FMCG q217 Final

ONSITE Q217
Copyright 2017 The Nielsen Company. Confidential and proprietary.
Data Ending: Jun17
Copyright 2017 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute. 1
AGENDA
MACRO OVERVIEW RURAL MYTHBUSTERS
CREAM-FILLED COOKIES & CRACKERS UNDERSTANDING

2
MACRO OVERVIEW
Copyright 2017 The Nielsen Company. Confidential and proprietary. 3

SLOW START TO 2017 WITH INDUSTRIAL SLOWDOWN, BUT
SERVICE SECTOR BECOMES A BRIGHT SPOT
Price pressure arises in beginning of year, yet expected to stabilize
GDP Q117 CPI Q117

5.1% 5.0%
vs YA vs YA
(lowest in 3-year) (highest since Q113)
CPI % growth vs. PP

Driven mainly by slowdown in Industrial &
4.1 4.5 4.7 5.2 5.0 4.7 4.3
Construction Sector 3.3 3.2
2.4 2.4 2.6
and proprietary.
GDP % growth vs. YA breakdown by Sector

and proprietary.
Confidential
8.76.7
6.15.55.1
4.2 5.76.16.5
2.1 2.0
Confidential
Driven mainly by significant rise in price of

Company.
-1.2
Company.
The Nielsen
GDP Industrial & Services Agriculture,

The Nielsen
Construction Forestry & Healthcare Petrol Education

Fisheries
2017
+69% +35% +12%

2017
Q1'15 Q1'16 Q1'17 Q117 vs

Copyright
Q117 vs Q117 vs
Copyright
YA YA YA
Source: Socio-economic situation in 1st quarter of 2017 GSO Vietnam 4

SLOW START TO 2017 WITH INDUSTRIAL SLOWDOWN, BUT
SERVICE SECTOR BECOMES A BRIGHT SPOT
Industrial & Construction Sector
Sector growth vs. YA
Smartphones
9.7 8.3 8.6
6.1
Driven by Computers
downsizing Oil
Q1'16 production
value of: 14% Major
-1.2 Q1'17 Q117 vs YA Appliances
-11.4 For Mining For Manufacturing

and proprietary.
Mining Manufacturing Construction

and proprietary.
Confidential
Services Sector
Confidential
Driven by strong growth of:

Company.
Recorded
With largest contribution from
HIGHEST Retail & Wholesale
Company.
The Nielsen
GROWTH
The Nielsen
7.4% Foodstuff Garments Transportation

in Q1 since Q110 Q117 vs +10.4% +8.8% +8.2%
2017
YA Q117 vs YA Q117 vs YA Q117 vs YA

2017
thanks to Tet period

Copyright
Copyright
(*) Source: Socio-economic situation in 1st quarter of 2017 GSO Vietnam 5

A BRIGHT PICTURE FORESEEN IN DIFFERENT ASPECTS
Vietnams GDP is on track to meet the growth rate at 6.3% for 2017 as other macro economy index are
in good condition
(World Bank, Apr 2017)
Inflation is in CONSUMING GOODS

A massive
control and
inflow of FDI
will be kept at
in Q117 FDI 4% in 2017 -
especially for
thanks to the
$7.7 Bil.
and proprietary.
Manufacturing
decrease in
segment +77.6% price of:
Q117 vs YA
and proprietary.
Confidential
EQUITISATION
Confidential
Company.
More
Newly established registered enterprises Q114 Q117(*):
competitive
Company.
and open 26,478

The Nielsen
23,767
18,352 19,049
business
The Nielsen
environment
2017
2017
Q1'14 Q1'15 Q1'16 Q1'17

Copyright
Copyright
* Source: WORLD BANK EAST ASIA AND PACIFIC ECONOMIC UPDATE APRIL 2017
(*) Source: Socio-economic situation in 1st quarter of 2017 GSO Vietnam 6
FMCG KEEPS GOOD MOMENTUM FROM LAST YEAR, WITH
HIGHEST PEAK IN Q117
FAST MOVING CONSUMER GOODS DYNAMICS TOTAL NATIONWIDE
9.6% 9.6%
7.8%
7.3%
6.5% 6.9%
5.9% 6.1%
and proprietary.
5.3% 5.3%
8.5% 8.5%
3.3% 6.4% 3.1% 5.3%
4.8% 6.2% 4.2%
and proprietary.
4.7% 3.7% 3.7%

Confidential
1.2%
2.9%
1.7% 1.6% 1.6% 2.0% 1.9% 1.6%
Confidential
1.2% 1.1% 1.0% 1.4% 1.1%

0.4%
The Nielsen
The Nielsen Company.
Company.
Unit value change Volume change Nominal value growth

2017
2017
Source: Nielsen Retail Index Versus year ago Nationwide (36 CTs + Rural)
Copyright
Note: This slide only includes Feminine Protection, Hair Conditioner, Shampoo, Toothpaste, Toothbrush, Personal Wash, Dishwashing Liquids, Fabric Softener, Laundry Products, Bouillon-
Copyright
MSG, RTDM, Soft Drink, Packaged Water, Energy Drink, RTDT, Cigarette, Sport Drink, Sweet Condensed Milk, Fruit Juice , Household Cleaners, Beer, Instant Noodles, Household Insecticide,
Tonic Food Drinks, Pie&Sponge Cake, and Biscuits. 7
DRIVEN MAINLY BY RURAL WITH DOUBLE-DIGIT GROWTH
Urban maintains stable performance
FAST MOVING CONSUMER GOODS DYNAMICS URBAN vs. RURAL
Urban 49% Rural 51%
12.4% 12.4%
9.7%
9.2%
and proprietary.
6.7% 7.1%
6.9% 7.0%
6.5% 6.5%
6.1% 5.8% 6.3%
5.3%
6.2% 6.2%
6.0%
4.6% 4.3% 4.3% 4.8%
and proprietary.
3.6%
3.0%
Confidential
1.5%
Company.
The Nielsen
The Nielsen Confidential
Company.
Unit value change Volume change

2017
2017
Source: Nielsen Retail Index Versus year ago Nationwide (36 CTs + Rural)
Copyright
Note: This slide only includes Feminine Protection, Hair Conditioner, Shampoo, Toothpaste, Toothbrush, Personal Wash, Dishwashing Liquids, Fabric Softener, Laundry Products, Bouillon-
Copyright
MSG, RTDM, Soft Drink, Packaged Water, Energy Drink, RTDT, Cigarette, Sport Drink, Sweet Condensed Milk, Fruit Juice , Household Cleaners, Beer, Instant Noodles, Household Insecticide,
Tonic Food Drinks, Pie&Sponge Cake, and Biscuits. 8
MYTHBUSTERS:
RURAL VIETNAM
Testing The Truths About Rural
Nielsen Vietnam
June 2017

RURAL VIETNAM:
THE UNKNOWN-TO-KNOWN POTENTIAL
THE KNOWN FACTS ABOUT RURAL VIETNAM:
More than Rural contributes
>62M 820,000
around
Vietnamese consumers 50%

are and will be living in retail stores are total sale of FMCG in
rural located in rural Vietnam
WHATS ELSE?
13
COMMON RURAL MYTHS
JUST FOCUS
RURAL CONSUMERS
DISTRIBUTION AND
ARE LESS CONNECTED
LOW PRICE IN RURAL
LESS CHANCE TO EXPANDING IN RURAL

PUSH NEW PRODUCTS IS TOO COSTLY &
IN RURAL RESOURCE CONSUMING
14
MYTH #1:
RURAL CONSUMERS
ARE LESS CONNECTED
RURAL VS. URBAN AT A GLANCE
Copyright 2017 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.
RURAL URBAN
67% POPULATION
70% rely on farming / fishing and hired labor (TOTAL VN: 93.4 mil)
33%
MONTHLY INCOME
80$ PER CAPITA
160$
EXPENSE PER CAPITA

40% GROWS AT NEARLY
26%
Post high school: 70.8% Post high school: 88.9 %

EDUCATION
University: 3% University: 14%
Source: GSO database 2015 & 2016, Nielsen Rural study 2014 16
URBANIZATION BRINGS RURAL CLOSER TO URBAN
Rural is rapidly urbanizing, both spatially and demographically
70
60 MORE WEALTH MORE EDUCATED
50 2.5 times more college
40 Monthly income per capita graduates (2010-2014);
growth from $40 to $80
30 15% of monthly household
from 2011 - 2016;
20 and est. $140 in 2020 income spent on kids
10 education (v.s. 9% in urban)
0
2014 est 2020 est 2040 GREATER EXPOSURE
Rural Urban Migration 3.4 mil (2009) est. 5 mil people (2019)
Transportation - 99.4% of communes are connected
Rural people become urban population by standard & asphalt road
reach ratio 50:50 in 2040 Media is the key enabler
Source: GSO database 2015, 2016 17

MIDDLE AGE COHORT IS BECOMING THE DOMINANT
POPULATION IN RURAL - THEY ARE MORE CONNECTED SPENDERS
2011 2016 2020
62.5mil 62.8mil 62.5mil
$45/month $80/month Est. $140/month
80+ 2% 2% 1%
+3.5MIL +5MIL
75-79 1% 1% 1%
MIGRANT MIGRANT
70-74 2% 1% 2%
TO URBAN TO URBAN
65-69 2% 2% 3%
60-64 2% 3% 4%
55-59 4% 5% 6%
50-54 5% 6% 6%
45-49 6% 6% 7%
40-44 7% 7% 7%
35-39 7% 7% 8%
30-34 8% 8% 8%
25-29 8% 9% 8%
20-24 9% 8% 6%
15-19 9.5% 7% 7%
10-14 8.1% 8% 8%
5-9 8% 8% 8%
0-4 8% 8% 7%
0% 2% 4% 6% 8% 10% 0% 2% 4% 6% 8% 10% 0% 2% 4% 6% 8% 10%
EXPERIENCING THE ADVANCEMENT OF ECONOMY & MEDIA

Source: GSO database 2015, 2016 18
NOW RURAL ARE LIVING IN DIVERSIFIED MEDIA WORLD
90% RR people own TV at 90% RR people own mobile

90% home and 57% connect with 90% phone and 50% of them own
more than 10 TV channels smartphone
NUMBER OF RURAL NETIZENS NUMBER OF RURAL VS URBAN

VS. URBAN NETIZENS (mil) FACEBOOK USERS
25
23.5
22.7
21 21.2 22.5
26 25.48 25.09
20
18.5
25 23.97
15 15
24 14
22.8
23
21.85 22.02 11
10
22 9 Urban Users
21
5 4.5 5
20 Rural Users
2014 2015 2016 2
0 0.5
Urban Netizen Rural Netizen 2011 2012 2013 2014 2015 2016 2017
Source: Nielsen Smartphone Insights Study Sep 15 Base: N=323, 21-30 y.o & YouNet Media 2016
(combined with estimation from WeAreSocial & Facebook Audience Insight) 19
RR PEOPLE ACTIVELY ENGAGE IN SOCIAL MEDIA THEIR NEW
SOURCE OF ENTERTAINMENT
Urban Users Rural Users
FACEBOOK TIME SPEND
Time spend (hrs) of Urban

Average
57.3% 42.7%
Time spend (hrs) of Rural Participation Rate
3.86 Rural vs. Urban Participation Rate

2.83 per Stage of Event
3.02
3.04
2.01 2.25
1.52 1.64 61.3% 57.8% 54.0%
38.7% 42.2% 46.0%

2014 2015 2016 2017
Pre-event During event Post-event
Forecast that moving forward, Rural users

Number of rural people engage in social
and Urban users have no difference in
events have reach closer to urban ones
terms of time spent on Social Media
Source: YouNet Media (combined with estimation from WeAreSocial & Facebook Audience Insight) 20
STRONG INTERACTION WITH EVENTS AND THE EFFECT CAN BE
BIGGER AND LAST LONGER THAN IN URBAN
FROM TV PROGRAMS TO BRAND ACTIVITIES
ENTERTAINMENT EVENT - TO QUN 2017 BRAND ACTIVITY I V YU CAMPAIGN (BITIS)
CAMPAIGN FOR TT TT SUM VY (PEPSI) BRAND SCANDAL / CRISIS C2 & RNG
Source: YouNet Media 21

GREATER EXPOSURE LEADS TO THE TRANSFORMATION OF
RURALS CORE VALUES OVER TIME
FUTURE
NOW
PAST
Growth mindset her/himself

& immediate family:
o Wealth-orientated
o Kids future
Stability-orientated Greater mobility: moving out
Self- restraint
Secure for opportunities
Self-sacrifice
Communal harmony Emerging need for enjoyment
Caring and loving
Practical
Genuine & simple
Authentic (true to self,
Enclosed mindset ao lng
unpretentious) Emerging mindset
Source: Nielsen Qualitative research 2016 22
MORE & MORE COMMON VALUES ARE SHARED BETWEEN
THE URBAN & RURAL
GROWTH MINDSET
STRIVILITY AMBITIOUS
Confidence Strivility
Optimism Maturity
Making things Solidity
BELONGING happen IMAGE-CONSICIOUS
Directness
PRACTICALITY
COMMUNUAL
Security Being Down-to-earth
HARMONY INDIVIDUAL-ORIENTATION
Trust Realism
LOVE & SHARE (FAMILY)

FRATERNITY GREGARIOUSNESS
Family-centricity Support/
Kids future togetherness
Kids future
SECURITY EMERGING NEED FOR ENJOYMENT EXPERIMENTATION
Reward Celebration
Convenience
Source: Nielsen Qualitative research 2016 23

TREND OF NATIONWIDE COMMUNICATION
WAKE-UP 247 PREPOSITION THEIR IMAGE TO 3 MIN COMMUNICATION GOES NATIONWIDE,

EXPAND FROM MKD TO SE USING COMMON VALUES
THE
THE
MOST GROWTH MINDSET
PAST
RECENT
TVC
TVC
Revamp packaging with premium cues gold &
black colour for mainstream segment
CHANGING THE SETTING IN CONTEXT
LOVE & SHARE
From countryside To upgrade living Showcase of family-centric esp.

condition Using kid as communicator
PRACTICAL
From communal To family centric
harmony Tangible benefits & superiority
24
MYTH #1:
BUSTED
RURAL CONSUMERS
ARE LESS CONNECTED
Whats happening in Urban is happening

in Rural
Getting more and more Borderless in
physical connection and mindset
Easier REACH requires better monitoring
of REASONATE & REACT
MYTH #2:
JUST FOCUS DISTRIBUTION

AND LOW PRICE IN RURAL
RURAL INCOME IS LESS THAN URBAN BUT THEIR LIFESTYLE IS UPGRADING
Avg Income Index Avg Consumption

2014 vs 2004* Expenditure*
2014 vs 2004
213
196
192
158
Urban
Rural Urban Rural
Avg Household Living Area Per Capita**

Rural 2014 vs 2004
+57%
12.8m2 20.2m2
Source: Vietnnam GSO Report on Labour Force Survey Q316; Household Living Standards *Absolute growth in 2014 vs. 2004
Survey 2014; adjusted for inflation ** Based on living area divided by population 27
MOST CONSUMERS WANT QUALITY, TREND SEEKING
CONSUMERS WILL LEAD UPTRADING
RURAL CONSUMERS PRICE
PERCEPTION
74% Quality is prioritized over cheap price
66% Willing to pay more for higher quality
Most important factor when trying a

new product:
35% Prestigious
brand
Cheaper than
current brand 6%
Source: Vietnam Household Living Standards Survey 2014; Nielsen Rural Study 2014 28
MAINSTREAM AND PREMIUM DRIVE RURAL GROWTH,
SIMILAR AS URBAN
Total FMCG Rural Off Premise 2016 vs. 2013
39.9
38.5
Contribution
Urban
8.9 $$$ 12.8
$$$$
to Growth 0.0 $$$$$
2016 vs. 2013 Economy <80
$$
Mass 80-100 Mainstream 100-120 Premium 120-150 Super Premium 150+
Value % FY2016 12.7 38.2 32.4 13.2 3.5

Share
Economy <80 Mass 80-100 Mainstream 100-120 Premium 120-150 Super Premium 150+
Source: Nielsen RMS, data to Jan17; Based on sum of Rural tracked categories 29
CURRENT MISMATCH BETWEEN MANUFACTURERS PUSH AND
RETAILER AND CONSUMER PREFERENCE
Mfr Offer Retailer Acceptance Consumer Preference
(Share of Variants) (Share of Distribution) (Relative Off-take)
40.0 40.0 35.0

35.0 35.0
30.0
30.0 30.0
25.0
25.0 25.0
20.0
20.0 20.0
15.0
15.0 15.0
10.0
10.0 10.0 FY2013
FY2013 FY2013
5.0
5.0 FY2016 5.0 FY2016 FY2016
0.0 0.0 0.0
Source: Nielsen RMS, data to Jan17; Mfr based on variant share; Retailer based on handling share; and Consumer based on average off-take 31
NORTH & CENTRAL ARE THE BIGGEST MARKETS FOR PREMIUM
AND MAINSTREAM BUT SOUTH ALSO CATCHING UP
Value Share of Trade
21 +38% Premium Growth

26 26 2016 vs. 2013
6
6 8 +11% TT Off NE/NW Rural
18 TT Off RRD Rural
21 21 +49%
6 TT Off NCC Rural
8 5 TT Off CH Rural
8 +45%
9 TT Off SCC Rural
21 12 +62% TT Off SE Rural
16
TT Off MKD Rural
16 +55%
21
16
8 +29%
Mass Mainstream Premium
Source: Nielsen RMS, data to Jan17 32

BIG SIZE OF PRIZE FOR FURTHER PREMIUM PUSH
TO GOLD STORES AT FIRST
Concentration Curve
Laundry Product - Rural
100
90
80
Silver
70 Stores
60
Distribution % Size of Prize
Gold
Stores
Gold Stores 56% $2.9M
50
Silver Stores 28% $4.4M
40
Small Stores 16%
30
20
Total Premium Liquid
10
0
0 10 20 30 40 50 60 70 80 90 100
Source: Nielsen RMS, data to Jan17; prices and index are rounded figures 33
MYTH #2:
BUSTED
JUST FOCUS DISTRIBUTION

AND LOW PRICE IN RURAL
Up-trading is not just in desire but in action
But still misconnection among manufacturers and
retailers and consumers
What should be your optimal assortment for
Rural to capture the up-trading
MYTH #3:
LESS CHANCE TO PUSH

NEW PRODUCTS IN RURAL
HANDLING LESS SKUs, RURAL RETAILERS STOCK MORE
SELLING CAPACITY THAN KEY CITIES
6 KEY CITIES OFF PREMISE RURAL
20.7 STORE SIZE (M2) 20.4
NO. OF
31 CATEGORIES/STORE
30
NO. OF FMCG
159 SKUs/STORE
102
STOCK TO SALES
86% CAPACITY
96%
Source: Rolling Retail Establishment Survey 2015, Retail Audit Data 36

MANUFACTURERS ARE SKEPTICAL TO PUSH
WTD DISTRIBUTION REACHED
NUMBER OF NEW LAUNCHES IN
AFTER 6 MONTHS LAUNCH IN
RURAL RURAL
= 60% = 42%
6 KEY CITIES 6 KEY CITIES
Source: Retail Audit Data, Retailer Sentiment Report Q415 37

BUT ONCE ACCEPTED, POSITIVE IN-STORE PERFORMANCE
WHAT CONSUMERS WANT HOW CONSUMERS ACT
Within store, new launches in

RURAL perform BETTER than

in 6 key cities, proven in 90%
(25 out of 27) categories
More than 3 in 4 (77%)
always want to try new products
VALUE % SHARE IN HANDLERS
37.2
19.6 27.9
8.4
9.0
4.1
Most of them (95%)

always like a wide range of
BEER TOOTHBRUSH LAUNDRY
products to choose PRODUCTS
Rural 6 CTs
Source: Rural Syndicated Study 2014: Nielsen Retail Audit data ending Feb17 38
PROMISING RETURN AWAITS PERSISTENT EFFORTS
MAINSTREAM DISTRIBUTION CONSUMER SUPPORT
PI 110
In Rural
DISTRIBUTION CONSUMER SUPPORT

PREMIUM
PI 136
In Rural
Rural 6 CTs
39
WIN RETAILERS
WIN RIGHT STORES
THE RIGHT STRATEGY FOR LAUNCHING IN RURAL

40
NEW PRODUCTS FACE CHALLENGES ENTERING STORES IN RURAL;
BUT IF WINNING RETAILERS, YOU WILL WIN CONSUMERS HEARTS TOO
RETAILERS PERCEPTION CAN BE BUT ONCE IN STORE, RETAILERS WILL
A HINDERING FACTOR RECOMMEND PRODUCTS & CONSUMERS WILL TRY
THE IMPORTANT SOURCE IMPACTING ON

RETAILERS IN STOCKING NEW PRODUCTS

More than 1 in 3 % of retailers surveyed
(36%) associates 39% 34%

new products with 36% 42%
high risk, unsafe ROI
More than 1 in 4
RURAL URBAN
(29%) thinks new
products have Sales Rep Shopper
untrustworthy
quality 90% retailers recommend
products to shoppers
Source: Retailer Sentiment Q415, Qualitiative Study, Rural Syndicated Study 2014 41
MYTH #3:
BUSTED
LESS CHANCE TO PUSH

NEW PRODUCTS IN RURAL
New products perform as well in Rural compared to
Urban
The key barrier is convincing retailers to carry them.
But once you can do that, your new launch will be
much more successful
MYTH #4:
EXPANDING IN RURAL
IS TOO COSTLY &

RESOURCE CONSUMING
A MORE FRAGMENTED RETAIL STRUCTURE IN RURAL
IMPLYING CHALLENGES TO EXECUTION
>10x
6 KEY CITIES RURAL
TOTAL CHANNEL OFF-PREMISE TOTAL CHANNEL OFF-PREMISE
322 162 # OF STORES

838 535
(000)
33.6 STORE DENSITY

16.3 2.9 1.8
(# store/ sq km)
36% % FMCG VALUE 48%

34% 56%
CONTRIBUTION
To expand distribution in Rural Vietnam- with wide geographic dispersion and a high
cost to serve can be an expensive proposition.
44
Source: Nielsen Census (2015); Nielsen Retail Audit data (2016);
YOU DONT NEED TO GO MASS - PRIORITIZE THE MOST
POTENTIAL PROVINCES AND DISTRICTS
58 provinces 20 provinces Top districts
1.1 M stores 590K stores 400K stores
SAMPLE
100% retail sales 58% retail sales ~39% retail sales

Urban districts are covered 100%. Rural districts near
national roads with high population density and cover
>50% retail sales of the region will be selected.
Source: Nielsen syndicated trade dimension (2016) 45
THEN THE STORE COVERAGE IS NOW APPROXIMATE
TO THAT IN 6 KEY CITIES
Food Non - Food Beverage
# Universe
283.7K 323.2K 529.5K
top 20 provinces
Saving 50% universe vs full 58 provinces
# Universe
203.1K 232.7K 389.5K
Top districts
Saving 30-40% universe vs full districts
Nielsen Estimation 46
YOU DONT NEED TO GO MASS FOCUS ON THE RIGHT STORES
AVERAGE FMCG
CONCENTRATION CURVE (TT+HRC)
Urban Rural Top districts # of top stores in top

universe est. districts est.
Food 203.1K 54.8-75.1K

9% 17%
Top 50%
Non-Food 232.7K 65.1 -88.4K
28% 38%
Beverage 389.5K 109-148K
Top 80%
Bottom 20% ~ store universe in HCMC + Cantho
# of top stores in top districts estimation =

% of stores number
% concentration (urban/rural)* universe
% contribution to FMCG revenue
Source: Nielsen Enreach March 2017 47
TARGET THE RIGHT DISTRIBUTORS AND/OR
WHOLESALERS/FEEDERS FOR REACH EXPANSION
MANUFACTURER DISTRIBUTORS WHOLESALERS RETAILER
CASE STUDY NON FOOD CATEGORY AN GIANG PROVINCE
# Wholesalers &
# Retailers # Top stores
Semi- Wholesalers
7,577 1,197 791
48
EFFECTIVE PROVINCIAL EXPANSION: FIRST TIME RIGHT
(AREA, CHANNEL, STORES, ACTIVITIES )
IDENTIFY PRIORITIZE PROVINCES/ PRIORITIZE TOP STORES (ENREACH AAC)
DISTRICTS (MICRO MARKET AAC) Top
Target
50% 20%
Mid
30%
30%
Low 50%
20%
Category Sales No. of Stores
IDENTIFY TARGET STORES (TOP STORES,

WHOLESALERS) (TRADE DIMENSION)
49
MYTH #4:
BUSTED
EXPANDING IN RURAL
IS TOO COSTLY &

RESOURCE CONSUMING
Expanding everywhere in Rural will be too expensive.
But, reaching the majority of sales is feasible
through proper targeting.
Furthermore, consider working through distributors
to increase reach more cost-effectively.
THE RESULTS

THE TRUTHS ABOUT RURAL VIETNAM
RURAL CONSUMERS JUST FOCUS DISTRIBUTION &
ARE LESS CONNECTED LOW PRICE IN RURAL
---BUSTED--- ---BUSTED---
Because values are Grow in Rural with Mainstream &
converging, it works to approach Premium and convince retailers
in the same manner the demand is there
LESS CHANCE TO PUSH EXPANDING IN RURAL IS TOO COSTLY

NEW PRODUCTS IN RURAL & RESOURCE CONSUMING
---BUSTED--- ---BUSTED---
Launch in Rural at the same time Focus on the high demand areas &
to capture the high demand for stores and limit cost by working
new products through distributors & semi-retailers
52
CREAM-FILLED CRACKERS & COOKIES
UNDERSTANDING
53
OVERVIEW
COOKIES LEAD THE GROWTH FOR CREAM-FILLED, WHILE
CRACKERS DECLINE Total
38.6
Mil $
pyright 2017 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.
3.0
Mil $
= 67%
+ Wafer Cream-filled
22.8
Mil $
Source: Nielsen Retail Audit | Data Ending May17 | Base: Total Biscuits 54
OVERVIEW Sales
Value Sales - Total VN | Period Ending JUN17 | Share of Total Category
TOTAL CREAM-FILLED ENJOY DOUBLE-DIGIT GROWTH ACROSS

REGIONS. RURAL INCREASES IMPORTANCE, DRIVEN BY NORTH
+25%
+25%
+14%
+96%
+46%
+25%
+19%
Click to edit text
Source: Nielsen Retail Audit | Data Ending May17 +/- Value sales growth versus last year 55
OVERVIEW
FRAGMENTED PICTURE OBSERVED IN CREAM-FILLED, WITH OREO
AS MARKET LEADER AND STILL GAINING.
Total Cookies + Crackers Cream-filled
VALUE % SHARE PERFORMANCE OF TOP MANUFACTURERS MAT: +34%
Source: Nielsen Retail Audit | Data Ending May17 | Base: Total Cookies and Crackers Cream-filled 56
OVERVIEW
DIFFERENT PICTURE AMONG URBAN AND RURAL, WHERE OREO
AND CHALLOT ARE LEADING RESPECTIVELY
VALUE % SHARE PERFORMANCE OF TOP MANUFACTURERS

Source: ACNielsen | Retail Index (<< Viet Nam >> ), data to JUN17 Source: ACNielsen | Retail Index (<< Viet Nam >> ), data to JUN17
PACKAGE
SOFT PACK IS MAJORITY. BOX INCREASES IMPORTANCE ACROSS,

WHILE TIN IS STILL LIMITED.
-4% +126%
+21% +54%
+27% +62%
+/- Value sales growth versus last year
PACKSIZE
NO MOVEMENT IN LONG TERM, YET URBAN FOCUS ON 101-200
WHILE BIGGER PACKSIZE (201-300) IN RURAL... Growth
-6% +28% +28% +25% -16%

Growth
+3% +73% +75% +68% +80%
PRICE
Quick Retrievals
Urban - Value % Share | Period Ending JUN17 | Share of Total Category
LEADING TO DIFFERENT CASH OUTLAY IN TWO MARKETS

Quick Retrievals
Rural - Value % Share | Period Ending JUN17 | Share of Total Category
Source: ACNielsen | Retail Index (<< Viet Nam >> ), data to JUN17
Click to edit text
Source: Nielsen Retail Audit | Data Ending May17 | Base: Total Cookies and Crackers Cream-filled
+/- Value sales growth MAT May 17 versus last year 61
PRICE
MORE THAN HALF OF URBAN IS MAINSTREAM AND PREMIUM, WHILE UPTRADING
TREND IS CLEARLY OBSERVED IN RURAL MOSTLY THANKS TO PREMIUM. Onsite DWL
Urban - Value % Share | Period Ending JUN17 | Share of Total Category
+100%
+17%
+64%
+34%
+78%
+9%
+12%
+10%
+/- Value sales growth versus last year
NORTH
MOST TOP BRANDS PERFORM POSITIVELY IN NORTH,
NOTEWORTHY TO NOTICE CHALLOTS SIGNIFICANT GAIN IN LT
VALUE % SHARE PERFORMANCE OF TOP MANUFACTURERS
Key Brands_KPIs_Wtd-Num-Share_Offtake (1 Mkt, multi Prods)
NORTH TT Off North | Period Ending JUN17 | Share of Total Category
THANKS TO DISTRIBUTION BUILD AND GOOD SUPPORT FROM

BOTH RETAILERS AND CONSUMERS
NORTH
TOP SKU IN NORTH Top Manu - Creamfilled

| Period Ending JUN17 | Share of Total Category
Top N Val and Others for Latest Period | Each Mkt
Value % Share Wtd Price Per Pack

Top SKUs TT Off North
P3M L3M P3M L3M P3M L3M
Trang An Challot Cream-filled Fren Pancake W Cre Soft Pack 275 18.9 27.8 30 34 25,461 25,173
Mondelez Kinh Do Oreo Cream-filled Vanilla Creme Soft Pack 137 3.5 6.4 24 27 12,729 12,912
Thien Hong Golden Bear Cream-filled Banh Kem Gau Soft Pack 210 3.7 5.4 21 18 16,589 16,152
Thien Hong Golden Bear Cream-filled Banh Kem Gau Soft Pack 180 2.6 3.9 12 13 15,928 16,228
Mondelez Kinh Do Oreo Cream-filled Chocolate Creme Soft Pack 137 2.1 3.8 20 18 12,908 13,011
BK Huu Nghi Arita Cream-filled Banh Cracker Kem Sua Soft Pack 270 4.4 3.4 11 10 16,154 16,333
Mondelez Kinh Do Oreo Cream-filled Selection Tin 352.8 14.1 3.3 15 7 113,747 114,180
Mondelez Kinh Do Oreo Cream-filled Vanilla Creme Box 205.8 0.3 2.3 4 5 24,319 27,336
Trang An Challot Cream-filled Paris Pancake Box 365 4.2 2.3 8 6 49,842 48,451
Mondelez Kinh Do Oreo Cream-filled Vanilla Creme Box 352.8 2.7 2.2 10 7 41,543 40,829
URC Cream O Cream-filled Choco Sand.Cook W.Vani Soft Pack 93 1.5 1.9 11 9 7,766 7,811
Trang An Challot Cream-filled Fren Pancake Durian Fla Soft Pack 275 1.2 1.7 5 4 25,110 25,113
HaiHaCo Hai Ha Cream-filled Mixed Fruit Cream Biscuits Soft Pack 350 2.9 1.6 6 6 21,626 19,316
Mondelez Kinh Do Oreo Cream-filled Vanilla Creme Soft Pack 68.5 1.2 1.6 12 11 6,637 6,965
Mondelez Kinh Do Oreo Cream-filled Strawberry Creme Soft Pack 137 0.7 1.3 10 9 12,925 13,089
CENTRAL
BESIDES CHALLOT, OREO ALSO HAS GOOD PERFORMANCE IN CENTRAL, MOSTLY THANKS TO
STRONG GAIN IN TET. BUT ALSO NOTICE FRENCH COOKIES EXPANSION RECENTLY
CENTRAL
CONSUMER SUPPORT IS CHIEF CONTRIBUTOR TO TOP GAINING BRANDS,
ALONG WITH DISTRIBUTION BUILD AND TRADE SUPPORT
Click to edit text
CENTRAL
TOP SKU IN CENTRAL Top Manu - Creamfilled


Top SKUs TT Off North
Trang An Challot Cream-filled Fren Pancake W Cre Soft Pack 275 16.4 14.4 15.7 14.3 25,065.9 25,103.7
BK Huu Nghi Arita Cream-filled Banh Cracker Kem Sua Soft Pack 270 6.8 8.0 14.7 14.3 15,590.1 15,487.8
Lai Phu French Cookies (L.P) Cream-filled Durian Flavour Soft Pack 350 5.3 6.9 11.7 12.7 34,693.6 34,731.7
Mondelez Kinh Do Oreo Cream-filled Vanilla Creme Soft Pack 137 2.6 3.3 6.7 6.3 12,985.4 12,888.7
Mayora Wonder Wheat Cream-filled Me Den Box 234 2.2 2.5 10.0 10.7 16,205.9 15,654.9
Lai Phu French Cookies (L.P) Cream-filled Durian Flavour Box 270 1.9 2.3 3.0 2.3 35,639.8 34,320.1
Trang An Challot Cream-filled Fren Pancake Durian Fla Soft Pack 275 2.5 2.2 4.3 5.0 25,286.2 25,066.5
Trang An Challot Cream-filled Paris Pancake Box 365 2.0 2.0 3.0 2.7 45,733.2 50,021.4
Mondelez Kinh Do Oreo Cream-filled Vanilla Creme Soft Pack 68.5 1.3 1.8 5.0 6.0 6,770.2 6,890.0
Mondelez Kinh Do Kinh Do Cream-filled Banh Quy Kem Sua Soft Pack 28 1.5 1.7 3.0 3.0 2,000.5 1,997.8
Mondelez Kinh Do Oreo Cream-filled Vanilla Creme Box 352.8 2.3 1.6 2.3 2.0 53,472.4 35,627.7
Biscafun Confec Camely Cream-filled Milk Cream Biscuits Box 180 2.0 1.4 8.7 5.7 21,289.4 21,221.4
68
SOUTH
MEANWHILE, IN SOUTH, OREO IS MARKET LEADER AND ENJOYS

GAINING MOMENTUM FROM LAST YEAR
Key Brands_KPIs_Wtd-Num-Share_Offtake (1 Mkt, multi Prods)
SOUTH TT Off South | Period Ending JUN17 | Share of Total Category
OREO ENJOYS HEALTHY GROWTH ACROSS KEY KPI. ALSO NOTICE

FRENCH COOKIES IS EXPANDING THANKS TO PURCHASE
SOUTH
TOP SKU IN SOUTH Top Manu - Creamfilled

Mondelez Kinh Do Oreo Cream-filled Chocolate Creme Soft Pack 137 6.1 7.1 30.0 30.7 13,133.5 13,275.4
Mondelez Kinh Do Oreo Cream-filled Strawberry Creme Soft Pack 137 3.3 5.0 21.7 23.7 13,343.7 13,300.6
Lai Phu French Cookies (L.P) Cream-filled Durian Flavour Box 270 3.8 3.9 5.3 6.0 34,685.0 35,811.5
Mondelez Kinh Do Oreo Cream-filled Choco Sand.Cook Blue Ice Cre Soft 3.2 3.9 21.7 20.7 13,230.5 13,184.4
Pack 137
URC Cream O Cream-filled Choco Sand.Cook W.Vani Soft Pack 93 3.1 3.6 18.7 18.7 7,373.9 7,384.3
Mondelez Kinh Do Ritz Cream-filled Cheese Crackers Soft Pack 118 2.8 3.3 15.7 13.3 13,103.9 13,368.8
URC Cream O Cream-filled Mik Sand.Cook Soft Pack 85 2.9 2.9 22.0 23.0 6,899.0 6,718.9
URC Cream O Cream-filled Choco Sand.Cook W.Choco Soft Pack 54 1.4 2.5 7.7 9.0 4,868.5 4,871.8
URC Cream O Cream-filled Choco Sand.Cook W.Choco Soft Pack 85 2.9 2.4 19.3 17.0 6,919.2 6,548.8
URC Cream O Cream-filled Choco Sand.Cook Soft Pack 85 2.4 2.3 19.0 17.7 6,899.6 6,752.8
Lotte Koala's March Cream-filled Chocolate Box 37 2.0 2.2 12.0 11.0 13,933.0 14,091.7
71
MT
IN MT, OREO IS ALSO STRENGTHENING THEIR MARKET LEADING

POSITION
MT 36 CTs | Period Ending JUN17 | Share of Total Category
MT
OREO ENJOYS HEALTHY GROWTH ACROSS KEY KPI. ALSO NOTICE

FRENCH COOKIES IS EXPANDING THANKS TO PURCHASE
MT
TOP SKU IN MT Top Manu - Creamfilled

Mondelez Kinh Do Oreo Cream-filled Chocolate Creme Soft Pack 137 4.2 6.0 71.3 70.7 13,430.0 13,964.4
Mondelez Kinh Do Oreo Cream-filled Choco Sand.Cook Blue Ice Cre Soft 3.5 5.1 64.0 63.7 13,447.7 13,927.9
Pack 137
Mondelez Kinh Do Oreo Cream-filled Strawberry Creme Soft Pack 137 2.7 3.7 63.7 62.3 13,327.0 13,789.9
Thien Hong Golden Bear Cream-filled Banh Kem Gau Soft Pack 210 2.2 3.2 14.7 14.0 16,235.7 16,743.7
Mondelez Kinh Do Ritz Cream-filled Cheese Crackers Soft Pack 118 2.0 3.0 50.0 48.3 13,952.1 14,325.9
Lotte Koala's March Cream-filled Chocolate Box 37 2.3 2.8 51.0 46.0 14,840.3 14,987.2
Meiji Hello Panda Cream-filled Biscuits Chocolate Box 50 2.1 2.7 61.7 55.7 15,587.3 15,490.2
Lotte Koala's March Cream-filled Strawberry Box 37 1.8 2.2 48.7 44.0 14,767.4 15,122.9
Mondelez Kinh Do Mini Oreo Cream-filled Vanilla Creme Canister 67 1.6 1.8 46.0 34.7 18,135.7 18,965.7
Meiji Hello Panda Cream-filled Biscuits Milk Box 50 1.2 1.7 59.7 53.7 15,701.5 15,646.3
URC Cream O Cream-filled Choco Sand.Cook W.Vani Soft Pack 93 1.2 1.7 45.7 38.0 6,874.3 6,657.0
SUMMARY
CREAM-FILLED ENJOYS HEALTHY GROWTH IN LONG TERM, LEADING BY COOKIES
PACKSIZE PRICE COMPETITION

MARKET PACKAGE
Urban is Cream-filled is
Double digit Soft pack is Urban: 101-200
concentrated in very
growth across majority. Box is key, while
Mainstream & fragmented
regions, but also increases Rural is 201-
Premium, while with no
North & Central share while Tin 300.
Rural observes dominant
Rural are is limited.
uptrading player.
increasing
thanks to Oreo is key
importance.
premium. competitors
across, along
with Challot in
North & Central.
Click to edit text
75

FMCG q217 Final

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

FMCG q217 Final

Uploaded by

Copyright:

Available Formats

ONSITE Q217

Copyright 2017 The Nielsen Company. Confidential and proprietary.

Data Ending: Jun17

MACRO OVERVIEW RURAL MYTHBUSTERS

CREAM-FILLED COOKIES & CRACKERS UNDERSTANDING

Copyright 2017 The Nielsen Company. Confidential and proprietary. 3

GDP Q117 CPI Q117

CPI % growth vs. PP

GDP % growth vs. YA breakdown by Sector

Driven mainly by significant rise in price of

GDP Industrial & Services Agriculture,

Construction Forestry & Healthcare Petrol Education

+69% +35% +12%

Q1'15 Q1'16 Q1'17 Q117 vs

Source: Socio-economic situation in 1st quarter of 2017 GSO Vietnam 4

-11.4 For Mining For Manufacturing

Mining Manufacturing Construction

Driven by strong growth of:

7.4% Foodstuff Garments Transportation

YA Q117 vs YA Q117 vs YA Q117 vs YA

thanks to Tet period

(*) Source: Socio-economic situation in 1st quarter of 2017 GSO Vietnam 5

Inflation is in CONSUMING GOODS

and open 26,478

Q1'14 Q1'15 Q1'16 Q1'17

FAST MOVING CONSUMER GOODS DYNAMICS TOTAL NATIONWIDE

4.7% 3.7% 3.7%

1.2% 1.1% 1.0% 1.4% 1.1%

Unit value change Volume change Nominal value growth

Urban 49% Rural 51%

Unit value change Volume change

Testing The Truths About Rural

Copyright 2017 The Nielsen Company. Confidential and proprietary. 12

More than Rural contributes

Vietnamese consumers 50%

LESS CHANCE TO EXPANDING IN RURAL

EXPENSE PER CAPITA

Post high school: 70.8% Post high school: 88.9 %

Source: GSO database 2015, 2016 17

EXPERIENCING THE ADVANCEMENT OF ECONOMY & MEDIA

90% RR people own TV at 90% RR people own mobile

more than 10 TV channels smartphone

NUMBER OF RURAL NETIZENS NUMBER OF RURAL VS URBAN

Time spend (hrs) of Urban

3.86 Rural vs. Urban Participation Rate

1.52 1.64 61.3% 57.8% 54.0%

38.7% 42.2% 46.0%

Forecast that moving forward, Rural users

CAMPAIGN FOR TT TT SUM VY (PEPSI) BRAND SCANDAL / CRISIS C2 & RNG

Source: YouNet Media 21

Growth mindset her/himself

LOVE & SHARE (FAMILY)

Source: Nielsen Qualitative research 2016 23

WAKE-UP 247 PREPOSITION THEIR IMAGE TO 3 MIN COMMUNICATION GOES NATIONWIDE,

LOVE & SHARE

From countryside To upgrade living Showcase of family-centric esp.

Whats happening in Urban is happening

JUST FOCUS DISTRIBUTION

Avg Income Index Avg Consumption

Avg Household Living Area Per Capita**

74% Quality is prioritized over cheap price

66% Willing to pay more for higher quality

Most important factor when trying a