Modern Trade

Modern Trade
& The Retail V

Business
August 28th, 2009
Page 1 Confidential & Proprietary

Copyright © 2009 The Nielsen Company
Confidential & Proprietary • Copyright © 2009 The Nielsen Company
Executive Summary
• Modern trade is still developing positively in Vietnam given
consumer trends and the economic recovery
• The competition is increasingly fierce with the opening of the

market: key international players have eyed the market and see
Vietnam as a big potential
• Retailers need to speed up to ensure maximized revenue and

profit– a combination of understanding and actions
Understand
market
Understand
consumers Management
Optimum
Know yourself
and competitors
• Nielsen has tools to help ensuring and maximizing your
revenue and profits Confidential & Proprietary
Confidential & Proprietary • Copyright © 2009
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Agenda
• Research Design
• Modern trade perspective
• Ensure growth in an increasingly competitive environment
• Who knows the answers knows how to deal with it

– Findings the answers to the key retailers’ needs
• Nielsen as your retailer partner

– Increase your profit and revenue with Nielsen
Confidential & Proprietary

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Research Design
• Nielsen Shopper Study • Nielsen Shopper trends
– Qualitative Study – Mystery Shopper – N = 1500
– Quantitative – n=200 – HCMC and Hanoi, DN, CT
– Saigon Coop HCMC – ABC HIB, males & females, 20 to 45 yo
– ABC HIB, females, 20 to 45 yo – 40 categories FMCG & non FMCG
• Nielsen Retail Audit • Nielsen Omnibus

– Data up to Jul 2009 – N=300 (each wave)
– Based on 2 cities (HCMC, Hanoi) – HCMC and Hanoi (Jan to May 2009)
– Covering 43 FMCG categories – Males & Females, 15 to 55 yo
• Nielsen Consumer • Macro Economic data

Confidence Study – Vietnam Govt. General Statistics Office
– Conducted March 2009
– Global online study > 50 countries
• Nielsen Space Man

– A merchandizing software

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Modern Trade
perspective
Vietnam vs Region

Modern Trade continues to expand in 2008!
Modern Trade is still growing 16% in store number and proves to be a more
and more important channel ….
Number of Modern Trade stores – HCMC+HN Sales contribution by sector – HCMC + HN
425 100
90
80
368 +16% 70
60 80 76
83 GT
50
40 MT
30
20
10 20 24
17
0
2007 2008 2008 2009F 2010F
Source: Nielsen Retail Audit Discover who is driving the increase in stores…

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A lot of potential compared to our neighbors
Comparing MT Vietnam to our neighbors, we also enjoy, growth, but
the channel is relatively untapped versus our neighbors
Share of trade for modern self-service outlets in Asia

88 89 90
2005 2006 2007
48 48
51
46 46 48 43 43 45 Average
36
32 35
7 9 10
Singapore Malaysia Thailand Philippines Indonesia Vietnam
Source: Nielsen Retail Audit, all FMCG
Source: Nielsen Retail Audit

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And room for more players
Top 5 chains contribute to 71% of total Vietnam Modern trade
Trade concentration within the Modern Trade HCMC & Hanoi

Share for the top 5 chains
(Top 5 chains: Saigon CoopMart, BigC, CitiMart, MaxiMart, FiviMart)
73 75 76 71
2004 2005 2006 2007
66 68 69 64
60
54
50 47 47
40 43 43
19 20
14
Thailand Singapore Vietnam Malaysia Indonesia Philippines
Source: Nielsen Retail Audit, Based on FMCG categories tracked by Nielsen

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Positive feedback from the experts …
• “Việt Nam ranked 6th globally in retail trade with an estimated revenue of USD37
Bil. Target this number will reach USD50 Bil by 2010.
Ms. Đinh Thị Mỹ Loan – Vice President, Secretary of Vietnam
Retailer Association
• Vietnam falls six places due to declines in exports and the resulting decline in
GDP, but long-term outlook is still positive
2009 Global Retail Development Index™, AT Kearney
• According to trade department’s plan, every 100.000 residents needs a big trade
center, every 10,000 residents needs a supermarket and every 1,000 residents
needs at least 1 - 3 convenient stores, then the current number of modern trade is
still a far cry.

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%
Occasional usage
Occasional usage incidence
66 of
Super &
Hypermarkets Hyper & Supermarkets
is closing up
96
2007
2008 on Traditional Grocery

92
in 2008!
Traditional
Grocery
93
Source: Nielsen Shopper Trends 2009, Base: All respondents (n=1900)

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High GDP Growth is mostly coming from the Urban
areas in Vietnam (+50% since 2000)…
151%
Urban and Rural Growth GDP Per Capita
Compound Growth in GDP, Indexed on 2000 143% 143%
135%
132%
Urban
Rural 126%
124%
118% 119%
115%
113%
111%
109%
105%
101% 102%
100%100%
2000 2001 2002 2003 2004 2005 2006 2007 2008E
Source: Government Statistics Offices

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…and Household Income is also growing - HCMC/ HN
sees increasing disposable income for consumers – an
indicator for the channel development
Emerging Middle Class: Increasingly Affluent And Sophisticated Consumers – HCMC+HN
6% 8% 8% 5% 8%
11% 11% 12%
7%
14% 9%
15% 12%
24% 14%
30%
39%
39%
10+m VND
48%
7-10m VND
53% 54%
7+m VND
58%
53% 4-7m VND
51% 2-4m VND
<2m VND
43% 35%
33%
24% 21%
14% 14%
9% 6% 9%
2% 2%
2002 2003 2004 2005 2006 2007 2008F 2009F
Source: Nielsen Omni Bus

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Modern trade V Traditional sector
In summary
• Vietnam’s modern trade still has a lot of potential and is

consistently gaining importance in share of baskets
• Currently dominated by just 5 key players
• Positive support from consumers – more money and

migration trend towards Modern trade channels

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Ensure growth in a more
competitive environment
Current vs. Current

Current vs. Future

Competition is fiercer among current players
Coop-mart still has a very strong SEI relative to its competitors in spite of
a slight decline. Big C equity rises significantly putting it slightly above
Metro.
Store Equity
2007 2008
3.7
3.3
2.5
1.9
1.8
1.2
0.8 0.7 0.8
0.7
0.5 0.5
0.2 0.3 0.1
0.3 0.2 0.1 0.2
0.1
0.1
Coop-mart Big C SPM Metro Maximark Fivimart Intimex Citimart Vinatex Hapro SPM Uni-mart Bai Tho
SPM SPM SPM SPM SPM SPM SPM SPM
Source: Nielsen Shopper Trends 2009, Base: All Supermarket/Hypermarket shoppers (2007 n=1009,2008 n=1494 )

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While the threat is still there from the outsiders
Retail market Opening Route

 1/2007: foreign retailers able to found joint-ventures with foreign capital of less
than 49%.
 01/01/2008: joint-ventures with no limitation for foreign retailers.
 01/01/2009: 100% foreign-owned retailers allowed. First location to be
approved.
 01/01/2010: open trade – foreign traders are allowed to execute all kinds of
retail and wholesale business in Vietnam

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What a retailer needs…
• Location – where to put my stores?
• Suppliers – How to make them

deliver quickly and give me a
good price?
• Current client vs. current in-store environment

- more spent / more frequent / heavier basket
- in-store promotion, ranges & merchandizing
• New customers: Marketing

activities effectives
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Key points to build your
competitive edge
Tools to ensure revenue and profits

Key points to take note
Supplier New customer

management development
Store location Current customers vs. in-

store management
Finding the
Finding the solutions
solutions…
…

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store management
An important decision when trying to determine the overall competitive

marketing strategy is place

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We need to understand the areas well
enough
Income structure
Population Structure
Store number / type density
Our strategy vs. consumer needs

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What should be the best position for the store?
Source: Nielsen Map Info

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Store location?
• Know your strategy

• Know the areas
• Know the consumers
• Nielsen Infomap + Nielsen
Shopper study can help

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store management
Improving supply chain management is critical to strategy for

reducing cost and maximizing added value

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We need to understand our partners well
enough
Factors and attributes that drives supplier

loyalty and satisfaction
How do they rank your store

vs. competitors?
What are your strength

& weaknesses vs. competitors
Key areas for improvement?

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A decent understanding of your suppliers is required
Power of purchase
Frequency of purchase
Ease of order request
Purchasing
Power
 Reliable/Trustworthy
 Progressive
 Store equity
Image  Pricing Strategy
 Clear and standard ordering process

 Ethics of purchaser
 Payment Process
 Payment abidance
Order &  Returned goods policy
payment  Responsiveness to problems
Trading terms
MKT/trade  Retailer promotion

 Trade support budget
Support  Sales/Merchandising materials
 Effective Advertising/Promotions
 Speed of implementation
Building  Openness/Receptiveness
trade  Works with me to improve my business
 Shares market information
partnership  Is Proactive
 Category Management
 Shelf Management
Source: Nielsen eQ Study Confidential & Proprietary
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A resource allocation plan to be in place
100
Improve ASAP Maintain Strength
Accessibility Promotion campaign Location

Importance
Secondary improvement are Maintain – low priority Maintain
Service
Placement Price
0 Low Average High
Store performance
Source: Nielsen eQ Study Confidential & Proprietary

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Supplier management?
• Know the suppliers’ needs

• Know your SWOT vs other
supermarkets
• Nielsen eQTM study can
help



store management
Delivering a consistent in-store experience satisfying your

customers help drive both repeat visits and store productivity.

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Current customers vs. in-store management is
not as simple as it looks. Key areas to cover:
• Understand consumer channel choice
• Understand consumer behavior within

MT channel
• Understand your store equity

vs. competitors
• Within stores:
• Understand cross category position
• Understand the consumer behavior
by category – ranges and
merchandizing - Liquid Milk example
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MT channel

vs. competitors
• Within stores:
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Channel Leverage 2008
Wet market is still the key channel consumers spend the most and visit most
while 50% consumers use supermarket on a occasional & regular basic
besides traditional grocery exhibits the chance of modern trade to convert
TRADITIONAL GROCERY SUPERMARKETS WET MARKET CONVENIENCE

STORES
Spend most
money 0 21 77 0
77%
36%
Use Past 7
days 74 59 99 3
(%)
99%
80%
Use Past 4 61% 75%
weeks 93 96 100 4
94% 100%
Occasionally 96% 44%
Use 99 100 9
100
Decrease vs.2007
Increase vs.2007

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Source: Nielsen Shopper Trends 2009
Place of Most Often Purchase by Category
Wet market is chosen for Fresh Food
Traditional grocery is visited for Non-fresh food like snacks, biscuits…
Supermarket is a favorite place for Personal Care products like detergent,
shampoo, toothbrush.
%
Place of Most Often Purchase by Category
100 3 21 2 3 1 1 2 Bakeries
32 3 3 4 3 3
Dealer
80 30 31 37 Cash & Carry
45
60
62 5 Wet Markets
60
92 91 92
Traditional Grocery
40 16
Cosmetics Shops
2 60 63 8 58
Confectionery Shops
20
29 33
27 Supermarket
7 9 7
0
fresh fruit & fresh meat or fresh fish or Carbonated Biscuits Shampoo Laundry Snacks Toothbrush
vegetables poultry seafood soft drinks Detergent
Source: Nielsen Shopper Trends 2009, Base: All respondents (n=1500) Ref: Q27-Q41

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“Convenience” and “Near my house” are 2 key factors in store
choice and store loyalty. Yet in those well-developed modern-
trade markets, it goes further than that!
Top 3 factors in driving store loyalty
1.Convenience 1. Clean & Clear

2. Near house 2. Product diversity
3. Reasonable 3. Food quality
1.Convenience
price
2. Near house
3. Promotion program
1.Convenience
2. Near house
3. Reasonable price
1.Convenience
2. Near house
3. Easy to shop
1.Convenience
2. Near house 1.Convenience 1. Easy to shop
3. Easy to shop 2. Reasonable price 2. One-stop shopping
3. Product availabity 3. Product quality
1.Convenience
2. Near house
3.Product availabity
1. Easy to shop
1.Convenience
2. Reasonable price
2. Reasonable price
3.One stop shopping
3.Near my house
Source: Nielsen Shopper Trends 2009 Confidential & Proprietary

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Shopping trip and shopping behaviors have been
changing overtime
• Requirement for more choice range
– Income increase
– More product availabiity
– More “new product” awareness
• Convenience still the key
– Near house or easy to get to
– One-stop shopping
• Having more experience with MT

– Ambience & atmosphere
– Product and service quality
– Clean and sanitery
• More members during shopping trip

– Family entertainment cases
– Responsibility sharing for housewives
Source: Nielsen Shopper Study

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MT channel

vs. competitors
• Within stores:
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In-store TV media needs to fit within the shopper
experience
on average the customers shop the

aisle for 36 secs, they don’t have
time to take in a 30 sec ad
…even though shoppers noticed the TV

showing ads placed above the aisle, very
few actually watched
consumers would be more open to ad messages when

queuing at the check-out.
Brief ad messages embedded in the display may be
more effective in the aisle itself

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And sales assistants play an important role
…. 23% who shopped the aisle

made contact with a sales assistant

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Use baskets/trolleys encourages purchasing
…. one third of consumers who shopped the aisle did not use a
trolley or basket
….having an assistant offering baskets/trolleys means they shop for

longer (average of 39 seconds with a basket vs 33 seconds with no
basket/trolley) and buy more (average of 1.45 packs with a trolley vs
1.23 with none).

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Channel choice & Modern Trade opportunity?
• Chance to convert shoppers from

other channel to
supermarket/convenient stores
• Convenience to the house still
key yet customers are being more
sophisticated. A distinct difference
in ambience, product range,
service, quality or price is needed
• Appropriate shopping aids helps
to increase shopper’s spending

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MT channel

vs. competitors
• Within stores:
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The Brand Equity model deconstructs the sources of
store equity to understand its building blocks
SOURCES
What people know
Awareness (21%)
Consideration (20%)
Store Accessibility
(14%)
Efficiency/ Loyalty store equity

Program (12%) index
Large Store Format &
Wide Selection (12%)
Quality products (11%)
Pricing & VFM (10%)

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Derived Importance Ranking of Supermarket Store
Attributes - All Shoppers
• The top 2 attributes driving SEI are related to location and convenience of finding
items once in store, showing people do not want to waste any time when making a
shopping trip.
Convenient to get to 0.48

Always have what I want in stock 0.33
A place where it's easy to quickly find what I need 0.33
Attractive and interesting promotions 0.31 Store Accessibility
Everything I need in the one shop 0.30 (14%)
High quality prepared meal 0.29
Has programs that reward regular purchase of food & groceries 0.29 Efficiency/ Loyalty
High quality fresh food 0.29 Program (12%)
Pleasant store environment 0.29
Has high quality brands 0.28 Large Store
Staff provide good service 0.28 Format & Wide
Food and Groceries are good value for money 0.27 Selection (12%)
Has wide range of well known brands 0.26
Quality Products
Well presented display of products 0.25
(11%)
Clean and hygienic store 0.24
Spacious 0.24
Wide range of fruit & vegetables 0.24 Pricing and Value
for Money (10%)
Wide range of fresh fish & meat 0.24
Ease of parking 0.24
Low prices for most items 0.22
Efficient checkout counters 0.17
Provides own brands as a good alternative to the main brands 0.06

Source: Nielsen Shopper Trends 2009 Confidential & Proprietary • Copyright © 2009
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Relative Retailer Performance on Store Attributes
• Chain A builds its successful store image from its higher convenience in the customer’s mind.
Chain B performs better than Chain C on most attributes. However, Chain C stands out for its
low price while Chain D need to improve in most attributes to catch up with the retail leaders.
Derived importance – ranked in order % Associated with Retailer

differentiators
Convenient to get to
Always have what I want in stock
A place where it's easy to quickly find what I need
Attractive and interesting promotions
Everything I need in the one shop
High quality prepared meal
Has programs that reward regular purchase of food & groceries
High quality fresh food
Pleasant store environment
important
Has high quality brands Chain A

Staff provide good service Chain B
Food and Groceries are good value for money Chain C
Has wide range of well known brands Chain D
Well presented display of products
Clean and hygienic store
Spacious
Wide range of fruit & vegetables
Wide range of fresh fish & meat
expected
Ease of parking
Low prices for most items
Efficient checkout counters
Provides own brands as a good alternative to the main brands
0 20 40 60 80 100
Efficiency/ Loyalty Large Store Format & Pricing and Value for
Quality Products Store Accessibility Ref: Q18
Program Wide Selection Money
Base: All Supermarket/Hypermarket shoppers who rate Coop-mart SPM (n=677), Big C SPM (n=905), Metro (n=1089), Confidential & Proprietary
Maximark
Source:SPM (n=294)Shopper Trends 2009
Nielsen Confidential & Proprietary • Copyright © 2009
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Store Relationship Tiers
• A great performance of Chain B as most KPIs significantly rose vs. last year. Chain
A is still strong but declined across key indicators. Encouraging shoppers to visit on
regular basic with better convenience will further strengthen Chain B standing
Chain A Chain B
SEI (3.7) 2007 SEI (3.3) 2008 SEI (1.2) 2007 SEI (1.9) 2008
Recommenders 40 39 9 18
Preferrers 40 38 9 18
Dependables 41 40 9 17
Regulars 49 47 18 31
Considerers 61 54 38 56
Trialists 65 58 45 64
Awareness 41 21 5 67 40 18 4 62 9 29 33 71 17 35 26 78
TOM Other Prompted TOM Other Prompted TOM Other Prompted TOM Other Prompted
Spont. Spont. Spont. Spont.
Not Consider 39 46 62 44
Hard to get to 1 2 15 15
Not Aware 33 38 29 22
Base: All Supermarket/Hypermarket shoppers (2007 n=1009, 2008 n=1494) Ref: Q11abcd, 12ab, 13abcd

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Your chain in the consumers’ mind
• Understand the key driver

for store equity
• Understand your SWOT vs.
competitors
• Understand your
relationship with your
current clients
• Customer retention and new
customer attraction is key!

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MT channel

vs. competitors
• Within stores:
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What are the most important categories?

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PERSONAL CARE HOUSEHOLD CARE Beverage + Cigarette FOOD
Hair Conditioner Laundry Product Cigarette Ready-To-Drink Milk
Personal Wash Insec. Aerosol Gums Sweetened Condensed Milk
Toothbrush Insec. Coil Fruit Juice Total Milk (IF, ADM, FCM)
Insecticide Fabric Softener Ready-to-drink Tea Biscuit
Body Cream Lotion HH Cleansers Soft Drink Cooking Oil
Shampoo Dishwashing Liquids Packaged Water Instant Noodle
Deodorants Tissues Energy Bouillon-Msg
Toothpaste Beer Sauce
Facial Care Product Sport Drink Powdered Concentrates
Razor & Blade Tea bag
Feminine Protection Coffee
Snack

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Do you know? – Top category in MT
RTDM, Biscuits & Pie & Shampoo are they key categories in HCMC+HN
MT, in which LP & RTDT enjoy the highest growth!
TOP 10 CATEGORIES IN MT HCMC & HN
VALUE % SHARE VAL GROWTH YTD TY VS. YTD LY
Category Growth
Category Contribution
Ready-To-Drink Milk
Ready-To-Drink Milk
Biscuits & Pie

Biscuits & Pie
Shampoo Shampoo
Laundry Products Laundry Products
Personal Wash Personal Wash
Instant Noodle Instant Noodle
Cooking Oil Cooking Oil
Feminine Protection
Feminine Protection
Ready-To-Drink Tea
Ready-To-Drink Tea
0 2 4 6 8 10
0 20 40 60 80 100 120
YTD LY YTD TY
Source: Nielsen Retail Audit Confidential & Proprietary
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Within one category, what brands / items
should be on your range?

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Do you know? – Top brands in RTDT
In RTDT, Khong Do & C2 still the key brand yet DR Thanh is
gaining share with amazing growth!
TOP READY-TO-DRINK-TEA BRANDS IN MT HCMC & HN – YTD TY
VAL % GROWTH YA BY BRANDS

% BRAND (VALUE)
100
90
Dr.Thanh 80
C2 70
23%
54% 60
50
Khong Do 40
16% 30
20 New 10 13
10 launch
Shiki 0
Pokka
4%
i
C2
a
h
ik
3%
kk
an
gD
Sh
Po
.Th
on
Dr
Kh
Source: Nielsen Retail Audit
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Top 20 SKUs in RTDT
Have you got these in your RTDT ranges?
TOP READY-TO-DRINK-TEA SKUS IN MT HCMC & HN – YTD TY
Volume % Is your
Share
ranking
C2 Green Tea Lemon Plastic Bottle 360 ml 34.7
the same?
Khong Do Green Tea Lemon Plastic Bottle 500 ml 10.9
Dr.Thanh 9 Herbals Plastic Bottle 350 ml 4.7
Shiki Green Tea Lemon Plastic Bottle 500 ml 4.7

4.4
Dr.Thanh 9 Herbals Plastic Bottle 500 ml
Is your
100 Green Tea Lemon Plastic Bottle 500 ml 4.3
C2 Green Tea Forest Fruit Plastic Bottle 360 ml 4.2 pricing
Wonderfarm Winter Melon Can 330 ml 3.9 in line?
C2 Green Tea Apple Plastic Bottle 360 ml 3.3
Khong Do Barley Tea Plastic Bottle 470 ml 2.9
Shiki Green Tea Honey Plastic Bottle 500 ml 2.3 Compared

Lipton Black Tea Lemon Plastic Bottle 455 ml 2.3 to
Lipton Ice Tea Lemon Can 330 ml 1.3 General trade
Lipton Pure Green Original Plastic Bottle 455 ml 1.2
?
Lipton Pure Green Green Tea Lemon Honey Plastic Bottle 455 ml 1.2
Khong Do Fruit Tea Green Tea Apple Plastic Bottle 365 ml 1.1
C2 Green Tea Peach Plastic Bottle 360 ml 1.0
Pokka Oolong Plastic Bottle 500 ml 1.0
Any new
Pokka Japanese Green Tea Plastic Bottle 500 ml 1.0
launches?
Khong Do Winter Melon Can 330 ml 0.9
Source: Nielsen Retail Audit Confidential & Proprietary

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Stock management
Sufficient stock level Over stock level

Under stock level
Source: Nielsen Retail Audit & Spaceman Confidential & Proprietary
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Your product range
• Understand the size and

growth of the category
• What are the most potential
categories and segments?
• Within the category, we need to
focus on the right brand & right
SKUs!
• Is your range in line with Total
Modern trade or total General
trade?

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Once you got the right range, what should
be the merchandizing scheme?
- Example with Liquid Milk category

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In order to have a good planogram,
we need to understand how
consumers shop the liquid milk
category
Source: Nielsen Shopper Study Confidential & Proprietary

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But we also need to put in action some of the
other findings about the shopper behavior
Need
Need –– brand
brand –– price
price --
Must
Must buy
buy aa 43%
43% ofof
Pack
Pack -- flavor
flavor
‘safe’/
‘safe’/ good
good purchasers
purchasers
brand
brand bought
bought liquid
liquid
Decision making tree milk
milk from
from aa
free-standing
free-standing
Amongst
Amongst thethe safe
safe Rules display
display
brands,
brands, choose
choose Display
the
the one
one that
that Only
Only works
works for
for
tastes
tastes the
the best
best brands
brands within
within
consideration
consideration
set
set via
via pre-store
pre-store
Promotion advertising/word
advertising/word
of
of mouth
mouth ––
switching
switching –– not
not
Kids impact Pack
increasing
increasing
11 litre
litre pack
pack sizes
sizes purchase
29%
29% of
of primary
primary purchase power
power
shoppers play
play aa role
role in
in
shoppers are
are
accompanied
accompanied by by conveying
conveying
kids
kids aged under 13;
aged under 13; information,
information, but but
Of these, 59% have
Of these, 59% have 81%
influenced
81% bought
bought 4x4x
influenced the
the
purchase
purchase small
small packs
packs
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Proposed layout
Category signage
Others (Campina, Enhanced

Dutch Lady Nutrition
Vinamilk
Daisy, etc.)
Vinamilk
nutrition
890 – 1000ml
110ml – 140ml
Dutch Others (Campina, Nutrition

Dutch
Lady Kids development
Vinamilk
Lady
Ovaltine, Milo, etc.) (teens)
Source: Nielsen Shopper Study & Space man Confidential & Proprietary
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Your merchandising
• Understand the behavior of

shoppers
• What are the “hot spots” what
are the “cold spots”?
• What is the shopper decision
tree?
• What is the most profitable
planogram?
• Nielsen Shopper Study and
Nielsen Spaceman software can
help

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© 2009 Nielsen
The NielsenCompany
Company


store management
The matter of prime importance to survive and growth is getting the

new customers you need.

Copyright The
© 2009 Nielsen
The NielsenCompany
Company
Store visit Triggers
Auto-pilot is a dominant trigger for store choice. Location is another
driver. Promotions only play secondary roles in triggering more
shoppers.
HABIT I shopped at the same store I always do Auto-pilot 77%
I just went to the closest store 61%
I shopped at a store that a colleague, friend or

5%
relative had recommended
I checked the newspaper or flyers for coupons and

10%
went to the store with the attractive deals
I chose the store that I'd seen advertised recently 1%
I heard of a new store and decided to try it 3%
I was visiting friends/ family and went to a store that

6%
they usually shop at
I was passing a store that caught my attention and I

2%
tried it
None of the above 0%
Base : All Supermarket/Hypermarket Shoppers (n=1494)
Source: Nielsen Shopper Trends 2009 Confidential & Proprietary

Copyright The
© 2009 Nielsen
The NielsenCompany
Company
New consumers grasp
• Understand the behavior of

shoppers?
• What are your store destination
categories?
• Nielsen Shopper Study can help

Nielsen as your retailer
partner
Increase profit and revenue with
Nielsen

What a Retailer needs in sum –
What you need
• Comprehensive View of Retail Market

• Thorough Understanding of Shoppers
• Objective & Independent Assessment of Your Market
• Position, Strength & Weakness
• Efficient In-store Operation
• Etc…
Nielsen Retailer Services can help!

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© 2009 Nielsen
The NielsenCompany
Company
Options of Services available
Data Exchange Retailer Advisory

Service Service

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© 2009 Nielsen
The NielsenCompany
Company
Data
Exchange
Retail Tracking Services Data Exchange service
Track your performance as against the market and your
competitors. Provide essential insights to development of effective
business strategies
Retailer Retailer Retailer

Retail Market Shopper Training &
Performance Vendor Category
Study Trend Client Services
Review Review Review
Answer your questions like

What is the retail market dynamic?
What is the general shoppers habits, perceptions and behaviour?
How am I performing as against my competitor?
How am I performing as against the market?

How am I performing on the department/category level ?

Copyright The
© 2009 Nielsen
The NielsenCompany
Company
Data
Data Exchange Service Flow Chart Exchange
service
Data is strictly managed to ensure Confidentiality!!
Re
Retailer p
Data out ort
eli ver put
D
Receipt Quality Check &

Data Transfer Load Report
Control
Nielsen
ACNielsen对数据的处理

Serve for Retailers’ Strategy with different Retailer
Advisory
focus Service
Challenges Objective Strategy
High growth
Open
potential in current
new stores
EXPAND
stores
Intensifying
competition limits Increase
same-store sales shopper loyalty OPTIMIZE
growth
Fast changing
shopping trends Reposition
threaten established
RETHINK
business model

Retailer
Expand geographic reach Advisory
Service
Market feasibility Site location

studies studies
? ? ?
?
? ?
Is it time to enter Is this a good location

this new market? for a new store?

Retailer
Optimize store performance Advisory
Service
Pricing Price Assortment Assortment

Checks Checks
Price Category
Elasticity Management
SHOPPER
LOYALTY
Customer
Satisfaction
Promotion
Effectiveness
Mystery Shopping
Promotions Shopper
experience

Retailer
Rethink business model Advisory
Service
Brand Positioning Store Design Private Label
U&A Store Concept Concept &

studies Testing product
Testing
Lifestyle &
segmentation Accompanied
Shopping Naming &
studies
Packaging
research
Price Store
image Catchment
House Brand
area study
Brand image
image

Thank you
Q&A


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Modern Trade

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Modern Trade

& The Retail V

Page 1 Confidential & Proprietary

• The competition is increasingly fierce with the opening of the

• Retailers need to speed up to ensure maximized revenue and

• Modern trade perspective

• Ensure growth in an increasingly competitive environment

• Who knows the answers knows how to deal with it

• Nielsen as your retailer partner

Confidential & Proprietary

• Nielsen Retail Audit • Nielsen Omnibus

• Nielsen Consumer • Macro Economic data

• Nielsen Space Man

Confidential & Proprietary

Page 5 Confidential & Proprietary

Number of Modern Trade stores – HCMC+HN Sales contribution by sector – HCMC + HN

Confidential & Proprietary

Share of trade for modern self-service outlets in Asia

2005 2006 2007

Singapore Malaysia Thailand Philippines Indonesia Vietnam

Source: Nielsen Retail Audit, all FMCG

Source: Nielsen Retail Audit

Trade concentration within the Modern Trade HCMC & Hanoi

Thailand Singapore Vietnam Malaysia Indonesia Philippines

Source: Nielsen Retail Audit, Based on FMCG categories tracked by Nielsen

Confidential & Proprietary

2008 on Traditional Grocery

Source: Nielsen Shopper Trends 2009, Base: All respondents (n=1900)

2000 2001 2002 2003 2004 2005 2006 2007 2008E

Source: Government Statistics Offices

Confidential & Proprietary

Source: Nielsen Omni Bus

• Vietnam’s modern trade still has a lot of potential and is

• Currently dominated by just 5 key players

• Positive support from consumers – more money and

Confidential & Proprietary

Current vs. Current

Page 14 Confidential & Proprietary

Confidential & Proprietary

Retail market Opening Route

Confidential & Proprietary

• Location – where to put my stores?

• Suppliers – How to make them

• Current client vs. current in-store environment

• New customers: Marketing

Page 18 Confidential & Proprietary

Supplier New customer

Store location Current customers vs. in-

Confidential & Proprietary

Supplier New customer

Store location Current customers vs. in-

An important decision when trying to determine the overall competitive

Confidential & Proprietary

Store number / type density

Our strategy vs. consumer needs

Confidential & Proprietary

Source: Nielsen Map Info

• Know your strategy

Confidential & Proprietary

Supplier New customer

Store location Current customers vs. in-

Improving supply chain management is critical to strategy for

Confidential & Proprietary