buy
Brand Power 22% 16.9%

- Do research via multi channels

before deciding Premium Index 1.28 1.18
You want to be Stand for something
seen using (+10) unique (+9)
(Source: Millward Brown BrandZ 2015, 18-35 y.o.)

2. Offer mass-price products with great

value added
Average number of brands

3.9
3.6 3.4
3 2.6 2.7
2.3 2.1

3. Deliver great experience rather than

Homecare Personal Refreshment Food
just functional benefits
care
Millennials 35+

Source: The Futures Company

 4.
THE PRAGMATIC
CARERS

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8. They are pragmatic caring consumers 1. Be socially responsible

They want to make the world a better living place not only
for themselves but for everyone

Desire to make an Brand Power

impact to the society 18-35 35+

Desire for living a 3.4% 2.7%

meaningful and Commit to not use plastic bags Makes people’s life better (+9)
purposeful life of all stores all over the world (Source: BrandZ 2015; 18-35 y.o.)

2. Be purposeful by improving the world

or improving the consumers’ life

Brand Power
18-35 35+

13.1% 8.2%
(Source: BrandZ 2013; 18-35 y.o.)
Pepsi’s Tet campaign 2015
9. Millennials respect genuineness and 1. Be an authentic brand (authentic value and
consistently authentic communications)
authenticity

Desire for social Today’s always-on social and

equity and social mobile savvy consumers are no
justice longer willing to accept TRUSTWORTHY TRUSTWORTHY CONSITENT HIGH
inconsistencies between the (+15) (+13) QUALITY (+7)
image of a brand and the reality (Base: 18-35 y.o | BrandZ 2013)
of what it represents.

Example of
distrust

2. Focus on building and retaining brand trust

alongside with brand love to grow over time.

3. Having 02 way dialogues with consumers and

not just push your messages to them one way
 5.
THE DIGITAL
NATIVES

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10. Millennials are highly connected. They
do careful search of brands before purchase. 1. 50% of Vietnamese millennials belong
to LEADERS typology (strongly digitally
Digital era that makes influenced and socially engaged)
consumers well
informed 2. 60% of Vietnamese Millennials spend
their time on devices for online content
Desire for social
equity and social 3. 3.5 social/ IM platforms are used daily,
justice with an average of 1.8 hours time spent
on social media

4. Facebook and YouTube are top 02 most

common platforms to engage with brand

Source: TNS Connected lives

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10. Millennials are highly connected. They
do careful search of brands before purchase
1. Engage with them on digital channels
(especially on social media)
2. Enrich brand experience with new digital
enabled-services

Knorr leverage Data & Technology to personalize the Consumer

Experience through pop-up ads suggesting consumers dishes for
different times of days/ weekends
MORE EFFORTS WOULD BE SPENT TO REALLY
‘CLICK’ WITH MILLENNIALS VIA DIGITAL

Only 1 in 55 brands is seen to be:

“Would like to follow on social media”

(Source: BrandZ 2015)

Enrich brand experience with new digital enabled-services
Yomost 2016

Product/ Service Launch

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3.
IMPLICATIONS FOR NESTLE BRANDS

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Implications for brands
1. Need to be in growth categories that will have growing
appeal to Millennials (Health & Nutrition F&B, Meal solutions,
etc.)

2. Continue meaningful & different product innovations

3. Take advantage of Premiumnization opportunities

DO WE HAVE ANY DIGITAL

4. Stay connected with Millennials, collaborate with them, CAMPAIGN TO CLOSELY STAY
support & celebrate their success in life WITH MILLENNIALS?

5. Shift our channels of sales and channels communications.

‘Uberize’ and Digitalize our products and services!

6. Always stay authentic and socially responsible

THANK YOU

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