(NCC 2019) - First Round - Case Study

NIELSEN CASE
COMPETITION 2019
Round 1 Case Study
This artwork was created using Nielsen data.

Copyright © 2019 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.
CASE STUDY ASSESSMENT PURPOSE
This case study is designed with a purpose to understand your ability in analyzing data, generating
insights and providing recommendations/ solutions to client.
By presenting this case study analysis on power point, it also helps to access your skill in illustrating
slides, connecting the dots to build your own story, communicating ideas and answering questions.
2
BUSINESS BACKGROUND
Lion Corporation is a Japanese company with a vision to help making everyday healthy and
comfortable for everyone. Lion has a wide range of products including Dental & Oral Care, Body
Care, Medicated Care, Fabric Care, Living Care, Kitchen & Cooking, Health & Beauty Food
Products.
Lion would like to enter into Vietnam and contact with Nielsen to answer following questions with
reason-why:
• Whether Vietnam is a potential market to enter
• Which category they should firstly bring into Vietnam
• Which city/ region/ area and which channel they should focus
• How are Vietnamese consumers and what does it mean to Lion
3
CASE STUDY GUIDELINE
This case study is designed to be a “real life” situation. You will be a Nielsen consultant to provide
market insights and recommendations for client business planning & strategy.
You will present your analysis on powerpoint file with maximum 15 slides
The insights & recommendations should be based on desk-research information and information
provided in slides below.
4
TERMS EXPLANATION
Market Break Down Period

MT Modern Trade MAT Sum of 12 months to the latest month
MAT YA If data ending is Mar’19, MAT YA is sum (Apr’17 – Mar’18). YA (Year Ago)
TT Traditional Trade
MAT TY If data ending is Mar’19, MAT TY is sum (Apr’18 – Mar’19). TY (This Year)
YTD Jan to the latest period
YTD YA If data ending is Mar’19, YTD YA is sum (Jan’18– Mar’18). YA (Year Ago)
YTD TY If data ending is Mar’19, YTD TY is sum (Jan’19– Mar’19). TY (This Year)
5
VIETNAM VS. OTHER SEA COUNTRIES
Vietnam Malaysia Singapore Indonesia Thailand
GDP Q1’19
growth vs. YA
6.7
4.5 5.1
1.2 0.7
Vie Mala... Singa... Indon... Thai...
FMCG MAT Q1’19

growth vs. YA 4.4
2.3 2.5
5 .0
1.7
4 .0
3 .0
2 .0
1 .0
0 .0
-0.2
-1 .0
Vie Mala... Singa... Indon... Thai...
Source: GSO Vietnam. Economist Intelligence Unit. Nielsen Quarter by number report Q1’19 6
FMCG GROWTH TREND
 Vietnam – FMCG dynamic – Growth vs. YA
6.4%
6.0%
5.2% 5.3% 5.2%
4.9%
4.4%
5.5%
3.4% 3.1% 5.2% 3.8% 3.3% 3.1%
2.8%
2.4% 2.2%
1.0%
0.8% 0.9% 0.8% 2.1%
1.6% 2.1% 1.5% 1.6%
1.0% 1.1% 0.8% 1.0% 0.9% 1.2%
1.1%
-0.3% 0.0%
-0.3%
MAT YA MAT TY YTD YA YTD TY Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19
Unit Value Growth Volume Change (Weighted Value) Nominal Value Growth
Source: Nielsen Retail Audit data
Versus year ago – Cigarette is MT Partial
Data ending: Mar’19. FMCG including 37 categories: Shampoo, Hair Conditioner, Toilet Soap, Toothpaste, Toothbrush, Feminine Protection, Laundry, Dishwashing Liquid, Fabric Softener, Household Cleaner, H.I. Aerosol, H.I. Coil,
Insecticide Control, Msg-Bouillon, Instant Noodles, Biscuits, Pie & Sponge Cake, Soft Drink, Energy Drink, RTD Tea, Fruit Juice, Package Water, Sport Drink, Coffee , Beer, RTD Milk, SCM, Sauces, Chili Sauce, Tonic Fodd Drink, Cigarette,
Milk Powder, Baby Diapers, Facial Tissue, Tissue (Napkin/Toilet/Kitchen), Candy, Snack.
7
FMCG GROWTH IN TRADITIONAL TRADE VS. MODERN
TRADE
 FMCG dynamic – Growth MAT TY vs. YA – Total Vietnam break by Traditional Trade & Modern Trade
Viet Nam (TT VN + MT Urban) Trad. Trade VietNam MT Urban
15.1%
1.9% 12.8%
4.4% 3.2%
2.8%
1.6% 1.3% 2.4%
vs YA vs YA vs YA
Unit Value Growth Volume Change (Weighted Value) Nominal Value Growth
Source: Nielsen Retail Audit data

Versus year ago – Cigarette is MT Partial
Data ending: Mar’19. FMCG including 37 categories: Shampoo, Hair Conditioner, Toilet Soap, Toothpaste, Toothbrush, Feminine Protection, Laundry, Dishwashing Liquid, Fabric Softener, Household Cleaner, H.I. Aerosol, H.I. Coil,
Insecticide Control, Msg-Bouillon, Instant Noodles, Biscuits, Pie & Sponge Cake, Soft Drink, Energy Drink, RTD Tea, Fruit Juice, Package Water, Sport Drink, Coffee , Beer, RTD Milk, SCM, Sauces, Chili Sauce, Tonic Fodd Drink, Cigarette,
Milk Powder, Baby Diapers, Facial Tissue, Tissue (Napkin/Toilet/Kitchen), Candy, Snack.
8
FMCG BREAK DOWN BY SUPER-GROUPS
 Vietnam - FMCG - Value Contribution  Vietnam - FMCG – Value Growth vs. YA

MATYA MATTY
FMCG 3 4
21.1 21.4 Beer 4 9
Beverage 3 10
19.8 20.3
Food
2 5
Milk Base
16.5 16.5 -6 2
Cigarette
13.1 12.3 1 7
Baby care
7 -2
14.6 14.6 Personal Care
2.4 2.4 1 5
6.4 6.3 Household
6.2 6.2 Care
2 5
MAT YA MAT TY
-1 5 -1 0 -5 0 5 10 -1 5 15 -1 0 -5 0 5 10 15
Data ending: Mar’19. Cigarette is MT Partial. FMCG including 37 categories: Shampoo, Hair Conditioner, Toilet Soap, Toothpaste, Toothbrush, Feminine Protection, Laundry, Dishwashing Liquid, Fabric
Softener, Household Cleaner, H.I. Aerosol, H.I. Coil, Insecticide Control, Msg-Bouillon, Instant Noodles, Biscuits, Pie & Sponge Cake, Soft Drink, Energy Drink, RTD Tea, Fruit Juice, Package Water, Sport Drink,
Coffee , Beer, RTD Milk, SCM, Sauces, Chili Sauce, Tonic Fodd Drink, Cigarette, Milk Powder, Baby Diapers, Facial Tissue, Tissue (Napkin/Toilet/Kitchen), Candy, Snack. 9
HOUSEHOLD CARE BREAK BY CATEGORIES
 Vietnam – Household Care – Value Contribution  Vietnam – Household Care – Value Growth vs. YA
MATYA MATTY
Household
13.8 14.9
Care 2 4
7 12
Toilet/ Kitchen/
Napkin Tissue
40.3 39.1 Laundry Products -2 1
Household Insec.
Coil
22 -3
Household Insec.
1.6 1.5 Aerosol
4.7 4.7
Household 3 5
7.1 7.6
Cleaners
Fabric Softener
16.2 16.2 9 11
Dishwashing
Liquids
3 4
16.3 16.0
2 2
MAT YA MAT TY
Source: Nielsen Retail Audit data 10

Data ending: Mar’19.
PERSONAL CARE BREAK BY CATEGORIES
 Vietnam – Personal Care – Value Contribution  Vietnam – Personal Care – Value Growth vs. YA
MATYA MATTY
Personal
Care 2 4
17.8 17.9
Personal Wash
3 4
13.8 14.2 Toothpaste
3 6
6.3 6.3 Toothbrush
Shampoo 4 4
33.7 33.8 Insecticide -2 4

Control
-6 -15
0.1 0.1 Hair Conditioner
5.7 5.6
2.2 2.2 -4 2
Facial Tissue
20.3 19.9 Feminine 8 6
Protection
7 1
MAT YA MAT TY
Source: Nielsen Retail Audit data 11

Data ending: Mar’19.
ROUTE TO MARKET IN VIETNAM & TRADITIONAL TRADE
LANDSCAPE
VIETNAM TRADITIONAL TRADE RETAIL

COMMON ROUTE-TO-MARKET IN VIETNAM
LANSCAPE DYNAMICS
# of stores -
2017
Traditional
MANUFACTURE WHOLESALERS
Trade
1,486,261 | +0.3% vs YA
R (<10% store turnover
is end-consumer sales)
Key channels in Traditional Trade
DIRECT SUPPLY
Café Pharmacy
RETAILERS (>90% Billiard + Semi – Personal

DISTRIBUTORS
store turnover is end- Karaoke Retailer Cosmetic
consumer sales) Trad.
Eatery Grocery
Store
Beverage Market Cigarette
Outlet Stall Kiosk
SEMI-RETAILERS … …
(10%-90% store
turnover is end- CONSUMERS
consumer sales) 12
MODERN TRADE LANDSCAPE AND SHOPPERS VISIT
INCREASING # OF MT SHOPPERS ARE LOOKING FOR “LITTLE” & “OFTEN” SHOPPING TRIPS TO
STORES SMALLER MT FORMATS
 MT Universe evolution  MT vs TT dynamics
# of stores – Mar’19
M TT M
FMCG
T
5,397 | +34% vs YA GROWTH +5% vs T +14%
By store type Trad. Grocery Wet Market Supermarket Minimart CVS

5,397 Store
617 Mom &

4,031 354 Baby PENETRATIO
985 81% | +0 86% | +5 97% | +19 51% | +34 46% | +4
489 N
235 Drugstore
898 % shoppers
CVS
2,980
2,042 Minimart FREQUENCY 7.0 | -2.5 18.7 | -0.2 2.3 | -0.1 3.7 | +1.5 4.2 | -0.3
367 461 Supermark # of times per month
et #1
Total MT Channel
spend
most in
Source: Nielsen Retail Audit data ending Mar’19.
Source: Retailer’s official website Nielsen shopper trend 2018 - 2019
13
STORE TYPES IN MODERN TRADE AND GROWTH DRIVING
FACTORS
CONVENIENCE STORE MINIMART
EVOLVING FROM “ON THE GO” TO ALTERNATIVE THE NEW BIG DRIVER OF GROWTH LEAD BY LOCAL
“FOR EVERYDAY NEEDS” PLAYERS
Key growth driving factors Key growth driving factors
SUPERMARKET • Location • Location

BIG MODERN TRADE FORMAT WITH • Service: quick & easy • Focus on Fresh products
EVERYTHING YOU NEED • Snack & Ready-to-eat food • Price & promotion
• Emergency & everyday needs • Emergency & everyday
needs
Key growth driving factors
• Convenient place
MODERN DRUGSTORE MOM & BABY
• Good promotion ATTRACTIVE CHANNEL FOR YOUNG FEMALES UNTAPPING THE WHITE SPACE OF BABY UNIVERSE
• Low prices
• Wide product range
Key growth driving factors Key growth driving factors
• Service: consultancy & quality • Diversified baby portfolio

• Pleasant environment • Service: consultancy & quality
• Variety & international brands • Quality & security
• Innovative & premium products • Good price on the basics
• Informative & digital access
Source: Nielsen shopper trend 2017 - 2018 14

E-COMMERCE PICTURE
HIGH INTERNET PENETRATION E-COMMERCE SIZE IS STILL
HOW MANUFACTURERS CAN
FUEL THE GROWTH OF ONLINE HUMBLE BUT WITH BRIGHT
EMBRACE E-COMMERCE?
PURCHASE PROSPECTS
 Vietnam vs APAC Digital landscape Retail E-commerce sales

Contribution <1% Ensure authentic products are

Growth +30% sold on online portals. Crackdown
on counterfeit products.
VIETNA
APAC  Top categories by E-commerce penetration
M
INTERNET Fashion 61% Actively engage with consumers
58% PENETRATION 51%
Beauty & Personal care 45% via online platform, esp. during
DAILY INTERNET Books & Music 40% information searching & purchase
95% 86%
USE
IT & Mobile 38% decision making
Consumer Electronics 36%
Household care 34% Invest in innovative and
Vietnamese connected consumer Packaged grocery food 31% personalized online marketing
77%
have made online purchase Travel 29% experience for consumers
Children & baby products 24%
Event Tickets 23%
Source: Internet Penetration: Demand Daily Time Spent: We Are Social &
Hootsuite, Digital in 2018 Source: Nielsen Global Commerce Study 2018 Source: Nielsen global key drivers for Grocery E-commerce 2018
16
RURAL – THE PROMISING
LAND
More than Rural contributes up to
~62M 850,000 retail 44%

Vietnamese consumers are
living in rural stores are located in rural of nationwide FMCG sales
Source: GSO Vietnam - 2018 Source: Nielsen 2017 Census Source: Nielsen Retail Audit MAT Mar’19
17
RURAL CONSUMERS
MORE & MORE COMMON VALUES

URBANIZATION BRINGS RURAL RURAL CONSUMERS ARE LIVING
ARE SHARED BETWEEN URBAN &
CONSUMERS CLOSER TO URBAN IN A DIVERSIFIED MEDIA WORLD
RURAL
 % Urban/Rural population
NOW &
PAST
FUTURE
90% rural people own TV at

60% 50% #1
66% 90% home & 57% connect to
more than 10 TV channels
Urbanization rate
40% 50% in SEA 2015 - 2025
34% Self-restraint Stability-orientated
Self-sacrifice Secure
2015 Est. Est.
Caring & loving Communal harmony
2025 2040
Genuine & simple Practical
Rural 90% rural people own Enclosed mindset Authentic
90% mobile phone & 50% of
Urban Growth mindset
them own smartphone Enjoyment
• Migration: Est. 5 Mil people in 2019 (vs. 3.4
Mil in 2009)
• Transportation: ~100% rural communes
are connected by standard & asphalt road
Source: GSO Vietnam Source: Nielsen Smartphone Insights study 2016 Source: Nielsen Rural Mythbusters 2017
18
NORTH – CENTRAL – SOUTH DIFFERENCE
6 Key cities:
36% FMCG Value contribution
33 MILLION
NORTH-EAST NORTH-WEST POPULATION
22%
HANOI contribution to
FMCG value
RED RIVER DELTA
HAIPHONG
NORTH CENTRAL COAST

21 MILLION
DANANG POPULATION
SOUTH CENTRAL COAST 24%
contribution to
FMCG value
CENTRAL HIGHLANDS
NHA TRANG
SOUTHEAST 40 MILLION
POPULATION
HO CHI MINH 43%
CAN THO contribution to
FMCG value
MEKONG RIVER DELTA
19
HEALTH & WELLNESS TREND OF VIETNAMESE
CONSUMERS
EXAMPLE OF SUCCESSFUL
HEALTH IS VIETNAMESE TOP VIETNAMESE ARE VERY CAUTIOUS
LAUNCH
CONCERN OF HEALTHY CLAIMS
SUNLIGHT NATURE
I trust health claims on food packages
 % Consumers stating Health as top 2

biggest concerns – Q4’18
43% 22%
Vietnam Global
 Most important health attributes when
purchasing one product
Health claims are just a way for
FOOD & BEVERAGE HOME & PERSONAL CARE* manufacturers to charge more
Dishwashing 100% natural
54% Added Vitamin/ Liquid ingredients extracted
Minerals/ Nutrients Unilever with white tea, mineral
46% All natural/ organic
52% Low/ No Sunlight Nature salt and aloe vera
ingredients
cholesterol Launch: May 2016
40% No harsh
51% Made from
chemicals
vegetables/ fruits
3.2%
49% All natural Share achieved after
6 months launch
Source: Nielsen Consumer Confidence Report. *APAC figures. Nielsen Source: Nielsen Global Ingredient and Dining-out Trends Report 2016.
Global Health Survey 2014. Nielsen The dirt on cleaning report 2016 Nielsen Global Survey We are what we eat 2015
20
PREMIUMIZATION TREND OF VIETNAMESE CONSUMERS
GLOBAL
49% 46% 41% 38% 37% 30% 21%

HIGH QUALITY / SUPERIOR ORGANIC / SUSTAINABLE DOES SOCIAL ORIGINATES

ASSURANCES FUNCTION OR NATURAL MATERIALS SOMETHING NO RESPONSIBILITY FROM A SPECIFIC
& STANDARDS PERFORMANCE INGREDIENTS OTHER PRODUCT CLAIMS COUNTRY
DOES
56% 52% 50% 45% 42% 37% 27%

Indonesia (65%) Indonesia (63%) India (58%) Vietnam (55%) Vietnam (49%) Indonesia (50%) Vietnam (50%)
Vietnam (65%)
ASIA PACIFIC India (59%) China (56%) Indonesia (55%) Indonesia (49%) India (47%) India (37%)
Thailand (63%) Vietnam (58%) Indonesia (54%) India (51%) China (47%) Vietnam (46%)
• Source: Nielsen Global Premiumization Study (2018). How willing are you to pay a premium (more than average price) for products that provide the following attributes or benefits? % of consumers highly willing. 21
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NIELSEN CASE

This artwork was created using Nielsen data.

Market Break Down Period

MT Modern Trade MAT Sum of 12 months to the latest month

YTD Jan to the latest period

Vietnam Malaysia Singapore Indonesia Thailand

Vie Mala... Singa... Indon... Thai...

FMCG MAT Q1’19

Vie Mala... Singa... Indon... Thai...

 Vietnam – FMCG dynamic – Growth vs. YA

Viet Nam (TT VN + MT Urban) Trad. Trade VietNam MT Urban

Source: Nielsen Retail Audit data

 Vietnam - FMCG - Value Contribution  Vietnam - FMCG – Value Growth vs. YA

21.1 21.4 Beer 4 9

Source: Nielsen Retail Audit data 10

33.7 33.8 Insecticide -2 4

Source: Nielsen Retail Audit data 11

VIETNAM TRADITIONAL TRADE RETAIL

RETAILERS (>90% Billiard + Semi – Personal

By store type Trad. Grocery Wet Market Supermarket Minimart CVS

617 Mom &

Key growth driving factors Key growth driving factors

SUPERMARKET • Location • Location

• Service: consultancy & quality • Diversified baby portfolio

Source: Nielsen shopper trend 2017 - 2018 14

 Vietnam vs APAC Digital landscape Retail E-commerce sales

Contribution <1% Ensure authentic products are

More than Rural contributes up to

~62M 850,000 retail 44%

MORE & MORE COMMON VALUES

90% rural people own TV at

NORTH CENTRAL COAST

 % Consumers stating Health as top 2

49% 46% 41% 38% 37% 30% 21%

HIGH QUALITY / SUPERIOR ORGANIC / SUSTAINABLE DOES SOCIAL ORIGINATES

56% 52% 50% 45% 42% 37% 27%

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