19th feb 2020 update on brands phil worthington...pepsi kfc lotteria tiger 7 up tiger crystal...
TRANSCRIPT
Update on Brands
19th Feb 2020
Phil Worthington
Brand Equity comes from how Meaningfully Different the brand is in the
mind (and making that Salient)
MeaningfulConsumers feel the brand meets their
needs and they connect with it emotionally
DifferentFeels different from other brands
or sets the trends for the category
SalientComes to mind quickly and
readily when activated by ideas
relating to category purchase
Buy more
(Power)
Pay more
(Premium)
2
124
135
117
123
Meaningful Difference Salient
Top 50
Next 50
The world’s most valuable brands are very meaningfully different and
salient to consumers
+12
+7
3
123
127
119
129
Meaningful difference Salient
Growing
Stable/Declining
However, strong salience is not enough to prevent brand value decline –
brands must attain and retain meaningful difference to fuel growth
potential
-2
+4
Factors driving value growth vs. decline
4
Brands Covered in this analysis
15
15
15
15
1414
14
13
13
12
87
Airlines
Banking
Consumer
Electronics
Soft Drinks
BeersFast Food
Electrical
Retailers
Mobile
Phones
Instant
Food
Insurance
General
Retailers
Comms
Providers
155 brands in total 2019
5
98
100
MeaningfulDifference
Salience
Average brand
At present brands generally lack Meaningful Difference to Vietnamese
consumers, though local brands tend to come to mind more easily than foreign
ones. Local brands are currently trading on their salience advantage – Watch
out!
Vietnamese brands
96
90
MeaningfulDifference
Salience
Average brand
Foreign brands
Opportunity
6
Equity building blocks – Comparison across markets – Top 30s (other markets vs Vietnam (all brands)
90
95
100
105
110
115
120
125
130
135
90 100 110 120 130 140
Spain
Average T30
brand
Average T30
brand
Meaningful
Diffe
rent
Salience
= size of bubble
Average across all market
T30s
Meaningful – 121
Different – 116
Salient - 139
Italy
France
AustraliaUK
Neths
South
Africa
USA
IndiaChina IndonesiaGermany
Canada
When compared to some of BrandZ’s most valuable global brands,
Vietnamese brands have clear scope to improve their brand equity
7
Vietnam Airlines
VietJet Air
Samsung
Samsung
Coca-Cola
Heineken
Shopee
Pepsi
KFC
Lotteria
Tiger
7 Up
Tiger Crystal (Silver)
ACB
Agribank
BIDV
Dong AEximbankHD Bank
Maritime Bank
Sacombank
SeABank
SHBank
Techcombank
Vietcombank
VietinBankPizza Hut
Heineken Silver
333Hanoi Beer
Saigon Export (Red)
Saigon Special (Short)
Sony
Singapore Airlines
Panasonic
Shopee
OPPO
Toshiba
Lazada
Sprite
Emirates
Dell
CMC
FPT
Mobifone
Vietnamobile
Viettel
Vinaphone
R² = 0.805
40
60
80
100
120
140
160
180
80 85 90 95 100 105 110 115 120
Premium vs Difference – All Brands
Diffe
rent
Average brand
Average
Different – 97
Premium - 100
Premium
A perceived point of difference justifies a price premium in Vietnam for
brands of Vietnamese and foreign origin
Vietnam 2020 Spotlight, All brands (155) data normalised within category
8
107
105
103102 102 101 101 101
100 99 99
97
Communication providers generally have stronger brand equity…
whilst the banking sector has the poorest
Category Comparisons
AVERAGE
(2014-19)
(100)
7 local
Brands
3
41 2 0 11 5 0 2 14
13
No relationship between # of local
brands and vQ score
9
Comms providers in Vietnam also have strong brand health in comparison with
other markets
108
107
106
104
103
101
100
99
98
98
96
Chinese mainland
Vietnam
India
Argentina
UK
Mexico
South Africa
Australia
USA
Germany
Indonesia
Category vQ average score
Better
Worse
Comms Providers
10
Viettel leads the field by combining corporate responsibility with innovation and
superior experience, resulting in a trustworthy brand
133
125
134129
123
Purpose
Innovation
Communication
BrandExperience
Love
Vietnam: Comms Providers 2019
Social responsibility 133
Environmentally Responsible 133
Best at what they do 131
Fit well with everyday life 131
In Control 120
Trustworthy 115
145165 165
124
Average brand
11
However Vietnamese banks struggle in comparison with other markets
– even allowing for the fact that banks generally also struggle in other
markets
102
101
101
100
100
100
98
98
97
97
97
96
UK
Canada
Spain
South Africa
India
Brazil
USA
France
Italy
Vietnam
Australia
Indonesia
Category vQ average score
Better
Worse
Banking
12
Banking
Meaningful Difference Salience Power Index
ANZ
71
101
59
2.1
Eximbank
79
79
714
HD Bank
77
79
693.7
Maritime
Bank
71
88
62
3
Sacombank
106
103
108
8.4
SeABank
63
72
68
2.5
SHBank
70
86
60
2.5
Techcombank
128
115
858.5
Vietcombank
149
135
19016
ACB
110
106
98
7.6
Dong A
95
88
956.5
HSBC
85
118
684.6
Agribank
99
93
144
10
BIDV
128
112
126
10.8
VietinBank
119
105
1279.9
Sample size N=400, Sample definition: 50% Male, 50% Female, 18-65 years old
Category introduction: organizations that offer current or savings accounts, i.e. accounts that allow you to make deposits and withdrawals, and conduct other financial transactions.
A great opportunity for banks to enhance their consumer experience
13
Omachi has a strong emotional connection with consumers and a
unique positioning, supported by its relevant innovations
117
118
116117
124
Purpose
Innovation
Communication
BrandExperience
Love
Vietnam: Instant Food 2017
Unique 121
Trust 120
Proud to own/use 123
Attractive design 117
Communications116
Creative 128
Different 124
Sexy 116
Trustworthy 117156
177142 150
Average brand
14
Leading Electrical retailer, Dien May Xanh is a well known and respected
specialist retailer, supported by strong communications
115
112
121113
115
Purpose
Innovation
Communication
BrandExperience
Love
Vietnam: Electrical Retailers 2019
Wise 123
Treats employees well 118
Environmental responsibility 118
Treat with respect 118
Specialise 118
Distinctive 118
Unique 117
Attractive design 117
137 137169
118
Average brand
15
E-commerce brands are growing strongly
Total FMCG value spend year-on-year change
91.0%
36.3%
14.3% 11.2% 6.5% 5.0% 3.2%
-1.1% -4.1%
Online Mini Stores SpecialtyStores
HyperSuper
Direct Sale AllChannels
WetMarket
StreetShops
GT Others
Source: Worldpanel Division | Households Panel | Urban 4 Key Cities | Total FMCG excluding Gift | 12 months ending June 2019
FMCG growth:
5.0%
16
And there is huge potential for growth, for ecommerce
Ticket in k VND
per shopper per tripPenetration %
99.1
78.4
56.1
61
25.4
Street Shops
Hyper-Super
Specialty…
Mini Stores
Online
Number of trips
per year per shopper
95.7
14.5
9.8
13.8
4
92
195
256
97
356
Source: Worldpanel Division | Households Panel | Urban 4 Key Cities | Total FMCG excluding Gift | 12 months ending June 2019
17
Not surprisingly E-Commerce Is Extremely Competitive
Meaningful Difference Salience Power Index
Lazada
111
104
140
18.7
Sendo
105
89
10013.5
Shopee
150
127
16224.3
Tiki
133
138
12721
Sample size: N=400, Sample definition: 50% Male, 50% Female, 18-65 years old
Category introduction: shopping sites or apps that offer a range of goods such as clothing, homewares, electricals or health and beauty products
18
Ecommerce as a channel will inevitably continue its spectacular
growth
-
10
20
30
40
50
60
70
Rolli
ng
Onlin
e p
ene
tra
tion
China Key & Acity
Online shopping penetration in China was at
almost the same level as we have in Urban
Vietnam today, 7 years ago…
% online FMCG buyers
# of online FMCG trips
2018 MAT P6 2019 2025F
22.4%
3.6
25.2%
4.0
60.0%
6.1
“
”
Vietnam level today
Source: Worldpanel Division | Households Panel | Urban 4 Key Cities | Total FMCG excluding Gift
19
Sustainability
20
Sustainability is now a real concern for consumers
Top 3Household’s Concerns
Food safety
Health & Wellness
Environmental
issues / Diseases
1st
3rd
2nd
21