Case 3 NCC Vietnamese Tobaco

The Nielsen Case
Competition
6th Edition
Final Round Case Study
1
Nielsen CaseTitle of Presentati
Competition
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© 2012
2012 The
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proprietary.
Competition Guide
• Read everything carefully & use details (charts,
etc.) to support your analysis and
recommendations
• Determine who should review what? Allocate
responsibilities amongst team wisely
• Look at notes beneath slide for explanations
• Not all information in the case study may be
useful – it’s up to you to decide!
• Don’t understand something? Try the appendix
or Google search
• You are encouraged to add your own desk-
research information (reliable sources) to
strengthen your analysis
• The key is to understand the story, all the slides
put together tell a story
Copyright © 2012 The Nielsen Company. Confidential and proprietary.

Rules Reminder
• You have 20 hours for final case, no outside help is allowed, other than
your 4 team members and the internet
• All work must be original
• Presentations should be in Microsoft PowerPoint format
• All communications should be in English
• Teams have no more than 15 minutes to present to judges (we will cut the
time at exactly 15 minutes, no exceptions) followed by 10 minutes Q&A
• Feel free to use other supporting sources via internet or library

Remember
•
The judges are your client
•
…So present to them like
they are your client

Last important note…
• Think about how you organize
your presentation
• Carefully consider how you

organize slides and add in your
own thoughts to make a
smooth and clear presentation

Background

About your client: Vietnamese Tobacco
• Vietnamese Tobacco is a leading company in the cigarette market, but has
been stagnant for quite a long period of time.
• Its product range spreads across Medium (brands Med 1 and Med 2) and
Premium segment (Pre 111 and Pre 222)
Competitor landscape:
• Korean Tobacco is the competitor who
has been significantly growing recently
with two brands “Seoul” (Premium
segment) and “KT” (Medium brand)
• Viet Trade is another large company

competing with Vietnamese Tobacco on
Medium segment. Their main brand is
Viet Trade
Title of 7
Presentation
Situation
• You are a member of the Nielsen client services team and are in charge of the
Vietnamese Tobacco account.
• Your client has requested you review all available market research studies which
they have conducted with Nielsen to provide a suggestion on how they can drive
growth again.
• By interpreting the following figures, you need to:

– Help your client review & access their performance
– Identify the issues or opportunities of growth (if any)
– Provide your suggestions
• You are encouraged to add your own desk-research information (reliable

sources) to strengthen your analysis
• Important Note: In Vietnam, tobacco is not allowed to be promoted on

communication channels such as TV, radio, newspapers/ magazines and
billboards.
Title of 8
Presentation
Note: Volume Share %: an individual brand or SKU share of either its total market or a specific market
segment, a key measure of relative performance.
Price segment – Vol % Share - Nationwide
51.5 52.1 51.9 51.5 51.0 51.2 51.3 51.2 50.4 50.1
49.6 49.6 49.0 48.4 48.2
47.3 47.2 46.9 46.8 47.0
43.6 43.2 43.6 44.0 44.3 43.8 43.5 43.5 43.9 43.8 43.9 43.4 43.5 43.2 43.2 43.8 43.6 43.6 43.1 42.9
8.3 8.6 8.9 9.2 9.5 10.0 10.1

6.1 6.5 7.0 7.6
4.9 4.7 4.5 4.5 4.6 5.0 5.1 5.3 5.8
11 B1
1 11 11 Y11 11 L11 11 P11 T11 V11 11 12 B12 12 12 Y12 12 L12 12
AN E A R
AP
R A
JU
N U G E C O DE
C N
FE M A
R R A N
J U AU
G
J F M M J AU S O N JA AP M JU
Medium Low Premium
Price range (VND/20s) Key Brands

Premium From 18.500 and above Seoul, Pre 111 and Pre 222
Asp. Premium From 12,000 – under 18,500 Med 1, Med 2, KT & Viet Trade
Low Under 12,000 Low 1, Value for Money

Price Per Pack (‘VND)
Brand Price Per pack

Pre 111 25,000
Pre 222 22,000
Seoul 22,000
Viet Trade 18,000
KT 16,000
Med 1 15,000
Med 2 13,000
Source: Nielsen Retail Audit (2012)
Title of 10
Presentation
Manufacturer – Vol % Share (Share based on total cigarette) - Nationwide
31.3 31.1 30.8 30.6 30.9 31.0 31.1 30.6 30.6 30.5 30.5 30.7 31.1 31.3 31.1 30.6 30.8 30.9 31.0 31.1
26.6 27.3 26.6 27.2 26.7 26.6 26.9 26.0 26.0 25.9 25.7 25.7
25.3 25.0 24.8 25.0 25.1 25.0 24.8 24.7
16.5 16.7
14.4 15.3 15.4 16.0 16.2
13.3 13.5 13.9
12.1 11.9 11.9 12.0 12.1 12.3 12.0 12.4 12.7 12.8
11 B 11 11 11 Y11 11 L11 11 P11 T11 V11 11 12 B12 12 12 Y12 12 L12 12

AN R R A N U G C N R R N G
J FE MA AP M JU J AU SE O C N O D E JA FE M A AP M
A
JU J U AU
Korea Tobacco Vietnamese Tobacco Viet Trade Tobacco
Title of 11
Presentation
Vietnamese Tobacco Brand Portfolio – Vol % Share (Share based on total cigarette) - Nationwide
15.1 14.7
14.5 14.2 14.4 14.5 14.7 14.5 14.4 14.7 14.6 14.9 14.8 14.6 14.6 14.2 14.2 14.1 14.3 14.1
7.8 8.1 8.0 8.0 8.3 8.0 7.9 7.8 8.2 8.1 7.8 7.8 7.9 7.9 8.1 8.0 7.9 8.0
7.3 7.6
6.9 6.9 7.0 7.1 6.9 7.1 7.1 6.9 6.5 7.0 6.5 6.8 7.3 7.0 7.0 6.9 7.0 6.8 6.9
6.2
1.4 1.4 1.3 1.3 1.3 1.4 1.4 1.4 1.5 1.5 1.6 1.6 1.7 1.5 1.6 1.5 1.6 1.6 1.7 1.6
0.2 0.3 0.5
Med 1 Brand Med 2 Brand Pre 111 Brand

Pre 222 Brand Other Low brands
Title of 12
Presentation
Premium Brand Portfolio – Vol % Share (share based on Premium segment) - Nationwide
17 17 17 16
19 17
22 18
25 23
2.11 2.99 4.95 26 25
27
28 27
30 30 30 30 29
64 65 66 66
57 60 61
52 55
45 49
38 43
33 35
27 26 26 27 29
11 B1
1 11 11 Y11 11 L11 11 P11 T11 V11 11 12 B12 12 12 Y12 12 L12 12
AN E R R A N U G E C C N R R A N G
J F M
A AP M JU J AU S O N
O DE JA FE M A AP M JU J U AU
Seoul Pre 111 Brand Pre 222 Brand
Title of 13
Presentation
Premium Segment Brand Portfolio – Vol % Share (Share based on total cigarette) - Nationwide
6.6 6.7
6.1
5.8
5.4
5.2
4.7
4.1
3.6
3.2
2.8
2.5
2.0
1.7 1.8 1.6 1.6 1.7 1.6 1.6 1.6 1.7 1.6
1.4
1.3 1.4 1.3 1.3 1.3 1.4 1.4 1.4 1.5 1.5 1.5 1.5
1.2 1.2 1.2
0.3 0.5
0.2
Seoul Brand Pre 111 Brand Pre 222 Brand
Title of 14
Presentation
Medium Brand Portfolio – Vol % Share (share based on Medium segment) - Nationwide
21 21 21 21 21 21 20 21 21 21 21
20 20 20 20 20 21 21 21 21
15 16 15 16 16 16 15 15 16
15 16 16 15 16 16 17 17 17 17 17
29 28 28 28 28 28 29 28 29 29 29 30 30 30 30 30 30 30 31 30
23 24 23 23 22 22 22 21 20 20 20 20 19 19 19 18 18 17 17 17
11 B 11 11 11 Y11 11 L11 11 P11 T11 V11 11 12 B12 12 12 Y12 12 L12 12

AN R R A N G C N R R N G
J FE MA AP M JU J U AU SE O C N O D E JA FE M A AP M
A
JU J U AU
Viet Trade Med 1 Brand Med 2 Brand KT Brand
Title of 15
Presentation
Medium Segment Brand Portfolio – Vol % Share (Share based on total cigarette) - Nationwide
15.1 14.7
14.5 14.2 14.4 14.5 14.7 14.5 14.4 14.7 14.6 14.9 14.8 14.6 14.6 14.2 14.2 14.1 14.3 14.1
12.0 12.4 11.8 11.7

10.8 11.0 11.2 11.2 10.6
10.0 9.9 9.9 9.8 10.1 9.9 10.0
9.4 9.4 9.1 8.6 8.4 8.1 8.0 7.8
8.1 8.0 8.0 8.3 8.0 7.9 8.2 8.1 7.9 7.9 8.1 8.0 7.9 8.0
7.8 7.8 7.6 7.8 7.8
7.3
Viet Trade Med 1 Brand Med 2 Brand KT Brand
Title of 16
Presentation
Korea Tobacco Brand Portfolio – Vol % Share (Share based on total cigarette) - Nationwide
10.8 10.7 10.7 10.8 10.7 10.6
10.3 10.4 10.2 10.0 10.1 10.1 10.0 10.2 10.1 9.9 10.0
9.9 9.8 9.7
6.6 6.7
5.8 6.1
5.2 5.4
4.7
4.1
3.6
3.2
2.5 2.8
1.8 2.0
1.3 1.7
1.3 1.2 1.2 1.2
11 B 11 11 11 Y11 11 L11 11 P11 T11 V11 11 12 B12 12 12 Y12 12 L12 12

A
JU J U AU
KT Brand Seoul Brand
Title of 17
Presentation
Availability* - Nationwide
66
60
54 56
50 52
48
43 45
41
36 36 36 38 38
34 33 33 35
32
19 19 20 21
17 18 18 18 18
13 14 15 15
10 10 11 12 12 12
9 9
5
2
11 B 11 11 11 Y11 11 L11 11 P11 T11 V11 11 12 B12 12 12 Y12 12 L12 12

A
JU J U AU
*: % total stores Source: Nielsen Retail Audit (2012)
Title of 18
Presentation
Penetration into Big stores for Medium segment* - Nationwide
80
76
71
68
64 65
60 62
55
51
46 46 47 48
45 43 43 43 44 45
41 41
36 38
31 33
28 29
24 25 26
20 21 22
18 17 18 19 19 19
15
10
4
11 B 11 11 11 Y11 11 L11 11 P11 T11 V11 11 12 B12 12 12 Y12 12 L12 12

A
JU J U AU
*: % total Big stores for Medium segment Source: Nielsen Retail Audit (2012)
Title of 19
Presentation
Penetration into Big stores for Premium segment* - Nationwide
67 69
63 65
60 62
56 58
54
51
46 46 47 48
45 43 43 43 44 45
35
30 32
26 27 28 28 28
24 25 25
20 21 22
18 17 18 19 19 19
2 3 4
11 B 11 11 11 Y11 11 L11 11 P11 T11 V11 11 12 B12 12 12 Y12 12 L12 12

A
JU J U AU
*: % total Big Premium stores Source: Nielsen Retail Audit (2012)
Title of 20
Presentation
Consumer support* (‘000 cigarette stick) - Nationwide
2,733 2,806 2,756
2,450 2,490
2,328
2,096 2,178
1,953
1,775 1,755 1,824
1,656 1,615 1,583
1,5471,556
1,383 1,447
1,196
874 853 826 894 838 866 819 797 845 826 796
764 773 764 804 836 846 852 850 851
305.29
153.2225.35
11 B 11 11 11 Y11 11 L11 11 P11 T11 V11 11 12 B12 12 12 Y12 12 L12 12

A
JU J U AU
*: consumer consumption (‘000 cigarette stick) per one % of distribution Source: Nielsen Retail Audit (2012)
Title of 21
Presentation
Pre 222 impacting with Seoul
Availability Vol % Share

2
1 1
1
4 5.6
7
5.1
4.5
18
15
13
1.6 1.5
1.1
JUN12 JUL12 AUG12 0.5
0.2 0.3
Stores handling only Seoul 0 0 0
Stores handling both Pre 222 & Seoul
Pre 222 Seoul
Stores handling only Pre 222
22

No interaction between Pre 111 and Seoul
Availability Vol % Share
4.5 4.6
51 4.1
48
45
2.0 2.1
1.9
11 12 15
1.1 1.2 1.1

8 8 6
JUN12 JUL12 AUG12 0.5 0.5 0.5
Stores handling only Seoul

Stores handling both Pre 111 & Seoul Pre 111 Seoul
Stores handling only Pre 111
23

New launch performance
Availability Penetration into Big stores for Medium seg

1st month 2nd month 3rd month 1st month 2nd month 3rd month
after launch after launch after launch after launch after launch after launch
Seoul 1 3 4 Seoul 1 2 3
Pre 111 4 9 15 Pre 111 8 15 19
Pre 222 2 5 9 Pre 222 4 10 15
Penetration into Big stores for Premium seg Consumer support (‘000 stick)
1st month 2nd month 3rd month 1st month 2nd month 3rd month
after launch after launch after launch after launch after launch after launch
Seoul 2 7 9 Seoul 143 256 307

Pre 111 2 5 9 Pre 111 54 79 93
Pre 222 2 4 7 Pre 222 153 225 305
24

A country with a young population
Total Population (2011)
87,610,947
Retail sales of goods and services (2011)
~USD 95.45 Billions
+24.2% vs 2010
+4.7% vs 2010 (excluding price factor)
0.90%
9.00%
Trade business
11.30%
Hotel & restaurant
Service
Tourist
Under 35 years old (2011) 78.80%
62.6%
54,833,303 people Source: GSO, Nielsen database
25

Source: Brand Health Tracking Report (2012)
26

Incidence of smoking in the past-1-month (Male)

27

Incidence of smoking in the past-1-month (Female)
28

Brand Images - % Strongly agree
It has a taste I prefer
It has a smooth taste
It has a nice aroma
It does not irritate my throat
It is suitable for socializing
It is a brand for a successful man
It is a brand for a young man
It has an attractive packaging
It is a brand for a businessman
It is a brand for a fashionable/trendy man
It is a brand for everyday use
It is an affordable brand

Title of 29
Presentation
Vietnamese youth culture has been going through changes,
imposing certain pressures and tensions
CHANGES PRESSURES/ TENSIONS
• Socio-economic changes – a • Self-related tensions = The transition from

more teen-centric society being a child:
– Pressure to prove their maturity/ adulthood
• Multimedia boom (Internet, cable – The urge to discover/ go beyond the cocoon
TV, high-tech mobile phone, etc.) – Pressure to live a useful life/ not being wasted
• Impact of Western/ Korean

trends on teens • Family-related pressures
• Existing role models
• Social & cultural norms
Source: Vietnamese Youth – Gen V Report (2010)

30

What is inspirational to Vietnamese youth?
Live their life in their own way now
Discover and express their ability and their self-

identity
Freedom Achievement
Confront and overcome challenges
…and achieve something out of these
challenges
Take on some daring & unconventional actions

Excitement/ Differentiation
thrill Do things differently/ Be the first to do things
now

31

A common pathway that Vietnamese youth get through in
their life
13-17 y.o. 18-22 y.o. 23-30 y.o. 30 y.o. onwards

Find a job, earn Become
High Colleges /
money & round successful & settle
school universities
up themselves down
STUDYING STUDYING CAREER BUILDING CAREER SUCCESS
+ + +
LIFE EXPERIENCE LIFE EXPERIENCE
ACCUMULATION FAMILY
ACCUMULATION
• Strong desire for • Try to prove that they’re • Focus =on gaining experiences at
proving their identity grown-ups and behave like the workplace, and proving their
via almost any thing adults capability and a professional
image
• Most experimental • Key concerns right now are
group, also the most studying, graduation and • Love to spend and willing to pay a
easily influenced getting a good job premium price for high quality
group products and brands.
• Start to care about quality
• Marketers can lure them • The most quality conscious group of
to their brands by • Marketers will need to build up consumers
portraying an a good product story and
aspirational and cool deliver on promises,
imagery that alongside with creating a
resonates well with Source: Vietnamese Youth – Gen V Report (2010)
relevant and aspirational 32
them. brand imagery.
Most of media activities peak in the evening
Any marketing activity happening

within this period will be fighting
for their attention.
Source: Nielsen Gen V study Oct 2009

33
Gen V Study 2009 Page 33
Leisure time is spent mostly on connecting with friends and
to enjoy entertainment …
Self-Entertainment
Playing game:
Đế Chế, Thiên Long Bát Bộ
Listening to music
Watching TV:
HBO, Disney Channel,
VTV3, VTV6, Bibi
Internet surfing:
Zing, Kenh24, Nhaccuatui,
MP3, dantri, vnexpress, etc
At Home Outside
Shopping
Texting
Chatting with Meeting friends at:

friends: Milk Tea shop “Quan tra sua”
Phone: sms and Ola Yoghurt shops
Internet: Yahoo messenger
Socializing Going to cinema

34

Internet Broadcast TV
Total 16.0 16 16 36
hours hours minutes
16.8
Internet and TV usage is largely
14.9 on par among local digital
consumers.
15-19
16.4
Males spend more
20-29 17.6 time on the
internet than ... and 40+ year
females... olds spend the
30-39 15.2 least time online
40+ 10.5
Base: All digital Vietnamese 15+ (n=973)
2011
Source: Digital Consumers Report (2011)
Top 5 social media activities
1. Reading others’ comments about
brands, products and services 47%
2. Browsing other people’s content
on social networking platforms 46%
46%
3. Reading online forums/discussion
boards
44%
4. Updating a social networking
profile
5. Sending private messages via

social networking platforms

37%
Consumers are getting more connected with increased
ownership of smart phones
96%
own a mobile
33%
own an internet capable mobile
35%
own a smartphone
31%
Smartphone
penetration mid 2012
More than one in ten digital

consumers have a smartphone
and this is expected to reach
31% by mid 2012
50%
Intend to buy a smartphone
in next 6 months
2011
Young consumers display highest ownership and also
highest intention to acquire a Smartphone
20-29s – the greatest

intentions to acquire a
smartphone in the next 12
months (25%)
20-29 year olds the most

likely to currently own a
smartphone (15%),
followed by 30-39s (11%)
Base: All digital Vietnamese 15+ (n=973) Source: Digital Consumers Report (2011)

Case 3 NCC Vietnamese Tobaco

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The Nielsen Case

Final Round Case Study

Copyright © 2012 The Nielsen Company. Confidential and proprietary.

Copyright © 2012 The Nielsen Company. Confidential and proprietary.

Copyright © 2012 The Nielsen Company. Confidential and proprietary.

• Carefully consider how you

Copyright © 2012 The Nielsen Company. Confidential and proprietary.

Copyright © 2012 The Nielsen Company. Confidential and proprietary.

• Viet Trade is another large company

• By interpreting the following figures, you need to:

• You are encouraged to add your own desk-research information (reliable

• Important Note: In Vietnam, tobacco is not allowed to be promoted on

Price segment – Vol % Share - Nationwide

8.3 8.6 8.9 9.2 9.5 10.0 10.1

Medium Low Premium

Price range (VND/20s) Key Brands

Copyright © 2012 The Nielsen Company. Confidential and proprietary.

Brand Price Per pack

11 B 11 11 11 Y11 11 L11 11 P11 T11 V11 11 12 B12 12 12 Y12 12 L12 12

Korea Tobacco Vietnamese Tobacco Viet Trade Tobacco

Source: Nielsen Retail Audit (2012)

0.2 0.3 0.5

Med 1 Brand Med 2 Brand Pre 111 Brand

Source: Nielsen Retail Audit (2012)

Seoul Pre 111 Brand Pre 222 Brand

Source: Nielsen Retail Audit (2012)

Seoul Brand Pre 111 Brand Pre 222 Brand

Source: Nielsen Retail Audit (2012)

11 B 11 11 11 Y11 11 L11 11 P11 T11 V11 11 12 B12 12 12 Y12 12 L12 12

Viet Trade Med 1 Brand Med 2 Brand KT Brand

Source: Nielsen Retail Audit (2012)

12.0 12.4 11.8 11.7

Viet Trade Med 1 Brand Med 2 Brand KT Brand

Source: Nielsen Retail Audit (2012)

11 B 11 11 11 Y11 11 L11 11 P11 T11 V11 11 12 B12 12 12 Y12 12 L12 12

KT Brand Seoul Brand

Source: Nielsen Retail Audit (2012)

11 B 11 11 11 Y11 11 L11 11 P11 T11 V11 11 12 B12 12 12 Y12 12 L12 12

Seoul Brand Pre 111 Brand Pre 222 Brand

*: % total stores Source: Nielsen Retail Audit (2012)

11 B 11 11 11 Y11 11 L11 11 P11 T11 V11 11 12 B12 12 12 Y12 12 L12 12

Seoul Brand Pre 111 Brand Pre 222 Brand

11 B 11 11 11 Y11 11 L11 11 P11 T11 V11 11 12 B12 12 12 Y12 12 L12 12

Seoul Brand Pre 111 Brand Pre 222 Brand

*: % total Big Premium stores Source: Nielsen Retail Audit (2012)

11 B 11 11 11 Y11 11 L11 11 P11 T11 V11 11 12 B12 12 12 Y12 12 L12 12

Seoul Brand Pre 111 Brand Pre 222 Brand

Availability Vol % Share

Source: Nielsen Retail Audit (2012)

Copyright © 2012 The Nielsen Company. Confidential and proprietary.

Availability Vol % Share

1.1 1.2 1.1

JUN12 JUL12 AUG12 0.5 0.5 0.5

Stores handling only Seoul

Source: Nielsen Retail Audit (2012)

Copyright © 2012 The Nielsen Company. Confidential and proprietary.

Availability Penetration into Big stores for Medium seg

Seoul 2 7 9 Seoul 143 256 307

Source: Nielsen Retail Audit (2012)

Copyright © 2012 The Nielsen Company. Confidential and proprietary.

Total Population (2011)

Copyright © 2012 The Nielsen Company. Confidential and proprietary.

Copyright © 2012 The Nielsen Company. Confidential and proprietary.