demystifying the rural consumer in vietnam

Driving differentiated outcomes for your business

June 4 2014

DEMYSTIFYING THE RURAL CONSUMER IN VIETNAM

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rural video _VER 2.mp4

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This slideshow is from a presentation at the M2 Marketing & Media events in Ho Chi Minh City, Vietnam organized by ITV-Asia.com and VietnamBusiness.TV

To see videos from the events, interviews with speakers andto get information on upcoming M2 - Marketing & Media Network events

Please visit VietnamBusiness.TV

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MORE PURCHASING POWER

Source: Monthly income per capita: GSO 2012Occupation structure & Urbanization rate: Rural Census 2011

Education level: Nielsen Rural Syndicated Study 2009 & Nielsen Rural 2014

At

WHAT’S YOUR STRATEGY FOR VIETNAM?

What works in the city, may not, in the country.

Visit VietnamBusiness.TVfor business videos, news & research

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MORE PURCHASING POWER

RURAL AND URBAN CONSUMERS - WE KNOW WHAT MAKES THEM TICK

REACH

WHO WHAT HOW

REACT RESONATE

Driving differentiated outcomes for your business in Vietnam


MEET THE RURAL CONSUMER


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AT THE CORE OF THE RURAL CONSUMER…… Understand what really matters

Authenticityvalue sincerity, honesty

Assuranceneed to know they made the right decision

Resiliencepossess positive outlook despite challenges

Progressdriven to have a better life; will make it happen

Share and bondbig on family and community bonding

Conform with societybig on what others say and buy

VALUES NEEDS


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POWER OF CLOUT AND CROWD IN RURAL VIETNAM

Source: Nielsen Rural 2014; Nielsen Regional Difference 2010

Use WOM to inform and influence

• 74% CONCERNED WITH

WHAT OTHERS THINK

• 46% DARE TO BE DIFFERENT

• ‘POPULAR BRAND’ IS

MOST IMPORTANT DRIVER FOR TRIAL (70%)

• 81% RURAL , 46% URBAN

VALUE OTHERS’ OPINIONS & RECOMMENDATIONS

• 70% RURAL ARE AFFECTED BY

OTHERS’ RECOMMENDATIONS IN PURCHASE DECISION

• 70% URBAN WOULD GET

OTHERS’ IDEAS FOR REFERENCE ONLY

CROWD PLAY

CLOUT PLAY


WINNING TOUCH POINTS


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RURAL VIETNAM: MEDIA 1.0

TELEVISIONMost effective

channel influencing consumers’

decision

WOM

DIGITALEmbracing as new

channel

Media usage in rural still relatively basic, given the lack of entertainment activities

Top 5 activities in a typical week

Source: Nielsen Rural Study 2014

URBANRURAL1. Watching TV2. Shopping for daily

consumption3. Eating out 4. Shopping at the

mall5. Visit

friends/family

1. Watching TV2. Family activities3. Hanging out

with friends4. Surfing the

Internet5. Joining social

activities


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INFLUENCING THE PATH TO PURCHASEDifferent ways to reach the same consumer – eye on TV and WOM

affects brand purchase decision

being a trustworthy source

product information (specification/function)

information source only

88% share of

total time spent on media usage

3.4 hours

spent on watching TV

daily

A SOURCE OF ENTERTAINMENT• A RELIABLE

SOURCE OF PRODUCT

INFORMATION

MOST TRUSTWORTHY

SOURCE

A SOURCE OF INOFRMATION

A SOURCE OF PRODUCT

INFORMATION


29%

40%

69%

69%

69%

57%

38%

47%

50%

42%

20%

20%

36%

48%

16%

18%

Ownership/Usage of

smartphone:

12% vs 71% for Feature

phone


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RURAL CONSUMERS LIKE IT AS REAL AS IT CAN GETAuthenticity hits home


48% want

simple, easy to understand

47% like

close-to-life scenes

46% like

family-related scenes

40% like

funny plots

SIMPLE

What do you like about your favorite TVCs?


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HOW TO WIN IN THE RURAL MARKET?

UNDERSTAND YOUR RURAL CONSUMERS

KNOW WHERE, HOW AND WHAT THEY BUY

EMBRACE THEIR TOUCHPOINTS

• EMBRACE THEIR VALUES (Authenticity, Resilience, Sharing and Bonding)

• DELIGHT THEIR NEEDS (Assurance, Progression, Social conformity)

• PAY ATTENTION TO DIVERSITY

• DELIVER ‘REAL VALUE’

• GROW CATEGORIES BY HELPING CONSUMERS TO PROGRESS

• CAPTIVATE THE POWER OF WOM

• DRIVE RETAILERS TO BECOME BRAND AMBASSADORS

• FOCUS ON TV BUT ALSO CONSIDER DIGITAL IF TARGETING YOUNG CONSUMERSVisit VietnamBusiness.TV

for business videos, news & research

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This slideshow is from a presentation at the M2 Marketing & Media events in Ho Chi Minh City, Vietnam organized by ITV-Asia.com and VietnamBusiness.TV

To see videos from the events, interviews with speakers andto get information on upcoming M2 - Marketing & Media Network events

Please visit VietnamBusiness.TV

demystifying the rural consumer in vietnam

Marketing

nielsen company

nielsen rural study

nielsen rural syndicated

rural census

rural vietnamsource

news research copyright

tvforbusiness videos

nielsen regional difference