NIELSEN CASE COMPETITION 2017 – ROUND 2 – CASE 2

NIELSEN RETAIL AUDIT – PRESENTATION BRIEF

BACKGROUND AND OBJECTIVES

The Vietnam Infant Milk Powder market is facing challenges and is in long-term decline.

Meiji has approached you, as a market research agency, to collect data and analyze the market to help them answer the following question: what is the
market potential of Infant Milk Powder for Meiji, and what challenges should Meiji address when entering Vietnam?

REQUIREMENTS

Meiji needs you to prepare a concise 15-minute presentation that addresses the above objectives. Your presentation pack must not exceed 15 slides
(excluding heading and ending page) and it is expected that you will cover the following topics:
 Trends (overall market environment and those specific to the category)
 Competition overview
 Meiji overview
 Recommendations for future strategies that address market opportunities and threats

The below data does not provide the complete picture, so it is expected you will perform additional desk research to support your market analysis. All
sources must be correctly referenced, and it is recommended that you use a variety of different source materials.

SUPPORTING DATA

Macro environment data

 Vietnam GDP year-on-year growth

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 NIELSEN CASE COMPETITION 2017 – ROUND 2 – CASE 2

6.6 6.7 6.2 7.5

5.5 5.8 5.1

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17

GDP
Source: GSO

Consumer data
 Major Concerns of Vietnamese consumer vs. SEA Average and other countries (Source: Consumer Confidence Survey – Q1 – 2017)

SEA Average Vietnam Thailand Indonesia

Inceasing Food Prices 4 6 24 5 7 4 6
Debt 5 5 24 12 10 5 3

Political stability 5 5 23 6 7 7 6

Terrorism 22 6 8 10 7
6 6
8 13 3 5 8 8
Parent's welfare… 6 8
6 7
Health 8 10 15 19 2 6
13 8
Work/life balance 11 9 16 9 2 6
42
Job Security 16 9 32 15 14 8
16 15
The economy 16 13 9 9 31 19
0 10 20 30 40 50
0 10 20 30 40 50 0 10 20 30 40 50 0 10 20 30 40 50
Biggest Concern Biggest Concern Biggest Concern Biggest Concern
Second biggest concern Second biggest concern Second biggest concern Second biggest concern

 Key driver of purchasing premium products

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 NIELSEN CASE COMPETITION 2017 – ROUND 2 – CASE 2

• Top source for new product awareness

Infant Milk Powder Retailer market share data (please note: this is not the original data and has been altered for the purpose of this case study)

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 NIELSEN CASE COMPETITION 2017 – ROUND 2 – CASE 2

 Value sales (Mil. USD) in Total Vietnam

2013 2014 2015 2016

Total Category 75 72 71 66

 Market share by Region

Base: Sales of Infant Milk Powder North Central South Vietnam

Vinamilk 35 40 25 30
Abbott 22 20 28 25
Friesland Campina 20 18 20 20
Mead Johnson 8 10 20 15
Nestle 5 4 5 5
Nutifood 10 8 2 5

 Market share by Stage

Stage
Stage 0 For mums during pregnancy
Stage 1 Babies aged 0-6 months
Stage 2 Babies aged 6-12 months
Stage 3 Children aged 1-3 years
Stage 4 Children aged 3-6 years

Base: Sales of Infant Milk Powder Vietnam

Stage 0 13
Stage 1 15
Stage 2 23
Stage 3 40
Stage 4 9

 Market share by Price segment

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 NIELSEN CASE COMPETITION 2017 – ROUND 2 – CASE 2

Base: Sales of Infant Milk Powder North Central South Vietnam

Economy 16 24 11 14
Mainstream 20 25 24 23
Premium 49 42 55 52
Super Premium 15 9 10 12

 Meiji portfolio (the below products are parallel imported from Japan and are the only ones available in limited supply in Vietnam)

Brands
Stage 0 (Pregnancy) Meiji Mama – Plain 350g tin
Stage 1 (Infant) Meiji – Plain 800g tin
Stage 3 (Children) Meiji – Plain 800g tin
Stage 3 (Children) Meiji – Plain 1.64kg box

APPENDIX – TERMINOLOGY

Period
MAT Moving Annual Total (accumulated 12 months)
MAT TY MAT This Year
MAT LY MAT Last Year

Fact Type
Volume/Value Sales Sales to consumer expressed in volume/value basis
Volume/Value % Share Share of a brand/SKU on either total market or specific segment
Volume/Value Growth vs. YA % sales change from certain period vs. same period last year
Volume/Value % Share of Trade % sales from certain channels/ markets out of total business
Numeric Distribution Represents the percentage of stores within the universe handling the product during the audit period
Price Per Pack Average retail selling price to the consumer

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 NIELSEN CASE COMPETITION 2017 – ROUND 2 – CASE 2

Average Price Value Sales/ Volume Sales

Average Price Index vs. Category (Average Price of a product/ Average Price of Category)*100

THE END

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 NIELSEN CASE COMPETITION 2017 – ROUND 2 – CASE 2

APPENDIX – TERMINOLOGY

Period
MAT Moving Annual Total (accumulated 12 months)
MAT TY MAT This Year
MAT LY MAT Last Year

Fact Type
Volume/Value Sales Sales to consumer expressed in volume/value basis
Volume/Value % Share Share of a brand/SKU on either total market or specific segment
Volume/Value Growth vs. YA % sales change from certain period vs. same period last year
Volume/Value % Share of Trade % sales from certain channels/ markets out of total business
Numeric Distribution Represents the percentage of stores within the universe handling the product during the audit period
Price Per Pack Average retail selling price to the consumer
Average Price Value Sales/ Volume Sales
Average Price Index vs. Category (Average Price of a product/ Average Price of Cateogry)*100