Nielsen Case Competition 2016 (Preliminary) - Team EBAFH

Copyright ©2012 The Nielsen Company. Confidential and proprietary.
NO. 44 - TEAM EBAFH
October 19, 2016

NIELSEN CASE COMPETITION 2016
1
BIG BEER IN RURAL MARKETS

A DYNAMIC PICTURE OF RURAL AND HOW TO GROW BIG BEER FURTHER
Being the second biggest manufacturer in Vietnam Brewery

Industry with a diverse range of brands , BIG BEER aims to
conquer the markets in Rural.
How is the pattern of growth to Beer category in Rural and

how can BIG BEER develop by utilizing their advantages as
well as overcoming barriers ?
Let’s figure out !
2
AGENDA
EXECUTIVE
SUMMARY
COMPANY’S
RURAL MARKET PERFORMANCE COMPETITIVE OPPORTUNITITES
OVERVIEW ANALYSIS ANALYSIS & CHALLENGES
KEY ISSUES &

RECOMMENDATIONS
3
EXECUTIVE SUMMARY
FOCUSED RURAL MARKETS DEVELOPMENT

Avoid competition in Northern – Central areas
Focus on potential markets: SCC Rural, SE Rural, MKD Rural
ENHANCED SEGMENTATION & DISTRIBUTION

Clarify the segmentation of Brands and Products
Develop TT Distribution Channels
MARKETING & LOYALTY INCENTIVES

Increase Market Share through intensive Promotions
Sustain market position through consumer loyalty incentives
4
RURAL MARKET OVERVIEW

 Rural is the source of growth and a potential area to invest on
BEER CATEGORY: URBAN VS. RURAL
 Traditional Trade at stores of Beer category in Rural should be enhanced

 Off-premise Purchase prevails (69% purchases)

 Large number of stores (60% nationwide)
 Most stores are in traditional form
(TT accounts for 80% grocery sales)
Source:
Nielsen Retail Measurement Data/6 Cities, 83 cities and Rural store numbers and ACV from censusresults 2013/Population from Government report 2009
Nielsen Case Competition 2016 in Hanoi – Data set 1
Cimigo Vietnam Consumer Market Trends report 2016
5
RURAL MARKET OVERVIEW

BEER CATEGORY: Contribution and Growth of Rural Markets
Value % Share Volume % Change
30
TOP SALES VALUE CONTRIBUTORS
25
20
15
10
0
NE/NW Rural RRD Rural CH Rural NCC Rural SCC Rural SE Rural MKD Rural
STAGNANT
HIGHEST GROWTH RATES
GROWTH
 SCC, SE, MKD have highest potential value to develop the category
Source:
6
COMPETITIVE ANALYSIS
Volume % Share of Hanoi Men & Camel
in Rural Regions
HANOI MEN & CAMEL
90.0 81.5
80.0 76.2
70.0 
60.0 Hanoi Men is leading NE/NW Rural & RRD Rural
51.4
50.0  Camel is leading NCC Rural
40.0  Both have very little share in CH Rural, SCC Rural,
30.0 SE Rural, MKD Rural
20.0 13.2
10.0 1.7 0.7 0.1 0 0.00.2 0.0 0 0.0 0
 Potentially penetrate new markets,
0.0
NE/NW RRD NCC CH SCC SE MKD where they have little volume shares
Hanoi Men Camel
Volume % Share Volume % Chg YA

SAIGON LOCAL 120.0
100.0
80.0
 Leading CH Rural, SCC Rural, SE Rural, MKD Rural 60.0
 Low growth rates in Rurals Saigon Local is leading 40.0
 Disruptive growth in NE/NW Rural & RRD Rural
20.0
 Focusing on expanding in 0.0
... ... ... ... ... ... ...
R R R R R R
markets led by Hanoi Men E/
N
W
R
D
C
C
C
H C SE KD
N R N SC M
Source:
7
COMPANY’S PERFORMANCE ANALYSIS

Value % Share in Rural Contribution of Volume % Chg YA of BIG BEER
Rural Regions to BIG BEER in Rural Regions
Others
11%
80
Camel Saigon Local
60
16% 39% 8% SCC Rural
40
19 % 20
35 % SE Rural
0
MKD Rural NE/ RRD NCC CH SCC SE MKD
38 % -20 NW
Hanoi Men
20% Other Rural -40
BIG BEER
14% -60
 NE/NW Rural, RRD Rural, NCC Rural, CH Rural account for little
Lowest share in Rural among contribution (1% - 4%) & demonstrate negative or insignificant growth
key manufacturers  SCC Rural, SE Rural, MKD Rural contribute most to sales value in Rural
Regions and grow positively
BIG BEER should consider growing further

in SCC Rural, SE Rural, MKD Rural
Source:
Nielsen Case Competition 2016 in Hanoi – Data set 1, 2
8
COMPANY’S PERFORMANCE ANALYSIS

Key Brands’ Volume % Share in Potential Rural Markets
30.0 Large Wild Golden
24.1
25.0
20.0
14.1
15.0 10.4
10.0 5.9 5.1
4.1 4.2
5.0 2.1
0.0
0.0
SCC Rural SE Rural MKD Rural
Large  14,042 % - -
Wild  34 %  47 %  60 %
Golde
 26 % 4%  36 %
n
 Golden, Wild and Large are all  Wild has the highest volume %  Golden, Wild and Large are of
potential (respective growth share (24.1%) and growth rate moderate popularity (respective
rates: 26%, 34% and 14 042%) (47%) shares: 5.1%, 4.2% and 5.9%)
 Large receive immediate  Large is newly-introduced but
popularity after introduced to is leading in volume share

the market  Golden & Wild demonstrates
positive growth (36% and 60%
respectively)
Develop all 3 brands Research G & L further Develop all 3 brands

Focus on Large Focus on Wild Focus on Large
Source:
9
OPPORTUNITIES & CHALLENGES

 NE/NW Rural, RRD Rural, NCC Rural, CH Rural are most difficult to compete
Respective market leaders have volume % share that outdistance all others
Volume % Share of Key Manufacturers

100.0
90.0
80.0
70.0
60.0
Percentage
50.0
40.0
30.0
20.0
10.0
0.0
NE/NW Rural RRD Rural NCC Rural CH Rural
Hanoi Men Saigon Local Camel BIG BEER
Source:
10

 SCC Rural is suitable for sustainable growth
Sales Volume = Wtd Distribution x Vol SPPD
NUMERIC WEIGTHED VOLUME SALES

MANUFACTURER
DISTRIBUTION DISTRIBUTION SPPD VOLUME
COMPARATIVE ADVANTAGES
Saigon Local 56.75 65.66 887.52 58280.79
 Best distribution quality
BIG BEER 63.42 76.33 584.29 44601.03  Widest distribution network
Camel 1 1.25 259.49 324.36
Hanoi Men 1 0.67 55.17 36.78
Volume % Share in SCC

100
90
80
70
 Leading SCC Urban
Percentage
60
50  Top 2 dominant manufacturers in
40 Rural
30  The gap with Saigon Local in SCC
20
10
Rural is not too significant
0
SCC Rural SCC Urban
Hanoi Men Saigon Local Camel BIG BEER
Source:
11

 SE Rural and MKD Rural are markets with potential to grow disruptively
• Camel and Hanoi Men either have withdrawn or have not penetrated yet
• BIG BEER demonstrates outstanding Sales Growth compared to Saigon Local
Volume % Shares Sales Growth

80
100
60
90
80 40 68.52
28.28 22.45
70 20 34
% Growth
4.865
Percentage
60 0 0.55077
50 -20
40 -40
65.77 -100
30 59.9 -60
20 -80
10 -100
0 0.0025 -120
SE Rural MKD Rural
SE Rural MKD Rural
Hanoi Men Saigon Local Hanoi Men Saigon Local
Camel BIG BEER Camel BIG BEER
Source:
12
KEY ISSUES & RECOMMENDATIONS

KEY ISSUES RECOMMENDATIONS
LOW MARKET SHARE AND
POTENTIAL
Low performance, •TO
AvoidGROW IN....– Central Rural
competition in Northern
negative growth • Focus on developing potential Rural markets (SCC Rural,
& severe competition SE Rural, MKD Rural) while key competitors:
in N&C Rural (1) Saigon Local is penetrating the Northern Rural
(2) Hanoi Man & Camel are new to the Southern Rural
• Push the sales of Brands that are popular or potential

Saigon Local as to specific regions according to research and analysis
current market leader • Enhance the advantage of quality distribution network
in all targeted markets (in terms of number and volume SPPD), focusing on TT
in Stores
Threat of losing • Invest on Promotions

market share to (Traditional Advertising, Lucky Draw, Gifts, Sports/TV Shows
Sponsorship, Themed Trading Points, Trials)
current & potentially
new competitors • Implement Loyalty incentives
(Repurchase Discounts, Points Accumulation, Exclusive Events)
13
THANK YOU
14

Nielsen Case Competition 2016 (Preliminary) - Team EBAFH

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 2016 (Preliminary) - Team EBAFH

Uploaded by

Copyright:

Available Formats

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

NO. 44 - TEAM EBAFH

October 19, 2016

BIG BEER IN RURAL MARKETS

Being the second biggest manufacturer in Vietnam Brewery

How is the pattern of growth to Beer category in Rural and

Let’s figure out !

KEY ISSUES &

FOCUSED RURAL MARKETS DEVELOPMENT

ENHANCED SEGMENTATION & DISTRIBUTION

MARKETING & LOYALTY INCENTIVES

RURAL MARKET OVERVIEW

BEER CATEGORY: URBAN VS. RURAL

 Traditional Trade at stores of Beer category in Rural should be enhanced

 Off-premise Purchase prevails (69% purchases)

RURAL MARKET OVERVIEW

Volume % Share Volume % Chg YA

COMPANY’S PERFORMANCE ANALYSIS

Regions and grow positively

BIG BEER should consider growing further

COMPANY’S PERFORMANCE ANALYSIS

popularity after introduced to is leading in volume share

Develop all 3 brands Research G & L further Develop all 3 brands

OPPORTUNITIES & CHALLENGES

Volume % Share of Key Manufacturers

Hanoi Men Saigon Local Camel BIG BEER

OPPORTUNITIES & CHALLENGES

NUMERIC WEIGTHED VOLUME SALES

Volume % Share in SCC

OPPORTUNITIES & CHALLENGES

Volume % Shares Sales Growth

KEY ISSUES & RECOMMENDATIONS

• Push the sales of Brands that are popular or potential

Threat of losing • Invest on Promotions

You might also like