Vietnam Business Forum - VCCI

Page 1 of 2

Economic Sector
VCCI News Economic News Int'l Cooperation Investment Business Forum Economic Sector Finance & Banking Markets & Prices Export-Import Enterprises Local Economy Tourism Investment Consultancy Fairs & Exhibitions Statistics Business Opportunity Vietnam Exporter Directory
Posted: Monday, June 27, 2011

Last updated: Tuesday, July 03, 2012

In-Store Media Upstages Mass Media

Real Estate Closer to Real Value

With the rapid development of modern retail channels, in-store media are playing an increasingly important role in relation to mass media with respect to marketing communication activities of companies. However, in-store communication on the Vietnamese retail market contains a lot of shortcomings arising from various reasons, which needs joint solutions to promote the development of domestic retail market. The second issue of the Economics and Forecast Magazine in 2010 asserted that retailing played an important role in the national economy as it contributes 15 percent to the countrys GDP. In the international economic integration, modern retailing was emerging as a new trend. Vietnam is considered the potential retail market where there are more than 86 million consumers, of which about 65 percent are at working age and more than a half are under the age of 30. Incomes of Vietnamese people are getting higher. The development of modern retail channels not to impacts the distribution system of industry but also changes the perception of manufacturers. A survey in Vietnam by Nielsen in 2009 showed that up to 23 percent of respondents sought information salespersons at supermarkets. Another survey quoted in "Commercial marketing heats up marketing market in the Vietnam Marketing Magazine in 2009 by Media Act indicated that in-store advertising helped increase sales by 28 percent. This demonstrates growing roles of in-store communication at the present time. Reality Marketing media is not only confined to mass media like newspapers, television and radio. For marketers, each point of contact between consumers with brands is opportunities of advertising. Among a myriad of points of contact point of sales - where consumers make buying decisions - are of great significance. And, this communication channel is called in-store communication channel where brands contact consumers at the moment of true. Indeed, in-store communication has enormous influence on shoppers behaviours. According to statistics, up to 70 percent of purchasers made purchase decisions at in store and 91 percent have not made purchase plan before entering stores. Meanwhile, according to a 2009 survey conducted by the US-based Zell Miller, a retailer consultant, up to 32 percent of respondents said in-store advertising was more effective than advertisement outside stores, and 93 percent of manufacturers said messages at in-store helped boost up sales. However, according to author of article of in-store advertisement entitled Holding up the promise of brand published in the Vietnam Marketing Magazine, expense for in-store advertisement was not compatible. It accounted for only 6 percent of total marketing expenditures while traditional advertising (TV and newspaper) took up more than 35 percent. This showed that these companies had not correctly assessed roles of in-store marketing communication. Meanwhile, communication channel leasing in retailing system is inappropriate and non-transparent. The management and development of this communication channels is spontaneously decided by retailers, not professional advertising services firms. Professionalism will help, at least, determine advertisement elements of pricing like location, size, display hours, and number of viewers. The recent boom of trade marketing in Vietnam is owing to the penetration of advertising service agencies from Thailand, Singapore and Malaysia where modern shopping is in vogue. We can see differences in advertising space in supermarkets where there are professional agencies. Development solutions In-store advertising is only at an early stage in Vietnam but recent trends show that it was time stakeholders in the retail market need to change their way of thinking to utilise this new marketing channel to boost the development of retailing channel. For manufacturers, altered shopping trends entail the formation of many distribution channels but retailing remains first-line approach to the market. They need to focus and allocate sufficient funds for this channel. And to promote in-store communication development requires manufacturers to act as advertisers which decide to lease channels and rates on the basis of communication elements because they will create fair advertising opportunities for manufacturers and reduce costs.

Construction Material Producers Fraught with Hardships JICA Provides Soft Loans for Private Sector Cheap Summer Tours: Increasingly Heated

http://www.vccinews.com/news_detail.asp?news_id=23531

05-Jul-12

Vietnam Business Forum - VCCI

Page 2 of 2

In addition, manufacturers must also take advantage of their power of supplier in distribution channels where they can play as key members because in-store communication helps increase sales not only for them but also for retailers. Therefore, in-store advertising must be mutually responsible and advertising costs are shared. Retailers do not need to do everything. They should hand communication channels in their retail systems to professional advertising services firms. Then, the beauty of supermarkets will be uplifted and active shopping space will be created for consumers. There are two ways to manage these communication channels. First, agencies will be allowed to penetrate into supermarket systems to do advertising like the way Co.op Mart granted the right to Act Media. Second, retailers develop their own means and hire other units to manage and utilise advertising. For example, the worlds largest retailer Wal-Mart installed 100,000 TV screens at more than 2,650 supermarkets and let them out to PRN. Finally, agencies (advertising services providers) - with the role of intermediaries - must have rate-cards (standard tariffs) for this new advertising channel. Notably, rates for in-store advertising are lower than traditional media. Implementing the abovementioned solutions will have huge impacts on the development of in-store communication channel. On its turn, the perfection of this new communication channel will push up development level of retail market in both size and professionalism. Nguyen Hoang Sinh Ho Chi Minh City Open University

Other news
Dealing with Vacant Villas: Difficult or Easy? Growing Financial Stress on Shoulders of Real Estate Investors New Economic Signs Appear Vietnam Agriculture Market: From High Volume to High Value Macro- economic Stability to Ensure Sustainable Development Organisations & Individuals Encouraged to Be More Involved in National Growth Vietnam Human Resource: Quality Not Proportional to Quantity Difficulty May Be Opportunity Vietnam Has Plenty of Opportunities for Green Growth Personal Income Tax Adjustment Plans Approved

more news VCCI News Int'l Cooperation Investment Business Forum Economic Sector Finance & Banking Markets & Prices Export-Import Fairs & Exhibitions Statistics
Contact Us | About Us | Subscribe | Weblinks Copyright 2004 Vietnam Business Forum 4th Floor, 9 Dao Duy Anh Str, Hanoi. Tel: (84-4) 3.5743063 / 3.5743985; Fax: (84-4) 3.5743063; Email: vbfhn@hn.vnn.vn; vibforum@vcci.com.vn

http://www.vccinews.com/news_detail.asp?news_id=23531

05-Jul-12