2. Gaining the competitive edge - AGENDA
Looking at Asian trends to predict Vietnam’s potential
Personal Care – appealing to consumers hearts
Food & Beverage opportunities – Post WTO
Advertising opportunities – Post WTO
Coffee Break
Vietnam’s Media landscape – Post WTO
Shopper insights – the new battleground
Rural consumers – The next great opportunity
3. Looking at Asian trends to
predict Vietnam‟s consumer
future – Post WTO Vietnam
Ralf Matthaes
Managing Director
TNS Vietnam
4. Gaining The Competitive Edge - AGENDA
Asian / Vietnamese Population Trends
Asian / Vietnamese Wealth Trends
Asian / Vietnamese Consumption Trends
Asian / Vietnamese Attitudinal Trends
6. Asia‟s Population (60% of global pop.)
Population in Million Asia = 3,137,500,000
Chindia China / India 77% on the Asian population 2400
Indonesia 246
Japan 127
Philippines 90
Vietnam 85 Vietnam = 2.7 % of Asia
Thailand 65
Korea 49
Malaysia 25
Taiwan 23
Hong Kong 7
Singapore 4.5
Vietnam is home to Asia‟s 6th largest population
*Population estimated in 2006
*Source: GeoHive (www.xist.org/earth/)
7. Vietnam has Asia‟s 2nd youngest population
Vietnam 38 19 21 13 8
Philippines 38 20 22 14 6
India 35 20 22 17 6
Malaysia 35 19 24 16 6
Indonesia 34 19 23 17 7
China 27 18 26 20 9
Thailand 27 19 27 19 7
Taiwan 24 18 27 21 11
Singapore 23 15 30 24 10
S Korea 23 18 28 21 9
Hong Kong 19 14 30 23 14
Japan 16 15 20 29 21
0% 20% 40% 60% 80% 100%
0-14 15-24 25-39 40-59 60+
57% of Vietnamese are under 25 years old
Growth Rate estimated in 2006
**Source: GeoHive (www.xist.org/earth/)
8. Vietnam‟s population growth rate
Population Growth %
Philippine 1.8
Malaysia 1.78
Singapore 1.42
Indonesia 1.41
India 1.38
Vietnam 1.20
Thailand 0.68
Taiwan 0.61
China 0.59
Hong Kong 0.59
Korea 0.42
Japan 0.02
Vietnam has a sustainable & healthy population growth rate
Growth Rate estimated in 2006
**Source: GeoHive (www.xist.org/earth/)
9. Vietnam has the 2nd largest family size
Australia 60 10
New Zealand 58 11
Japan 56 10
S Korea 39 11
Hong Kong 38 15
Taiwan 31 23
Singapore 30 26
China 29 17
Thailand 29 20
Indonesia 21 37
Malaysia 19 47
Vietnam 15 43
Philippines 13 56
1 - 2 persons 3 - 4 persons 5 + persons
As Vietnam begins to urbanize family sizes shall decrease
Growth Rate estimated in 2006 Page 9
**Source: GeoHive (www.xist.org/earth/)
10. Vietnam has the 3rd largest female working pop.
79.2
China 88.8
77.7
Thailand 89.7
Female(%)
77.3
Vietnam 83.5
Male (%)
59.7
Korea 79.9
59.5
Indonesia 84.7
52
Philippines 82.6
51.9
Malaysia 81.4
51.2
Taiwan 76.2
Female consumers will become more and more important
Employment%:
*Data estimated in 2003
*Source: Asian Development Bank (ADB)- Key Indicators 2005 (www.adb.org/statistics)
11. Number of Household - Millions
400 372.10
350
300
250
206.30
200
150
100
58.60 48.50
50 25.20 17.30 17.20 17.10
7.50 7.20 5.60 2.20 1.50 1.00
-
Au es
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n
HK
a
li a
d
an
an
di
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or
re
an
na
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ra
ne
ay
In
iw
Ch
ap
Ko
Ja
ail
al
et
st
Ta
i li p
al
do
ng
Th
Ze
Vi
M
In
Ph
Si
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Vietnam has the 5th most number of households in Asia,
making Vietnam very attractive for Investment
**Source: GeoHive (www.xist.org/earth
12. Vietnam has Asia‟s smallest urban pop.
100 99
82 76 69
47 40
Singapore Hongkong N.Z. Australia Taiwan Korea Japan
66Cities will swell just like in China
55
48
43
29 29 27
Mal aysi a Indonesi a Phi l i ppi nes Chi na Indi a Thai l and VN
Source: Country Statistics Offices
13. Population Insights
Large, Young & Growing population
Smaller household sizes
Large female working population
Huge urban migration
More focus on…
Young consumers
Female consumers
Smaller size products
Demand for services
Building loyalty & consumer commitment
MUCH MORE COMPETITION & PRICE DISPARITY
15. 40,000
36,260
35,390
GDP per head In USD
35,000
30,000
27,320 27,150
25,390
25,000
20,000
16,480
1 1
5,1 0
15,000
10,000
5,150
5,000
2,750
1,700 1,290 1 90
,1 740 730
-
es
a
Ph si a
nd
na
Th a
e
m
Ze n
K
a
li a
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si
di
ew apa
or
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an
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a
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in
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ay
In
iw
ap
Ko
pp
ai
al
C
et
st
Ta
J
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do
ng
Vi
i li
Au
In
Si
N
Vietnam‟s GDP/ per capita has increase seven fold in the past 15 years
16. Cost of Living in New York = 100 - 2006
Philippines 43
India 45
Vietnam 62
M alaysia 68
Thailand 69
Indonesia 76
China 80
Taiwan 85
New Zealand 86
Australia 106
HK 107
Singapore 108
Korea 15
1
Japan 124
0 20 40 60 80 100 120 140
Vietnam was 38% cheaper than New York in 2006,
but inflation is pushing the index up rapidly
17. The emergence of SEC Scale
A = US $1,001 +
B = US $1,000 - 501
an urban middle class C = US $500 - 351
D = US $350 - 251
E = US $250 - 151
F = US $150 below
2006 21 55 24
2003 14 36 50
2001 12 32 56
1999 7 31 62
0% 20% 40% 60% 80% 100%
SEC AB SEC CD SEC EF
Monthly declared household income
The middle class in Urban Vietnam will drive consumersim
Source: TNS VietCyle – N = 2000 Urban
18. My standard of living
VC-20060 2 40 51 5
VC-2004 2 5 37 49 6
Much lower than today Somewhat lower than today
Equal to today Somewhat higher than today
Much higher than today
Vietnamese are still very optimistic about their economic futures
Source: TNS / Gallup - Voice of People Survey
19. Wealth Insights
Developing Middle class
Larger spend contribution from urban areas
Electronic banking & E-commerce will help stimulate economy
More discretionary spend & Smaller household sizes
More focus on…
The middle class
Luxury goods
Mass high quality products at better price points
Modern trade – easier distribution
Technology to save time and money
Wealth segments will create greater marketing polarization
in terms of wants, needs, aspirations and affordability
21. Asia‟s Media Spend Growth – 2006
40
23
18
15
4 4 3
Viet nam India China Indonesia Malaysia Thailand Philippines
7
6
5.2 5.2
4
-2.4 -2.5
Hongkong Korea Aust ralia N.Z. Singapore Japan Taiwan
Vietnam is experiencing a Media bonanza, which will slow down
Source: TNS AP offices
22. FMCG Growth in Asian Countries (%)
20
11
4 3
2 1
Vietnam is experiencing the fastest FMCG growth in Asia
-8
Urban National National National National National National
Vietnam China Thailand Taiwan Malaysia Korea Philippines
Total FMCG – Value Growth Rate (%) - Year 2006 vs. Year 2005
23. Asia‟s Fast Food Penetration
Local & Foreign FF purchase in past week – urban only
99
73
65
55
40 39
10
P hilippines M alaysia China Indo nesia Thailand VN India
Though changing, Vietnamese still love their Pho! (88%)
24. Mobile Phone Ownership - Urban 2006
10 0 98 94 93 88
80 75
Singapo re Taiwan Ho ngko ng Ko rea Japan A ustralia N.Z.
90
79 78
70
58
30
13
Thailand P hilippines M alaysia China VN Indo nesia India
Bye Bye Bamboo telephone, we‟re
getting connected, like the rest of Asia
Own personal mobile phone – urban only
25. Internet Usage – In-home
88 85
80 78
71 70 70
A utralia Japan N.Z. Ko rea Singapo re Ho ngko ng Taiwan
37
35
30
20
19 18
10
5
Thailand China M alaysia VN P hilippines India Indo nesia
Growth in internet usage will be key
to catching up to the rest of Asia
In-home email account - Urban only
26. Retail environment in Asia - 2006
Direct Sales
Traditional Trade
82 Modern Trade
51 55 54 60
48
33 34
12
a
a
na
an
s
m
nd
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pa
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As
na
i
iw
a
Ch
Ko
pi
ail
Ja
ala
et
Ta
ilip
Th
Vi
M
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Though still small, modern trade will grow substantially in Vietnam
27. Consumption Insights
Technology savvy consumers will leap frog technology
Ad spend shall increase but become less effective
Consumption will continue to increase, but products &
services will need to better fit Vietnamese tastes and needs
Retail outlets will become new battle ground for FMCG
Thus, more focus on…
Technology
New Advertising mediums
Stronger focus on retail
Better understanding of new consumer segments
INNOVATION & CONSUMER EXCELLENCE &
UNDERSTANDING WILL BE KEY TO SUCCESS
29. Vietnam happiest nation in Asia
Viet Nam N=989 49 43 7 1
United States N=1192 39 54 61
Philippines N=1198 38 49 12 1
Singapore N=1509 29 66 5
Japan N=1321 29 61 10 1
India N=1968 26 48 21 5
Indonesia N=995 21 74 5
China N=996 12 67 19 3
Korea N=1200 10 78 11 2
0% 20% 40% 60% 80% 100%
Very happy Quite happy Not very happy Not at all happy
Vietnam‟s economic turn around has had a profound
Positive effect on Vietnam‟s population – Will it Last?
Source: World value survey
30. A growing sense of national pride
Question :How proud are you to be [Nationality]?
1 Very proud
Philippines N=1200 87 11 2
1 2 Quite proud
3 Not very proud
4 Not at all proud
Viet Nam N=989 78 20 2
United States N=1184 72 24 4 Very proud
India N=1896 71 22 62
Quite proud
Indonesia N=995 48 45 61
Not very proud
Singapore N=1508 44 50 61
China N=952 26 56 14 4 Not at all proud
Japan N=1258 23 36 38 4
Korea N=1198 17 61 19 3
0% 20% 40% 60% 80% 100%
Economic development, success in sports and
technology, development of local entertainment,
realisation of own importance leading to higher pride
Source: World value survey
31. Question: For each of the following aspects, indicate
how important it is in your life. % saying “very important”
Family and Work on a four point scale.
World Values Survey
China
Korea
Philippines Family
Indonesia
Viet Nam
Work
Singapore
India
Japan
United States 0 20 40 60 80 100
In comparison to India & China, it appears that work will
become more important to Vietnamese in the near future
Source: World value survey
32. Asian traditional values
Question :Do you think that a woman
has to have children in order to be
Indonesia N=983 93 7 fulfilled or is this not necessary?
0 Not necessary
1 Needs children
Korea N=1043 92 8
World Values Survey
Philippines N=1182 87 13
Viet Nam N=959 86 14
India N=1917 85 15 Needs children
Not necessary
Japan N=917 66 34
Singapore N=1469 56 44
China N=863 37 63
United States N=1144 15 85
0% 20% 40% 60% 80% 100%
Looking again at China & India, it appears that
certain Vietnamese values will decline in the future
Source: World value survey
33. Question :With which of these two statements do you tend to agree?
A. One must always love and respect parents.
Respect for Parents B. Parents must earn love and respect
1 Always
2 Earned
3 Neither
World Values Survey
Viet Nam N=993 99.3 0.7
China N=993 94.5 5.5
Philippines N=1196 94.0 6.0
Singapore N=1505 93.0 7.0
Korea N=1200 92.2 7.8 Always
Earned
Indonesia N=987 90.2 9.8
India N=1924 88.8 11.2
United States N=1191 77.2 22.8
Japan N=1143 71.6 28.4
0% 20% 40% 60% 80% 100%
Due to Asian Confucian family values, respect for
parents should continue to be strong for years to come
Source: World value survey
34. Importance of Religion
Question: For each of the following aspects, indicate how important it is in your life.
% saying “very important” on a four point scale.
China World Values Survey
Korea
Philippines Religion
Indonesia
Viet Nam
Service to
Singapore others
India
Japan
United States
0 20 40 60 80 100
Religion is not a major influence in Vietnam, however, as
traditional values erode, religious affiliation may increase
Source: World value survey
35. Attitudinal insights
Happy Nation that will become less happy due to higher expectations
Family will become less important while chasing the economic dream
Further emancipation of women
Parents advise will become less important
National pride is very strong, this may erode
Religion not seen as important but may see
upswing due to above eroding values
With such a young population,
expectations will sky rocket
Attitudes will become more demanding & self centered
50. Asian trends to predict Vietnam’s
potential Summation
Population shifts will impact both spending power & consumer
needs
Competition will increase steadily, creating pricing disparities
Wealth polarization will create clearer consumer segments
Distribution will become easier, while media fragmentation shall
reduce advertising impact
Attitudes will become more demanding & self centered – The “Me
generation”
Youth culture will need to be embraced, while managing
expectations
53. Marketing Truism
Those brands that are the most
successful are those that connect to
both the hearts and minds of
consumers
Once a brand connects emotively
and gains space in a consumer's
heart, it starts to develop a truly
sustainable competitive edge,
because connection at an emotive
level is the hardest to attack…
54. Markets develop in a consistent and
CONSUMER
predictable way
DISCRIMINATION
CONSUMERISATION
Stage 6:
Cause-Related
Marketing
Stage 5:
Post-Modern
Marketing
Stage 4:
Customer-Driven
Marketing
Stage 3:
Classic
Branding
AMOUNT OF COMPETIT
Stage 2:
Marketing
Stage 1:
Commodity
Selling
55. Why the personal care category?
The personal care category, still at a very nascent
stage in Vietnam, is a good category to reflect
on…….one where we see love blossoming at the
same time as we see enormous challenge as the
sub-categories develop along different growth
curves and the competition intensifies
Personal care is also relevant to reflect on as the
dynamism and growth of the market, in conjunction
with the continuing emergence of Vietnam on the
world stage, mean an ever growing number of new
entrants looking to share in the rewards…
56. Reflecting on 10 driving forces
Strongly performing economy and growing
affluence- more to spend on non-
essentials; upgrading of needs on the
essentials
Youth population
Growing exposure to international
influences- friends/family/personal travel,
television, magazines, increasingly the
internet
57. Reflecting on 10 driving forces
4. Growing image consciousness
5. Mounting aspirations
6. A continuing focus on health
59. And how they manifest…
A shift to higher quality products
A shift to more aspirational products
The growth of the premium and super-
premium segment
The ongoing need for value
60. And how they manifest…
The ongoing need for convenience
More market segmentation, along
age/lifestage and lifestyle lines
Increasing marketing diversification
Vietnamese holistic notion of health- an
essential part of life
61. And how they manifest…
More importance placed by females and males
on maintaining health and beauty; personal
care rituals increase in importance; a
connection with products that deliver on
confidence fundamentals
A more polluted environment increases the need for
personal care
A tropical climate means specific personal care challenges
and specific functionality requirements
62. And how they manifest…
Fragrance is a powerful driver
Sensuousness is a powerful driver
Expansion of supermarkets, speciality and department stores provide
a more upmarket and one-one-one environment, this correlates with
increased trial and experimentation with personal care products
Direct sellers help to diversify the competitive landscape
and assist in broadening the offer beyond the major urban
centres
63. So where is the love?
“I love this shower gel,
because it gives me a fresh
feeling, a relaxing moment
before and after a working “My spray deodorant:
day”
„I‟m conscious of people‟s smell,
and I like to smell good,
and it gives me a plus in sexual attraction
(at least I think so).
So I never leave home without putting on
“Hair gel- I got bad hair, deodorant and cologne”
very thin and unmanageable,
this helps shape up my hair,
giving it body, making me look good.
Another thing that I never leave “It is convenient, it refreshes me,
the house without putting on” it belongs to my morning rituals-
I would feel uncomfortable
without completing it”
64. Where else?
“It is a real pleasure to apply it-
“I use it at night to keep scent and texture,
my skin smooth and bright. It‟s actually become a mandatory ritual”
It brings me confidence to
face the difficulties in life.
Confidence to face my
colleagues, clients and
husband. Confidence to
realize I am not old and I “Actually I don‟t find the
am beautiful enough” effectiveness of whitening,
but it helps my skin be
smooth and anti acne”
“I love my mouth wash-I like the feeling
and sense of having a totally clean mouth” “It is my favourite fragrance
in any shower gel from any brand.
I usually take a shower before going to bed,
and my husband keeps smelling this
aroma and I feel that he loves me more”
65. Where else? “Sometimes I like to home make my product,
because I know that ingredient
“I loved their shower and
will make my skin soft”
shampoo gel in the old
version, because it is
creamy with a lovely
fragrance. It gives me a
fresh and cooling feeling
which makes me feel so
light as if I were flying up “I love it because of its
in the clouds” sweet powder scent and
gentleness on skin. It makes
me feel safe and protected
“I find it suitable for Asian skin
and soothed”
and suitable to my skin.
It has the desired effect””
“It‟s extracted from natural ingredients,
which seems safe to me,
it has a mild, herbal fragrance and
gives cooling feelings”
66. Love themes
Our hit predictions
The power of fragrance
The importance of ritual
Understanding both universal, male and female, young and old,
married and single confidence needs
Category emotional heartlands
Connecting the emotive needs behind the basic hygiene needs
Experiential needs
The convenience factor
Hierarchies of need
Product benefits delivery- relevance and reality
Notions of Asian beauty and realities of Vietnamese beauty needs
Aspirational natural ingredients
The health and beauty connection
69. The Opportunities for specific food
categories in Vietnam
Per capita/per IFFO/baby Coffee MILO/Ovaltine RTD Milk
annum (kg) (cups) (cups) (liters)
Vietnam 5.3 29 4 5.7
Indonesia 11.7 68 1 5.4
Philippines 19.2 157 27 9.3
Thailand 31.0 148 12 21
Malaysia 35.0 119 130+ 13
70. Vietnamese food habits are
traditional and regional
Meal structure:
5 dishes .
Finish w rice +
soup./beverage
Breakfast: UMAMI TASTE separate
Left-over rice
Seasonal cooking:
Tea (hot) In-home Summer: boiled
Winter fried
HOT TASTE
Coffee Out-of -
(iced) home
3 dishes,
beverage
Breakfast:
with
Noodles/Bread SWEET TASTE meal/decora
tion and
garnishing
71. The 60/40+ rule
• The 60/40+ concept combines taste
superiority (60/40 consumer preference
in blind tasting) & relevant nutrition
The "plus" is not to impose artificially a nutritional benefit,
but to explore the possibility of improving the nutritional
value of a product compared to its main competitor.
72. 60/40 preference – hard to achieve,
harder to maintain (2 recent examples)
26
31
42
58
69 74
Dry test Soup test Stir fry test
41 33
59
67
Hot test Cold test
73. Nutritional Foundation
1. All public health sensitive
nutritional factors rated at
least “adequate”
Nutritional Foundation
(NF)
The NF answers the
2. All other key nutritional question: "does my product
factors rated at least
“adequate”
meet nutritional expectations
for Public Health Sensitive
Nutrients and for its own
All criteria met Yes category?".
75. Two forms of malnutrition
%
Obesity
12%
Malnutrition
2007
Source: Study on nutritional status & physical activities of
children 6-11y.o – NIN & Nestlé
76. Comparing sub-urban and urban
diet
Sub-urban Urban
Fat 16,3g/day Fat 20,6g/day
Sugar 54,8g / day
Sugar 56,1g / day
Meat 156,8g/day Meat 167,8g/day
Milk 115,5g/day Milk 201,0 g/day
Veget 131,2g/day Veget 124,3g/day
Fruits 56,3g/day Fruits 93,5g/day
Source: Study on Nutritional status and
physical activities among children 6-11, NIN
& Nestlé
79. WTO
New Opportunities
for Brand
Communications
1/24/2010 Saatchi & Saatchi 79
80. WTO is not
a magic wand
All of us have to make efforts to
try to take the best advantages of
that frame works
1/24/2010 Saatchi & Saatchi 80
81. The Effects of
Open Doors
1/24/2010 Saatchi & Saatchi 81
82. For Advertisers
• More products • The opportunity is to
competing for build or rebuild the
consumer choice LOVE of the
• Local products invest consumers for the
more in brand brand
building
• More demand of
“non-traditional”,
effective approach to
brand building
1/24/2010 Saatchi & Saatchi 82
84. For advertising industry
• Growth of spend, especially from local brands:
– Projected 30% growth of ad spend
• 6,000 local and 30 international agencies
competing for the pie:
– There will not be more players.
– The better ones will win
• The need to invest in local insights.. Real good
ones
• Need to really invest money and manpower into
areas beyond TVC and prints and POSM, and a
token slide of “online campaign”
1/24/2010 Saatchi & Saatchi 84
85. For the media
• The degree of openness will be less and the
speed slower:
• No private ownership or foreign investment
• Only BCC in program production
• But to expect foreign involvement and private management.
• More and better of traditional media will be
available: more channels, or publications, better
products
• New medium: Digital age with mobile, online,
IPTV
1/24/2010 Saatchi & Saatchi 85
86. We live in The Screen Age:
The screen has stepped out of the living room
into our pockets, our hands, our offices, our
cars, our stores, our streets…We’re never
more than an arm-length away from a
screen.
The Screen is getting larger and smaller
Screens are converging. TVs are becoming
more game-like, mobile phones more movie-
like, and technology more human-like.
1/24/2010 Saatchi & Saatchi 86
87. And facing the Digital Tsunami
• Anticipate Digital growth • Highest growth in
by 2008 to 34.2 billion users is:
dollars or 7.3 % of all
– Internet (18%)
spending
– Mobile Phone (14%)
• Average growth of spend
with China leading the
is 20% yoy
pack, reaching 0.5
• Vietnam spends online billion in 2009
about 2 millions a year,
– PC (11%)
about 0.5%.
1/24/2010 Saatchi & Saatchi 87
88. How do they use the
internet?
• Search
• Share
• Self-broadcast
• Sell and buy
1/24/2010 Saatchi & Saatchi 88
89. User Generated Contents
Has become a powerful factor
• Wikipedia, MySpace, YouTube are the
fastest growing sites in # of visitors
• FaceBook, Flickr, Yahoo360..have become
very popular even among professionals
1/24/2010 Saatchi & Saatchi 89
90. What does this mean for
marketers?
1/24/2010 Saatchi & Saatchi 90
91. Target Audience?
• Not just • But also
– Consumer – Participant
– User – Human
– Audience – Communicators
1/24/2010 Saatchi & Saatchi 91
92. The Influx of New Media
• Bottom up instead of • Opportunity:
top-down: – To target better
– People chose when
they consume the
media
– The media is
becoming fragmented
– The audience becomes
smaller, even to “one
person”
1/24/2010 Saatchi & Saatchi 92
93. The Sharing and Networking
• Easy to exchange • Harder to control the
information about information
products and brands • But can build a better
• The speed of sharing is connection with the
that of a mouse click consumers where they
• Information cross become proactive
geographical and even • Viral marketing
cultural boundaries
• User-generated contents
1/24/2010 Saatchi & Saatchi 93
95. The Answer Is No,
Absolutely Not
especially in Asia
TV is still by far # 1
1/24/2010 Saatchi & Saatchi 95
96. China Sample
• Total ATL Ad Spend is 49.86 billion USD in
2006
• TV is 81%, newspapers 17% and
magazine 2% (growing at 27% yoy)
• Online Ad Spend is USD 610 million in
2006, projected growth between 35% to
50%, up to 1.8 billion in 2008
1/24/2010 Saatchi & Saatchi 96
97. So what is the key to success in
the post WTO era?
Contents
1/24/2010 Saatchi & Saatchi 97
98. Why so?
• With the choice of media becoming so
diversified, and the control shifts to the
audience, what to say has become so much
more important than channels
• The more interesting programs, articles and
adverts in its message and execution, the better
its chance to attract the consumers
• The control of contents will persist, but by
default the ability to control will weaken
• Interesting contents will ATTRACT the
consumers to our brands, to the channels
themselves
1/24/2010 Saatchi & Saatchi 98
99. ATTENTION ECONOMY
ATTRACTION ECONOMY
DIRECTION CONNECTION
ONE-TO-MANY MANY-TO-ONE
REACTIVE INTERACTIVE
CUT-THROUGH MESSAGES ENGAGING CONTENT
HEAVY USERS INSPIRATIONAL CONSUMERS
PRODUCT PLACEMENT CONSUMER EXPERIENCES
LARGER-THAN-LIFE CLOSER-TO-MY-LIFE
WHAT YOU NEED WHAT I WANT
1/24/2010 Saatchi & Saatchi 99
100. Is everything going to be
great with WTO?
• Media driven approach (TV spend)
• Rushed, “instant noodle” programs
• Over-commercialization of contents: logos
everywhere
• A “token” chart on “online” or “360°
marketing”
1/24/2010 Saatchi & Saatchi 100
101. A few thoughts to share with
(potential) advertisers
• Invest in talents, especially local, to get the best
out of your agency
• Look for an idea company, not an ad agency
• Dare to be different
• Don’t waste your media $$ on poor creative
• Choose strategies, programs, agencies by
CONTENTS, not just by the numbers
1/24/2010 Saatchi & Saatchi 101
102. No longer the choice of the
media, but the viewers!
The changing
Media landscape
of Vietnam
Tran Thi Thanh Mai
Managing Director
TNS Media
103. Content
Country At A Glance
Demographic and social development indicators
Economic development indicators
Vietnam Media landscape
Vietnam‟s Changing Media landscape
Television viewing habit – The post WTO trend
Other media as alternates to TV
TNS Media‟s forecast
104. Country at a glance
Socio-demographic indicators
59 provinces and 5 municipalities
Population (2006): 84.1 mill.
Pop. growth (2006): 1.2%
Total fertility rate (2004): 2.3
Life expectancy at birth (2004): 71 years
Adult literacy rate (2004): 93.9%
Urban population (2006): 73%
72% of urban pop. in 6 largest cities
Non-agro workforce (2004): 40%
Source: GSO/UNDP
105. Country at a glance
Economic Development
Real GDP growth (2005): 8.4%
Inflation rate (2006): 6.6%
GDP per capita (2006): US$ 637.56
FDI (1st half 2007): US$ 5.2 billion
GDP composition (2006):
• Agriculture: 20.89%
• Manufacturing: 41.03%
• Service: 38.08%
Poverty rate (2002): 29%
HID ranking (2006): 109/177 countries
Source: UNDP/AAD
106. Vietnam Media Landscape
Print Media
713 daily and periodical
publications
77% urban population read last
week
All major newspapers have online
versions
Ownership: State-owned
Source: TNS Media Vietnam
107. Vietnam Media Landscape
Radio
288 local FM stations
11 national radio stations (VOV)
Hundreds of radio transmitters at sub-
district/village level
36% of population in 6 largest cities listen to
radio everyday
Ownership: State-owned
Source: TNS Media Vietnam
108. Vietnam Media Landscape
Television
1 national TV station (VTV)
1 Terrestrial Digital TV - VTC
65 local TV stations
Mode of delivery:
Free-to-air broadcast
Cable
Satellite dish antenna
MMDS/DTH
Cable providers: 6
Ownership: State-owned
Source: TNS Media Vietnam
109. Vietnam Media Landscape
Internet
Users (Aug. 2007): 20.6% of pop.
Increase rate 2003-2007: 73.3% pa
Broadband subscribers: 953,758
Increase rate 2003-2007: 367.6% pa
Internet households: 12% in 6 largest
cities
7 IXP and 18 ISP
Ownership: state and private
Source: VNNIC/TNS Media Vietnam
110. Vietnam Media Landscape
Mobile phone
Subscribers (2006): 11 mill. (13.2% of pop)
Annual growth rate 2003-2006: 59.7%
Service providers:
• VinaPhone
• MobiPhone
• Viettel Mobile
• S-Fone
• EVN Telecom
• Hanoi Telecom
Media ownership: state owned
Source: VN Post
112. Growth of cable channels at the expense of Free2Air
Percent of households receiving Free2Air vs. cable/sat TV in Ha Noi
100
88.9
80.5 79
80
Percent of households
58.2
60 64.2
Free-to-air antenna
55.8 46.9
TV cable
40
35.9
20 25.5
0 3.6
2003 2004 2005 2006 2007
Source: TNS Media Habit Survey, 2003-2007
113. Growth of cable channels at the expense of Free2Air
Percent of households receiving broadcast vs. cable/sat TV in HCMC
120
95.9
100 92.8
87.3
Percent of households
80 70.5
56.8
60
Free-to-air antenna
40 TV cable 48.7 32.6
20 12.9
2.6
0.7
0
2003 2004 2005 2006 2007
Source: TNS Media Habit Survey, 2003-2007
114. More choices to watch
Hanoi
14.0
13.0
Domestic channel
12.0 11.5
Foreign channel
10.7
10.3
10.0
Number of channels
8.0
6.3
6.0
4.5
4.0
4.0
2.0
0.0
0.0
2001 2005 2006 2007
Source: TNS Media Habit Survey, 2001-2007
115. More choices to watch
HCM City
25.0
Domestic channel
20.2
20.0 Foreign channel
16.5
15.0 13.2
Number of
channels
10.1
9.4
10.0
5.0
5.0
2.6
0.0
0.0
2001 2005 2006 2007
Source: TNS Media Habit Survey, 2003-2007
116. Gains & loss of TV viewership by reach
Most affected time slots – 4 cities
Percent of persons watching free2air channels during primetime period
75
7067.1 66.2
64.9 64.3
65
Percent of persons
58.2
60
53.2 53
55
50.7
50 48
45
40.2
40 11h-13h 20h-22h
35
First half 2003 First half 2004 First half 2005 First half 2006 First half 2007
Source: TNS TV Audience Measurement,2003-2007
117. Gains & loss of TV viewership by consumption
Most affected time slots – 4 cities
6057.0 57.0
54.0
53.0
Average minutes viewed
55
50
45.0
45
40 37.0
36.0
35.0
34.0
35
30 28.0
11h-13h 20h-22h
25
First half 2003 First half 2004 First half 2005 First half 2006 First half 2007
Source: TNS TV Audience Measurement,2003-2007
118. Total TV viewer-ship
By consumption
250
TTV
Cab/sat TV
Minutes viewed
200
Free2Air TV
150
1st half 1st half 1st half 1st half 1st half
2003 2004 2005 2006 2007
Source: TNS TV Audience Measurement, 2003-2007
119. The bigger the share the higher the loss
TV rating of HTV7 in HCM City
Source: TNS TV Audience Measurement,2003-2007
121. Internet penetration
Percent of households connected to internet
20 18.8 18.8
17.7
18
16.5 16.5
16
13.9
14
Percent of households
11.8
12
9.5
10
8
6.2
6 4.9
3.8 4.1
4
2
0
2003 2005 2006 2007
Ha Noi Ho Chi Minh City Four cities
Source: TNS Media Habit Survey, 2003-2007
122. Internet and the youth
Average minutes used for internet per day by age group
80
70
Average minutes used
60
50
40
30
20
10
0
2003 2005 2006 2007
15-24 25-34 35-44 45+ Total
Source: TNS Media Habit Survey, 2003-2007
123. Other Upcoming Media
Increased competition among producers of electronic goods and
new media (VCD/DVD players, LCD, Plasma display, mobile
phones and other portable device) and among service providers
lead to big drops in prices and user fees and hence increased
penetration of new media. These new media are reshaping
people‟s TV viewing habits.
More services offered by TV cable providers: Using TV for
functions other than watching TV, e.g. gaming and internet surfing.
Higher income earnings + longer holidays may change the way
people use their leisure time, e.g., more out-of-home recreational
activities at weekends and/or more frequent visits to high-end
cinema, especially among the youngsters.
OOH LCD reaching out to busy city dwellers at office buildings,
shopping centers, supermarkets and high end apartments.
124. TNS Media‟s forecast of TV viewer-ship to 2010
Average minutes spent viewing TTV and cab/sat TV channels
Vietnam‟s four largest cities
250
225 224 227
214
TTV
200 198
150
139 min.
110 min.
100
Cab/sat
TV
79.1%
50
21 34
1 3 6
-
2003 2004 2005 2006 2007 2008 2009 2010
Source: TNS TV Audience Measurement, 2003-2007
125. Internet as a major rival to TV viewer-ship
TNS Media‟s forecast
Average minutes spent using internet by a person per day
70.0
60.0 58 min.
50.0
+ 24.3 min.
Minutes used per day
40.0
33.7 min.
30.0 33.7
28.0
20.0
10.0 15.0
8.4
0.0
2.2
2001 2003 2005 2006 2007 2008 2009 2010
Source: TNS TV Audience Measurement, 2003-2007
126. Broadcast TV channels declining
Average time spent viewing free2air channels per person per day
Hanoi showcase
250
228
216
204
200
200
166
Average minutes
166 min.
150 -35 min.
131 min.
100
50
2003 2004 2005 2006 2007 2008 2009 2010
Source: TNS TV Audience Measurement, 2003-2007
127. Broadcast TV channels declining
Average time spent viewing free2air channels per person per day
HCM City showcase
250
220.0 221.0
209.0 208.0
-23 min.
200
157.0
157 min.
150
134 min.
100
50
2003 2004 2005 2006 2007 2008 2009 2010
Source: TNS TV Audience Measurement, 2003-2007
128. Other TNS Media‟s forecast
Government continues to own and strictly control the media.
Commercial channels will not come to exist in near future.
Partial policy deregulation that allows private companies to participate in
producing and distributing TV programs leads to more competition among
media content producers and more diversified offers to TV stations. Purely
commercial channels will not come to exist in near future.
More open policies and better investment environment will bring more big
investors and thus more competition among advertisers and advertising
agencies.
Television advertisement will be facing increasingly more severe
competition from advertisement on new forms of media, such as out-of-
home LCD, Internet, mobile phone, cinema, and VCD/DVD contents.
129. About TNS Media Vietnam
TNS Media Vietnam offers continuous comprehensive media
study of 06 major cities, including Ha Noi, Ho Chi Minh City, Da
Nang, Can Tho, Nha Trang and Hai Phong.
Services include:
Television Audience Measurement (TAM);
Media Habit Surveys (MHS); and
Advertising Expenditure Monitoring (AdEx).
For more information, please contact TNS Media Vietnam at:
3A-5B Nguyen Van Thu, District 1, HCMC, Vietnam.
Phone: +84 (8) 9111 252, 9111 254 to 257
Fax: +84 (8) 9 111 253
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141
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142