Nielsen Case Competition 2019: Round 1 - 2ba

NIELSEN CASE
COMPETITION 2019
ROUND 1 – 2BA
LION’S PENETRATION OPPOTUNITY IN VIETNAM’S FMCG MARKET
Client
This artwork was created using Nielsen data.
Copyright © 2019 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute. Logo
AGENDA
CASE BRIEF
VIETNAM MARKET ANALYSIS
PRODUCT CATEGORY
DISTRIBUTION CHANNEL
CONSUMER ANALYSIS
RECOMMENDATION
Client
Copyright © 2019 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute. Logo
CASE BRIEF
LION’S BACKGROUND
Japanese company
Industry: FMCG
Vision: Help make everyday healthy and comfortable for everyone.
Product: Household care & Personal care
Copyright © 2019 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.
Demand: Enter Vietnam market
KEY QUESTIONS
Should Lion enter in Vietnam market?

Which product category, areas and channels they should focus on?
How are Vietnamese consumers and what does it mean to Lion
Vietnam market analysis
VIETNAM – A POTENTIAL MARKET

POLITICAL ECONOMIC
Vietnam has a stable High GDP growth vs other

political situation SEA countries
SOCIAL TECHNOLOGICAL
The rise in affluent class boosts High rate of internet penetration and daily use
the demand for Premiumization Diversified media exposure in both rural and
urban areas
Source: GSO Vietnam. Economist Intelligence Unit. Nielsen Quarter by number report Q1’19, 4
Vietnam
Marketmarket
analysis
analysis
THE OUTSTANDING PERFORMANCE OF FMCG VIETNAM
FMCG MAT Q1ʼ19

Growth vs. YA
5
1
0
Vie Mala... Singa... Indo... Tha
-1
Vietnam’s FMCG market witnessed superior Vietnam’s FMCG shows outstanding

performance to other SEA nations growth considering every aspect
=> Vietnam appears to be a significantly potential market for LION to enter in
Source: GSO Vietnam. Economist Intelligence Unit. Nielsen Quarter by number report Q1’19, Nielsen 5
Product category
PERSONAL CARE AND ORAL CARE ARE THE STRENGTHS OF LION

Lionʼs Products map, with a strong position in the Asia-Pacific

market
=> Lion’s can use its success in Asia-Pacific region as a leverage to penetrate into new market
Source: Lion Annual Report 2018 6

Product category
PERSONAL CARE IS A PROMISING MARKET IN VIETNAM FMCG MARKET
Personal tend to have positive growth

and are expected to continue to grow
in the future.
Personal Care is the fastest growing sector in Urban 4 key cities and
the 2nd fastest growing sector in Rural (YTD P4’19 versus year ago)
Source: Nielsen Retail Audit data 7
Product category
TOOTHPASTE IS THE MOST PROMISING FOR LION TOPENETRATE

Toothpaste market in Vietnam is relatively segmented =>

Potential to penetrate as competitiveness is high among
existing brands
Lion is in top 5
toothpaste players in
Toothpaste’s value
Asia Pacific
growth rate in Vietnam
has doubled and
promises to increase
further Source: Nielsen Retail Audit data; Mordor intelligence, 2018, Asia-pacific Toothpaste 8Mark
Growth, Trends And Forecasts (2019 - 2024) Q&Me Vietnam Market Research, 201
Distribution channel
FMCG SEE A SHARP GROWTH IN MT CHANNEL
FMCG growth in Traditional trade vs. Modern trade

Inscrease # of MT Store
Source: Nielsen Retail Audit data
9
E-COMMERCE SHOULD BE INVESTED FOR A LONG RUN
Online transactions benefits from high internet Top categories by E-commerce penetration
penetration
Source: Internet Penetration: Demand Daily Time Spent: We Are Social & Hootsuite, Source: Nielsen Global Commerce Study 2018
Digital in 2018
E-commerce gain 30% growth Personal care is #2 category in

in retail sales E-commerce penetration
10
SOUTHEAST IS THE BEST SUPPORTS FOR TOOTHPASTE PRODUCTS
The south dominants in both population and contribution to FMCG value

Source: Internet Penetration: Demand Daily Time Spent: We Are Social & Hootsuite, Digital in 2018
Southeast region should be focused on, specially HCMC and Can Tho City
11
Customer analysis
HEALTH & WELLNESS TREND OF VIETNAMESE CONSUMERS
Most important health attributes when Vietnamese are very cautious of Premiumization trend of Vietnamese
purchasing one product healthy claims consumers
Most important health attributes when

purchasing one product
Source: Nielsen Consumer Confidence Report. *APAC figures. Source: Nielsen Global Ingredient and Dining-out Trends Source: Nielsen Global Premiumization Study (2018). How willing are you
Nielsen Global Health Survey 2014. Nielsen The dirt on Report 2016. Nielsen Global Survey We are what we eat 2015 to pay a premium (more than average price) for products that provide the
cleaning report 2016 following attributes or benefits? % of consumers highly willing.
Vietnamese people care about the product origin and prefer products with natural ingredients.
Moreover, Vietnamese consumers have a foreign mentality and trust in standard products.
12
Customer analysis
VIETNAMESE ORAL HEALTH PROBLEMS
Vietnamese people concern about oral effects

Source: Q&Me Vietnam Market Research 2016
Vietnamese people strong concerns over “whitening” and “prevent caries”

13
Recommendation
6. RECOMMENDATION
LION should enter Vietnam market with the 4Ps strategy
Product Price
• Japanese product Premium segment
• Function: Whitening and prevent

caries
• Organic components with quality
assurance from Japan
Place Promotion
• Firstly focus on MT, concentrate on • Focus on organic components,
HCMC and Can Tho City of the health concern promotion content.
southeast first, southern region • TVC
expand later
• POSM
• Take advantage of EC in the long
run to increase sales • Trial/ Sampling at MT channels
14
THANK YOU


Nielsen Case Competition 2019: Round 1 - 2ba

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Nielsen Case Competition 2019: Round 1 - 2ba

Uploaded by

Copyright:

Available Formats

NIELSEN CASE

VIETNAM MARKET ANALYSIS

Demand: Enter Vietnam market

Should Lion enter in Vietnam market?

VIETNAM – A POTENTIAL MARKET

Vietnam has a stable High GDP growth vs other

THE OUTSTANDING PERFORMANCE OF FMCG VIETNAM

FMCG MAT Q1ʼ19

Vietnam’s FMCG market witnessed superior Vietnam’s FMCG shows outstanding

=> Vietnam appears to be a significantly potential market for LION to enter in

PERSONAL CARE AND ORAL CARE ARE THE STRENGTHS OF LION

Lionʼs Products map, with a strong position in the Asia-Pacific

Source: Lion Annual Report 2018 6

PERSONAL CARE IS A PROMISING MARKET IN VIETNAM FMCG MARKET

Personal tend to have positive growth

TOOTHPASTE IS THE MOST PROMISING FOR LION TOPENETRATE

Toothpaste market in Vietnam is relatively segmented =>

FMCG SEE A SHARP GROWTH IN MT CHANNEL

FMCG growth in Traditional trade vs. Modern trade

Source: Nielsen Retail Audit data

E-COMMERCE SHOULD BE INVESTED FOR A LONG RUN

E-commerce gain 30% growth Personal care is #2 category in

SOUTHEAST IS THE BEST SUPPORTS FOR TOOTHPASTE PRODUCTS

The south dominants in both population and contribution to FMCG value

HEALTH & WELLNESS TREND OF VIETNAMESE CONSUMERS

Most important health attributes when

purchasing one product

VIETNAMESE ORAL HEALTH PROBLEMS

Vietnamese people concern about oral effects

Source: Q&Me Vietnam Market Research 2016

Vietnamese people strong concerns over “whitening” and “prevent caries”

• Function: Whitening and prevent

This artwork was created using Nielsen data.

You might also like