Confidential&ProprietaryCopyright 2009TheNielsenCompany

HCMCvHANOI
Understanding
consumer
differences

June2009

Page1

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Welcome&Introductions
AaronCross
ManagingDirector
NielsenVietnam

VaughanRyan
Director,ClientSolutions
NielsenVietnam

MaiThiTuyetHoa
AssociateDirector,ClientSolutions
NielsenVietnam

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Nielsenscommitmenttodeliveryouthe
BiggerPictureinVietnam

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Siblingrivalryacrosstheglobe
NewYorkvsLosAngeles
BeijingvsShanghai
MadridvsBarcelona
SydneyvsMelbourne
HCMCvsHanoi
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ExecutiveSummary
Attitudesofbothmarketscanbedefinedasindividualisticfor
theSaigonesewhileHanoianshaveacollectivemindset

SaigoneseliveforthemomentwhileHanoiansaremore
calculatedandplanned

TheroleofadvertisingismorecriticalinHanoi.Price
promotionsalonewontappealtoSaigonese
IstheHanoimarketreallymorepremium?
YesbutyouwillneedsubstantialmarketinginvestmentinHanoito
achievesuccess

Howhasthetoughereconomyimpactedbehavior?
Itdiffersbymarketandmoreimportantlybycategory
Saigoneseingeneralhavebeenmoreaffectedbuthavenotmade
drasticchangesintheirconsumptionhabits
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Agenda
SettingtheScene
ResearchDesign
HowdoconsumersinHCMCandHanoimakedecisions?
IndividualismvsCollectivism
Howcanweimpactpurchasingbehaviour?
Influencefactorsandconsumerswillingnesstoadoptnew
products
IstheHanoimarketreallymorepremium?
Howhasthetoughereconomyimpactedbehaviour?
KeyFindingsandImplications

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Settingthescene
HCMC

Population:6.3mil
48%Male
52%Female
2024agegroup=13%ofpopulation
13%ofpeoplehaveAirCon&/or
heatersintheirhome

Hanoi

Population:3.3mil
50/50Male/Female
2024agegroup=20%ofpopulation
43%ofpeoplehaveAirCon&/or
heatersintheirhome
26%useinterneteveryday

19%useinterneteveryday
51%MobileOwnership

74%MobileOwnership

20%totalVietnamGDPfromHCMC

9%totalVietnamGDPfromHanoi

$368AverageMonthlyHousehold
income

$344AverageMonthlyHousehold
income

Source:GovernmentStatisticalYearbookofVietnamNielsenVietnamSurveysandNielsenVietnamOmnibus

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ResearchDesign
NielsenQualitativeStudy

14FGD(HCMC=HN=7)
HCMCandHanoi(MidApril09)
ABCHIB,males&females
16to40yo

NielsenRetailAudit
DatauptoApril2009
Basedon2cities(HCMC,Hanoi)
Covering43FMCGcategories

NielsenConsumer
ConfidenceStudy
ConductedMarch2009
Globalonlinestudy>50
countries

NielsenQuantitativeStudy

N=600
HCMCandHanoi(May2nd to15th 09)
ABCHIB,males&females,20to45yo
40categoriesFMCG&nonFMCG

NielsenOmnibus
N=300(eachwave)
HCMCandHanoi(JantoMay2009)
Males&Females,15to55yo

NielsenPersonalFinanceMonitor

N=1,000
HCMCandHanoi(AugSept2008)
Males&females,18to50yo
SECABC

MacroEconomicdata
VietnamGovt.GeneralStatistics
Office
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Howdoconsumersin
HCMCandHanoimake
decisions?
IndividualismvsCollectivism

Page9

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Top5ConsumerConcerns
HCMC

Hanoi
1)IncreasingFoodPrices

1)Health
2)IncreasingBills

2)JobSecurity

3)JobSecurity

3)IncreasingBills

4)WorkLifeBalance

4)PriceIncreasesinPetrol

5)Debt

5)ChildrensWelfare

Source:NielsenVietnamOmnibusMay2009

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IndividualismVCollectivism
Saigonese

Hanoians

Itsmydecisionthatcounts.I
useotheropinionsforreference
only

Otheropinionsdoaffectmyactions
andbehaviours

WhenIcametothestore
tobuyanLCD,Ihad
alreadydecidedtobuy
Samsungbrandbefore
goingthere.Ijustasked
othersopinionsfor
reassurance

Forexample,Iwantto
buyanewTVandifsome
ofmyneighborstellme
thattheTVisnothigh
quality,thenIwouldbe
turnedoffthatTVright
away

Page11
Source:NielsenRegionalDifferencesQualitativeStudy

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TheHanoiconsumerisacomplexbeastfor
marketers
Wantitallbutarewillingtowait
Wantthebestandwilltellyouthe
price
Seekothersreaffirmationoftheir
purchases
Askothersopinionspriorto
purchase
Itsnotokwhenyour
friendisusingapremium
mobilephonewhileyou
useacheapone.People
willlookdownonyouand
judgeyou
Source:NielsenRegionalDifferencesQualitative&QuantitativeStudies

Lovepromotionsandareawareof
prices
Butareconservativeintheir
purchasingbehaviordisplayingmore
loyalty
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Saigoneseandthepushforindividualism

Idontcaresomuchwhatothers
think
Iftheyneedittheywillbuyit
Livefortodayandworryabout
tomorrowlater
Everyonecomments
thatmyphonelooksugly
butIdontreallycare.It's
notthatimportantif
peoplelikesomething,I
dontnecessarilyfollow
them
Source:NielsenRegionalDifferencesQualitative&QuantitativeStudies

Dolistentoothersbutintheendwill
maketheirowndecision
Lessimpactedbymarketing
Lowerloyaltytobrands

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Segmentationallowsustolookoutside
geographicalboundaries

Cluster1

Cluster2

Cluster4

Base:Allrespondents
Source:NielsenRegionalDifferencesQuantitativeStudy

Cluster3

Cluster5

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Q11,Q12,Q14,Q25,Q26,Q33,Q41,Q42

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Segmentationallowsustolookoutside
geographicalboundaries

Citycurrentlylivein

75%

Cluster1
25%

HCMC

Hanoi

HanoiisoneDISTINCTGroup
Base:Allrespondents
Source:NielsenRegionalDifferencesQuantitativeStudy

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Q2,Q42

Confidential&ProprietaryCopyright 2009TheNielsenCompany

Impactedbythecrisis

Cluster
2

ConsumptionChange

NoChangeinConsumption

Cluster
3
Cluster
1

HanoiclosetoCenter=Neutral&Compliant?

Cluster
4

NotImpactedbythecrisis
HCMCconsumersarediverse

Cluster
5

Base:Allrespondents
Confidential&Proprietary
Source:NielsenRegionalDifferences
Copyright2009TheNielsenCompany
QuantitativeStudy

Confidential&ProprietaryCopyright 2009TheNielsenCompany

Theinfluencefromothersissignificantly
higherinHanoi
Howimportantareeachofthesegroupsinmakingyourpurchasedecisions?

Recommendationsfrommy
familymembers

94%

99%

Recommendationsfrommy
friends

71%

91%*

Recommendationsfrom
colleagues/partners

52%

83%*

Recommendationsfrommy
neighbors

42%

94%*

Base:Allrespondents
Source:NielsenRegionalDifferencesQuantitativeStudy

Confidential&Proprietary
*Significantlyhigher
Copyright2009TheNielsenCompany

Q23b:Pleaseratethosestatementsbasedonimportance(1to5).Top2Boxes

Confidential&ProprietaryCopyright 2009TheNielsenCompany

MevsWe
IsitassimpleasSaigoneseembracingindividualismvsHanoians
beingcollectiveintheirattitudes?
Saigonese

Hanoians

Theydocareaboutwhatothers
sayaslongastheyaresaying
whattheywanttohear

Listentoothersadviceandact
uponthiswhenitcomesto
purchasedecisions.Others
opinionscount.
Theyareafraidofmakingmistakes
whentheymaketheirown
decisionsandwantbereassured.

Theywillaskforothersopinions
butintheendbuywhatsbest
forthem

Itsstillgoodtolistentoother

opinionsonthequalityofthe
products:Highticketitems
(Mobilephone,Fashion,LCD
TV,Washingmachine,Air
conditioner)

Ihavetrustinpeoplewho
haveexperienceusinga
specificproduct.Sometimes
wecanmakemistakes
withoutaskingforothers
opinions

Page18
Source:NielsenRegionalDifferencesQualitativeStudy

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TowintheHanoiansoverisnotassimpleaswinning
onepersonbutratheranentirecity
Saigonese

Hanoians

Theydontfeelaneedtocopy.

Theyhavetheirownstyle,butare
affectedbyothers.Theydontwant
tobeseenasoldordatedand
certainlydontwanttobelooked
downuponbyothers.Theydont
wanttofeelisolatedsotheydress
orchoosegoodsthatotherswould

Youmusthaveyourown
ideasanditshouldbewithin
yourbudget/affordability

Ifyoudontlooklikeothers

inthesociety,itmakesyou
feelinferiortothem

Page19
Source:NielsenRegionalDifferencesQualitativeStudy

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Confidential&ProprietaryCopyright 2009TheNielsenCompany

HCMCvsHanoidifferencescreateboth
challengesandopportunitiesformarketers
HCMC

HN

Iwillgetothersideasforreferencebutalsofilter
downwhichonesaresuitableformeandnot
totallyfollowthem

62%

92%*

IamafraidofmakingmistakesifIdecidethings
bymyself.Gettingothersideasforreferencewill
helpmefeelmoresecure

45%

65%*

Iwill neverbuythesameclothesthatarepicked
byothers

35%

62%*

Iwanttostandoutinthecrowd/amongmy
peers

24%

40%*

Base:Allrespondents
Source:NielsenRegionalDifferencesQuantitativeStudy

Confidential&Proprietary
*Significantlyhigher
Copyright2009TheNielsenCompany

Q25:Howmuchwouldyouagreeonthefollowingstatements?Top2Boxes

Confidential&ProprietaryCopyright 2009TheNielsenCompany

butfromcategorytocategorythiswilldiffer
especiallyforHanoians
Amongst15categoriesstudied,7categoriesrecordedhigher
influencefromothersinHanoi
1. Homeappliances
2. Vehicles
3. Food
4. Beverage
5. Medicine
6. Financialservices
7. Householdcareproducts

AcrosstheboardHanoiansmindsetisclearly
collectivecomparedtoSaigonese
Base:Allrespondents
Source:NielsenRegionalDifferencesQuantitativeStudy

Confidential&Proprietary
Q24a:Whichcategoriesdoyoudecidetopurchasebasedonyourowndecision/
Page21
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basedonothersadvicesoryoudontbuybutothersbuyforyouoryoudontuse?

Confidential&ProprietaryCopyright 2009TheNielsenCompany

Butwhy?
Theroleofpublicopinionandsocialconformitydoesdiffer
betweenthetwocitiesandseemstoinfluenceHanoiansmore
Saigonese
Theyjustliveforthemselves
anddontcaremuchabout
whatothersthink.

WhenIgooutwithmy
friends,Idontneedtowear
premiumluxuriousbrands

Hanoians
Theydontjustliveforthemselves
andtheydocarewhatothersthink
ofthem.Appearanceiskey.
Theyfeelaresponsibilitytoobey
certainstandardsanddisciplines

Theresasayinginthe

Northwhichis:Tellmewhat
motobikeyouareriding,then
Iwouldtellyouwhoyouare

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Source:NielsenRegionalDifferencesQualitativeStudy

Confidential&ProprietaryCopyright 2009TheNielsenCompany

DoesthisloyaltytranslatetoMadein
Vietnamproducts?

Icareabouttheproductsorigin

85%

95%*

Icareabouttheproductsquality

84%

98%*

Ibuyqualityproductstosave
moneyinthelongterm

79%

94%*

Base:Allrespondents
Source:NielsenRegionalDifferencesQuantitativeStudy

Confidential&Proprietary
*Significantlyhigher
Copyright2009TheNielsenCompany

Q41:Howmuchwouldyouagreeonthefollowingstatements?Top2Boxes

Confidential&ProprietaryCopyright 2009TheNielsenCompany

DoesthisloyaltytranslatetoMadein
Vietnamproducts?

VolumeShareMATtoApr09
HCMC=23%
Hanoi=56%

Source:RetailAudittoApril09

VolumeShareMATtoApr09
HCMC=26%
Hanoi=10%
HanoiBeerShare=85%

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Confidential&ProprietaryCopyright 2009TheNielsenCompany

IndividualismVCollectivism
Insummary

Hanoiansareinfluencedbymanyfactorsasingle
marketingcommunicationstrategywillnotalwayswork
Saigoneseliveforthemomentandpurchaseaccordingly
withonecoreintentIfIneedIllbuyit
Theneedtoobeyothersandbesocialconformists
meansthereisahighertendencyforHanoianstobe
moreloyaltoMadeinVietnamproducts.

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Confidential&ProprietaryCopyright 2009TheNielsenCompany

Howcanweimpact
purchasingbehavior?
Influencefactorsandconsumers
willingnesstoadoptnewproducts

Page26

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Toimpactconsumerbehaviorwefirstneed
tounderstandthedifferenttriggersbyeach
market

Liketowatchadsandare
affectedbythem

Base:Allrespondents
Source:NielsenRegionalDifferencesQuantitativeStudy

6%

23%*

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*Significantlyhigher
Copyright2009TheNielsenCompany

Q32:Whichstatementbestdescribeyou?SA

Confidential&ProprietaryCopyright 2009TheNielsenCompany

Howimportantareeachofthesefactorsin
influencingpurchasedecisions?

Advertising

41%

91%*

Newspapers/Magazines

42%

83%*

Recommendationsfromsellers/store
owners

36%

67%*

Internet/otherwebsitestocompare
information

22%

95%*

Mfr/Distributor/Sellerwebsitesand
forums

22%

100%*

Base:Allrespondents
Source:NielsenRegionalDifferencesQuantitativeStudy

*Significantlyhigher
Confidential&Proprietary
Q23b:Pleaseratethosestatementsbasedonimportance(1to5).Top2Boxes
Copyright2009TheNielsenCompany

Confidential&ProprietaryCopyright 2009TheNielsenCompany

Theroleofadvertisingismorecriticalin
Hanoi
HCMC

HN

Iwatchadvertisementandalsorefertoothers
ideastofeelassured

57%

81%*

Ilikestrange,uniqueandfunnyadvertisements.It
makesmelaugh,feelhappyandattractsmy
attention

44%

75%*

AdvertisementsarereallyhelpfulwhenIneedto
buysomething

28%

73%*

Ihaveatendencytolovemeaningfulimplied
advertisements

30%

68%*

Ifeelmorecomfortablewithproductswhich
havemanyadvertisements

19%

49%*

Preferenceforproductswilldependonthe
popularityofitsadvertisement

17%

49%*

Base:Allrespondents
Source:NielsenRegionalDifferencesQuantitativeStudy

*Significantlyhigher
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Copyright2009TheNielsenCompany
Q33:Howmuchwouldyouagreeonthefollowingstatements?Top2Boxes

Confidential&ProprietaryCopyright 2009TheNielsenCompany

andHanoiansarelikelytorespondbetterto
instorepromotionsandaftersalesservice

Wanttobuyproductsthatareon
promotion

52%

69%*

Arewillingtopaymoretogetbetter
aftersalesservice

34%

57%*

Base:Allrespondents
Source:NielsenRegionalDifferencesQuantitativeStudy

Confidential&Proprietary
*Significantlyhigher
Copyright2009TheNielsenCompany

Q41:Howmuchwouldyouagreeonthefollowingstatements?Top2Boxes

Confidential&ProprietaryCopyright 2009TheNielsenCompany

Promotionstrategiesneedtocatertodifferent
consumerpreferences
HN

HCMC
Saigoneseconsumersfavormultiple
promotiontypes

Increasevolume/
quantity

Shampoo
Beverage

Attachedgift

Shampoo
Bouillon

Reduceprice

TV
Fridge

Base:Allrespondents
Source:NielsenQuantitativeStudy

Hanoiansstronglypreferonetypeof
promotion:PRICE

Reduceprice

TV
Food

Confidential&Proprietary
Q19b:Whichpromotionprogramdoyoupreferthemost?
Copyright2009TheNielsenCompany
Q19c:Whichcategorieswouldyoulikethispromotionprogramtobeapplied?

Confidential&ProprietaryCopyright 2009TheNielsenCompany

ButdoesthistranslateintoAdoptiveness?
MoreSaigoneseareearlyadopters
Saigonese
PeoplefromtheSouth
considerthemselvespartofa
newworldwithstrong
penetrationofforeignculture/
investment.
Theyconsiderthemselves
moreopenmindedandmore
willingtoexperimentwith
newthings

Hanoians
Hanoiansareproudof
themselves,conservativeand
aremoreofachallengeto
convince.
Hanoiisalsomoreheavily
influencedbyChinesesystem
offeudalvaluesmeaningmore
skepticismtochange

1in5peoplefromHCMCareearlyadopterscomparedto1in10inHanoi
Source:NielsenRegionalDifferencesQualitativeandQuantitativeStudies

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Copyright2009TheNielsenCompany

Q26:Whichstatementbestdescribeyou?SA

Confidential&ProprietaryCopyright 2009TheNielsenCompany

BankLoans:Hanoiansaremoreconservative
whereasSaigoneseliveforthemoment
Intentiontoborrowfrombanksinthefuture

HCMC

Hanoi

42

39

36

52

57

70

49
22
9

2006

2008

2006

2008

Yes
Base:Borrowersfromsourcesotherthanbanks&Nonborrowers
Source:NielsenPersonalFinanceMonitor

No

Notsure
Confidential&Proprietary
Q67:Doyouintendtoborrowmoneyfrombank/notborrowfrom
Copyright2009TheNielsenCompany
bankinthefuture?

Confidential&ProprietaryCopyright 2009TheNielsenCompany

Influencefactorsandconsumers
willingnesstoadoptchange
Insummary
TheroleofadvertisingismorecriticalinHanoi.
Hanoiansalsoclaimtorespondbettertoinstore
promotionsandaftersalesservice
PricepromotionsalonewontappealtoSaigonese
Saigoneseareearlyadoptersthereforeyouneedto
investmoretobuildinitialtrialinHanoi

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Copyright2009TheNielsenCompany

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IstheHanoimarketreally
morepremium?

Page35

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Istheoldadagetrue?
Saigoneseearn10Dong
andspend11

Hanoiansearn10Dong
andspend1

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Copyright2009TheNielsenCompany

Confidential&ProprietaryCopyright 2009TheNielsenCompany

Hanoiansdohaveastrongerdesiretobuy
premiumproducts
Passionateaboutpremiumproducts
Wanttolookgoodandimpressothers
Willingtopayahigherpriceforpremium
products

Iamcrazyabouta
LouisVuittonbag
whichcostsaround
US$1,000.Ireallywant
tolookforajobthat
earns20millionVNDa
monthsothatIcan
saveenoughmoney
forthisLVbag

Tendtobesaversandthinkmorelong
termhencehaveabetterabilitytoafford
premiumproductswhenneeded

Iloveluxuryproducts
Source:NielsenRegionalDifferencesQualitative&QuantitativeStudies

59%

71%*
Confidential&Proprietary
*Significantlyhigher
Copyright2009TheNielsenCompany

Q29:Howmuchwouldyouagreewiththefollowingstatements?Top2Boxes

Confidential&ProprietaryCopyright 2009TheNielsenCompany

Saigonesearelessdesperateabout
premiumproducts
Iloveluxuryproducts,yetnottoodesperateto
havethem
Prefertobuywhattheylikeratherthanbuy
somethingthathelpsthemshowoff
Duringatoughereconomytheyareprepared
totradedowntocheaperbrands
Ijustwanttofeel
comfortablewith
myselfIdontneed
torushandbuya
premiumproductjust
becauseothershave
them

Tendtobeimpulseshoppers,henceless
capableofbuyingpremiumproducts

Purchasingpremiumbrandedproducts
isonlyforpeoplewhowanttoattract
people'sattention.Iamnotthatkindof
person
Source:NielsenRegionalDifferencesQualitative&QuantitativeStudies

48%* B

29%

Confidential&Proprietary
*Significantlyhigher
Copyright2009TheNielsenCompany
Q29:Howmuchwouldyouagreewiththefollowingstatements?Top2Boxes

Confidential&ProprietaryCopyright 2009TheNielsenCompany

HigherwillingnessofHanoianstopayhigher
pricesforproductstheylike

Willingtopayahigherpricefor
productstheylike

52%

64%*

Willbuyqualityproductsthatwill
savecosts

79%

94%*

Base:Allrespondents
Source:NielsenRegionalDifferencesQuantitativeStudy

Confidential&Proprietary
*Significantlyhigher
Copyright2009TheNielsenCompany

Q41:Howmuchwouldyouagreeonthefollowingstatements?Top2Boxes

Confidential&ProprietaryCopyright 2009TheNielsenCompany

Especiallywhenitcomestocategorieswith
highbadgevalue
Forwhichcategoriesareyouwillingtobuypremiumbrands?(Ttlspontaneous)

Electronics

Mobile
phone

Cosmetics

Base:Allrespondents
Source:NielsenRegionalDifferencesQuantitativeStudy

45%

72%*

14%

26%*

*Significantlyhigher
Confidential&Proprietary
Q30b:Whicharethecategoriesyouthinkofbuyingpremiumbrandsifyourfinancial
Copyright2009TheNielsenCompany
situationallows?Top2Boxes

Confidential&ProprietaryCopyright 2009TheNielsenCompany

InHanoi,thisisalsotrueforcategoriesthathelp
consumerslookgoodorimpressothers
PremiumSegmentVolumeShareoftotalcategory(MATApril09)

Electronics

MilkPowder

Shower
gel

Source:NielsenRetailAuditDataUptoApril09

28%

45%

24%

38%

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Copyright2009TheNielsenCompany

Confidential&ProprietaryCopyright 2009TheNielsenCompany

IstheHanoimarketreallymorepremium?
Insummary
Currentlypremiumproductsandbrandshavemore
appealtoHanoiconsumers
Higherpotentialforpremiumsegmentofthose
categoriesthathelpthemtolookgoodandimpress
others
Manufacturerswillstillneedsubstantialmarketing
investmentinHanoitomaximizethesuccessofpremium
productlaunches

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Copyright2009TheNielsenCompany

Confidential&ProprietaryCopyright 2009TheNielsenCompany

Howhasthetougher
economyimpacted
behavior?

Page43

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TheGEChasimpactedglobalconsumer
confidenceandVietnamhasnotescaped
1H2009NielsenConsumerConfidenceIndex
160

140

120
10 4 10 2

100

9 9

9 8 9 6 9 6
9 2 9 1
9 0 8 9 8 9
8 8 8 8

80

8 5 84
83 83 82
81 81 81 80 80
7 9 7 9 7 8 7 8 7 8

Globalaverage 77
7 6 7 6 7 5 7 5 7 5
7 4 7 3
7 2

7 0 7 0 7 0
6 5 6 4
6 3 6 3

60

6 0 6 0
52

VietnamGlobalRanking

48 48
42

40

20

1st half2008
2nd half2008
1sthalf2009

7th
9th
14th

31

ID

D
K

IN

N
O

PH

N
L
A
U

PK

N
Z
C
N

A
E
B
R

C
O

VN

C
A

VE

C
H

PL

TH
M
Y
IL

SG

U
S
SA

A
T
A
R

FI

B
E
C
L
ZA

R
U
M
X
SE

C
Z
D
E
ES

H
K

G
R

IT

G
B

EE
TW

IE

TR

FR

H
U

LV

PT

JP

K
O

Source:NielsenGlobalOnlineSurveyConsumerConfidence,March2009

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Copyright2009TheNielsenCompany

Confidential&ProprietaryCopyright 2009TheNielsenCompany

However,Vietnamesearestillrelatively
positiveandhavefaithinabrighterfuture

Ithinkthecrisisis
moreterribleinthe
U.S.orother
developedcountries.
HereinVietnamitis
stillsafe.Eventhe
Vietkieuscomeback
heretofindjobs!

Bigeconomicstimulus
packagefromthe
government
USPresidentBarack
Obamasplan
StateBankGovernorLe
DucThuyandhis
positivestatements
towardstheeconomy

Itdependsonhowyoucontrolyourmoney,
howwiseandcleveryouare.Besides,I
personallythinkVietnamisnotstrongly
impactedbythecrisis.
Page45
Source:NielsenRegionalDifferencesQualitativeStudy

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Copyright2009TheNielsenCompany

Confidential&ProprietaryCopyright 2009TheNielsenCompany

MoreHanoiansclaimtobeinfluencedbythe
toughereconomythanSaigonese
Howmuchareyouinfluencedbytheeconomiccrisis?

Savinghabits

52%

72%*

Shoppinghabits

52%

93%*

Entertainmenthabits

38%

71%*

Base:Allrespondents
Source:NielsenRegionalDifferencesQuantitativeStudy

*Significantlyhigher
Confidential&Proprietary
Q11a:Howmuchareyouinfluencedbytheeconomiccrisisonthe
followingitems?
Copyright2009TheNielsenCompany
Top2Boxes

Confidential&ProprietaryCopyright 2009TheNielsenCompany

Howeverthenetimpactofthetougher
economyishigherinHCMCthaninHanoi
22%ofSaigoneselifeisaffected,vs14%
ofHanoianslife

Idontcutdownonfood
expensesbutIjustdontspend
asfreelyasIusedtoIhaveto
savemore

HCMC
SinceImfinanciallywellplannedthe
crisisdoesnotaffectmeasmuch.
However,Ithinkitdoesstrikepeople
withlowincomes

Hanoi
Confidential&Proprietary
Copyright2009TheNielsenCompany

Source:NielsenRegionalDifferencesQualitativeStudy

Q11b:Howmany%yourlifehasbeenaffectedbythecrisis?

Confidential&ProprietaryCopyright 2009TheNielsenCompany

YetSaigonesehavenotmadedrasticchanges
intheirconsumptionhabits
Amongst40categoriessurveyed
Only 1categoryrecordedabehaviorofchangeabove20%(Clothes)

16categorieswiththeclaimedchangeofbehaviorbeyond20%
Haveyouchangedthewayyouspend,purchaseorconsumeforLaundryandCSDs?

Laundry
CarbonatedSoftDrinks
Base:Allrespondents
Source:NielsenRegionalDifferencesQuantitativeStudy

18%

33%*

21%

66%*

*Significantlyhigher
Confidential&Proprietary
Q14a:Haveyouchangedthewayyouspend,purchase,orconsumeforthefollowingcategories?
Copyright2009TheNielsenCompany
Changed/Unchanged

Confidential&ProprietaryCopyright 2009TheNielsenCompany

InatoughereconomySaigoneseadopt
differentshoppingstrategiesfromHanoians

Saigonese

Hanoians

Saigoneseclaimtomaintain
consumptionbutaretrading
downtocheaperbrandsor
smallerpacksizes

Hanoiansclaimtobe
consuminglessbutarebuying
thesamebrand.

Base:Allrespondents
Source:NielsenRegionalDifferencesQualitativeandQuantitativeStudies

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Copyright2009TheNielsenCompany

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InatoughereconomySaigoneseadopt
differentshoppingstrategiesfromHanoians
InstantCoffee:Howhaveyouchangedyourspendingandpurchasing?

Consumethesameamountbut
buycheaperbrandsorgofor
smallerpacks

42%*

1%

Readytosacrificeamountbutstick
totheirbrand

36%

79%*

Base:Allrespondents
Source:NielsenRegionalDifferencesQuantitativeStudy

Confidential&Proprietary
*Significantlyhigher
Copyright2009TheNielsenCompany
Q14b:Inwhichwayhaveyouchangedyourconsumptionforthementionedcategories?

Confidential&ProprietaryCopyright 2009TheNielsenCompany

Forsomecategories,Hanoianswillnot
sacrificetheirconsumptionlevels
NotwillingtochangeconsumptionhabitsofHealth&
Beautyproducts!
HaveyouCHANGEDthewayyouhavespent,purchasedorconsumedToothpaste(compared
tobeforethecrisis)?

Changed

13%*

7%

Unchanged

87%

93%*

Volumegrowth
onYA(MATApril09)

6%

15%

Base:Allrespondents
Source:NielsenRegionalDifferencesQuantitativeStudy
NielsenRetailAuditDatauptoApril09

*Significantlyhigher
Confidential&Proprietary
Q14a:Haveyouchangedthewayyouspend,purchase,orconsumeforthefollowingcategories?
Copyright2009TheNielsenCompany
Changed/Unchanged

Confidential&ProprietaryCopyright 2009TheNielsenCompany

Howhasthetoughereconomy
impactedbehavior?
Insummary
SaigoneselifeingeneralismoreaffectedthanHanoianslife,yet
almostnoradicalchangesintheirconsumptionhabits
Hanoiansclaimtobeconsuminglessbutarebuyingthesame
brands
Saigoneseclaimtomaintainconsumptionbutaretradingdown
tocheaperbrandsorsmallerpacksizes
Marketersshouldexaminechangesinconsumptionhabitsona
categorybasis.KeyfocusinHanoiistodrivevolume,whilstkey
challengeinHCMCistoretainbrandloyalty
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Copyright2009TheNielsenCompany

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KeyFindingsand
Implications

Page53

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KeyfindingsandImplications
Saigonese

Hanoians

Diversityofconsumers

Homogeneityofconsumers

Highadoptivenessallowsforeasy
trial.

Longterm/complexthinkers

Ongoinginvestmentrequiredto
maintainbrandloyaltyespeciallyin
toughereconomy

Initiallyitwilltaketimeandalarge
investment
Easiertoretainonceyouwintheir
heart

Liveforthemomentlesslikelyto
savetobuypremiumproducts

How?

How?

Promotionsshouldfocusonprice,
withoutcompromisingquality

Maketheirlifeeasiertosuitimpulse
behavior

Aftersalesservice

Distribution,promotions&display

OverplayandleverageWOM

Diversifymarketingstrategyone
sizewontfitall

Respectsocialandcultural
boundariesespeciallyinadvertising
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Copyright2009TheNielsenCompany

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FinalThought

OnesizewontfitallacrossVietnam

OnesizewontfitallwithinHCMC

OnesizetendstofitallinHanoi

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Copyright2009TheNielsenCompany

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Thankyou
Q&A
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Copyright2009TheNielsenCompany