ENTAIL LION CORPORATION

ENTERING A NEW MARKET

Team:
Nielsen Case Competition 2019 – First Round

Presenter’s Name
Date
This artwork was created using Nielsen data.
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 OVERVIEW
With a wide range of high-quality and sustainable
product portfolio, LION strives to elevate customers’
experience while embracing health awareness to create
better living standards for everyone.

This case study assists LION in designing the go-to-market

strategies to obtain a favorable position in Vietnam’s marketplace.
Copyright © 2019 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.

01 Market Evaluation A potential land for FMCG Producers

AGENDA

● Concerning more about health and wellness

02 Market Insight ● Tend to premiumisation trend

● Potential Category - Toothpaste

● Region & Channel Identification - MT South
Recommendation
03 ● Promotion Types - E-commerce
● Rural Consumers - a promising land

2
 MARKET EVALUATION
Vietnam - A Potential Land For FMCG

Vietnam % Consumers stating Health as

+1.0 %
Growth in
top 2 biggest concerns – Q4’18
Nominal
Value

GDP Q1’19 Growth vs. YA MAT YA MAT TY

Vietnam – FMCG dynamic – Growth vs. YA

Vietnam Unit Value Growth
Copyright © 2019 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.

Volume Change (Weighted Value)

Nominal Value Growth

FMCG MAT Q1’19 Growth vs. YA The positive outlook of Vietnamese

economy with growing FMCG market
In comparison with 4 other SEA and 43% Vietnamese consumers
countries, Vietnam is # 1 in both GDP concern health & wellness
and FMCG Growth
POTENTIAL MARKET TO ENTER
Prepared for LION
3
Source: GSO Vietnam. Economist Intelligence Unit. Nielsen Quarter by number report Q1’19; Nielsen Retail Audit data, Ending Mar’ 19.
 MARKET INSIGHTS
THE TREND OF HABIT FOR VIETNAMESE CONSUMERS

Concerning more about health and

Tend to premiumisation trend
wellness
% Consumers stating Health as top 2 biggest % People willing to pay
concerns – Q4’18
High quality / Assurance & Standard

22% 49%
43%
65%
Copyright © 2019 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.

Global
Vietnam Global Superior function or performance
Vietnam
46%
Most important health attributes when
purchasing one product 58% 58%

46% All natural/ organic ingredients Sustainable Materials

40% No harsh chemicals 38%

55%

Prepared for: LION

Source: Nielsen Consumer Confidence Report. *APAC figures. Nielsen Global Health Survey 2014. Nielsen The dirt on cleaning report 2016 4
 MARKET INSIGHTS
A Market Indicator for LION to Launch A Health-related Product

As Vietnamese consumers tend to more concern about health issues and

be willing to pay for a premium product (higher price) if it ensures High
Quality and Superior Function by using Sustainable Materials

% VIETNAMESE CONSUMERS EXPECT THEIR PRODUCTS HAVE BELOW

MENTIONED ATTRIBUTES
46% 50% AND LION has:
Copyright © 2019 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.

★ Social Responsibility Claims

about health awareness
★ Originate from a specific country -
Social
Japanese Brand
Originate from a
Responsibility specific country
Claims
Market Indicators provide a great opportunity for LION to adapt
consumer expectation and launch a health-related product in
Vietnam market.
Prepared for LION
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. 5
 Most Suitable Starting Point: Personal Care - Toothpaste

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

+4.0% Growth

Personal Care
Household Care

MAT YA MAT TY
Copyright © 2019 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.

MAT YA MAT TY

Personal Care accounts for Personal Care has higher value

larger value contribution growth compared to Household
compared to Household Care Care

Personal Care Super-group is a Good Starting Market

Prepared for LION

Source: Nielsen Retail Audit data, Ending Mar’ 19. 6
 The Market For Toothpaste Is Increasing

Vietnam – Personal Care – Value Contribution (%) Vietnam – Personal Care – Value Growth vs. YA (%)

+0.4 % +3.0%
Copyright © 2019 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.

MAT YA MAT TY

No experience negative value

The #4 Value Contributor in Personal care
noticeably by 3% in value growth
group and has highest growth by 0.4%

Toothpaste is the safest and most potential category to be

firstly brought into Vietnam’s marketplace.
Prepared for: LION
Source: Nielsen Retail Audit data. Data ending: Mar’19. 7
 Region & Channel Identification - Modern Trade South

Why should LION go to Southern Vietnam first?

43% contribution to FMCG value

40 MILLION POPULATION

largest consumption
South is the
market for FMCG
Copyright © 2019 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.

Characteristics Opportunities
● Diversity Appeals ● Consumers are more willing to try
● More Experimentation new products
● ATL (Above The Line) ● Increase brand awareness due to
Activities large demands in FMCG &
● More importance of MT spread-out MT distribution network
channel

Prepared for: LION

Source: Nielsen Case Competition - FIrst Round 8
 Region & Channel Identification - Modern Trade South

Why should LION prioritize in MT in the Urban of Southern Vietnam?

FMCG dynamic – Growth MAT TY vs. YA – Traditional
Trade & Modern Trade in Vietnam

TT VietNam MT Urban

15.1% MT URBAN

3.2%
+5% +14%
Copyright © 2019 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.

Vs YA Vs YA

Unit Value Growth MT Urban experienced higher value in both FMCG

Volume Change (Weighted Value)
Nominal Value Growth
dynamics (15.1%) and FMCG growth (14%)
compared to TT channels

MT South in urban areas is the most

strategic channel for LION
Toothpaste Entry
Prepared for: LION
Source: Nielsen Retail Audit data ending Mar’19. Nielsen shopper trend 2018 - 2019; Nielsen Retail Audit data, Data ending: Mar’19. 9
 E- Commerce is A Potential Sale Promotion Tool

Internet
Penetration

Daily
Internet Use
Copyright © 2019 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.

Vietnamese connected
customers have made
online purchase

Embrace E-commerce as an
opportunity to sell products via
online platforms and innovative and Personal Care category placed the #2
personalized online marketing with 45% in the E-commerce
experience for consumers
penetration
Prepared for: LION
Source: Internet Penetration: Demand Daily Time Spent: We Are Social & Hootsuite, Digital in 2018; Nielsen Global Commerce Study 2018; Nielsen global key drivers for
10
Grocery E-commerce 2018
 Drugstore is #1 Suitable Place To Develop Promotion
MODERN DRUGSTORE INCREASING # OF MT STORES by
store types
Attractive channel for young female
+119 stores

★Service: consultancy & quality

★Pleasant environment
★Variety & international brands
★Innovative & premium products
Copyright © 2019 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.

PROMOTION Suitable place to trigger sales in the initial stage and

raise brand awareness to new customer segments

Above The Line PR + Online Ads As LION is the NEW

brand towards Vietnam
KOLs Focus TVC
Raise Mass Awareness market, the primary focus
is to raise Brand
Below The Line E-commerce
Awareness via various
Trigger sales via PoS
promotion platforms.
PGs Samples
activities
Prepared for: LION
Source: Retailer’s official website 11
 Rural Consumers - The #2 Focus For Future Market Strategy
% Urban/Rural population
MT South in urban areas is the
most strategic channel for
Urbanization brings
LION Toothpaste Entry but
rural consumers closer
rural areas cannot be overlooked
to urban thereby, drives
diversified trends and
Why rural? demands
Copyright © 2019 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.

LION should capture the growth opportunities in rural

areas to reach more new customer segments after
launching products successfully in urban areas.
Prepared for: LION
Source: GSO Vietnam - 2018; Nielsen 2017 Census; Nielsen Retail Audit MAT Mar’19
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 Promotion Strategy For Rural Areas
Copyright © 2019 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.

Rural consumers have greater access

Raise mass
to product information via the internet awareness TV Ads
and smartphones as well as have
growth mindset related to secure Telemarketing
and authentic products
Prepared for: LION
Source: Nielsen Smartphone Insights study 2016; Nielsen Rural Mythbusters 2017. 13
 SUMMARY

PRE-INTRODUCTION STAGE INTRODUCTION STAGE

Metrics Objectives Metrics Objectives

● Raise brand ● Market: South areas

● Leverage the
ket: South areas awareness ● Channel: Expand MT
potential market
Copyright © 2019 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.

nnel: MT Urban in South. Urban to Rural areas

● Trigger the initial
gory:Toothpaste ● Drive more sales
sales ● Category:Toothpaste
motion: Utilizing various ATL and BTL ● Improve
● Promotion: Focus on
vities, especially E-commerce. ● Turn customer customer
E-commerce, social
into advocates retention
media and TV ads.

14
 THANK YOU

THE SCIENCE BEHIND WHAT’S NEXT TM

This artwork was created using Nielsen data.

Copyright © 2019 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.