Team

WRTC

Market
Research

Duc Tri | Minh Khang | Tuong Thy

 AGENDA RESEARCH
OBJECTIVES
1 INDUSTRY
1 Overall landscape of confectionery
2 COMPETITIVE LANDSCAPE
industry in Vietnam

3 CUSTOMER
2 Deep understanding of TOPPO and
its customer

4 TOPPO ANALYSIS
3 Some practical suggestions for
TOPPO to improve its
competitiveness
5 SOLUTION
Despite the outspread of the Covid-19 pandemic, the snack industry has some
positive stories
Benefit after tax of key players in snack industry Revenue of snack industry throughout the
years (in billion USD) in Vietnam

Forecasted

The growth rate of Vietnam snack industry in

comparison with the world (forecasted 2022 - 2027)

Totally, the snack industry of Vietnam has still

captured the trend and has grown faster in the 9.3%
4.1%
recent years
*Source: Statista - The snack industry story (2021)
** Source: Kantar - Benefit after tax of key drivers in snack industry (2021) World's growth rate Vietnam growth rate
***Source: Q&Me - The growth rate of Vietnam snack industry (2022)

INDUSTRY COMPETITIVE LANDSCAPE CUSTOMER COMPANY SOLUTION

The confectionery is fragmented with many brands both domestic and international,
which try to gain the market share in Vietnam

Market share of snack industry 2021 (revenue) Chocolate Pocky Slico imported from Japan
Price: 14.000 VND

Japan brand but made in Malaysia.

Have various favours: chocolate, vani,
25% strawberry,...
39% Price: 21.000 VND

5%
Thai brand with 3 flavor, strawberry, milk and
4%
7% chocolate
Price: 12.500 VND
20%

With Japan flavor but produced in Thailand

3 flavor: Vanilla Chocolate, Cocoa Chocolate,
Vanilla Strawberry
Price: 17.000 VND
The snack industry is fragmented by a variety of
key players in the market. However, importing
brand accounts for a considerable part of 20% of The industry of biscuits stick is various in flavor, with
the imported snacks as well. chocolate is being most favored. Price doesn’t have much
different.
*Source: NielsenIQ - Welcome to the snacking revolution (2021)
INDUSTRY COMPETITIVE LANDSCAPE CUSTOMER COMPANY SOLUTION
The snacking behaviors have changed over time; consequently; customers now eat
snack more frequently and consider it as nourishment

Psychographics of snack customers Snacking drivers have changed over time

● Highly oriented to snacking for

nourishment;
● Believe snacks as part of healthy
lifestyle;
● Have an exhausting heart with
stress in busy modern day;
● Want to be comforted through
eating snack

Behaviors of snack consumers

consumers said they were snacking

35% more often

With the positive changes in customers’ minds about

Gen Z consumers tend to snack for
72% comfort, and find it as driven
motivation to eat snack
*Source: Data courtesy of The Hartman Group/ADM, 2020
INDUSTRY COMPETITIVE LANDSCAPE
a healthy and balanced life, the behaviors of snack
consumers consequently have made changes. Eating
to deal with stress to gain comfort have increased by
several points since 2016
CUSTOMER COMPANY SOLUTION
With the sustainability, convenience and rapidity, Gen Z is the potential target audience
to capture this trend

New trend of snack in the customer's mind Including stronger majorities of

of global consumers say they

64% prefer to eat many small
meals throughout the day
75% Gen Zs
is the percent of people
who claim that they replace This is our main target audience
62%
at least 1 meal each day
with a snack

49% Millennials
of consumers say they will
59% use snack as a healthy
meal to lead a balance life

Generally, small meals take little time and give consumers the convenience, satisfaction and balanced life.
Therefore, the snack is able to capture this trend and is a suitable choice. Especially, Gen Z is the potential
target audience in this market.
*Source: Mondelez International - Taste of Snacking (2021)
INDUSTRY COMPETITIVE LANDSCAPE CUSTOMER COMPANY SOLUTION
Social media and online shopping are the trends and the most influential motivation
for Gen Z to base on using & developing these platforms
Most used social media platforms Platform for online shopping (GEN Z)

Gen Z spend most of their time on Facebook, 54% Gen Z choose E-commerce sites as a
TikTok, which is the potential site to reach them platform for online shopping, besides that Facebook
with the growth up to 5% is second largest option with 13%

Social Media and Online Platforms draw much attention to Gen Z, which makes them easily
seductive to advertise and marketing campaigns when purchasing goods and services
* Source: Decision Lab (2020)
INDUSTRY COMPETITIVE LANDSCAPE CUSTOMER COMPANY SOLUTION
 Target customers mostly concentrate on both Modern Trade and General Trade
channel. Therefore, these are mainstreams to gain trial rate

Channel preference by product category Channel preference for F&B products

The gap between MT and GT channel is not too far Pop store & supermarkets are still the mainstream
for young customers to find confectionery product for F&B product to gain Sales per Point Distribution

In order to attract shoppers and push sales, business needs to focus on both Modern Trade
and General Trade channels, especially supermarket dominates in this segment
* Source: Deloitte Vietnam's Consumer Survey 2020

INDUSTRY COMPETITIVE LANDSCAPE CUSTOMER COMPANY SOLUTION

With that mission, Lotte has drawn their own successful story about operating profit
after the Covid-19 pandemic
Operating Profit of Lotte confectionery international

People love
Chocolate
74% (Mondelez, 2021)

Market share in
Vietnam
9th confectionery
industry

Products have
been launched in
13 Vietnam

Lotte has caught up with the taste of

consumers to be on top 9th in the
market and has many considerable
products
*Source: Lotte confectionery financial report, 2018 - Q32021
Despite the widespread of Covid-19 pandemic throughout the
world, the operating profit of Lotte confectionery international
is drastically increasing to show how effectively this business
manages to compete with many barriers

INDUSTRY COMPETITIVE LANDSCAPE CUSTOMER COMPANY SOLUTION

Consisting of 3 core values and the mission of company, business set goals to
achieve to raise brand awareness and increase the trial rate

Vanilla Strawberry
2021 flavor launched

Cocoa Chocolate
flavor launched With the message of
Customer
Unique 2018 “Lotte brings Sweet Life
oriented
everyday”
Renewal of Vanilla
Chocolate flavor

Quality
Share Pack
2014 launched
Lotte always continues to innovate
products to satisfy customers’ needs
Toppo Chocolate
2013
launched

Business Objective

Raise brand awareness to upscale the traffic 2 times and the trial rate
up to 3 times in the next 3 years

*Source: lotteconf.co.kr/en, 2022

INDUSTRY COMPETITIVE LANDSCAPE CUSTOMER COMPANY SOLUTION

Even though the loyalty rate of Toppo is good, due to the weak communication, it is
facing some problems with brand awareness and a low trial rate

Marketing campaigns in the efforts of building

Rationale for low brand awareness brand position and connect with target audience
● Sub-category stick biscuits
(Pretzel) currently do not have a 5 million users reached
prominent name “Triệu hồi Good
● Toppo brand doesn’t have a Mood cùng 1200 participants in Social
Toppo” Campaign
clear positioning
● Communication isn’t strong 40% increased in business results
and viral enough over the same period last year

“Lớp chúng
Easily mistaken as children's
mình rất
90 000+ engagement on
products Toppo”
social media (Facebook, Tiktok)

Low brand awareness and Trial rate

Success in engaging young users, clearly conveying their
*Source: BRANDS Vietnam, Lotte - Toppo - Triệu position as Toppo's "Mood Booster"
hồi cùng Good Mood, 2021
INDUSTRY COMPETITIVE LANDSCAPE CUSTOMER COMPANY SOLUTION
In comparison with its competitors, TOPPO doesn't get the competitive edge in
investing and launching many remarkable campaigns to raise brand awareness

Products: Focus on traditional flavor like green

Target audience: children and teenagers,
beans, coconut milk,... as core value and pricing
but want to expanding to young adults
with different segmentation & well known for
Positioning: it’s aiming to catch trends on
Moon Cake products
customer’s towards healthiness by
Campaign: “Bánh trung thu Kinh Đô tròn vị
Campaign: “Chọn vị nàng yêu, nhận
bánh, sáng mãi chuyện đêm trăng”
ngay Pocky ngon-khỏe-đẹp”

Products: all the products tend to be Products: Develop the insight “Đồ Ăn Sức
dynamic and friendly. Khỏe” with many products beneficial for the
Promotion: gifts like T-shirts, toys,.. health of each customer segments
PR: Chupa Chups co-operates with Honda PR: Advertisements are launched on nation
to create the Honda Scoopy 2022 channels like VTV, HTV on special days like
Tet, Mid-Autumn festival,...

Many key players are focusing on launching campaigns to raise their brand awareness to push sales.
Most of their campaigns are related to familiar narratives with meaningful messages

*Source: BRANDS Vietnam, Lotte - Toppo - Triệu hồi cùng Good Mood, 2021
** Source: BRANDS Vietnam, Bibica - Bước ngoặt của Bibica, 2021
***Source: Mondelez - Taste of Snacking, 2021
****Source: Perfetti Van Melle - business.amchamvietnam.com, 2021

INDUSTRY COMPETITIVE LANDSCAPE CUSTOMER COMPANY SOLUTION

With the current change in customer’s behaviors, TOPPO need to redefine their
target customer to engage with them
Trends in snack food
Demographics
Mood impacts choice
Snack contained chocolate is being
Gender: Female favored worldwide
Age: Gen Z, 15 - 25
Scale: ~14 million people Women consume an average of 3.1
Region: both cities and rural areas snack foods a day compared to the 2.7
for men
Lotte’s strategy to capture the
customer’s heart
Key finding
Improved product "Double Flavor"
including 3 flavors Vanilla In busy modern day, sometimes we are
Chocolate, Cocoa Chocolate, stressed, the combination of chocolate in
Vanilla Strawberry TOPPO will bring us the comfort and soften
the exhausting heart of ours along with the
Toppo should focus in bringing nourishment for the lighten day
spiritual value as mood-booster to
stand out from competitors

*Source: BRANDS Vietnam, Lotte - Toppo - Triệu hồi cùng Good Mood, 2021
**Source: Research from the NPD Group’s SnackTrack, 2013
INDUSTRY COMPETITIVE LANDSCAPE CUSTOMER COMPANY SOLUTION
With a view to gaining a higher trial rate, Lotte should focus on marketing & sales
promotion

MARKETING SALES

Marketing Campaign to acquire Sales strategies with various channels to reach

customer awareness: more customers and increase trial rate
- Viral clip on social medias like Youtube, - Focus on both Modern Trade and Traditional
TikTok
Trade
- Challenges related to TOPPO with
- Arrange attractive POSM to encourage
hashtag on TikTok
customer buying incentive
- KOL review TOPPO
- Improve trade marketing at stores and
supermarkets for TA to easily see products

INDUSTRY COMPETITIVE LANDSCAPE CUSTOMER COMPANY SOLUTION

Thank you,
WRTC Team.